20 September 2018 Daily Analysis
Dollar falls amid increasing tension in trade war.
The dollar fell by 0.05% to 94.00 at early Asian trading session against a basket of six major currencies while hitting a seven-week low yesterday amid the increasing tension of trade war where both the US and China had imposed tariffs on each other’s goods. US President Donald Trump announced a 10% tariff on $200 billion goods from China this Monday followed by a threat to impose another round of tariff if China were to retaliate. The trade war continued as China also announced tariff on $60 billion goods from US as a sign of retaliation. Although the tariffs imposed was less than the expectations of investors, attention will be focused on Trump’s next move in the trade war as a sentiment for the dollar. In other news, the pound sterling fluctuated vigorously yesterday amid the releasement of UK’s CPI for the month of August as well as the comments from EU Commission President, Jean-Claude Juncker where he stated that the EU and UK were still far away from a Brexit agreement followed by UK President Theresa May’s rejection for a second referendum. The positive sentiment from UK’s CPI led the pound to an increased before plunging down after the poor sentiment from Brexit news.
As for the commodities market, crude oil edged up by 0.29% to $71.20 per barrel amid the decreased in US crude oil inventories followed by signals where OPEC may not raise output in relation to reducing supplies from Iran. On the other hand, gold price increased by 0.14% to $1205.40 per troy ounce as dollar index continues to plunge.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:30 CHF SNB Monetary Policy Assessment
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | CHF – SNB Interest Rate Decision | -0.75% | -0.75% | – |
| 16:30 | GBP – Retail Sales (MoM) (Aug) | 0.7% | -0.1% | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Sep) | 11.9 | 17.0 | – |
| 22:00 | USD – Existing Home Sales (Aug) | 5.34M | 5.35M | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3145. MACD which illustrate bullish momentum and the starting formation of golden cross suggest the pair to extend its gains towards the resistance level 1.3195.
Resistance level 1.3195, 1.3285
Support level: 1.3145, 1.3085
EURUSD
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1690. MACD which display bearish momentum suggest the pair to extend its retracement towards the support level 1.1645.
Resistance level: 1.1690, 1.1730
Support level: 1.1645, 1.1615
USDJPY
USDJPY, H4: USDJPY was recently traded lower following prior breakout below the previous support level 112.20. MACD which illustrate bearish momentum and the formation of a death cross suggest the pair to extend its losses towards the support level 111.95.
Resistance level: 112.20, 112.60
Support level: 111.95, 111.65
CrudeOIL
CrudeOIL, H4: Crude oil price was recently traded higher while currently testing the resistance level 71.25. MACD which illustrate persistent bullish momentum suggest the commodity to extend its gains after a breakout above the resistance level 71.25
Resistance level: 71.25, 72.40
Support level: 70.45, 69.50
GOLD
GOLD, H4: Gold price was recently traded higher following prior breakout above the previous resistance level 1203.30. Recent price action and MACD which display bullish bias suggest the commodity to extend its gains towards the resistance level 1207.80.
Resistance level: 1207.80, 1212.70
Support level: 1203.00, 1196.00