30 January 2020 Afternoon Session Analysis
Safe-haven rose as coronavirus spreads.
Safe-haven currencies such as Japanese yen remains received higher demand in the FX market following concerns over China’s virus epidemic which could bring impact upon global economic momentum. As the new pneumonia-like disease spreads across China, investors worry that it may dampen down economic growth in the region which could subsequently affect its major trade partners in Asia and Europe. As such, traders continue to buy-into Japanese yen in order to safe-guard their capital while at the same time selling off risky assets. According to economists, China’s economic growth may drop to 5% or lower due to the epidemic, pushing higher chances for policymakers in Beijing to introduce more stimulus measures. In the other region, pound sterling was traded steadily prior to Bank of England’s policy decision later today. Prior, investors speculate that the central bank may cut its interest rates further as recent data shows diminishing consumer spending while Brexit risks continues to linger. As of writing, USD/JPY was down 0.08% to 108.89 while GBP/USD was traded flat near 1.3015.
As for commodities, crude oil price plunged by 0.49% to $52.80 per barrel. Oil futures received extensive selloff pressure following higher death tolls from the new coronavirus in China which may dampen global economic momentum as well as their demand towards crude oil. On the other hand, gold price rose 0.22% to $1,580.14 a troy ounce following higher risk aversion due to the spread of coronavirus.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 GBP BoE Inflation Report
20:00 GBP BoE MPC Meeting Minutes
20:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Unemployment Change (Jan) | 8K | 5K | – |
| 20:00 | GBP – BoE Interest Rate Decision (Jan) | 0.75% | 0.75% | – |
| 21:30 | USD – GDP (QoQ) (Q4)) | 2.1% | 2.1% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 97.70. MACD which illustrate bullish bias momentum suggest the index to extend its gains toward the next resistance level at 98.20.
Resistance level: 98.20, 98.80
Support level: 97.70, 97.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support of 1.2965. MACD which illustrate diminished downward momentum and the formation of golden cross suggests the pair to be traded higher in short-term.
Resistance level: 1.3035, 1.3100
Support level: 1.2965, 1.2895
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1000. MACD which has formed bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 1.1035, 1.1075
Support level: 1.1000, 1.0960
USDJPY, H4: USDJPY was traded lower while currently testing near the support level at 108.80. MACD which illustrate diminished upward momentum suggests the pair to extend its losses after it successfully breakout below the support level at 108.75.
Resistance level: 109.25, 109.65
Support level: 108.75, 108.00
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6760. MACD which illustrate diminished upward momentum suggests the pair to extend its losses toward the support level at 0.6705.
Resistance level: 0.6760, 0.6805
Support level: 0.6705, 0.6665
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6535. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 0.6535, 0.6570
Support level: 0.6490, 0.6460
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3145. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.3210.
Resistance level: 1.3210, 1.3265
Support level: 1.3145, 1.3085
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9735. MACD which illustrate diminishing upward momentum suggests the pair to extend its losses toward the support level at 0.9690.
Resistance level: 0.9735, 0.9770
Support level: 0.9690, 0.9665
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 52.60. MACD which illustrate bearish signal suggests its price to be traded lower after it successfully breakout below the support level at 52.60.
Resistance level: 54.15, 55.25
Support level: 52.60, 51.55
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1572.10. MACD which illustrate bullish signal suggests this commodity to extend its gains toward the resistance level at 1585.25.
Resistance level: 1585.25, 1599.90
Support level: 1572.10, 1561.85