07 February 2020 Morning Session Analysis
Dollar index surged amid to positive jobs data.
Dollar index surged following the positive jobs data from the United Stated was released yesterday. According to Department of Labor, U.S. Initial Jobless Claims notched down from the preliminary reading of 217K to 202K, better than the economist forecast at 215K. As the reading was fared better than expectation, it spurred some market optimism towards the economic progression as well as the jobs market in the United Stated. However, at this time investors would continue to scrutinize the latest updates with regards of the economic data such as Non-farm payrolls and unemployment rate which would be released tonight in order to receive a further trading signal. On the other hand, Japanese Yen slumped on yesterday amid to the risk-on sentiment in the FX market. According to Reuters, Chinese President Xi Jinping told Saudi Arabia’s King Salman that China has achieved positive results in prevention and controlling the outbreak of the coronavirus in China. In earlier, The People’s Bank of China (PBOC) has also pumped hundreds of billions of dollars into the financial system to cushion the potentially economic destruction due to the coronavirus. Such positive sentiment had stoked a shift in sentiment toward the riskier asset, while dragging down the appeal of the safe-haven currency such as Japanese Yen. As of writing, the dollar index appreciated by 0.17% to 98.30 while USD/JPY slumped 0.01% to 109.97.
In the commodity market, the crude oil appreciated by 0.55% to $51.31 per barrel. The oil market edged higher in the early morning following the Russia supports a recommendation an OPEC+ to cut in the oil output of 600,000 barrels per day in response to the coronavirus’ impact on energy demand, Foreign Minister Sergei Lavrov said on Thursday. On the other hand, the gold price depreciated by 0.03% to $1565.95 per troy ounces amid to stronger greenback.
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 |
| 21:30 | USD – Nonfarm Payrolls (Jan) | 145K | 160K | – |
| 21:30 | USD – Unemployment Rate (Jan) | 3.5% | 3.5% | – |
| 21:30 | CAD – Employment Change (Jan) | 35.2K | 20.5K | |
| 23:00 | CAD – Ivey PMI (Jan) | 51.9 | 53.3 | |
| 02:00
(8th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 675 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 98.20. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 98.55.
Resistance level: 98.55, 99.00
Support level: 98.20, 97.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2910. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2990, 1.3080
Support level: 1.2910, 1.2815
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1010. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.0955.
Resistance level: 1.1010, 1.1065
Support level: 1.0955, 1.0895
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 109.60. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 110.20.
Resistance level: 110.20, 110.95
Support level: 109.60, 109.05
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.6715. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6760, 0.6795
Support level: 0.6715, 0.6680
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6445. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6535, 0.6630
Support level: 0.6445, 0.6345
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3300. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3300, 1.3345
Support level: 1.3245, 1.3185
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9750. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9750, 0.9780
Support level: 0.9715, 0.9670
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 50.85. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 51.90.
Resistance level: 51.90, 53.20
Support level: 50.85, 49.75
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1565.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1565.70, 1577.15
Support level: 1552.90, 1544.70