19 May 2020 Morning Session Analysis
Dollar sinks amid easing of country lockdown.
Dollar index which gauges its value against a basket of six major currencies dropped to lowest level in one week as gradual easing of lockdown in countries boosted the risk appetite of investors, prompting investors to shift their capital from cash to equity market. According to the Worldmeter Statistics data, the new confirmed cases in most of the major countries such as France and Germany has reduced significantly while comparing to the time of peak infection. On account of easing in virus spreading among the Europe countries, it has also lifted up the market preferences toward other currencies such as euro. Besides, market participants are remains pessimistic toward the prospect of US dollar as investor foresees a relief package may somehow be implemented in the distant future despite Republican Party shows their disagreement against the recent stimulus plan, which has been approved in the level of House of Representatives. As of writing, dollar index drops 0.78% to 99.60.
In the commodities market, crude oil prices soars 1.30% to $32.85 per barrel as recent positive comment from OPEC Secretary Mohammed Barkindo continues lifting up the appeal of this black commodity market. Moreover, the continuing oil production cut and easing of lockdown also further supported the price of crude oil went higher. Besides, gold prices up 0.13% to $1734.55 a troy ounce amid weakening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index + Bonus (Mar) | 2.8% | 2.6% | – |
| 14:00 | GBP – Claimant Count Change (Apr) | 12.1K | 676.5K | – |
| 17:00 | EUR – German ZEW Economic Sentiment (May) | 28.2 | 32.0 | – |
| 20:30 | USD – Building Permits (MoM)(Apr) | 1.350M | 1.000M | – |
| 04:30
(20th) |
CrudeOIL – API Weekly Crude Oil Stock | 7.580M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 99.75. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 98.30.
Resistance level: 99.75, 100.85
Support level: 98.30, 97.60
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2215. MACD which illustrates bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.2215.
Resistance level: 1.2215, 1.2305
Support level: 1.2115, 1.2010
EURUSD, Daily: EURUSD was traded higher following prior breakout above the previous resistance level at 1.0885. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.0940.
Resistance level: 1.0940, 1.1025
Support level: 1.0885, 1.0830
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 107.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 108.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the lower level. MACD which illustrates diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.6555.
Resistance level: 0.6555, 0.6705
Support level: 0.6370, 0.6180
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.5995. MACD which illustrates bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.6065.
Resistance level: 0.6065, 0.6150
Support level: 0.5995, 0.5920
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3980. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3855.
Resistance level: 1.3980, 1.4120
Support level: 1.3855, 1.3670
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9710. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 0.9750, 0.9795
Support level: 0.9710, 0.9660
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 33.00. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 33.00.
Resistance level: 33.00, 35.30
Support level: 30.50, 28.75
GOLD_, H4: Gold price was traded higher following prior rebound near the support level at 1726.05. However, MACD which illustrate bearish bias momentum signal suggest the commodity to be traded lower toward the support level at 1726.05.
Resistance level: 1738.15, 1757.60
Support level: 1726.05, 1718.20