28 September 2018 Morning Session Analysis
Hawkish Fed charges up dollar’s bull.
Greenback rose to two-weeks high against other major currencies on yesterday after Federal Reserve raised interest rates as expected while coupled with positive US economic data. The dollar index rose 0.12%, last seen around 94.56 during Asian session. On yesterday morning, US Federal Reserve increased their overnight funds rate as expected while delivered a rather optimistic assessment of the US economy. In addition, US Bureau of Economic Analysis reported that Gross Domestic Product for the 2nd quarter came in as expected with 4.2% of growth. The data has further cemented Fed’s outlook for a progressive economic growth, raising investors’ prospect towards more rate hikes in the future. On the other hand, pair of USD/CAD slipped 0.05% to 1.3035 this morning. Canadian dollar received fresh demand after Bank of Canada Governor Stephen Poloz said that they would gradually raise interest rates if NAFTA negotiations attains positive outcome.
In the commodities market, crude oil price depreciates by 0.08% to $72.42 per barrel and undergo minor retracement after rising to 4 year’s high on yesterday. Similarly, gold price was down 0.03% to $1,183.19 a troy ounce over the backdrop of hawkish outlook from the Federal Reserve.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:45 | CNY – Caixin Manufacturing PMI (Sep) | 50.6 | 50.5 | – |
| 15:55 | EUR – German Unemployment Change (Sep) | -8K | -9K | – |
| 16:30 | GBP – GDP (QoQ) (Q2) | 0.4% | 0.4% | – |
| 17:00 | EUR – CPI (YoY) (Sep) | 2.0% | 2.1% | – |
| 20:30 | USD – Core PCE Price Index (MoM) (Aug) | 0.2% | 0.1% | – |
| 20:30 | USD – Personal Spending (MoM) (Aug) | 0.4% | 0.3% | – |
| 20:30 | USD – Personal Income (MoM) (Aug) | 0.3% | 0.4% | – |
| 20:30 | CAD – GDP (MoM) (Jul) | 0.0% | 0.1% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Sep) | 100.8 | 100.5 | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 866 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index extended gains following prior breakout from the resistance level of 94.00. MACD which continues to illustrate bullish signal suggests the index to extend its gains after breaking the resistance level near 94.65.
Resistance level: 94.65, 95.00
Support level: 94.00, 93.40
GBPUSD, H4: GBPUSD extended losses following prior breakout from the support level of 1.3100. MACD histogram which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 1.3055.
Resistance level: 1.3100, 1.3145
Support level: 1.3055, 1.2985
EURUSD, H4: EURUSD was traded lower following prior breakout from the support level near 1.1675. MACD histogram which illustrate bearish signal suggests the pair to extend its losses towards the direction of 1.1605.
Resistance level: 1.1675, 1.1730
Support level: 1.1605, 1.1550
USDJPY, H1: USDJPY was traded higher following prior breakout from the resistance level near 113.40. Both MA line which continues to expand upwards after the formation of golden cross suggests the pair to further extend its bullish momentum.
Resistance level: 113.70, 114.00
Support level: 113.40, 113.05
AUDUSD, H1: AUDUSD was traded higher following prior rebound near 0.7200. MACD which begins to form a golden cross signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7230, 0.7240
Support level: 0.7200, 0.7175
NZDUSD, H4: NZDUSD was traded lower while currently testing at 0.6615. MACD which illustrate bearish signal suggests the pair to extend its losses after breaking the support level of 0.6615.
Resistance level: 0.6675, 0.6720
Support level: 0.6615, 0.6540
USDCAD, H4: USDCAD was traded lower following prior retracement near 1.3050. MACD which illustrate diminishing upward momentum may suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3050, 1.3100
Support level: 1.3010, 1.2955
USDCHF, H1: USDCHF was traded flat near the support level of 0.9760. MACD which begins to form a death cross signal suggests the pair to extend its losses in short-term after breaking the support of 0.9760.
Resistance level: 0.9810, 0.9850
Support level: 0.9760, 0.9710
CrudeOIL, H1: Crude oil price remains traded within an ascending triangle while currently testing near the 20-MA line (red). MACD which begins to form a golden cross signal suggests the commodity price to be traded higher in short-term.
Resistance level: 72.50, 73.40
Support level: 71.75, 71.15
GOLD_, H4: Gold price slumped sharply after breaking the strong support near 1192.00. MACD which illustrate bearish signal suggests the commodity price to extend its losses towards next target of 1177.00.
Resistance level: 1184.00, 1192.00
Support level: 1177.00, 1171.80