14 May 2019 Afternoon Session Analysis
Greenback succumbed following Trade war escalated.
Dollar index which gauge its value against six major currencies stunned amid trade war tension which continues to haunt the global market. Market participants shifted their portfolio investment toward safe haven asset such as gold and Japanese Yen due to rising risks. Earlier, China has announced to impose higher tariff on $60billion worth of US goods including frozen vegetables and liquefied natural gas, a retaliation from China following US decision of tariff hike on China goods last week. Nonetheless, US President Donald Trump yesterday has made an announcement that although they are not ready to go ahead with tariff hike on another $325 billion China goods yet, but asserted that they will not let China to take advantage on the trade deal. After all, China and US trade talk are still ongoing while Donald Trump also remarked that G20 Summit in Japan will be the crucial meeting between both countries President to finalize the trade deal. As of now, Dollar index quoted down 0.01% to 97.05. On the other hand, the pair of GBP/USD inched up 0.04% to 1.2960 despite Tory and Labor splits set to bring cross-party Brexit talks to an end. UK Prime Minister Theresa May and her ‘dissatisfied’ party member are meeting to decide whether to cut off the cross-party meeting that have failed to achieve a substantial deal.
On the other hand, crude oil price spiked up 0.58% to $61.15 per barrel amid two of the oil tankers in Saudi Arabia were attacked off nearby coast of the United Arab Emirates and investors reacted to this news by speculating the crude oil price. Besides, gold price edged down 0.02% to $1299.60 a troy ounce after hitting a new high level of $1300 since 11th April amid trade war escalation.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 CrudeOIL OPEC Monthly Report
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Average Earnings Index +Bonus (Mar) | 3.5% | 3.4% | – |
| 16:30 | GBP – Claimant Count Change (Apr) | 28.3K | 24.2K | – |
| 17:00 | EUR – German ZEW Economic Sentiment (May) | 3.1 | 5.1 | – |
| 17:00 | EUR – Industrial Production (MoM) (Mar) | -0.2% | -0.3% | – |
| 17:00 | EUR – ZEW Economic Sentiment | 4.5 | 5.0 | – |
| 04:30
(15th) |
CrudeOIL – API Weekly Crude Oil Stock | 2.806M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remained traded flat above the support level 97.00. Due to lack of signal and momentum from the MACD, a breakout below or rebound from the support level is required to obtain further confirmation before entering the market.
Resistance level: 97.60, 98.25
Support level: 97.00, 96.35
GBPUSD, H4: GBPUSD was traded lower following prior breakout below previous support level at 1.3000. MACD which display bearish momentum suggest the pair to extend its losses towards the support level 1.2925.
Resistance level: 1.3000, 1.3105
Support level: 1.2925, 1.2865
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1240. However, MACD which display diminishing bullish momentum suggest the pair to undergo short-term technical correction and retrace towards the support level 1.1185.
Resistance level: 1.1240, 1.1305
Support level: 1.1185, 1.1145
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 109.55. MACD which display bullish bias signal suggest the pair to extend its gains after successfully closing above the resistance level.
Resistance level: 109.55, 110.10
Support level: 109.15, 108.45
AUDUSD, H4: AUDUSD was traded lower after breaking below previous support level 0.6970. However, MACD which display diminishing bearish momentum suggest the pair to undergo short-term technical correction and rebound back towards the resistance level at 0.6970.
Resistance level: 0.6970, 0.7030
Support level: 0.6915, 0.6855
NZDUSD, H4: NZDUSD was traded higher after breaking above previous resistance level 0.6580. MACD which illustrate bullish momentum and the starting formation of golden cross suggest the pair to extend its gains towards the resistance level 0.6635.
Resistance level: 0.6635, 0.6675
Support level: 0.6580, 0.6540
USDCAD, H4: USDCAD remained traded in a sideway channel while currently testing near the top level of the channel at 1.3485. However, MACD which illustrate diminishing bullish momentum suggest the pair to retrace from the resistance level towards the support level at 1.3435.
Resistance level: 1.3485, 1.3530
Support level: 1.3435, 1.3380
USDCHF, H4: USDCHF was traded lower after breaking below previous support level at 1.0070. However, MACD which illustrate diminishing bearish momentum suggest the pair to undergo short-term technical correction and traded higher.
Resistance level: 1.0070, 1.0130
Support level: 1.0015, 0.9960
CrudeOIL, H4: Crude oil price was traded higher after rebounding from its low-levels. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its rebound towards the resistance level 61.80.
Resistance level: 61.80, 63.15
Support level: 60.15, 58.45
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level 1302.50. MACD which illustrate diminishing bullish momentum suggest gold to extend its retracement towards the support level 1295.65.
Resistance level: 1302.50, 1311.40
Support level: 1295.65, 1287.85