23 April 2020 Morning Session Analysis
Dollar dips while US set to vote on new stimulus plan.
Dollar index which gauge its value against a basket of six major currencies plunged after hitting the highest level in two weeks following US senate has approved a new round of stimulus plan for the stalled US economy. Yesterday, the legislation has passed in the level of Senate, and now it has been sent to House of Congress for likely approval on Thursday. This stimulus program is expected to be implemented shortly, on top of the $2trillion package and more than 10 billion of fund injection which were enacted during the outbreak of pandemic. These stimulus programs were taking the same purpose of supporting the US economy from virus’s fallout while relieving the negative impact of Covid-19 against the household and local businesses. As of writing, dollar index dropped by 0.05% to 100.15. On the other hand, the pair of USD/CAD soars 0.03% to 1.4160 amid a downbeat economic data has been released in Canada. According to the Statistics of Canada, Core CPI data was came in at -0.6%, missing the forecast and previous reading at -0.4% and 0.4% respectively. It shows that underlying pressure of inflation in Canada has weakened which due to the full damage of virus on the nation economy.
In the commodities market, crude oil price depreciated by 0.10% to $14.10 as US crude oil inventories showed a huge build-up in last week. According to the EIA, US Crude Oil Inventories data came in at 15.022M, slightly lower than the economist forecast of 15.150M, while showing that the issue of global supply glut remains unsolved. Besides, gold price notched down by 0.10% to $1712.05 a troy ounce amid rising of market’s risk-on sentiment.
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 |
| 14:00 | GBP – Retail Sales (MoM)(Mar) | -0.3% | -3.8% | – |
| 15:30 | EUR – German Manufacturing PMI (Apr) | 45.4 | 39.0 | – |
| 16:30 | GBP – Composite PMI | 36.0 | – | – |
| 16:30 | GBP – Manufacturing PMI | 47.8 | – | – |
| 16:30 | GBP – Services PMI | 34.5 | – | – |
| 20:30 | USD – Initial Jobless Claims | 5,245K | 4,150K | – |
| 22:00 | USD – New Home Sales (Mar) | 765K | 645K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.70. 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: 99.70, 98.30
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2340. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2340, 1.2425
Support level: 1.2215, 1.2115
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0830. MACD which illustrate bearish signal with the formation of death cross suggest the pair to extend its losses after its candle successfully closed below the support level.
Resistance level: 1.0940, 1.1025
Support level: 1.0830, 1.0765
USDJPY, H4: USDJPY was traded flat below the resistance level at 107.95. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 107.95, 109.30
Support level: 106.85, 105.80
AUDUSD, Daily: AUDUSD was traded lower following prior retracement near the resistance level at 0.6460. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6180.
Resistance level: 0.6460, 0.6705
Support level: 0.6180, 0.5975
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.5945. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.5995, 0.6055
Support level: 0.5945, 0.5850
USDCAD, H4: USDCAD was traded higher following prior rebound from the upward trend line. MACD which1illustrate bullish bias momentum suggests the pair to extend its gains toward the resistance level at 1.4240.
Resistance level: 1.4240, 1.4390
Support level: 1.4105, 1.3980
USDCHF, H4: USDCHF was traded higher following prior breakout above the resistance level at 0.9685. MACD which illustrate bullish bias momentum with the formation of golden cross suggest the pair to extend its gains toward the resistance level at 0.9745.
Resistance level: 0.9745, 0.9825
Support level: 0.9685, 0.9650
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 12.95. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 15.70.
Resistance level: 15.70, 18.05
Support level: 12.95, 10.90
GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 1700.15.
Resistance level: 1724.50, 1746.05
Support level: 1700.15, 1683.50