26 September 2019 Morning Session Analysis
US-Ukraine transcript thwart impeachment ambitions.
US dollar extended its gains to one-and-a-half-week high on yesterday following the release of transcript between US President Donald trump and Ukrainian President Volodymyr Zelensky. Prior, House of Representatives opened a formal impeachment inquiry upon Trump with regards to seeking help from Ukraine to investigate former Vice President Joe Biden in exchange for foreign aid. While the transcript revealed that Trump did ask Zelensky for such favour, no direct mention of foreign aid was being made. The transcript failed to intensify the inquiry as no direct pressure was being asserted by the US towards Ukraine. As such, it has diminished the chances for an impeachment for the time being. In addition, greenback received additional bullish support after New Home Sales for the month of August came in at 713K units, significantly higher than forecast of only 660K units. For the time being, investors will scrutinize US Gross Domestic Product data which is bound to be released later tonight. On the other hand, pair of GBP/USD slumped 0.03% to 1.2355. Pound sterling fell sharply on yesterday due to Brexit uncertainties as the 31st October deadline approaches. Following the resumption of UK Parliament, PM Boris Johnson addressed to opposition party to call for a no-confidence vote or to stand aside and vote for any deals that Johnson receives.
In the commodities section, crude oil price rebounds by 0.02% to $56.66 per barrel. Although crude oil inventories came in at a slightly higher value, US Weekly Distillates Stocks slumped more than expected which has sparked some bullish bets following the release of both data. On the other hand, gold price managed to recover its losses by 0.08% to $1,504.81 a troy ounce following overnight’s losses due to a stronger greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 EUR ECB President Draghi Speaks
21:45 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – GDP (QoQ) (Q2) | 2.0% | 2.0% | – |
| 20:30 | USD – Initial Jobless Claims | 208K | 212K | – |
| 22:00 | USD – Pending Home Sales (MoM) (Aug) | -2.5% | 0.9% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from 98.65. MACD which illustrate diminished upward momentum suggests the index to be traded lower in short-term as technical correction.
Resistance level: 98.65, 99.00
Support level: 98.40, 98.30
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower levels. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 1.2400, 1.2515
Support level: 1.2320, 1.2260
EURUSD, H4: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1010, 1.1070
Support level: 1.0930, 1.0870
USDJPY, H4: USDJPY was traded lower following prior retrace from the higher level. MACD which illustrate diminished upward momentum suggests the pair to be traded lower after closing below 107.60.
Resistance level: 108.05, 108.45
Support level: 107.60, 107.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support of 0.6750. MACD which illustrate positive divergence signal suggests the pair to be traded higher in short-term.
Resistance level: 0.6800, 0.6830
Support level: 0.6750, 0.6705
NZDUSD, H4: NZDUSD was traded lower following prior closure below 0.6290. MACD which illustrate bearish signal suggests the pair to extend its losses in the mid-term.
Resistance level: 0.6290, 0.6320
Support level: 0.6250, 0.6220
USDCAD, H4: USDCAD was traded lower while currently testing at the support of 1.3255. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 1.3280, 1.3315
Support level: 1.3255, 1.3220
USDCHF, H4: USDCHF was traded lower following prior retrace from its higher levels. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term.
Resistance level: 0.9925, 0.9970
Support level: 0.9865, 0.9820
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support of 55.55. MACD which shows diminishing downward momentum suggests its price to be traded higher in short-term.
Resistance level: 57.30, 58.70
Support level: 55.55, 54.45
GOLD_, H1: Gold price was traded higher following prior rebound from the lower levels. MACD which illustrate diminished downward momentum suggests its price to be traded higher in short-term.
Resistance level: 1509.00, 1523.00
Support level: 1494.50, 1483.50