04 December 2020 Morning Session Analysis
Dollar heads south ahead of NFP data.
Dollar index which gauges its value against a basket of six major currencies was traded lower while hitting the lowest level in more than two years while market participants are shifting their attention to the upcoming NFP data. Amidst the second wave of pandemic, few of the US states government including Michigan and California re-implemented stricter measure such as halting restaurant from providing dining services and encouraging people to work from home in order to curb the fast-spreading virus. The implementation of control orders in US have further deteriorated the recovery of economy as part of the economic activities was forced to halt under the latest rules restriction. At the same time, it is in an urgent to have an optimal stimulus plan for the current US economy, and yet a bipartisan relief package which worth $908 billion was failed to pass through the US government. With a backdrop of easing over the likelihood of a new stimulus package could be implemented within a short time of period, US economy are expected to continue struggling under the shadow of Covid-19 which could be clearly seen in the recent economic data. Therefore, the crucial job data, Nonfarm Payroll would provide a clearer signal for investors to gauge the further action of Federal Reserve in the upcoming monetary policy meeting. During Asian early trading session, dollar index drops 0.47% to 90.70.
In the commodities market, the crude oil price appreciated by 0.20% to $45.80 per barrel after OPEC+ and its allies agreed to extend its plan with a smaller amount of production’s cut beginning in January. After days of meeting, OPEC and non OPEC allies decided to increase their production by 500,000 barrels per day, which bring the total productions cuts at the beginning of 2021 to 7.2 million bpd. Besides, gold price rose 0.02% to $1841.10 a troy ounce while market are awaiting for tonight’s NFP data.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Construction PMI (Nov) | 53.1 | 52.0 | – |
| 21:30 | USD – Nonfarm Payrolls (Nov) | 638K | 469K | – |
| 21:30 | USD – Unemployment Rate (Nov) | 6.9% | 6.8% | – |
| 21:30 | CAD – Employment Change | 83.6K | 20.0K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 91.95. MACD which illustrate bearish bias momentum signal suggest the dollar to extend its losses toward the support level at 90.15.
Resistance level: 91.95, 94.40
Support level: 90.15, 88.85
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3430. However, MACD which illustrates bearish bias momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.3465, 1.3500
Support level: 1.3430, 1.3390
EURUSD, H1: EURUSD was traded lower following prior retracement from the resistance level at 1.2175. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2130.
Resistance level: 1.2175, 1.2215
Support level: 1.2130, 1.2065
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 103.90. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 103.65.
Resistance level: 103.90, 104.20
Support level: 103.65, 103.20
AUDUSD, H4: AUDUSD was traded higher while currently testing the top level of upward channel However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short term.
Resistance level: 0.7480, 0.7540
Support level: 0.7405, 0.7330
NZDUSD, H1: NZDUSD was traded lower while currently testing the support level at 0.7075. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7100, 0.7140
Support level: 0.7075, 0.7045
USDCAD, H1: USDCAD was traded higher following prior rebound from the support level at 1.2845. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 1.2885.
Resistance level: 1.2885, 1.2920
Support level: 1.2845, 1.2805
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8895. However, MACD which display diminishing bearish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 0.8940, 0.8985
Support level: 0.8895, 0.8860
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 45.50. MACD which display bullish bias momentum signal suggest the commodity to extend its gains toward the resistance level at 46.30.
Resistance level: 46.30, 47.25
Support level: 45.50, 44.65
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1830.50. MACD which display diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1845.60.
Resistance level: 1845.60, 1857.30
Support level: 1830.50, 1816.00