25 February 2020 Morning Session Analysis
Japanese Yen skyrocketed amid escalating risk of coronavirus.
Japanese Yen surged on yesterday amid to the fears upon the outbreak of coronavirus in the global world, which spurring some risk-off sentiment in the FX market while prompting the investors to shift their portfolio toward the safe-haven currencies such as Japanese Yen. According to CNBC, The World Health Organization (WHO) warned that the significant increase in new cases of coronavirus outside of China is “deeply concerning,” following a rise in infections of coronavirus in Italy, South Korea and Iran. Italy reported more than 220 cases of the virus, with five deaths as of Monday morning. Besides that, South Korea confirmed 231 cases, increasing the total in the country to more than 830. Meanwhile, Iran confirmed 61 total cases with 12 deaths nationwide. On the other hand, dollar index slumped as investors speculated that the Federal Reserve could deliver a rate cut sooner rather than later to cushion the impact form the coronavirus outbreak. However, at this time investors would still have to scrutinize the latest updates with regards of the development of the coronavirus as well as the economy data in order to receive further trading signals. As of writing, USD/JPY surged 0.09% to 110.80 while Dollar index appreciated by 0.03% to 99.15.
In the commodities market, crude oil price rose 0.37% to $51.50 per barrels. However, the oil market edged lower yesterday amid as investors fears that the outbreak of the coronavirus would damage the oil demand in the future. On the other hand, gold price surged on yesterday amid diminishing risk appetite sentiment. However, the gold price slumped 0.27% to $1655.15 per troy ounces as of writing due to the technical correction.
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 |
| 15:00 | EUR – German GDP (QoQ) (Q4) | 0.1% | 0.1% | – |
| 23:00 | USD – CB Consumer Confidence (Feb) | 131.6 | 132.0 | – |
| 05:30
(26th) |
CrudeOIL – API Weekly Crude Oil Stock | 4.200M | – | – |
Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded lower while currently testing the support level at 99.05. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 99.80, 100.45
Support level: 99.05, 98.35
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2965. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2870.
Resistance level: 1.2965, 1.3055
Support level: 1.2870, 1.2775
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.0780. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.0900.
Resistance level: 1.0900, 1.1005
Support level: 1.0780, 1.0655
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 112.20. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.95.
Resistance level: 112.20, 113.60
Support level: 109.95, 108.55
AUDUSD, Daily: AUDUSD was traded lower following prior retracement from the resistance level at 0.6720. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6480.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the resistance level at 0.6350. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6305.
Resistance level: 0.6350, 0.6400
Support level: 0.6305, 0.6255
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3215. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3315.
Resistance level: 1.3315, 1.3425
Support level: 1.3215, 1.3135
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9780. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9840, 0.9900
Support level: 0.9780, 0.9750
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 51.25. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 53.05, 55.75
Support level: 51.25, 49.65
GOLD_, Daily: Gold price was traded lower following prior retracement from the resistance level at 1673.60. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1591.25.
Resistance level: 1673.60, 1708.95
Support level: 1591.25, 1522.60