30 August 2019 Afternoon Session Analysis
Dollar remains lifted as trade tension ease.
Dollar index extend its gains against a basket of six major currency pairs following trade tension between U.S and China have seemingly eased. According to the latest report, spokesman for China’s Foreign Ministry Gao Feng have stated that China is willing to negotiate with the U.S. on trade issues “with calm attitude,” adding that Beijing will not retaliate against U.S.’s latest tariff moves for now. Besides that, China’s commerce ministry said on Thursday Beijing and Washington were discussing the next round of face-to-face talks scheduled for September which have since regained market confidence as the signs of talks were enough to mitigate worries about a further escalation. Market will continue to focus on the trade development and possible data to determine further sentiment for the greenback. At the same time, political risks from UK to Hong Kong and the Middle East added to the risks for the global economy and kept many investors on edge, boosting demand for safe-haven appeal such as Japanese Yen. Dollar index rose 0.05% to 98.40 while USD/JPY fell 0.02% to 106.46 as of writing.
As for commodities, oil price extend its gains by 0.11% to $56.70 per barrel at the time of writing as market remains lifted by a decline in U.S inventories and a looming hurricane in Florida. U.S. crude stocks dropped last week by 10 million barrels to their lowest since October. Besides that, market remain focused and monitoring on the progress of Hurricane Dorian where it could potentially shut down oil production, adding further boost for the commodity. On the other hand, gold price fell 0.23% to $1524.38 a troy ounce at the time of writing as dollar remain buoyed by trade hopes which diminished the appeal of safe-haven gold.
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 | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – CPI (YoY) (Aug) | 1.0% | 1.0% | – |
| 17:00 | EUR – Unemployment Rate (Jul) | 7.5% | 7.5% | – |
| 20:30 | USD – Core PCE Price Index (MoM) (Jul) | 0.2% | 0.3% | – |
| 20:30 | CAD – GDP (MoM) (Jun) | 209K | 215K | – |
| 22:00 | USD – Michigan Consumer Sentiment (Aug) | 92.1 | 92.1 | – |
| 01:00
(31th) |
USD – U.S. Baker Hughes Oil Rig Count | 754 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 98.35. MACD which illustrate bullish bias momentum suggest dollar to extend its gains toward the next resistance level at 98.65.
Resistance level: 98.65, 99.00
Support level: 98.35, 97.90
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2250. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2170.
Resistance level: 1.2250, 1.2390
Support level: 1.2095, 1.2015
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1100. MACD which illustrate bearish bias momentum suggest the pair to extend its losses towards the support level at 1.1025.
Resistance level: 1.1100, 1.1170
Support level: 1.1025, 1.0950
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 106.30. MACD which illustrate diminishing bullish momentum suggest the pair to be traded lower in short term toward the support level at 106.30.
Resistance level: 106.95, 107.80
Support level: 106.30, 105.55
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.6750. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6695.
Resistance level: 0.6750, 0.6820
Support level: 0.6695, 0.6635
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6320. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6270.
Resistance level: 0.6320, 0.6375
Support level: 0.6270, 0.6195
USDCAD, H4: USDCAD was traded flat in a sideway channel. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering the market.
Resistance level: 1.3335, 1.3380
Support level: 1.3290, 1.3230
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9840. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9895.
Resistance level: 0.9895, 0.9935
Support level: 0.9840, 0.9800
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 55.55. However, MACD which display diminishing bullish momentum suggest the commodity to undergo short term technical correction toward the support level at 55.55.
Resistance level: 57.45, 58.85
Support level: 55.55, 53.05
GOLD_, H4: Gold price was traded lower while currently testing the 50 moving average line (Blue). MACD which display bearish bias momentum suggest the commodity to extend its losses after it successfully breakout below the 50 moving average line (Blue).
Resistance level: 1535.00, 1555.75
Support level: 1515.55, 1495.60