08 October 2020 Morning Session Analysis
Dollar slumped on latest stimulus hopes from Trump.
The Dollar Index which gauges its value against a basket of six major currencies slumped amid positive hopes of at least some new fiscal stimulus would be implemented before the 3rd November 2020 U.S. Presidential election, which spurring risk appetite in the FX market while prompting investors to shift their portfolio toward other riskier currencies such as Euro and Pound. According to Reuters, US President Donald Trump urged the Congress on yesterday that they should quickly extend $25 billion in new payroll assistance to U.S. airlines industries as air travel remains down sharply amid the coronavirus pandemic. Besides, the US Dollar received further bearish momentum over the backdrop of the dovish tone from the Federal Reserve. The Federal Reserve’s Williams had stated that the economic outlook for the global economic is highly uncertain while reiterated that some parts of the economy were still struggling from the coronavirus pandemic. Meanwhile, the Chicago Federal Reserve President Charles Evans claimed that the U.S. Central bank will likely to remain its expansionary monetary policy stance in long-term in order to meet its inflation goal. As of writing, the Dollar Index depreciated by 0.09%.
In the commodities market, the crude oil price surged 0.07% to $40.01 per barrel as of writing. The oil market edged higher as market participants expected that the new hopes for the fiscal stimulus from the US government would able to boost the global economy growth, which providing positive prospect for the market demand on this black-commodity in the future. On the other hand, the gold price appreciated by 0.03% to $1887.60 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
19:30 EUR ECB Monetary Policy Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Initial Jobless Claims | 837K | 820K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 93.45. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 94.60, 95.95
Support level: 93.45, 92.15
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2890. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2985.
Resistance level: 1.2985, 1.3095
Support level: 1.2890, 1.2810
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1765. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1765, 1.1810
Support level: 1.1725, 1.1675
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 105.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 106.70.
Resistance level: 106.70, 108.00
Support level: 105.40, 104.55
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7100. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7160.
Resistance level: 0.7160, 0.7210
Support level: 0.7100, 0.7040
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.6600. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6600, 0.6655
Support level: 0.6520, 0.6445
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3255. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3320, 1.3365
Support level: 1.3255, 1.3205
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9145. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9275.
Resistance level: 0.9275, 0.9385
Support level: 0.9145, 0.9060
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 39.25. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 40.55, 41.45
Support level: 39.25, 38.05
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1916.00. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1916.00, 1954.85
Support level: 1852.15, 1813.70