11 June 2020 Morning Session Analysis
Dollar dipped amid dovish statement from Fed Chairman.
Dollar index which gauges its value against a basket of six major currencies plunged following a dovish statement has been given by the Fed Chairman Jerome Powell yesterday. In the Fed Meeting, FOMC board members unanimously agreed to remain the interest rate at previous low level, which fall between the ranges of 0.00% to 0.25%, while committed to use their full range of tools to revive the economy from the negative effect of virus. Besides, Powell revealed that their GDP target for the year of 2020 has also been slashed to -6.5% amidst the chain effect of Covid-19 toward the economic condition in the second half of this year. Despite recent employment data showed some sign of recovery in rehiring activity, Federal Reserve warned that they will remain cautious toward the evolve of economy’s performance from time to time, try to narrow the gap between potential and current employment rate. In addition, Fed also stated that they would continue their pace on bond-purchasing, targeting $80 billion a month in Treasury and $40 billion in mortgage-backed securities until the nation’s economy health has fully recovered from the fallout of virus. As of writing, dollar index fall 0.28% to 96.05.
In the commodities market, the crude oil price depreciates by 2.40% to $38.65 per barrel amid surprise inventory build in US. According to the EIA, US Crude Oil Inventories level surged by 5.720 million in the week of 5th June, higher than the forecast with a draw of 1.738 million, reviving the worries of unbalance condition between supply and demand in this black commodity market. Besides, gold price inched up 0.02% to $1735.85 a troy ounce amid investors fled into safe haven asset following dovish statement from Jerome Powell.
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 – Initial Jobless Claims | 1,877K | 1,550K | – |
| 20:30 | USD – PPI (MoM)(May) | -1.3% | 0.1% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 96.25. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 96.90, 98.35
Support level: 96.25, 95.00
GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.2720. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction toward the support level at 1.2485.
Resistance level: 1.2720, 1.2870
Support level: 1.2585, 1.2485
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1400. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 1.1400, 1.1555
Support level: 1.1240, 1.1115
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 107.15. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 106.20.
Resistance level: 107.15, 108.15
Support level: 106.20, 104.80
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6935. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7215, 0.7610
Support level: 0.6935, 0.6655
NZDUSD, Daily: NZDUSD was traded lower following prior retracement from the resistance level at 0.6600. MACD which illustrates diminishing bullish momentum signal suggest the pair to be traded lower in short term toward the support level at 0.6445.
Resistance level: 0.6600, 0.6735
Support level: 0.6445, 0.6200
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3360. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3650.
Resistance level: 1.3650, 1.3830
Support level: 1.3360, 1.3075
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9500. MACD which illustrates bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.9395.
Resistance level: 0.9500, 0.9575
Support level: 0.9395, 0.9265
CrudeOIL, Daily: Crude oil price was traded lower while currently testing the support level at 38.45. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses after it successfully breakout below the support level at 38.45.
Resistance level: 41.20, 44.70
Support level: 38.45, 32.25
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1734.35. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward higher level.
Resistance level: 1750.85, 1763.85
Support level: 1734.35, 1716.40