03 February 2020 Morning Session Analysis
Yen surged as fears of coronavirus continue.
Japanese Yen surged on last Friday amid to the risk-off sentiment in the FX market following the outbreak of the coronavirus. According to CNBC, the China’s coronavirus has so far taken 304 lives, affecting 14,380 people, which recorded by Sunday. Besides that, it has resulted in the banning of transport and extended holidays in China to confront the threat. According to latest news, airlines around the world have announced plans to cancel the number of flights which they are operating to and from China as the fears upon the outbreak of the coronavirus. Nonetheless, some others airlines such as Qatar Airways and Malaysia Airlines have not suspended the flights from and to China, but the passengers and crew traveling from China will be subjected to additional screening at the airports. Investors suspect that the outbreak of the coronavirus would definitely harm the whole economic growth, which stocked a shift in sentiment toward less risky asset while insinuating the demand for the safe-haven asset such as Japanese Yen. At this time, investors would have to scrutinize the latest updates with regards of the coronavirus in order to gauge the likelihood movement for the currency. As of writing, the pair of USD/JPY appreciated by 0.01% to 108.39.
In the commodity market, as of writing the crude oil slumped 1.07% to $51.01 per barrel as investors fears that the China coronavirus epidemic would be a huge destruction for the world economic, which further slashing the demand for the crude oil in the future. On the other hand, the gold price appreciated by 0.01% to $1589.25 per troy ounces amid to the lessening of the risk-appetite in the FX market.
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 |
| 16:55 | EUR – German Manufacturing PMI (Jan) | 43.7 | 45.2 | – |
| 17:30 | GBP – Manufacturing PMI (Jan) | 49.8 | 49.8 | – |
| 23:00 | USD – ISM Manufacturing PMI (Jan) | 47.2 | 48.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 97.25. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 96.95.
Resistance level: 97.25, 97.60
Support level: 96.95, 96.60
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.3200. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3140.
Resistance level: 1.3200, 1.3250
Support level: 1.3140, 1.3075
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1095. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1095, 1.1135
Support level: 1.1015, 1.0955
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 108.70. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 108.70, 109.55
Support level: 107.85, 107.10
AUDUSD, H1: AUDUSD was traded within a range while currently testing the support level at 0.6680. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market
Resistance level: 0.6720, 0.6755
Support level: 0.6680, 0.6630
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6480. Namun, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6480, 0.6630
Support level: 0.6420, 0.6325
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3245. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market
Resistance level: 1.3245, 1.3335
Support level: 1.3165, 1.3100
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9625. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9670, 0.9715
Support level: 0.9625, 0.9585
CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 50.15. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 53.05, 56.55
Support level: 50.15, 46.25
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1582.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1594.45.
Resistance level: 1594.45, 1609.60
Support level: 1582.70, 1561.50