19 October 2020 Afternoon Session Analysis
Euro slips on coronavirus, Brexit deadlock.
During early Asian session, the euro which traded against the dollar and other currency pairs continue to extend its losses as worsening coronavirus continue to pressure the sentiment. Following latest development on coronavirus front, one of the EU members, Italy have seen ongoing spike in COVID-19 cases which led to an announcement for more restrictions that include limited opening times for restaurants and limits on public gatherings. Other EU countries such as France also reimpose lockdown to curb the spread of the virus. The worsening condition of coronavirus and the re-imposed lockdown could once again affect the potential recovery of the already fragile economy in the EU. At the same time, the uncertainty in Brexit also continue to weigh negatively on the currency where both EU and UK remain tough on certain key issues such as fisheries and level-playing field. At the time of writing, EUR/USD slips 0.05% to 1.1708.
In the commodities market, crude oil price declines 0.12% to $41.00 per barrel at the time of writing after weak China data. As China’s economic growth did not rise as much as expected following the weaker than expected GDP, China’s oil buying frenzy is expected to slow in the fourth quarter which impact on the oil price. On the other hand, gold price rose 0.26% to $1905.14 a troy ounce at the time of writing following various geopolitical risk managed to boost the demand for the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 USD Fed Chair Powell Speaks
20:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 93.50. MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its gains toward the resistance level at 94.10.
Resistance level: 94.10, 94.90
Support level: 93.50, 92.70
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the higher level. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2885.
Resistance level: 1.2945, 1.3000
Support level: 1.2885, 1.2815
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1705. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to undergo technical correction in short term toward a higher level.
Resistance level: 1.1765, 1.1810
Support level: 1.1705, 1.1675
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 105.15. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 105.75.
Resistance level: 105.75, 106.05
Support level: 105.15, 104.80
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7075. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.7140.
Resistance level: 0.7140, 0.7205
Support level: 0.7075, 0.7010
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6610. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.6660.
Resistance level: 0.6660, 0.6725
Support level: 0.6610, 0.6570
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3235. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.3140.
Resistance level: 1.3235, 1.3315
Support level: 1.3140, 1.3025
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9120. MACD which display bullish bias momentum bias momentum 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, H1: Crude oil price was traded higher following prior rebound from the support level at 40.90. MACD which illustrate bullish signal suggest the commodity to extend its gains toward the resistance level at 41.40.
Resistance level: 41.40, 42.15
Support level: 40.90, 40.40
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1899.40. Due to lack of signal from the MACD, it is suggested to wait for further confirmation before entering the market.
Resistance level: 1915.75, 1939.60
Support level: 1899.40, 1876.85