27 September 2018 Morning Session Analysis
Fed: Accommodative policy era comes to an end.
Greenback edged higher earlier today after US Federal Reserve raise their interest rates as expected for the eighth time, indicating for more future rate hikes and signaled the end of “accommodative” policy era. The dollar index ticks up 0.04%, last quoted around 93.78. Fed policymakers raised their benchmark rate by 25-basis points to a range of 2.00% – 2.25%. The central bank also removed the keyword “accommodative” from their policy statement, reiterates for further rate hikes in the future as unemployment heads towards multi decades low. On the other hand, pair of USD/CAD rose 0.08% to 1.3031 during Asian trading session. Canadian dollar received some bearish pressure after US President Donald Trump threatens again to impose tariffs upon Canadian-manufacturing automobiles while current NAFTA negotiation between US-Canada entrenched in immovable positions.
In the commodities market, crude oil price rebounds by 0.58% to $72.73 per barrel after US Energy Secretary Rick Perry stated that the nation’s strategic oil reserves would not be utilized to expand global crude supplies. Similarly, gold price rose 0.22% to $1,197.08 a troy ounce after investors rushed in to buy back the commodity from a lower price point.
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 has recently broken out from the top level of descending channel. MACD histogram which illustrate persistent upward signal suggests the index to extend its gains after closing above the 94.00 threshold.
Resistance level: 94.00, 94.65
Support level: 93.40, 93.15
GBPUSD, H1: GBPUSD remains traded within an ascending channel while currently testing near the 20-MA line (red). MACD which has illustrated negative divergence signal suggests the pair to extend its losses in short-term after closing below the 20-MA line.
Resistance level: 1.3200, 1.3285
Support level: 1.3145, 1.3100
EURUSD, H4: EURUSD was traded lower while currently testing near the bottom level of ascending channel. MACD which illustrate bearish signal suggests the pair to extend its losses after breaking out from the bottom level of the channel and support near 1.1730.
Resistance level: 1.1800, 1.1855
Support level: 1.1730, 1.1660
USDJPY, H1: USDJPY remains traded within an ascending channel following prior rebound from the bottom. MACD histogram which illustrate diminishing bearish signal suggests the pair to extend its gains after closing above the 20-MA line (red).
Resistance level: 113.05, 113.40
Support level: 112.65, 112.15
AUDUSD, H1: AUDUSD was traded lower following prior retracement from previous high. MACD histogram which illustrate bearish signal suggests the pair to extend its losses after breaking the support near 0.7240.
Resistance level: 0.7260, 0.7280
Support level: 0.7240, 0.7230
NZDUSD, H4: NZDUSD was traded lower while currently testing near the upward trendline. MACD histogram which illustrate persistent bearish signal suggests the pair to extend its losses after breaking the trendline.
Resistance level: 0.6675, 0.6720
Support level: 0.6615, 0.6540
USDCAD, H4: USDCAD extended gains following prior breakout from the resistance level of 1.3010. MACD histogram which illustrate bullish signal suggests the pair to extend its gains towards the next target of 1.3050.
Resistance level: 1.3050, 1.3100
Support level: 1.3010, 1.2955
USDCHF, H1: USDCHF was traded flat while currently testing near the upward trendline. MACD histogram which illustrate diminishing downward momentum suggests the pair to extend its gains after closing above the 20-MA line (red).
Resistance level: 0.9680, 0.9710
Support level: 0.9645, 0.9590
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the upward trendline. MACD histogram which illustrate bullish signal suggests the commodity price to extend its gains after breaking the strong resistance near 72.50.
Resistance level: 72.50, 73.40
Support level: 71.75, 71.15
GOLD_, H4: Gold price remains traded within a sideways channel following prior rebound from the bottom level. Stochastic Oscillator which illustrate bullish signal suggests gold price to be traded higher in short-term after closing above the 20-MA line (red).
Resistance level: 1207.75, 1218.65
Support level: 1194.30, 1184.00