27 March 2020 Afternoon Session Analysis
Euro soars following hopes of “Corona” bonds.
The Euro which traded against the U.S dollar and its peer continue to post gains and take flight during late Asian session following the ongoing talks of a new debt instrument to combat the coronavirus pandemic. According to the latest report, France, Italy and Spain and six other euro area governments have called for the issuance of joint European debt to finance the fight against coronavirus. While the ECB has recently launched a new package of quantitative easing, individual countries can combat the pandemic depends on the strength of their balance sheets, thus nine European countries have called upon their EU counterparts to issuea new debt instrument that would combine securities from different countries and put the firepower of German taxpayers behind the joint borrowing which is called corona bonds. Despite with the increasing talks on corona bonds, there are still many other EU countries that are oppose to it due to its controversy. Investors are now waiting for further confirmation from key conference call between the 27 leaders of the European Union later Thursday. At the time of writing, EUR/USD rose 0.41% to 1.1070 while dollar index fell 0.49% to 99.09.
In the commodities market, crude oil price continues to tumble and fell 0.44% to $22.73 per barrel as of writing following plans of top up the U.S oil reserves ignored. U.S. Energy Secretary Dan Brouillette recently stated the Trump administration has asked Congress for $3 billion to buy 77 million barrels to top up the Strategic Petroleum Reserve. However, the stimulus passed by the Senate did not allocate any funding for SPR crude purchases. At the same time, new record jobless claims filed and price war between Saudi Arabia and Russian continue to weigh on the market. In the other hand, gold price edge higher 0.11% to $1627.79 a troy ounce as of writing following US dollar weakness and worsening condition of coronavirus in the U.S.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core PCE Price Index (MoM) | 0.1% | 0.2% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Mar) | 95.9 | 90.0 | – |
| 01:00
(28th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 664 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 99.35. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 99.35, 100.40
Support level: 98.55, 97.35
GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.2295. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2295, 1.2510
Support level: 1.2085, 1.1830
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1065. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1065, 1.1165
Support level: 1.0960, 1.0870
USDJPY, Daily: USDJPY was traded lower while currently near the support level at 108.10. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.40,110.30
Support level: 108.10, 107.15
AUDUSD, H1: AUDUSD was traded higher while currently testing the resistance level at 0.6110. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6110, 0.6235
Support level: 0.5955, 0.5745
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6070. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6070, 0.6215
Support level: 0.5955, 0.5840
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3990. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.4225, 1.4670
Support level: 1.3990, 1.3780
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9625. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9625, 0.9730
Support level: 0.9545, 0.9425
CrudeOIL, H1: Crude oil price was traded within a range while currently near the support level at 22.50. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 24.00, 24.95
Support level: 22.50, 21.45
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1635.25. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1603.80.
Resistance level: 1635.25, 1657.25
Support level: 1603.80, 1584.15