1 June 2020 Morning Session Analysis
Dollar soars as geopolitical tensions heightened.
Dollar index which gauges its value against a basket of six major currencies surged Trump announced unprecedented actions against China end of last week. In the Saturday conference, US President Donald Trump announced that they will take action to withdraw the Hong Kong’s preferential treatment as a separate customs after China parliament unanimously agreed to impose national security law in Hong Kong. Besides, Trump also revealed that they will impose sanctions against the China mainland and Hong Kong official who are involved in eroding Hong Kong autonomy, shifting the idea of ‘one country, two systems’ away to ‘one country, one system’ which in favour to China. In such sanction, US government will ban the visas of Chinese Students and expel them from US. In term of financial market, the US measures against China including to delist those Chinese companies from all US exchanges if they fail to abide by US financial disclosure laws. Moreover, US have also expressed its dissatisfaction against World Health Organisation by terminating all its fund contribution, while taking the chance to criticize that China has the full control over the organisation. The tension between US and China has been obviously ramped up to another new level, prompting the investors to flee from high risk asset into safe haven dollar. During Asian early trading session, dollar index rose 0.05% to 98.30.
In the commodities market, the crude oil price appreciates by 0.59% to $35.50 per barrel as supply glut eased after massive production cut by OPEC and its allies. Besides, along with more and more countries start to remove the country lockdown measure, the price of this black commodity rose as the market prospect turns brighter. Besides, gold price surged 0.52% to $1738.10 a troy ounce as heightening of market uncertainty urged investor into safe haven asset.
Today’s Holiday Market Close
Time Market Event
All Day EUR Whit Monday
All Day CHF Pentecost
All Day NZD Queen’s Birthday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Manfacturing PMI (May) | 34.5 | 36.8 | – |
| 16:30 | GBP – Manufacturing PMI (May) | 40.6 | 40.7 | – |
| 22:00 | USD – ISM Manufacturing PMI (May) | 41.5 | 43.0 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 98.25. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 98.25.
Resistance level: 98.80, 99.75
Support level: 98.25, 97.60
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2290. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.2370.
Resistance level: 1.2370, 1.2435
Support level: 1.2290, 1.2230
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1115. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction toward the support level at 1.1080.
Resistance level: 1.1115, 1.1155
Support level: 1.1080, 1.1025
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 107.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 108.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6655. MACD which illustrates bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.6655.
Resistance level: 0.6655, 0.6810
Support level: 0.6530, 0.6370
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6205. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6150.
Resistance level: 0.6205, 0.6250
Support level: 0.6150, 0.6065
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3855. However, MACD which illustrates diminishing bearish momentum suggest the pair to undergo technical correction toward the resistance level at 1.3855.
Resistance level: 1.3855, 1.3980
Support level: 1.3670, 1.3380
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9650. MACD which illustrates bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.9575.
Resistance level: 0.9650, 0.9740
Support level: 0.9575, 0.9505
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 34.35. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 38.00.
Resistance level: 38.00, 41.05
Support level: 34.35, 31.25
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1738.15. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains after it successfully breakout above the resistance level at 1738.15.
Resistance level: 1738.15, 1750.90
Support level: 1726.05, 1718.20