31 August 2020 Morning Session Analysis
Japanese Yen surged following Shinzo Abe’s resignation.
Japanese Yen which broadly act as the major safe haven currency jumps significantly after Japan Prime Minister announced that he would step down from its current position due to worsening of health condition. According to the latest news, 65 years old Shinzo Abe has decided to resign as he has been struggling with a relapse of his chronic illness since few years ago. Besides, he also made an apology in the press conference, where he could not stand together with the Japanese as well as the global to fight against the pandemic. Back to year 2012, Shinzo Abe has introduced an economic policies which known as ‘Abenomics’ in Japan. Basically, Abenomics consists of monetary easing from Bank of Japan, fiscal stimulus through government spending and structural reforms which literally aimed to revive the economy after years of deflation happened in Japan. Despite the effectiveness of Abenomics was not as useful as observers had hoped, but it still managed to spark up the economy GDP and stabilized the economy growth. Nevertheless, the future outlook of Japan turns faded as investors still eyeing on the successor of Shinzo Abe in the backdrop of economy is still struggling under pandemic’s fallout. During Asian early trading session, the pair of USD/JPY rebounded 0.31% to 106.65.
In the commodities market, as of writing the crude oil price depreciated by 0.05% to $42.95 per barrel as the market fears over the Hurricane Laura eased as it unlikely to have sustained impact on the oil price. Market expert predicted that oil production will be recovered quickly as the intensity of hurricane is not as strong as the previous expectation. Besides, gold price appreciated 0.48% to $1973.65 a troy ounce as recent shift of inflation target policy in US prompted investor to flee into safe haven gold.
Today’s Holiday Market Close
Time Market Event
All Day GBP Bank Holiday
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 92.10. MACD which illustrated bearish bias momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 92.60, 93.25
Support level: 92.10, 91.45
GBPUSD, Daily: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3255. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward the resistance level at 1.3470.
Resistance level: 1.3470, 1.3590
Support level: 1.3255, 1.3045
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1900. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.1950, 1.1990
Support level: 1.1900, 1.1840
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 105.20. MACD which illustrates diminishing bearish momentum suggest the pair to extend its rebound toward the resistance level at 106.15.
Resistance level: 106.15, 106.95
Support level: 105.20, 104.30
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7380. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7380, 0.7445
Support level: 0.7330, 0.7265
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.6755. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above resistance level at 0.6755.
Resistance level: 0.6755, 0.6920
Support level: 0.6615, 0.6535
USDCAD, H4: USDCAD was traded lower following prior retracement from the higher level. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3140, 1.3235
Support level: 1.3030, 1.2950
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9050. However, MACD which illustrates diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9050, 0.9120
Support level: 0.8975, 0.8905
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 42.75. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 43.40.
Resistance level: 43.40, 44.35
Support level: 42.75, 42.05
GOLD_, Daily: Gold price was traded higher following prior rebound from the support level at 1905.85. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 2069.75.
Resistance level: 2069.75, 2147.50
Support level: 1905.85, 1761.65