31 October 2019 Afternoon Session Analysis
Loonie plunged following BoC statement.
Canadian dollar slumped against the US dollar after the Bank of Canada (BoC) announced its interest rate decision. Earlier today, BoC announced to keep its interest rate unchanged at 1.75%. However, the central bank expressed a more cautious tone which sends Loonie into a sell-off frenzy. In the press conference, BoC Governor Stephen Poloz stated that the increasing uncertainty with regards to future trade policies had bring a significant negative impact upon business investment. Nonetheless, he reiterates that further loosening of monetary policy is not needed for the time being to address such issues. In addition, a slump in crude oil price has also provided additional bearish pressure upon the commodity-backed currency. As of writing, USD/CAD ticks up 0.07% to 1.3163 while the dollar index fell 0.32% to 97.10.
In the commodities market, crude oil price extended its losses by 0.08% to $55.03 per barrel as the commodity remain pressured by a surprise inventory build from Energy Information Administration (EIA). On the other hand, gold price rose 0.16% to $1498.17 a troy ounce due to current weakness of US dollar following recent rate cut decision from the Federal Reserve.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Monetary Policy Statement
Tentative JPY BoJ Outlook Report
14:30 JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:00 | JPY – BoJ Interest Rate Decision | -0.10% | -0.10% | – |
| 18:00 | EUR – CPI (YoY) (Oct) | 0.8% | 0.7% | – |
| 20:30 | USD – Initial Jobless Claims | 212K | 215K | – |
| 20:30 | CAD – GDP (MoM) (Aug) | 0.2% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 97.55. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 97.55, 98.15
Support level: 96.90, 96.40
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2845. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2980.
Resistance level: 1.2980, 1.3095
Support level: 1.2845, 1.2750
EURUSD, Daily: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1125. MACD which illustrated increasing bullish momentum suggest the pair to extend its gain toward resistance level at 1.1185.
Resistance level: 1.1185, 1.1240
Support level: 1.1125, 1.1075
USDJPY, Daily: USDJPY was traded lower following prior retracement form the resistance level at 109.00. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 108.40.
Resistance level: 109.00, 109.75
Support level: 108.40, 107.65
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6905. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6965.
Resistance level: 0.6965, 0.7020
Support level: 0.6905, 0.6860
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.6435. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher after it successfully breakout above the resistance level.
Resistance level: 0.6435, 0.6495
Support level: 0.6355, 0.6285
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3145. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3210, 1.3260
Support level: 1.3145, 1.3085
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9895. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9895, 0.9945
Support level: 0.9840, 0.9805
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 54.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 55.50.
Resistance level: 55.50, 56.50
Support level: 54.65, 53.80
GOLD_, H4: Gold price was traded higher following prior rebound from the MA line. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1502.60.
Resistance level: 1502.60, 1508.65
Support level: 1494.80, 1487.30