21 July 2020 Morning Session Analysis
Euro advanced on recovery fund optimism.
During early Asian session, the Euro which traded against the dollar and other currency pairs continue to extend gains following the potential agreement for the EU recovery fund from the EU summit. Following latest development, EU leaders are yet to agree on a few factors such as structures and condition of the recovery fund. They have agreed to return on Monday afternoon to finish the remaining negotiations. However, markets were lifted after Bloomberg reported that the four governments which is Austria, Netherlands, Denmark and Sweden that previously rejected the fund are now satisfied with 390 billion euro funds being made available as grant. The news have since help lifted the demand for the euro as the potential deal is one step closer of going through and could boost the future outlook for the struggling EU economy. At the time of writing, EUR/USD rose 0.07% to 1.1451.
In the commodities market, crude oil price remains stable and edge higher 0.05% to $40.76 per barrel as of writing following hopes of vaccine. AZD1222, a vaccine developed by Oxford University and licensed to AstraZeneca was put into large scale trials and have already signed deal to produce and supply over 2 billion doses once the shot proven successful. As coronavirus continue to hurt the outlook for demand, the news help oil market to stay afloat. On the other hand, gold price advanced 0.06% to $1818.30 a troy ounce at the time of writing due to ongoing dollar weakness and coronavirus concerns.
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 | CAD – Core Retail Sales (MoM) (May) | – | 12.0% | -22.0% |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 95.70. MACD which illustrate bearish bias signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 97.55, 98.80
Support level: 95.70, 94.35
GBPUSD, H4: GBPUSD remain traded in a sideway channel while currently testing the resistance level 1.2660. However, MACD which illustrate bullish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.2660, 1.2810
Support level: 1.2510, 1.2340
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level 1.1435. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains towards the resistance level 1.1505.
Resistance level: 1.1505, 1.1610
Support level: 1.1435, 1.1365
USDJPY, H4: USDJPY remain traded in a sideway channel near the resistance level 107.40. However, MACD which illustrate bullish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 107.40, 108.00
Support level: 106.60, 106.00
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.7030. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gain after it breaks above the resistance level.
Resistance level: 0.7030, 0.7160
Support level: 0.6935, 0.6820
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6580. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.6580, 0.6670
Support level: 0.6490, 0.6370
USDCAD, H4: USDCAD remain traded in a sideway channel while currently testing near the support level 1.3485. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.3685, 1.3820
Support level: 1.3485, 1.3330
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9365. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a short term technical correction towards the resistance level 0.9430.
Resistance level: 0.9430, 0.9480
Support level: 0.9365, 0.9315
CrudeOIL, H4: Crude oil price was traded flat near the resistance level 41.30. However MACD which display bearish momentum signal suggest the commodity to be traded lower towards the support level 37.70.
Resistance level: 41.30, 43.85
Support level: 37.70, 34.70
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1814.20. MACD which illustrate bullish momentum signal suggest the commodity to extend its gains towards the resistance level 1850.00.
Resistance level: 1850.00, 1880.15
Support level: 1814.20, 1790.05