2 March 2020 Morning Session Analysis
Euro rebounds following optimistic data.
Euro extended its gains against the US dollar last Friday over the backdrop of optimistic economic data from the region. For the month of February, German Unemployment Change came in at -10,000, fared better than forecast of 3,000. Similarly, Germany’s Core CPI for the month of February rose to 0.4%, slightly higher than forecast of 0.3%. Both data has invigorated the appeal of euro towards the financial market after previous data from the region shows extensive recessive risks. However, gains on the euro were limited as coronavirus spreads quickly from Italy to other countries in Europe such as Switzerland, Austria and Spain. Investor’s fear that the coronavirus infection may hinder a recovery in Eurozone economy, thus dialling down market confidence towards Euro. On the other hand, US dollar tumbled sharply as investor’s speculate a slower future growth due to the spread of coronavirus in the United States. Last week, US Centres for Disease Control and Prevention warned that the coronavirus may have spread in the United States. US Federal Reserve signalled that they are monitoring current situation while recent possibility over its spread in the US has increased the likelihood for another rate cut in the near future. As of writing, pair of EUR/USD rose 0.19% to 1.1046 while dollar index fell 0.05% to 98.01.
In the commodities market, crude oil price depreciates by 0.01% to $45.13 per barrel. Oil prices plunged sharply on last week as coronavirus began to spread outside of China to countries such as Switzerland, Italy and possibly the United States. Investors fear that the spread may cripple global economic growth which in return dampens the demand for crude oil. On the other hand, gold price ticks up 0.01% to $1,586.16 a troy ounce due to risk aversion in the 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 (Feb) | 47.8 | 47.8 | – |
| 17:30 | GBP – Manufacturing PMI (Feb) | 51.9 | 51.8 | – |
| 23:00 | USD – ISM Manufacturing PMI (Feb) | 50.9 | 50.4 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing at the support of 97.90. MACD which shows bearish signal suggests the index to extend its losses after closing below 97.90.
Resistance level: 98.30, 98.90
Support level: 97.90, 97.45
GBPUSD, Daily: GBPUSD extended its losses following prior closure below 1.2915. MACD which illustrate bearish signal suggests the pair to advance further down, towards the direction of 1.2740.
Resistance level: 1.2915, 1.3130
Support level: 1.2740, 1.2570
EURUSD, Daily: EURUSD extended its gains following prior closure above 1.0200. MACD which illustrate bullish signal suggests the pair to advance further up, towards the direction of 1.1090.
Resistance level: 1.1090, 1.1165
Support level: 1.1020, 1.0930
USDJPY, Daily: USDJPY tumbled further down following prior retrace from its higher level. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 106.35.
Resistance level: 107.55, 108.40
Support level: 106.35, 104.85
AUDUSD, H4: AUDUSD was traded higher following prior rebound near 0.6450. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6580, 0.6700
Support level: 0.6450, 0.6300
NZDUSD, Weekly: NZDUSD was traded lower while currently testing near the support of 0.6200. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.6200.
Resistance level: 0.6435, 0.6700
Support level: 0.6200, 0.5790
USDCAD, H1: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3445, 1.3510
Support level: 1.3390, 1.3305
USDCHF, Daily: USDCHF was traded lower while currently testing near the support of 0.9620. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below 0.9620.
Resistance level: 0.9730, 0.9840
Support level: 0.9620, 0.9550
CrudeOIL, Daily: Crude oil price extended its losses while currently testing near 43.00. Stochastic Oscillator began to illustrate bullish signal suggests its price to experience technical correction in short-term.
Resistance level: 46.30, 51.55
Support level: 43.00, 38.80
GOLD_, H4: Gold price was traded higher following prior rebound from the lower level. MACD which shows diminished downward momentum suggests its price to be traded higher in short-term.
Resistance level: 1600.00, 1629.15
Support level: 1562.00, 1526.90