12 October 2020 Morning Session Analysis
Euro slips amid growing concerns over coronavirus.
During early Asian session, the Euro which traded against the dollar and other currency pairs have fell as investors grow wary of Europe’s second wave of coronavirus. According to reports from Wall Street Journal, ECB chief economist Philip Lane have warned “the next phase is going to be tougher” when addressing the second wave of COVID-19. Ongoing records of daily high infections ad sharp rebound in cases on several European countries have reflected that the Euro didn’t really recover as the market expected. Countries such as Spain have declared a state of emergency while Italy also warned their health system is experiencing “significant critical issue”. Following the development, the currency sentiment have been dragged lower which also affect its value at the same time. At the time of writing, EUR/USD fell 0.83% to $1.1819.
In the commodities market, crude oil price plunged 0.81% to $40.47 per barrel as of writing as U.S energy companies restart oil production after hurricane. Two days after Hurricane Delta made landfall on Friday night, worker from companies such as Chevron Corp, Royal Dutch Shell and BHP Group were heading back to production platforms in the Gulf Mexico. On the other hand, gold price rose 0.03% to $1930.66 a troy ounce at the time of writing following broad US dollar weakness.
Today’s Holiday Market Close
Time Market Event
All Day CAD Thanksgiving Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level 92.70. MACD which illustrate ongoing bearish momentum signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 93.65, 94.65
Support level: 92.70, 91.70
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3005. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction back towards the level 1.3005.
Resistance level: 1.3260, 1.3500
Support level: 1.3005, 1.2775
EURUSD, H4: EURUSD was traded higher following recent rebound from the support level 1.1750. However, MACD which display diminishing bullish bias signal suggest the pair to be traded lower in short term as technical correction back towards the support level 1.1750.
Resistance level: 1.1890, 1.1995
Support level: 1.1750, 1.1615
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level 105.80. MACD which display ongoing bearish bias signal suggest the pair to extend its losses towards the support level 105.15.
Resistance level: 105.80, 106.45
Support level: 105.15, 104.25
AUDUSD, H4: AUDUSD was traded higher following recent breakout above the previous resistance level 0.7200. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction back towards the support level 0.7200.
Resistance level: 0.7340, 0.7410
Support level: 0.7200, 0.7105
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.6685. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 0.6595.
Resistance level: 0.6685, 0.6775
Support level: 0.6595, 0.6510
USDCAD, H4: USDCAD was traded lower while currently testing the support level 1.3115. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction towards the resistance level 1.3240.
Resistance level: 1.3240, 1.3335
Support level: 1.3115, 1.2995
USDCHF, H4: USDCHF was traded lower following recent retracement from the resistance level 0.9190. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term back towards the level 0.9190.
Resistance level: 0.9190, 0.9295
Support level: 0.9050, 0.8880
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 41.40. MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to extend its retracement towards the support level 39.00.
Resistance level: 41.40, 43.95
Support level: 39.00, 36.55
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1914.20. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower as a technical correction towards the support level 1914.20.
Resistance level: 1970.55, 2010.30
Support level: 1914.20, 1854.20