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3 December 2019                              Afternoon Session Analysis

 

 

Greenback plunged amid escalation of trade tensions.

Dollar index which gauge its value against a basket of six major currencies rebounded after falling to one week low level amid heightening of trade tensions between US and China. After returning from Thanksgiving holiday, Donald Trump administration is prepared to levy more duties which amounted to $156 billion on Chinese imported goods in the absence of a trade deal, said by Commerce Secretary Wilbur Ross. Moreover, Donald Trump also accused that Federal Reserve (Fed) should act in the way that other countries unable to exploit strong US dollar even they further devalue their currency value. Back then, US Central bank has cut their interest rate for 3 times while majority of the market participants are expecting there will be another round of 0.25% rate cut in the coming Fed meeting, according to Fed Rate Monitor Tool. As of writing, dollar index quoted up 0.07% to 97.80. On the other hand, the pair of EUR/USD down 0.04% to 1.1070 after a dovish bias speech conducted by ECB Chairman Christine Lagarde. In her speech, Christine Lagarde reiterated that EU current economic growth is still remain weak while the outlook expectedly will  be remained sluggish and uncertain due to the ongoing risk of global growth slowing down and trade war issue remain deadlocked.

 

In the commodities market, crude oil price rose 0.38% to $56.15 per barrel amid hints of OPEC and its allies will deepen their oil cut production by additional 0.4 million barrels per day in the upcoming meeting in Vienna. However, the gains was limited after recent news showed that Trump administration may slap additional tariff on China goods if no deal. Besides, gold price inched up 0.01% to $1462.15 a troy ounce due to heightening of trade dispute.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

Tentative                              GBP                                        BoE MPC Treasury Committee Hearings

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
17:30 GBP – Construction PMI (Nov) 44.2 44.5
05:30

(04th)

CrudeOIL- API Weekly Crude Oil Stock 3.639M

 


Technical Analysis

DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 97.70. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains toward the resistance level at 98.20.

 

Resistance level: 98.20, 98.80

Support level: 97.70, 97.25

 

GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.2945. However, MACD which illustrate bullish momentum suggest the pair to be traded higher in short term toward the resistance level at 1.2945.

 

Resistance level: 1.2945, 1.2970

Support level: 1.2890, 1.2855

 

 

EURUSD, Daily: EURUSD was traded higher while currently testing near the resistance level 1.1075. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level 1.1075.

 

Resistance level: 1.1075, 1.1170

Support level: 1.1005, 1.0930

 

USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.00. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains towards the resistance level at 109.40.

 

Resistance level: 109.40, 109.80

Support level: 109.00, 108.40

 

AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6810. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the next resistance level at 0.6840.

 

Resistance level: 0.6840, 0.6880

Support level: 0.6810, 0.6770

 

NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6490. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the next resistance level at 0.6535.

 

Resistance level: 0.6535, 0.6570

Support level: 0.6490, 0.6460

 

USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3270. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound toward the resistance level at 1.3335.

 

Resistance level: 1.3335, 1.3395

Support level: 1.3270, 1.3210

 

USDCHF, Daily: USDCHF was traded lower while currently testing the support level 0.9915. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.

 

Resistance level: 0.9945, 0.9985

Support level: 0.9915, 0.9885

 

CrudeOIL, H4: Crude oil price was traded higher following prior rebound near the support level near 55.30. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 56.25.

 

Resistance level: 56.25, 56.80

Support level: 55.30, 54.65

 

GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 1458.55.

 

Resistance level: 1471.65, 1480.95

Support level: 1458.55, 1448.95