27 September 2018 Afternoon Session Analysis
Dollar surged in reacting to Fed’s rate hike.
Dollar index surged to new high since last week after US Federal Reserve raised their interest rates as expected for the eighth time, achieving the forecasted value of 2.25% compared to the previous interest rate of 2.00% while at the same time removing its’ ‘accommodative’ policy which provided positive sentiment to investors as they will expect another rate hike by the end of this year. The dollar increased by 0.34% to 94.10 as of writing. On the other hand, New Zealand’s Kiwi fell by 0.30% to 0.6640 as of writing. Reserve Bank of New Zealand (RBNZ) maintained their interest rate unchanged at record low of 1.75% where it is expected to remains the same throughout 2019 and 2020. However, due to the risks of their growth outlook, RBNZ Governor Adrian Orr stated that the rate might change according to current economy situation and gloomy business confidence which possess the chance of hurting overall investment and economic growth.
As for the commodities market, crude oil price increased by 0.57% to $72.40 per barrel after US ruled out the usage of emergency crude reserve that may offset the lack of crude supply from Iran. On the other hand, gold price fell by 0.33% to $1194.00 as dollar surges from the late reaction of investors towards yesterday’s Fed rate hike.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative CrudeOIL OPEC Meeting
21:30 EUR ECB President Draghi Speaks
22:00 GBP BoE Gov Carney Speaks
04:30 (28th) USD Fed Chair Powell Speaks
05:45 CAD BoC Gov Poloz Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – GfK German Consumer Climate (Oct) | 10.5 | 10.6 | – |
| 20:00 | EUR – German CPI (MoM) (Sep) | 0.1% | 0.1% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Aug) | 0.1% | 0.4% | – |
| 20:30 | USD – GDP (QoQ) (Q2) | 4.2% | 4.2% | – |
| 22:00 | USD – Pending Home Sales (MoM) (Aug) | -0.7% | -0.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 93.90. MACD which illustrate persistent bullish momentum suggest the dollar to extend its gains towards the resistance level 94.30.
Resistance level: 94.30, 94.80
Support level: 93.90, 93.40
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level 1.3175. Recent price action and MACD which display persistent bearish momentum suggest the pair to extend its losses towards the support level 1.3100.
Resistance level: 1.3175, 1.3215
Support level: 1.3100, 1.3055
EURUSD, H1: EURUSD was traded lower while currently testing near the support level 1.1690. MACD which illustrate bearish momentum suggest the pair to extend its losses after a breakout below the support level 1.1690.
Resistance level: 1.1730, 1.1770
Support level: 1.1690, 1.1645
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance 112.85. Recent price action and MACD which illustrate persistent bearish momentum suggest the pair to extend its losses towards the support level 112.50.
Resistance level: 112.85, 113.10
Support level: 112.50, 112.20
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7215. MACD which illustrate bearish momentum suggest the pair to extend its losses after a breakout below the support level 0.7215.
Resistance level: 0.7295, 0.7355
Support level: 0.7215, 0.7135
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6635. MACD which display bearish momentum suggest the pair to extend its losses after a breakout below the support level 0.6635.
Resistance level: 0.6690, 0.6765
Support level: 0.6635, 0.6595
USDCAD, H4: USDCAD was recently traded higher while currently testing near the resistance level 1.3045. MACD which illustrate bullish momentum suggest the pair to extend its gains after a breakout above the resistance level 1.3045.
Resistance level: 1.3045, 1.3105
Support level: 1.2975, 1.2900
USDCHF, H1: USDCHF was traded higher following recent breakout above the previous support level 0.9675. Recent price action and MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains towards the resistance level 0.9700.
Resistance level: 0.9700, 0.9755
Support level: 0.9675, 0.9650
CrudeOIL, H4: Crude oil price was higher while currently testing near the resistance level 72.40. MACD which illustrate starting bullish momentum suggest the commodity to extend its gains after a breakout above the resistance level 72.40.
Resistance level: 72.40, 73.00
Support level: 71.25, 70.45
GOLD_, H1: Gold price was traded lower while currently testing near resistance level 1196.00. MACD which illustrate bearish momentum suggest the commodity to extend its losses after a retracement from the resistance level 1196.00.
Resistance level: 1196.00, 1203.30
Support level: 1191.10, 1186.80