23 March 2020 Afternoon Session Analysis
Japanese yen gains following additional purchase from BoJ.
The Japanese Yen which traded against the dollar and its peers have rose during late Asian session following signal of BoJ purchase of bonds. According to the latest report, BoJ have signalled that it will purchase an additional 800 billion Japanese yen worth of Japan Government Bonds (JGB). The bonds would be of the medium-term (3 to 10- years) maturity also adds to the scheduled purchase of JGB on Monday. At the same time, the Japanese Yen also takes clues from the surge in coronavirus figures from the US and Italy which added further buying momentum for the risk-off currency. In the case of coronavirus, the U.S has now the third-highest numbers after Italy and China with the cases of infection soared by 11606 to 38813 while the number of deaths also increased by 111 to 460. At the time of writing, USD/JPY fell 0.58% to 110.12 while dollar index also slips 0.52% to 103.11.
In the commodities market, crude oil price plummet 4.66% to $22.14 per barrel as of writing following an anticipated deal between OPEC and the U.S. failed to materialise. On Friday, OPEC Secretary General Mohammad Barkindo invited Texas Railroad Commissioner Ryan Sitton to the organisation’s summer meeting in June. Despite that, Sitton attracted criticism as he called for decreased production of Texan crude output for the first time since 1970. At the same time, Saudi Arabia and Russia are still not backing down from their ongoing price war which continue to exert further pressure for the commodity. In the other hand, gold price climbs 0.25% to $1492.49 at the time of writing following worsening outbreak and a weakened dollar.
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Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded higher while currently testing near the resistance level 101.75. However, MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to experience a technical correction in short term towards the support level 101.90.
Resistance level: 103.75, 105.65
Support level: 101.90, 99.80
GBPUSD, H4: GBPUSD was traded in a sideway channel. However, MACD which illustrate bullish momentum signal with the recent formation of golden cross suggest the pair to be traded higher in short term towards the resistance level 1.1860.
Resistance level: 1.1860, 1.2160
Support level: 1.1465, 1.1150
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.0660. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 1.0820.
Resistance level: 1.0820, 1.0970
Support level: 1.0660, 1.0555
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 111.45. MACD which display bearish bias signal with the formation of death cross suggest the pair to extend its retracement towards the support level 108.45.
Resistance level: 111.45, 114.05
Support level: 108.45, 105.65
AUDUSD, H4: AUDUSD was traded lower following recent retracement from the resistance level 0.5975. MACD which illustrate diminishing bullish momentum suggest the pair to extend its retracement towards the support level 0.5560.
Resistance level: 0.5975, 0.6265
Support level: 0.5560, 0.5290
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.5530. MACD which illustrate diminishing bullish momentum with the starting formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.5870, 0.6120
Support level: 0.5530, 0.5300
USDCAD, H4: USDCAD was traded higher while currently near the resistance level 1.4465. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it breaks above the resistance level 1.4465.
Resistance level: 1.4465, 1.4685
Support level: 1.4205, 1.3990
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9890. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its retracement towards the support level 0.9735.
Resistance level: 0.9890, 1.0025
Support level: 0.9735, 0.9595
CrudeOIL, H4: Crude oil price was traded lower while currently testing near the support level 21.35. MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to extend its losses after it breaks below the support level 21.35.
Resistance level: 28.00, 35.55
Support level: 21.35, 15.00.
GOLD_, H4: Gold price remain traded in a sideway channel. However, MACD which illustrate bullish momentum signal suggest the commodity to be traded higher in short term towards the resistance level 1538.05.
Resistance level: 1538.05, 1607.55
Support level: 1463.05, 1397.40