28 August 2020 Morning Session Analysis
Dollar slumped over the Fed’s dovish tone.
The Dollar index which gauge against a basket of six major currency slumped over the dovish tone from the Federal Reserve on yesterday. According to Reuters, the Federal Reserve Chairman Jerome Powell said that the U.S. central bank would continue to roll out an aggressive new stimulus plan in order to boost the U.S. employment and inflation rate in the United States. Besides, he reiterated that the U.S. central bank will seek to achieve average target inflation at 2% for the year while ensuring employment rate does not fall short of its maximum level. As for now, they will remain their footsteps at monetary easing while eyeing on global growth risk, more stimulus can be anticipated if the course of events urges their economy growth goes against their expectation. Nonetheless, the losses experienced by the dollar index was limited over the backdrop of the positive data from the U.S. region. The U.S. Pending Home Sales and U.S. Gross Domestic Product came in at 5.9% and -31.7%, which fared better than the market forecast at 3.0% and -32.5% respectively. As of writing, the Dollar index depreciated by 0.01% to 92.95.
In the commodities market, as of writing the crude oil price slumped 0.08% to $42.90 per barrel. The oil market edged lower amid investors fears that the spiking numbers of the coronavirus infections can continue to harm the market demand on the crude oil commodity. Meanwhile, investors would continue to scrutinize the latest updates with regards of the vaccine development in order to gauge the likelihood movement for this black-commodity in the future. On the other hand, the gold price appreciated by 0.12% to $1927.45 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:05 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – GDP (MoM) (Jun) | 4.5% | 5.3% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Aug) | 72.5 | 72.8 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was lower following prior retracement from the resistance level at 93.30. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 92.55.
Resistance level: 93.30, 93.80
Support level: 92.55, 92.05
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.3250. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3155.
Resistance level: 1.3250, 1.3340
Support level: 1.3155, 1.3060
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1890. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1785.
Resistance level: 1.1885, 1.2040
Support level: 1.1785, 1.1710
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 106.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 107.35.
Resistance level: 107.35, 108.40
Support level: 106.40, 105.40
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7270. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7270, 0.7340
Support level: 0.7240, 0.7200
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6625. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6690, 0.6735
Support level: 0.6625, 0.6575
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3120. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3225, 1.3315
Support level: 1.3120, 1.2950
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9185. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9185, 0.9385
Support level: 0.9005, 0.8795
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the previous resistance level at 43.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 42.65.
Resistance level: 43.05, 43.40
Support level: 42.65, 42.30
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1956.60. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1911.40.
Resistance level: 1956.60, 2005.65
Support level: 1911.40, 1867.70