23 November 2020 Afternoon Session Analysis
US Dollar slumped over the speculation on expansionary monetary policy.
The Dollar Index which gauge its value against a basket of six major currencies slumped on Monday amid the rash of coronavirus restrictions across the United States stoked speculation for the Federal Reserve to implement expansionary monetary policy further in order to boost up the economic progression in the United States, which diminishing market demand for the US Dollar. In addition, the impasses with regards of the Covid-19 economic stimulus plan remained between the U.S. Congress had added up probability further that the Federal Reserve could ease the monetary policy further. Nonetheless, investors would focus on the minutes of the U.S. Central Bank’s last policy meeting, which are due to be released on Wednesday to receive further trading signal for the US Dollar. Besides, millions of Americans are expected to ignore the warning of staying home for the upcoming Thanksgiving holidays, which spurring fears that mass movement could further increase the number of the Covid-19 cases in the United States. Nonetheless, positive news with regards on the Covid-19 vaccines had dialled up some market optimism toward the economic outlook in the United States, which limiting the losses experienced by the US Dollar. As of writing, the Dollar Index depreciated by 0.16% to 92.20.
In the commodities market, the crude oil price appreciated by 0.05% to $42.42 per barrel as of writing amid market participants expected that U.S. Food and Drug Administrations would get a grant Covid-19 vaccines approval in mid-December, which spurring positive prospect for the oil demand in future. On the other hand, the gold price surged 0.11% to $1873.20 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
All Day Japan Workers Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16.30 | EUR – German Manufacturing PMI (Nov) | 58.2 | 56.5 | – |
| 17.30 | GBP – Composite PMI | 52.1 | 42.5 | – |
| 17.30 | GBP – Manufacturing PMI (Nov) | 53.3 | 53.3 | – |
| 17.30 | GBP – Services PMI (Nov) | 52.3 | 52.3 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 92.10. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 92.60, 93.00
Support level: 92.10, 91.75
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level 1.3315. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3315, 1.3400
Support level: 1.3220, 1.3160
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level at 1.1855. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1885.
Resistance level: 1.1885, 1.1925
Support level: 1.1855, 1.1810
USDJPY, H1: USDJPY was traded within a range while currently testing the resistance level at 103.85. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term.
Resistance level: 103.85, 104.30
Support level: 103.45, 103.15
AUDUSD, H4: AUDUSD was traded higher while currently testing resistance level at 0.7320. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7320, 0.7430
Support level: 0.7220, 0.7100
NZDUSD, Weekly: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7110.
Resistance level: 0.7110, 0.7310
Support level: 0.6915, 0.6760
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3095. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3030.
Resistance level: 1.3095, 1.3165
Support level: 1.3030, 1.2960
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9100. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9140, 0.9175
Support level: 0.9100, 0.9055
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 42.65. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 42.65, 43.70
Support level: 41.70, 40.15
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1875.45. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1875.45, 1894.85
Support level: 1862.50, 1851.15