28 August 2019 Afternoon Session Analysis
Sentiment remains fragile over ongoing trade war.
Australian dollar falters after recent construction data came in lower than expected, sparking higher concern over slower economic growth in the near future. According to Australian Bureau of Statistics, Construction Work Done for the second quarter contracts by -3.8%, missing economist forecast of -1.0%. The data is a key metric used in GDP calculation which sparks higher concern over disappointing GDP data for the second quarter. Likewise, the data has also validated pessimistic outlook from Reserve Bank of Australia (RBA) whereby economic momentum may slowdown due to ongoing trade risks. As of writing, pair of AUD/USD depreciates by 0.07% to 0.6747. On the other hand, dollar index rose 0.06% to 97.92 during mid-Asian trading session. Greenback remains well in bid following bullish consumer sentiment data from yesterday. However, its gains remain limited as traders continue to scrutinize for further developments with regards to US-China trade talk.
As for commodities market, crude oil price depreciates by 0.43% to $55.49 per barrel. Sentiment towards the commodity remains fragile following higher concern of economic downturn due to ongoing trade war in between US and China which may take a longer time to be resolved. Otherwise, gold price depreciates by 0.54% to $1,534.22 a troy ounce due to stronger greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
05:30 USD FOMC Member Daly Speaks
(29th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – GfK German Consumer Climate (Sep) | 9.7 | 9.6 | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -2.700M | -2.112M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level at 98.00. MACD which illustrate bullish momentum and the formation of golden cross suggest index to extend its gains after successfully breakout above the resistance level at 98.00.
Resistance level: 98.00, 98.40
Support level: 97.50, 97.10
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the higher level. Due to lack of signal from MACD, it is suggested to wait for further signal before entering the market.
Resistance level: 1.2345, 1.2400
Support level: 1.2255, 1.2220
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1115. MACD which illustrate bearish bias momentum suggest the pair to extend its losses towards the support level at 1.1070.
Resistance level: 1.1115, 1.1155
Support level: 1.1070, 1.1030
USDJPY, H4: USDJPY was traded higher level while currently testing the 20 moving average line (Red). MACD which illustrate bullish momentum suggest the pair to extend its gains after successfully breakout above the 20 moving average line (Red).
Resistance level: 106.00, 106.65
Support level: 105.60, 105.10
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6750. MACD which illustrate bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 0.6695.
Resistance level: 0.6750, 0.6795
Support level: 0.6695, 0.6635
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6395. MACD which illustrate bearish momentum suggest the pair to extend its losses toward the support level at 0.6330.
Resistance level: 0.6395, 0.6490
Support level: 0.6330, 0.6270
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3275. MACD which illustrate bullish momentum and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.3335.
Resistance level: 1.3335, 1.3385
Support level: 1.3275, 1.3220
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9775. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9840.
Resistance level: 0.9840, 0.9890
Support level: 0.9775, 0.9730
CrudeOIL, H4: Crude oil price was traded higher while currently testing the downward the trend line. MACD which display bullish bias momentum suggest the commodity to extend its gains after successfully breakout above the downward trend line.
Resistance level: 55.90, 56.80
Support level: 54.65, 53.10
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1548.05. MACD which display diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1526.90.
Resistance level: 1548.05, 1565.50
Support level: 1526.90, 1507.10