19 March 2020 Afternoon Session Analysis
Pound sterling crashed, recession incoming?
U.K pound sterling which traded against all its peer have fell to the lowest level in three decades since 1985 and surpassed Brexit Vote lows on late Asian session following worsening conditions of coronavirus in the UK and the lack of commitment from U.K Prime Minister Boris Johnson. As the pandemic began to spread through Britain, investors fear that Prime Minister Boris Johnson’s response has fallen short compared to measures taken by other European nations. According to the latest update, the death toll from coronavirus in the U.K have jumped by 33 to 104 while the number of infections stands at 2626. The deteriorating conditions have prompt investors to flee from U.K assets. At the same time, U.K. sovereign bonds also plummeted, adding further pressure for the nation’s currency after the government announced a rescue package for businesses in an attempt to stop the coronavirus wrecking the domestic economy. GBP/USD plunged 0.90% to 1.1510 as of writing.
In the commodities market, crude oil price plummets 2.64% to $21.75 per barrel at the time of writing following the deteriorating demand outlook for the commodity. As of now, ongoing battle between Saudi Arabia and Russia for market share continue to drive down the commodity sentiment and the spread of coronavirus showing no sign of slowing. Next, gold price fell 0.28% to $1482.48 a troy ounce at the time of writing as investors continue to liquidate the commodity for cash to support the margin requirement due to global market meltdown.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:30 CHF SNB Monetary Policy Assessment
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | CHF – SNB Interest Rate decision | -0.75% | – | – |
| 20:30 | USD – Initial Jobless Claim | 211K | 220K | – |
| 20.30 | USD – Philadelphia Fed Manufacturing Index (Mar) | 36.7 | 10.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 101.85. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 101.85, 102.95
Support level: 99.70, 98.75
GBPUSD, Daily: GBPUSD was traded lower following prior breakout below the previous support level at 1.2160. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1305.
Resistance level: 1.2160, 1.3255
Support level: 1.1305, 1.0335
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0895. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.0960, 1.1010
Support level: 1.0895, 1.0795
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 109.75. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.75, 112.15
Support level: 108.20, 104.65
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.5660. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.5465.
Resistance level: 0.5660, 0.5955
Support level: 0.5465, 0.5220
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.5455. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.5635, 0.5840
Support level: 0.5455, 0.5265
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.4495. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.4730.
Resistance level: 1.4730, 1.4945
Support level: 1.4495, 1.4070
USDCHF, H1: USDCHF was traded lower following prior retracement from the resistance level 0.9735. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9680.
Resistance level: 0.9735, 0.9775
Support level: 0.9680, 0.9625
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 21.60. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 24.15, 27.50
Support level: 21.60, 19.20
GOLD_, H1: Gold price was traded lower while currently testing the support level at 1463.65. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1485.75, 1510.30
Support level: 1463.65, 1450.45