17 March 2020 Afternoon Session Analysis
Yen slips amid BoJ stimulus measures.
The Japanese Yen which traded against the dollar have fell during late Asian session following Bank of Japan expanding its stimulus to reduce the impact of the coronavirus. According to the latest report, the Bank of Japan have eased its monetary policy Monday by pledging to buy risky assets such as exchange-traded funds at double the current pace, joining global central banks in combating the widening economic fallout from the coronavirus epidemic. Besides that, the Japanese central bank has offered to buy Japanese government bonds worth almost 100 bullion that expiring in three to five years and five to 10 years. The measures have drawn out sellers on the Yen. Besides that, the recovering greenback also provide further reason for traders to shift their focus towards the dollar. At the time of writing, USD/JPY rose 0.68% to 106.44 while dollar index also climbs 0.06% to 98.15.
In the commodities market, crude oil price remain weak and fell 0.48% to $29.41 per barrel at the time of writing following recession fears from the coronavirus and a potential 1.3 billion surplus over the next six month. Following the worsening outbreak which caused global market meltdown, investors are now bracing for the possibility of recession that will further hit demand. Besides that, IHS Markit estimated that the crude surplus could range from 800 million to 1.3 billion barrels in the first six months of 2020. Next, gold price plummet 1.63% to $1490.59 a troy ounce as of writing amid market remain scattered to liquidate their position with this commodity to fulfil position margin due to market meltdown.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Average Earnings Index+ Bonus (Jan) | 2.9% | 3.0% | – |
| 17:30 | GBP – Claimant Count Change (Feb) | 5.5K | 21.4K | – |
| 18:00 | EUR – German ZEW Economic Sentiment (Mar) | 8.7 | -26.4 | – |
| 20:30 | USD – Core Retail Sales (MoM) (Feb) | 0.3% | 0.2% | – |
| 20:30 | USD – Retail Sales (MoM) (Feb) | 0.3% | 0.2% | – |
| 22:00 | USD – JOLTs Job Openings (Jan) | 6.423M | 6.476M | – |
| 04:30
(18th) |
CrudeOIL – API Weekly Crude Oil Stock | 6.407M | – | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded within a range while currently testing the support level at 98.00. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 98.40, 98.75
Support level: 98.00, 97.55
GBPUSD, Daily: GBPUSD was traded lower while currently testing the support level at 1.2215. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2395, 1.2585
Support level: 1.2215, 1.2025
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1185. However, MACD which illustrated increasing bearish momentum suggest the pair be traded lower in short-term as technical correction.
Resistance level: 1.1185, 1.1255
Support level: 1.1090, 1.1010
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 106.35. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 106.35, 107.25
Support level: 105.45, 104.40
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6095. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6295, 0.6515
Support level: 0.6095, 0.5900
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6010. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6120, 0.6190
Support level: 0.6010, 0.5860
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.4010. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.4010, 1.4160
Support level: 1.3815, 1.3645
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9390. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9545, 0.9620
Support level: 0.9390, 0.9315
CrudeOIL, Daily: Crude oil price was traded lower while currently testing the support level at 29.40. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 36.90, 45.45
Support level: 29.40, 26.05
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1507.30. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1507.30, 1561.80
Support level: 1452.30, 1408.70