29 May 2019 Afternoon Session Analysis
G20 will be the limelight of trade war.
Greenback received higher bidding as market participants digests US President Donald Trump’s comment with regards to trade with China. Prior, Trump who was speaking in a joint news conference in Tokyo with Japan PM Shinzo Abe said that US is not ready to forge a deal with China. He also added that prior tariff of 25% could be increased to the target of 35% substantially. Due to ongoing trade spat between both nations, market participants shift their portfolio into safe-haven assets which also includes US Treasuries. Overall, the upcoming G20 summit which will be held on 28th – 29th June in Osaka remains as the main limelight whereby US President Donald Trump may initiate talks with China President Xi Jinping. On the other hand, euro received substantial bearish pressure on yesterday due to rising political and economic risk in the region. EU leaders is set to begin the process of filling a number of top EU posts which may affect the future direction of the entire bloc. As of writing, the dollar index ticks up 0.03% to 97.75 while pair of EUR/USD depreciates by 0.03% to 1.1166.
As for commodities market, crude oil price slumped 0.95% to $58.41 per barrel. Oil price fell during mid Asian trading session as ongoing trade war between US and China may trigger global economic recession that could reduce oil demand in the future. Otherwise, gold price depreciates by 0.02% to $1,279.69 a troy ounce due to stronger greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 EUR ECB Financial Stability Review
22:00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Unemployment Change | -12k | -8k | – |
| 15:55 | EUR – German Unemployment Rate | 4.9% | 4.9% | – |
| 22:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
| 05:30
(30th) |
USD – API Weekly Crude Oil Stock | 2.400M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 97.70. MACD which illustrate bullish bias signal with the formation of golden cross suggest the dollar to extend its gains towards the resistance level 98.00.
Resistance level: 98.00, 98.50
Support level: 97.70, 97.40
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.2690. MACD, which illustrate bearish bias signal with the starting formation of death cross suggest the pair to extend its losses towards the support level 1.2615.
Resistance level: 1.2690, 1.2745
Support level: 1.2615, 1.2550
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1175. MACD which illustrate persistent bearish momentum suggest the pair to extend its losses towards the support level 1.1145.
Resistance level: 1.1175, 1.1215
Support level: 1.1145, 1.1115
USDJPY, H4: USDJPY remain traded in a sideway channel while currently testing the support level 109.25. However, due to lack of momentum and direction from MACD, a breakout above the resistance level 109.75 or below the support level 109.25 is required to attain further confirmation before entering the market.
Resistance level: 109.75, 110.00
Support level: 109.25, 109.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.6930. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction in short term towards the support level 0.6900.
Resistance level: 0.6930, 0.6965
Support level: 0.6900, 0.6865
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.6545. MACD which display bearish bias signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6570, 0.6600
Support level: 0.6545, 0.6510
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.3475. However, MACD which display diminishing bullish momentum suggest the pair to experience a short term technical correction towards the support level 1.3475.
Resistance level: 1.3520, 1.3570
Support level: 1.3475, 1.3415
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 1.0080. MACD which illustrate bearish bias signal suggest the pair to extend its retracement towards the support level 1.0050.
Resistance level: 1.0080, 1.0125
Support level: 1.0050, 1.0005
CrudeOIL, H4: Crude oil price remain traded in a sideway channel following recent retracement from the resistance of 59.10. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement towards the support level 58.05.
Resistance level: 59.10, 60.10
Support level: 58.05, 56.95
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1279.05. However, MACD which illustrate diminishing bearish momentum suggest the commodity to be traded higher as a technical correction in short term towards the resistance level 1287.50.
Resistance level: 1287.50, 1294.15
Support level: 1279.05, 1272.80