29 January 2019 Afternoon Session Analysis
Huawei drama escalates, Yen in bid.
Safe-haven Japanese yen remains well in bid on Tuesday after US Justice Department charged China’s Huawei Technologies Co Ltd with fraud, further intensifying ongoing trade tension in between US and China. US government announced on yesterday to charge Huawei’s Chief Financial Officer and two affiliates with bank wire fraud for violation against international sanction enacted upon Iran. Investors fear that the charges could complicate high level trade talks which is set to being tomorrow as China’s Premier Liu He will meet with US trade representative Robert Lighthizer. On the other hand, greenback remains under pressure while investors anticipate the outcome of Federal Reserve monetary policy meeting. Traders are widely expecting the Fed to adopt a more cautious stance as recent corporate earnings and economic data shows signs of diminishing momentum. As of writing, pair of USD/JPY depreciates by 0.09% to 109.23 while the dollar index was down 0.01% to 95.35.
In the commodities section, crude oil price rose 0.10% to $51.93 per barrel. Oil prices received some bullish support after Trump administration imposed a series of sanctions upon Venezuelan state-owned oil firm, severely curbing its exports to the United States. Similarly, gold price rose 0.05% to $1,303.99 a troy ounce following weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 23:00 | USD – CB Consumer Confidence (Jan) | 128.1 | 124.7 | – |
| 05:30 (30th) | CrudeOIL – API Weekly Crude Oil Stock | 6.550M | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index remains traded within a sideways channel in between 95.60 and 95.30. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout to occur before entering the market.
Resistance level: 95.60, 95.75
Support level: 95.30, 95.00
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance of 1.3230. MACD which has formed a death cross signal suggests the pair to extend its losses after successfully closing below 1.3125.
Resistance level: 1.3230, 1.3315
Support level: 1.3125, 1.2990
EURUSD, H4: EURUSD was traded higher while currently testing near the resistance of 1.1435. MACD which illustrate bullish signal suggests the pair to extend its gains after successfully closing above 1.1435.
Resistance level: 1.1435, 1.1485
Support level: 1.1390, 1.1350
USDJPY, H4: USDJPY was traded lower while currently testing near the upward trendline. MACD which illustrate bearish signal suggests the pair to advance further down after successfully breaking the trendline.
Resistance level: 109.35, 109.90
Support level: 108.95, 108.25
AUDUSD, H4: AUDUSD remains traded within a sideways channel in between 0.7220 and 0.7115. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7220, 0.7255
Support level: 0.7145, 0.7115
NZDUSD, Daily: NZDUSD was traded higher while currently testing at the top level of narrowing triangle. MACD which illustrate bullish signal suggests the pair to extend its gains after successfully breaking the top level.
Resistance level: 0.6840, 0.6890
Support level: 0.6780, 0.6710
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance of 1.3280. MACD which illustrate diminished upward momentum suggests the pair to advance further down, towards the direction of 1.3220.
Resistance level: 1.3280, 1.3325
Support level: 1.3220, 1.3175
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance of 0.9970. However, MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9920, 0.9970
Support level: 0.9875, 0.9815
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level near 51.50. MACD which illustrate bullish signal suggests its prices to advance further upwards after closing above the 20-MA line (red).
Resistance level: 52.80, 53.70
Support level: 51.85, 51.50
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance of 1305.40. MACD which illustrate diminished upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 1305.40, 1313.80
Support level: 1295.55, 1286.75