7 July 2020 Morning Session Analysis
Dollar slumped over the accelerating risk appetite.
The safe-haven US Dollar slumped amid accelerating risk appetite in the global financial market on the positive expectation of a strong economic rebound following major countries had been easing their coronavirus lockdown restriction, which prompting investors to shift their portfolio toward riskier asset. On yesterday, the index of China’s blue-chip shares soared to its highest in five years as traders remained positive toward the revival in China’s economy. Meanwhile, the Nasdaq closed at a record high on Monday as mega-cap tech stocks continue to extend its gain. However, the losses experienced by the US Dollar was limited amid the fears upon the second wave of the coronavirus still persisted. According to Reuters, Florida and Texas had both reported new single-day records for infections over the weekend. Besides, positive economic data from the US region had also dialled up some market optimism toward the economic progression in the United States, which also spurring some market demand on the US Dollar. According to Institute for Supply Management, the U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI) notched up significantly from the preliminary reading of 45.4 to 57.1, confounding market forecast for a reading of up to 50.1. As of writing, the Dollar Index slumped 0.42% to 96.70.
In the commodities market, the crude oil price appreciated by 0.34% to $40.65 per barrels. The oil market edged higher amid the expectation of the reduction in Libyan oil exportation after the government in Tripoli continued to block the oil shipment out of the North African country. On the other hand, the gold market surged 0.12% to $1786.05 per troy ouns as of writing amid the unstoppable increase of coronavirus infections in the United States, which insinuating demand for this safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:30 AUD RBA Interest Rate Decision (Jun)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 12:30 | AUD – RBA Interest Rate Decision (Jun) | 0.25% | 0.25% | – |
| 14:00 | EUR – German Industrial Production (MoM) (May) | -17.9% | 10.0% | – |
| 22:00 | USD – JOLTs Job Openings (May) | 5.046M | 4.850M | – |
| 22:00 | CAD – Ivey PMI (Jun) | 39.1 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 96.85. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 96.85, 97.20
Support level: 96.40, 95.90
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2520. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2520, 1.2590
Support level: 1.2410, 1.2330
EURUSD, H4: EURUSD was higher following prior breakout above the previous resistance level at 1.1285. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1335.
Resistance level: 1.1335, 1.1390
Support level: 1.1285, 1.1230
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 107.25 MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 107.90, 108.45
Support level: 107.25, 106.80
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6960. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7010, 0.7050
Support level: 0.6960, 0.6925
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6570. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6570, 0.6635
Support level: 0.6520, 0.6465
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3520. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction
Resistance level: 1.3595, 1.3645
Support level: 1.3520, 1.3445
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9435. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9365.
Resistance level: 0.9435, 0.9515
Support level: 0.9365, 0.9270
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 40.30. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 41.40, 42.55
Support level: 40.30, 39.25
GOLD_, H1: Gold price was traded higher while currently near the resistance level at 1788.05. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1788.05, 1798.15
Support level: 1779.40, 1770.15