6 April 2020 Morning Session Analysis
Dollar soared despite pessimistic job data.
Dollar index which gauges its value against a basket of six major currencies rose after US nation released negative economic data from labour market, blowing up the historical gains of 113 months in a row. According the Bureau of Labour Statistics, US Non-Farm Payroll data came in at -701K, far weaker than the economist forecast at -100K, sweeping off the labour market tremendously. However, NFP data for the month of March has not fully capture the negative impact of Coronavirus yet as the data only covered till 12th March 2020. Nonetheless, another job data which is US unemployment rate further cemented the weakness of labour market during the period of fast virus spreading, leapt up from 3.5% from previous month to 4.4%, while showing unprecedented job losses in US. Hence, these reports have been providing hints to the global market where the upcoming job data may even worsen. Since the outbreak of coronavirus, global markets have been tampered significantly, especially United States as its total infection cases surpass other countries, peaking as the top of the world. The losses of dollar index limited as the appeal of greenback strengthen amid US Manufacturing sector growth remain resilient and intact, seemingly well in the environment of Covid-19. During the Asian early trading session, dollar index rose 0.12% to 100.70.
In the commodities market, crude oil price depreciated by 8.55% to $26.05 per barrel after OPEC+ postponed a meeting on discussing oil price until 9th April. Prior to now, Saudi Arabia and Russia were pressured by the US administration and eventually agreed to further discuss the issue of oil output on Monday. Besides, gold price dipped 0.24% to $1,614.45 a troy ounce amid strengthening of dollar.
Today’s Holiday Market Close
Time Market Event
All Day CNY Ching Ming Festival
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Mar) | 52.6 | 44.0 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.80. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains toward the resistance level at 101.20.
Resistance level: 101.20, 102.90
Support level: 99.80, 98.30
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2230. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2230.
Resistance level: 1.2340, 1.2470
Support level: 1.2230, 1.2120
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.0830. MACD which illustrate diminishing bearish momentum suggests the pair to extend its gains after it successfully breakout above the resistance level at 1.0830.
Resistance level: 1.0830, 1.0940
Support level: 1.0765, 1.0655
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 108.55. MACD which illustrate bullish bias momentum signal suggests the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 108.55, 109.25
Support level: 107.50, 106.45
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6035. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5720.
Resistance level: 0.6035, 0.6350
Support level: 0.5720, 0.5375
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.5865. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5620.
Resistance level: 0.5865, 0.6075
Support level: 0.5620, 0.5420
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.4240. Due to lack of signal from MACD, it is suggested to wait for further confirmation such as breakout or retracement before entering into the market.
Resistance level: 1.4240, 1.4390
Support level: 1.3990, 1.3805
USDCHF, H1: USDCHF was traded higher following prior rebound from the 20 moving average line (Red). MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.9825.
Resistance level: 0.9825, 0.9900
Support level: 0.9745, 0.9685
CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the previous resistance level at 25.90. However, MACD which illustrate bearish bias momentum suggest the commodity to undergo technical correction toward lower level in short term.
Resistance level: 27.40, 28.75
Support level: 25.90, 23.90
GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement toward the support level at 1602.55.
Resistance level: 1636.30, 1664.70
Support level: 1602.55, 1579.00