10 July 2020 Morning Session Analysis
Oil price slumped, triggered sell-off for Loonie.
Canadian dollar slumped following crude oil price suffered from the strong selling pressure on yesterday. Since the Canada has the third largest oil reserves in the world and it’s the world’s fourth largest oil exporter, the depreciation of the crude oil price would be dialling down market confidence toward the economic progression in the Canada while spurring significant selloff for the currency. According to Reuters, there are more than 60,000 new coronavirus infections were reported from the region of United States on yesterday, the greatest single-day tally of cases by any country since the coronavirus emerged last year. Meanwhile, the U.S. deaths from the virus notched up by more than 900 for the second day. As the coronavirus cases had spiked up significantly, it triggered some states to roll back reopening measures while providing negative prospect for this black-commodity. However, the losses experienced by the Canadian dollar was limited over the backdrop of the positive housing data. According to Canadian Mortgage and Housing Corporation, the Canada Housing Starts notched up from the previous reading of 195.5K to 211.7K, much better than the market forecast at 198.0K. As of writing, USD/CAD appreciated by 0.03% to 1.3580.
In the commodities market, the crude oil price slumped 0.22% to $39.55 per barrel as of writing. The oil market edged lower amid the resurgence of the coronavirus, which dragged down the appeal of the crude oil. On the other hand, the gold market surged 0.03% to $1803.80 per troy ounces amid the risk-off sentiment in the FX market, which prompting investors to shift their portfolio toward the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 CrudeOIL IEA Monthly Report
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – PPI (MoM) (Jun) | 0.4% | 0.4% | – |
| 20:30 | CAD – Employment Change (Jun) | 289.6K | 800.0K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 96.75. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 96.75, 97.20
Support level: 96.35, 95.90
GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.2615. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2615, 1.2800
Support level: 1.2340, 1.2065
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1275. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1335, 1.1390
Support level: 1.1275, 1.1215
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 107.20. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 107.90, 108.45
Support level: 107.20, 106.85
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7000. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6940.
Resistance level: 0.7000, 0.7065
Support level: 0.6940, 0.6850
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6585. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9520.
Resistance level: 0.6585, 0.6635
Support level: 0.6520, 0.6465
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3510. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3630.
Resistance level: 1.3630, 1.3730
Support level: 1.3510, 1.3430
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9375. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9435.
Resistance level: 0.9435, 0.9470
Support level: 0.9375, 0.9320
CrudeOIL, H4: Crude oil price was traded lower while currently near the support level at 39.05. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 40.80, 43.20
Support level: 39.05, 37.10
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1817.85. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1790.70.
Resistance level: 1817.85, 1849.90
Support level: 1790.70, 1761.25