23 March 2020 Morning Session Analysis
Greenback plummets following a stimulus plan failed to pass.
Dollar index which gauge its value against a basket of six major currencies failed to keep its last Friday gains after a Covid-19 Bill fails to clear the first level of procedural in Senate. Last week, US government worked tight with Federal Reserve in the issue of coronavirus pandemic, and eventually drafted out a massive stimulus package to boost up the US economy from the negative effect of this virus. In details, this stimulus plan consists of $1,200 checks for most U.S adults and a huge amount of fund planned to put aside to assist the local businesses which have halted their operation during the pandemic’s outbreak. Nonetheless, this plan was mostly rejected by the Democrats as they think that the motions deems to be revised, putting the vote results into 47 against 47. However, US President Donald Trump believe that the lawmakers would reach a deal somehow, revealed in a press briefing after the vote. During Asian trading session, dollar index dropped by 0.01% to 102.80. On the other hand, the pair of EUR/USD notched down 0.19% to 1.0670 amid the worsening spread of coronavirus in Europe zone. According to the latest source of news, Italy has implemented movement constrain in the country after the fatalities rose by 651 to a total of 5476, as an attempt to combat the fast spreading of virus.
In the commodities market, crude oil prices depreciated by 9.18% to a barrel of $21.10 following few largest economy bodies ordered a lockdown in their country in order to restrict the negative effect of pandemic, putting the prospect of oil’s demand in ‘dark zone’. Besides, gold price inched down by 0.33% to 1,493.20 a troy ounce after US stock futures limit down lately, as markets threw off their gold’s holding to avoid the risk of margin call.
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Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the resistance level at 103.75. MACD which illustrate diminishing bullish momentum suggest the dollar to extend its losses toward the support level at 102.90.
Resistance level: 103.75, 105.00
Support level: 102.89, 101.20
GBPUSD, H1: GBPUSD was traded higher following prior rebound near the support level at 1.1545. MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 1.1760.
Resistance level: 1.1760, 1.1900
Support level: 1.1545, 1.1440
EURUSD, H1: EURUSD was traded higher following prior rebound form the support level at 1.0650 MACD which illustrate bullish bias momentum suggests the pair to extend its gains toward the resistance level at 1.0715.
Resistance level: 1.0715, 1.0790
Support level: 1.0650, 1.0560
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 111.15. MACD which illustrate bearish momentum signal suggests the pair to be extend its losses toward the support level at 110.05.
Resistance level: 111.15, 112.25
Support level: 110.05, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.5985. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5660.
Resistance level: 0.5985, 0.6350
Support level: 0.5660, 0.5375
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level at 0.5595. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.5865.
Resistance level: 0.5865, 0.6075
Support level: 0.5595, 0.5420
USDCAD, H1: USDCAD was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.4325.
Resistance level: 1.4520, 1.4605
Support level: 1.4325, 1.4150
USDCHF, H1: USDCHF was traded lower while currently testing the support level at 0.9840. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 0.9840.
Resistance level: 0.9905, 0.9975
Support level: 0.9840, 0.9785
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 21.50. However, MACD which illustrate diminishing bullish momentum and the formation of death cross suggest the commodity to undergo technical correction toward the support level at 21.50.
Resistance level: 25.75, 30.50
Support level: 21.50, 19.10
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1477.00. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1503.40.
Resistance level: 1503.40, 1536.95
Support level: 1477.00, 1442.30