18 November 2019 Morning Session Analysis
Greenback fell over contracting manufacturing sector.
US dollar fell last Friday after recent economic data shows that manufacturing sector in the United States continues its contraction for last month. According to recent report from Federal Reserve, manufacturing output in the month of October fell to 0.6%, its largest contraction since May 2018. On the other hand, NY Empire State Manufacturing Index tumbled from 5.0 to 2.9 as expected. Diminishing activity in manufacturing sector sparks concerns over US economic momentum as trade war effect begins to manifest as of recent. However, losses on the greenback were limited after Retail Sales for the month of October rose by 0.3%, slightly higher than forecast of 0.2%. The data shows that overall consumer spending is still intact although some sectors in the United States undergo diminished activity due to trade war. On the other hand, pound sterling extended its gains following positive developments with regards to upcoming general election on 12th December. Head of Brexit party Nigel Farage announced that he decided to step down from 43 additional constituencies where Labor party has won, facilitating the way for Conservative Party to win the next general election and execute the Brexit agreement. As of writing, the dollar index fell 0.17% to 97.80 while pair of GBP/USD rose 0.13% to 1.2916.
As for commodities market, crude oil price ticked up 0.01% to $57.86 per barrel. Oil futures received additional bullish support following recent positive developments with regards to US-China trade negotiation which may substantially reduces global recession risk in the future. On the other hand, gold price ticked down 0.02% to $1,467.37 a troy ounce due to diminishing risk in the market.
Today’s Holiday Market Close
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Today’s Highlight Events
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior close below 97.80. MACD which illustrate bearish signal suggests the index to extend its losses in the mid-term.
Resistance level: 97.80, 98.10
Support level: 97.60, 97.35
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.2970.
Resistance level: 1.2970, 1.3035
Support level: 1.2880, 1.2820
EURUSD, Daily: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to extend its gains, towards the direction of 1.1085.
Resistance level: 1.1085, 1.1145
Support level: 1.1010, 1.0965
USDJPY, Daily: USDJPY remains traded within an ascending wedge formation. However, MACD which has formed a bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 109.30, 110.55
Support level: 108.50, 107.60
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the lower level. MACD which forms a bullish signal suggests the pair to extend its gains after breaking the resistance at 0.6820.
Resistance level: 0.6820, 0.6875
Support level: 0.6780, 0.6725
NZDUSD, H4: NZDUSD was traded higher while currently testing at the resistance of 0.6405. However, MACD which illustrate diminished upward momentum suggests the pair to undergo technical correction in short-term.
Resistance level: 0.6405, 0.6430
Support level: 0.6370, 0.6340
USDCAD, H4: USDCAD was traded lower after breaking the upward trendline. MACD which illustrate bearish signal suggests the pair to extend its losses in mid-term.
Resistance level: 1.3240, 1.3285
Support level: 1.3200, 1.3125
USDCHF, H1: USDCHF was traded flat near the support level of 0.9885. MACD which has formed a bearish signal suggests the pair to extend its losses in short-term after closing below 0.9885.
Resistance level: 0.9915, 0.9940
Support level: 0.9885, 0.9870
CrudeOIL, H1: Crude oil price was traded lower following prior retrace from its higher level. MACD which illustrate diminished upward momentum suggests its price to experience technical correction in short-term.
Resistance level: 58.65, 59.00
Support level: 57.40, 56.95
GOLD_, Daily: Gold price was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests its price to be traded higher in short-term as technical correction.
Resistance level: 1483.60, 1515.00
Support level: 1442.90, 1410.00