8 June 2020 Afternoon Session Analysis
Safe-haven Japanese Yen over the risk-on sentiment.
The market sentiment had improved dramatically in the FX market as investors are now focusing on the signs of the economic rebound from the coronavirus outbreak, which stoked a shift in sentiment toward riskier asset, while diminishing demand for the Japanese Yen. The global equity market hit three-month high on last week as aggressive monetary and fiscal economic stimulus had enhancing the investors’ confidence, despite there are still risk for rising tensions between U.S. and China and coronavirus infections. Nonetheless, significant number of analysts predicted that the safe-haven asset would extend its losses amid the hope upon the major central banks would continually buy government bonds and other financial assets to enhance the solvency and liquidity in the global financial system. Though, some of investors predicted that there are still many uncertainties over the outlook, including diplomatic tensions between United States and China. Besides, the Japanese Yen received further bearish momentum over the backdrop of the negative data from the Japan region. According to Cabinet Office, the Japanese Gross Domestic Product (GDP) for last quarter came in at -0.6%, worse than the market forecast at -0.5%. As of writing, USD/JPY depreciated by 0.09% to 109.47.
In the commodities market, the crude oil price appreciated by 3.21% to $39.80 per barrels as of writing. The oil market was traded higher following the OPEC and its allies including Russia agreed to extend the oil production cuts until the end of July. On the other hand, the gold market surged 0.17% to $1687.80 due to technical correction. However, the gold market slumped on last Friday following the positive jobs data from the United States was released. According to Bureau of Labor Statistics, the U.S. Nonfarm Payrolls and U.S Unemployment rate were both came in at better than expectation, dialling up the market optimism toward the global economic growth.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 96.55. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 97.25.
Resistance level: 97.25, 97.95
Support level: 96.55, 96.05
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.2640. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2785, 1.2950
Support level: 1.2640, 1.2510
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1335. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1240.
Resistance level: 1.1335, 1.1420
Support level: 1.1240, 1.1160
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 109.65. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 109.00.
Resistance level: 109.65, 110.25
Support level: 109.00, 108.25
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level at 0.7010. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6955.
Resistance level: 0.7010, 0.7075
Support level: 0.6955, 0.6880
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6525. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6525, 0.6605
Support level: 0.6435, 0.6335
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3470. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3470, 1.3585
Support level: 1.3310, 1.3205
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9600. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9645.
Resistance level: 0.9645, 0.9695
Support level: 0.9600, 0.9555
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 40.30. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 40.30, 42.95
Support level: 38.15, 35.95
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1676.75. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1698.30.
Resistance level: 1698.30, 1717.80
Support level: 1676.75, 1648.05