24 May 2019 Afternoon Session Analysis
Safe-haven dominates market, trade war in focus.
Dollar index measuring against a basket of six major currency pairs was traded flat at 97.68 after retracing from its 2-year high on yesterday amid poor business activity and downbeat housing data. However, poor sentiment towards riskier assets caused investors to flee into safe-haven Yen and gold market, causing a large demand for both assets amid yesterday’s woes. For the past few weeks, the FX market was heavily affected by mixed signals from US-China trade war where it escalated into additional tit-for-tat tariff between the two economic powerhouses, increasing uncertainties within the market while boosting dollar’s appeal. Moreover, with Brexit uncertainties weighing on Eurozone market and ongoing trade war tensions led investors into parking their investment into safe-haven market while they wait for further signal in the market. As of writing, pair of USD/JPY was quoted lower by 0.06% to 109.56.
As for commodities market, crude oil price rebounds by 0.74% to $58.65 per barrel after plunging more than 6% yesterday, recording a largest fall in oil prices for the year of 2019. Oil market sentiment remained sour amid increasing oil inventories in the US reported by API and EIA. Besides that, fears of lower demand for the commodity amid trade war tensions and concerns of global economic recession further the bearish momentum for oil price. As for the gold market, the safe haven asset edged higher by 0.04% to $1283.65 per troy ounce amid market risk aversion.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Retail Sales (MoM) (Apr) | 1.1% | -0.3% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Apr) | 0.2% | 0.2% | – |
| 01:00
(25th) |
CrudeOIL – US Baker Hughes Oil Rig Count | 802 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 97.70. MACD which illustrate bearish bias signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 98.00, 98.50
Support level: 97.70, 97.40
GBPUSD, H4: GBPUSD was traded higher following recent rebound from the support level 1.2615. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.2705.
Resistance level: 1.2705, 1.2795
Support level: 1.2615, 1.2550
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level 1.1175. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a short term technical correction towards the current support level 1.1175.
Resistance level: 1.1215, 1.1245
Support level: 1.1175, 1.1145
USDJPY, H4: USDJPY was traded lower while currently testing the support level 109.55. However, MACD which illustrate diminishing bearish bias signal suggest the pair to undergo a short term technical correction towards the resistance level 109.90
Resistance level: 109.90, 110.25
Support level: 109.55, 109.05
AUDUSD, H4: AUDUSD remain traded in a sideway channel following recent retracement from the resistance level 0.6900. MACD which illustrate bearish bias signal suggest the pair to extend its retracement towards the support level 0.6865.
Resistance level: 0.6900, 0.6930
Support level: 0.6865, 0.6825
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6525. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 0.6475.
Resistance level: 0.6525, 0.6580
Support level: 0.6475, 0.6420
USDCAD, H4: USDCAD remained traded in a sideway channel while currently retest the resistance level 1.3475. However, MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower towards the support level 1.3415.
Resistance level: 1.3475, 1.3520
Support level: 1.3415, 1.3380
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level 1.0050. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction towards the resistance level 1.0050.
Resistance level: 1.0050, 1.0080
Support level: 1.0005, 0.9965
CrudeOIL, H4: Crude oil price was traded higher following recent rebound from the support level 58.10. MACD which illustrate bullish bias signal suggest the commodity to extend its rebound towards the resistance level 60.10.
Resistance level: 60.10, 61.20
Support level: 58.10, 56.95
GOLD_, H4: Gold price was traded lower following prior retracement from its high level. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement towards the support level 1279.10.
Resistance level: 1289.40, 1294.15
Support level: 1279.10, 1272.80