22 October 2019 Afternoon Session Analysis
Will China and US able to reach a deal?
Dollar index which gauge its value against a basket of six major currencies was traded flat despite US President Donald Trump praises that trade talk with China were going well. Recently, Trump revealed that he hopes the first phase of trade deal can be achieved as soon as possible as US and China were putting a lot of effort on ending the trade war issue, which has trapped both economies for more than 1 year. After deputy level talk with China, US Trade Representative Robert Lighthizer added that they aim to finalize the first phrase deal shortly and expect to achieve a deal during Asia Pacific Economic Cooperation meetings in Chile on 16th and 17th November. Besides, it is also noteworthy that US may withdraw the plan of imposing 15% tariff on China technology imported goods which including cellphone and laptop if the negotiation continues to go well, said by White House economic adviser Larry Kudlow. On the other hand, the pair of EUR/USD lingered around 1.1150 level while investor are waiting for the ECB meeting on this Thursday. After ECB unleashing a wave of stimulus measures on September including restarting the bond purchasing program and interest rate cut, markets are now eye on the next step of ECB monetary policy, whether if ECB will continue loosening their monetary policy in order to further support their economy. As of now, dollar index inched down 0.04% to 96.95 while EUR/USD rose 0.03% to 1.1150.
In the commodities market, crude oil price dropped 0.30% to $53.30 per barrel amid recent weak China data continue to weigh on this commodity while investors focus on the development of trade talk between China and US. On the other hand, gold price quoted down 0.02% to $1484.00 a troy ounce amid market risk sentiment remain blurred.
Today’s Holiday Market Close
Time Market Event
All Day JPY Japan – Holiday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core Retail Sales (MoM) (Aug) | -0.1% | 0.1% | – |
| 22:00 | USD – Existing Home Sales (Sep) | 5.49M | 5.45M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 97.05. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 97.05, 97.45
Support level: 96.45, 96.05
GBPUSD, Daily: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.2915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level 1.3160, 1.3305
Support level: 1.2915, 1.2745
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1185. MACD which illustrated diminishing bullish momentum suggest the pair to extend it losses toward support level at 1.1125.
Resistance level: 1.1185, 1.1245
Support level: 1.1125, 1.1075
USDJPY, Daily: USDJPY was traded higher while currently near the resistance level at 108.90. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 108.90, 109.75
Support level: 107.75, 106.95
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6880. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain after it successfully breakout above the resistance level.
Resistance level: 0.6880, 0.6925
Support level: 0.6845, 0.6805
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6385. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6445, 0.6495
Support level: 0.6385, 0.6340
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3075. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3145, 1.3205
Support level: 1.3075, 1.3020
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9850. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain toward the resistance level at 0.9905.
Resistance level: 0.9905, 0.9940
Support level: 0.9850, 0.9805
CrudeOIL, H1: Crude oil price was traded within a range while currently testing the resistance level at 53.55. MACD which illustrated diminishing bullish momentum suggest its price to be traded lower in short-term.
Resistance level: 53.55, 54.25
Support level: 52.90, 52.05
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1481.80. However, MACD which illustrated diminishing bearish momentum suggest its price to be traded higher as technical correction in short-term.
Resistance level: 1490.65, 1498.25
Support level: 1481.80, 1474.40