06 March 2020 Morning Session Analysis
Dollar index fell following the negative data were released.
The Dollar index which traded against a basket of six major currency pairs slumped over a backdrop of bleak data from the United Stated yesterday. According to the Department of Labor, U.S. Initial Jobless Claims came in at 216K, higher than the economist forecast at 215K, which indicating the jobs market within the United Stated was remained subdued. Similarly, U.S Factory Orders for last month notched down from the preliminary reading of 1.9% to -0.5%, missing the economist forecast at -0.1%. As both data were fared worse than expectation, which further dialing down the market optimisms toward the economic progressions in the United Stated while spurring a significant selloff for the US Dollar. Besides that, Dollar index received a further bearish momentum following Federal Reserve Chair Jerome Powell claimed that the U.S central bank could reduce its interest rates again in order to offset the economic damage from the coronavirus. According to Reuters, market participants are now highly expecting that the U.S. central Bank would reduce its interest rate at least 25 basis points during the Fed’s March meeting. Nonetheless, at this time investors would continue to scrutinize the crucial economic data such as Nonfarm Payrolls from the United Stated which would be released tonight in order to gauge the likelihood movement of the US Dollar. As of writing, Dollar index depreciated by 0.76% to 96.50.
In the commodities market, crude oil price appreciated by 0.24% to $46.12 per barrel as of writing. However, the oil market edged lower on yesterday as Russia had not yet agreed with the OPEC to cut its oil production. At this time, investors would continue to focus on the OPEC meeting in order to receive further trading signal. On the other hand, the gold price surged 0.10% to $1673.75 per troy ouns as of writing as the uncertainties of the outbreak of the coronavirus continually to spur higher demand for this safe-haven metal.
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 (Feb) | 225k | 175K | – |
| 21:30 | USD – Unemployment Rate (Feb) | 3.6% | 3.6% | – |
| 21:30 | CAD – Employment Change (Feb) | 34.5K | 10.0K | – |
| 21:30 | CAD – Ivey PMI (Feb) | 57.3 | – | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was lower while currently testing the support level at 96.40. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.00, 97.60
Support level: 96.40, 96.00
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2955. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2955, 1.3005
Support level: 1.2920, 1.2870
EURUSD, Daily: EURUSD was traded higher while currently near the resistance level at 1.1240. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1240, 1.1275
Support level: 1.1175, 1.1130
USDJPY, H1: USDJPY was traded lower while currently testing the support level at 106.05. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 106.80, 107.55
Support level: 106.05, 105.35
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.6480. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6720.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, H4: NZDUSD was traded higher while currently near the resistance level at 0.6325. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6325, 0.6400
Support level: 0.6270, 0.6205
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3380. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3450, 1.3535
Support level: 1.3390, 1.3235
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9510. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9425.
Resistance level: 0.9510, 0.9620
Support level: 0.9425, 0.9345
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 45.45. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 48.35, 51.45
Support level: 45.45, 43.70
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1654.45. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1683.10.
Resistance level: 1683.10, 1727.15
Support level: 1654.45, 1626.65