23 October 2018 Afternoon Session Analysis
Safe-haven market gains amid Brexit woes.
Greenback strengthen amid current safe-haven position from risky markets uncertainties, especially from Brexit and Italy’s GDP budget plan. Market condition at early European trading session was slow except for the Japanese Yen market which receive a large buy-off as Brexit faces an impasse as UK Prime Minister Theresa May faces the pressure at EU and with her own Parliament. With the current decision to remain in a custom union with the EU, investors fear that the deadline for Brexit would be delayed longer. Further worsening investors’ risk appetite was the rejection of Italy’s GDP budget plan where they propose for a 2.4% of GDP to be used as government expenditure. The negative sentiment surrounding the risky assets influence the investors to shift their investment to safe haven market, increasing the dollar by 0.12% to 95.80 while pair of USD/JPY decreased by 0.32% to 112.40 as of writing.
As for commodities market, crude oil price plunged by 0.56% to $69.00 per barrel amid reports that Saudi Arabia promised to balance the shortfall of crude supply from the upcoming Iran sanction. On the other hand, gold price increases by 0.26% to $1,227.30 a troy ounce following higher demand amid lower risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 USD FOMC Member Kashkari Speaks
23:20 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German PPI (MoM) (Sep) | 0.3% | 0.3% | – |
| 18:00 | GBP – CBI Industrial Trends Orders (Oct) | -1 | -1 | – |
| 04:30 (24th) | CrudeOIL – API Weekly Crude Oil Stock | -2.100M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 95.80. MACD which illustrate diminishing bullish momentum suggest the dollar to retrace from the resistance level towards the support level 95.20.
Resistance level: 95.80, 96.30
Support level: 95.20, 94.60
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.2955. MACD which display bearish bias suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 1.3015, 1.3085
Support level: 1.2955, 1.2910
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1445. MACD which illustrate bearish momentum and the formation of a death cross suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 1.1495, 1.1540
Support level: 1.1445, 1.1420
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 112.40. MACD which display bearish signal and the starting formation of death cross suggest the pair to extend its losses after a breakout below the support level.
Resistance level: 112.75, 113.20
Support level: 112.40, 111.90
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7080. MACD which illustrate persistent bearish momentum suggest the pair to extend its losses towards the support level 0.7040.
Resistance level: 0.7080, 0.7100
Support level: 0.7040, 0.7010
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level 0.6530. MACD which illustrate starting bullish momentum suggest the pair to extend its rebound towards the resistance level 0.6575.
Resistance level: 0.6575, 0.6610
Support level: 0.6530, 0.6495
USDCAD, H4: USDCAD was traded lower following a retrace from the downward trendline. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3130. 1.3175
Support level: 1.3065, 1.3000
USDCHF, H1: USDCHF remains traded within a sideways channel while currently testing at the mid-level. MACD which illustrate bearish momentum suggest the pair to be traded lower after a breakout below the support level 0.9955.
Resistance level: 1.0000, 1.0030
Support level: 0.9955, 0.9920
CrudeOIL, H1: Crude oil price remains traded within a sideways channel following prior retrace from the resistance level 69.80. MACD which illustrate bearish momentum and the formation of a death cross suggest the commodity to be traded lower towards the support level 68.70.
Resistance level: 69.80, 71.00
Support level: 68.70, 67.90
GOLD_, H1: Gold price remains traded within a sideway channel following prior breakout above the weak resistance level at 1225.05. MACD which illustrate bullish momentum suggest gold price to be traded higher after a breakout above the channel.
Resistance level: 1229.35, 1233.50
Support level: 1225.05, 1220.40