18 February 2019 Afternoon Session Analysis
Greenback eases, trade war to end soon?
Greenback was marginally lower during mid-Asian trading session following higher optimism towards the resolution of trade war between US and China. As of writing, the dollar index was down 0.17% to 96.74. Both US and China have reported significant progress over five days of negotiation which have encouraged investors to shift away from safe-haven currencies into riskier assets. Negotiation will continue to next week in Washington while investors hope for an end to the trade war between two of the world largest economies. Following broad weakness experienced by the greenback, pair of EUR/USD rose 0.22% to 1.1317. However, gains on the currency remains limited as market participants expects European Central Bank (ECB) to keep their monetary policy accommodative due to diminishing economic momentum. Last Friday, ECB executive board member Benoit Coeure commented that a new round of cheap multi-year loans to bank may be possible as recent slowdown is more pronounced than previously expected.
In terms of commodity market, crude oil price ticks up 0.02% to $55.77 per barrel. Oil prices rose to its highest level since November last year following positive signs in the US-China trade talks which help to boost risk-asset demand in the financial market. Otherwise, gold price rose 0.23% to $1,324.47 a troy ounce following broad weakness on the greenback.
Today’s Holiday Market Close
Time Market Event
All Day CAD Family Day
All Day USD Washington’s Birthday
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 96.90. MACD which illustrate bearish momentum with the formation of death cross suggest the dollar to extend its losses following a breakout at the support level of 96.50.
Resistance level: 96.90, 97.15
Support level: 96.50, 96.05
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.2845. MACD which illustrate bullish bias with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.2960.
Resistance level: 1.2960, 1.3080
Support level: 1.2845, 1.2720
EURUSD, H4: EURUSD was traded higher while currently testing near the resistance level 1.1310. MACD which illustrate bullish momentum with golden cross formation suggest the pair to extend its gains after it breaks above the resistance level 1.1310.
Resistance level: 1.1350, 1.1405
Support level: 1.1310, 1.1260
USDJPY, H4: USDJPY was traded flat after it breaks below the previous support level 110.65 recently. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher after it breaks back above the resistance level at 110.65.
Resistance level: 110.65, 111.40
Support level: 110.00, 108.95
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level 0.7155. MACD which illustrate bullish bias with the formation of golden cross suggest the pair to extend its gains following a breakout at the resistance level 0.7155.
Resistance level: 0.7155, 0.7190
Support level: 0.7130, 0.7105
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level 0.6905. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.6905.
Resistance level: 0.6905, 0.6935
Support level: 0.6870, 0.6845
USDCAD, H4: USDCAD was traded lower following recent breakout below the previous support level 1.3260. MACD which illustrate bearish momentum with the formation of death cross suggest the pair to extend its losses towards the support level 1.3205.
Resistance level: 1.3260, 1.3310
Support level: 1.3205, 1.3125
USDCHF, H4: USDCHF was traded lower while currently testing the support level 1.0025. MACD which illustrate persistent bearish momentum suggest the pair to extend its losses after it breaks below the support level at 1.0025.
Resistance level: 1.0085, 1.0115
Support level: 1.0025, 0.9985
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level 55.75. MACD which illustrate bullish momentum suggest the commodity to extend its gains towards the resistance level 57.50.
Resistance level: 57.50, 59.20
Support level: 55.75, 54.30
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level 1323.10. MACD which illustrate bullish momentum suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 1323.10, 1329.10
Support level: 1315.50, 1309.70