14 October 2020 Afternoon Session Analysis
Dollar surged over the risk-off sentiment.
The Dollar Index which gauges its value against a basket of six major currencies surged amid dimming hopes for the COVID-19 vaccine following the Johnson & Johnson had temporarily halted its Covid-19 vaccine trial, which diminishing risk appetite in the FX market while prompting investors to shift their portfolio toward the safe-haven Dollar. Besides that, the impasses in between the both U.S. Republicans and Democrats party with regards of latest U.S. economic stimulus had also weighed on the market sentiment, which spurring further demand for the safe-haven Dollar. According to CNBC, the House Speaker Nancy Pelosi had rejected the Trump’s $1.8 trillion coronavirus relief offer on yesterday. In fact, she reiterated that the proposal from the Trump’s administration lacked a “strategic plan to combat the virus”. Since the market participants expected that the aggressive economic stimulus plan would be sapping the value for the US Dollar with the higher inflation risk in future, diminishing hopes for the latest economic stimulus plan had insinuated the market demand on the US Dollar. Nonetheless, significant uncertainty still remained in the global financial market, hence investors would need to continue the scrutinize the latest updates with regards of the latest economic stimulus plan, COVID-19 vaccine development and also U.S. Presidential election in order to receive further trading signal. As of writing, the Dollar Index surged 0.02% to 93.45.
In the commodities market, the crude oil price slumped 0.15% to $40.35 per barrel as of writing amid spiking numbers of coronavirus and also dimming hopes for the COVID-19 vaccine had provided negative prospect for the oil demand in future. On the other hand, the gold price appreciated by 0.30% to $1896.70 per troy ounces as of writing amid diminishing risk appetite in the FX market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16.00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20.30 | USD – PPI (MoM)(Sep) | 0.3% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 93.50. MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its gains after it successfully breakout above the resistance level.
Resistance level: 93.50, 94.10
Support level: 92.70, 92.10
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2945. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2865.
Resistance level: 1.2945, 1.3000
Support level: 1.2865, 1.2785
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1790. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.1645.
Resistance level: 1.1790, 1.1950
Support level: 1.1645, 1.1455
USDJPY, H4: USDJPY was traded lower following prior retracement from the higher level. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 105.75, 106.05
Support level: 105.15, 104.50
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7140. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.7205.
Resistance level: 0.7205, 0.7265
Support level: 0.7140, 0.7080
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6655. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.6655.
Resistance level: 0.6655, 0.6725
Support level: 0.6610, 0.6570
USDCAD, H4: USDCAD was traded lower while currently testing the resistance level at 1.3140. MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction in short term toward the lower level.
Resistance level: 1.3140, 1.3235
Support level: 1.3025, 1.2950
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9120. MACD which display bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.9180.
Resistance level: 0.9180, 0.9225
Support level: 0.9120, 0.9050
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 40.40. MACD which illustrate bearish signal suggest the commodity to extend its losses toward the support level at 39.85.
Resistance level: 40.40, 40.90
Support level:39.85, 39.30
GOLD_, H4: Gold price was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 1899.40.
Resistance level: 1899.40, 1915.75
Support level: 1876.85, 1850.85