18 November 2020 Morning Session Analysis
US Dollar slumped over the dovish stance from Fed.
The Dollar Index which traded against a basket of six major currencies dipped following the Federal Reserve and U.S. Congress vowed to expand its monetary and fiscal policy in order to combat the economic damage due to the coronavirus epidemic. According to Reuters, the Federal Reserve Chairman Jerome Powell said on Tuesday that the Federal Reserve is committed to impose further tools to support the recovery for as long as it takes until the job market is well and stable. Besides, the US Dollar extend its losses over the backdrop of the downbeat economic data from the U.S. region on yesterday. According to Census Bureau, the U.S. Retail Sales for last month had notched down significantly from the previous reading of 1.6% to 0.3%, missing the economist forecast at 0.5%. Since the retail sales from the United States has a large impact on the U.S. GDP, such negative data had dialed down market optimism toward the economic progression in the United States while spurring bearish momentum on the US Dollar. As of writing, the Dollar Index depreciated by 0.22% to 92.35.
In the commodities market, the crude oil price slumped 0.24% to $41.45 per barrel as of writing following the inventory data was released. According to American Petroleum Institute (API), the U.S. API Weekly Crude Oil Stock increased from the previous reading of -5.147M to 4.174M, exceeding the market forecast at 1.950M while signaling that the oversupply issues still persisted in the oil market. On the other hand, the gold price surged 0.07% to $1881.80 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
23:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – CPI (YoY) (Oct) | 0.5% | 0.6% | – |
| 18:00 | EUR – CPI (YoY) (Oct) | -0.3% | -0.3% | – |
| 21:30 | USD – Building Permits (Oct) | 1.545M | 1.560M | – |
| 21:30 | CAD – Core CPI (MoM) (Oct) | 0.1% | – | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 4.278M | -0.913M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 92.45. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 92.45, 93.00
Support level: 92.10, 91.75
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3270. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3270, 1.3310
Support level: 1.3220, 1.3160
EURUSD, H1: EURUSD was traded lower while currently testing the support level at 1.1855. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1890, 1.1925
Support level: 1.1855, 1.1810
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 104.30. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 104.30, 104.65
Support level: 103.85, 103.15
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7320. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7220.
Resistance level: 0.7320, 0.7430
Support level: 0.7220, 0.7100
NZDUSD, Weekly: NZDUSD was traded higher while currently testing the resistance level at 0.6915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6915, 0.7110
Support level: 0.6760, 0.6510
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3090. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3170.
Resistance level: 1.3170, 1.3240
Support level: 1.3090, 1.3025
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9100. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9140.
Resistance level: 0.9140, 0.9175
Support level: 0.9100, 0.9055
CrudeOIL, H4: Crude oil price was traded within a range while currently testing the resistance level at 41.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 41.70, 43.70
Support level: 39.45, 37.05
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1877.10. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1894.85.
Resistance level: 1894.85, 1908.10
Support level: 1877.10, 1868.50