26 November 2018 Afternoon Session Analysis
Dollar fell ahead of meeting between US and China.
Dollar was traded lower against a basket of six major currencies ahead of early European trading session amid Friday’s meeting between US President Donald Trump and China President Xi Jinping right before the G20 summit. The meeting will be crucial for the ongoing trade war between the two countries, where investors are hoping for a hawkish tone from the meeting which could stop tensions from growing as two of the world’s largest economy engage in tariff imposing on each other. In other news, pair of GBP/USD was traded higher amid fall of dollar. Currently the outlook for the pound market remains subtle after EU’s approval of UK Prime Minister Theresa May’s Brexit withdrawal agreement. Investors will now focus on UK Parliament’s decision towards the draft where a rejection will be devastating for the pound. Dollar index fell by 0.04% to 96.75 while pair of GBP/USD inched higher by 0.06% to 1.2820 as of writing.
As for commodities market, crude oil price rallied by 0.26% to $51.15 per barrel ahead of early European trading session as a technical correction after plunging to a 13-month low. Sentiment remains cloudy in the oil market as participants are waiting for a possible change in trend after OPEC’s meeting on 6th December. On the other hand, gold price increased by 0.19% to $1,224.95 a troy ounce due to dollar’s fall.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 EUR ECB President Draghi Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 17:00 | EUR – German Ifo Business Climate Index | 102.8 | 102.3 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above previous resistance level at 96.70. MACD which illustrate diminishing bullish momentum suggest dollar to be traded lower after breaking below the support level 96.70.
Resistance level: 97.00, 97.40
Support level: 96.70, 96.40
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level 1.2800. MACD which illustrate starting bullish momentum and the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.2855.
Resistance level: 1.2855, 1.2905
Support level: 1.2800, 1.2740
EURUSD, H1: EURUSD was traded higher while currently testing near the resistance level 1.1340. MACD which display bullish momentum and the formation of golden cross suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 1.1340, 1.1370
Support level: 1.1310, 1.1270
USDJPY, H1: USDJPY was traded higher while currently testing near the resistance level 113.25. MACD which illustrate diminishing bullish momentum suggest the pair to undergo short-term technical correction and retrace from the resistance level.
Resistance level: 113.25, 113.50
Support level: 112.95, 112.60
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.7230. MACD which illustrate bullish momentum and starting formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.7265.
Resistance level: 0.7265, 0.7290
Support level: 0.7230, 0.7200
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6795. MACD which display bullish momentum suggest the pair to extend its gains after a breakout above the resistance level.
Resistance level: 0.6795, 0.6845
Support level: 0.6755, 0.6710
USDCAD, H1: USDCAD was traded lower following prior breakout below the previous support level 1.3210. MACD which display bearish momentum and the formation of death cross suggest the pair to extend its losses towards the support level 1.3180.
Resistance level: 1.3210, 1.3260
Support level: 1.3180, 1.3145
USDCHF, H1: USDCHF was traded lower following prior retracement near the resistance level 0.9990. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its retracement towards the support level 0.9955.
Resistance level: 0.9990, 1.0030
Support level: 0.9955, 0.9915
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 51.35. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains after a breakout above the resistance level.
Resistance level: 51.35, 52.45
Support level: 49.60, 48.00
GOLD_, H4: Gold price was traded higher while currently testing near the resistance level 1225.50. MACD which display diminishing bearish momentum suggest the commodity to extend its gains after a breakout above the resistance level.
Resistance level: 1225.50, 1231.00
Support level: 1221.10, 1216.80
Highlighted economy data and events for the week: November 26 – 30
| Monday, November 26 |
Data EUR – German Ifo Business Climate Index
Events EUR – ECB President Draghi Speaks
|
| Tuesday, November 27 |
Data NZD – Trade Balance (MoM) (Oct) USD – CB Consumer Confidence (Nov)
Events GBP – BoE Gov Carney Speaks
|
| Wednesday, November 28 |
Data USD – GDP (QoQ) (Q3) USD – New Home Sales (Oct) CrudeOIL – API Weekly Crude Oil Stock CrudeOIL – Crude Oil Inventories
Events NZD – RBNZ Gov Orr Speaks
|
| Thursday, November 29 |
Data EUR – German Unemployment Change (Nov) USD – Pending Home Sales (MoM) (Oct)
Events USD – Fed Chair Powell Speaks EUR – ECB President Draghi Speaks
|
|
Friday, November 30
|
Data CNY – Manufacturing PMI (Nov) EUR – CPI (YoY) (Nov) CAD – GDP (MoM) (Sep)
Events USD – FOMC Meeting Minutes
|