02 July 2020 Morning Session Analysis
Aussie cheers following risk-on mood
The Aussie dollar which traded against the greenback and other currency pairs have rose following increasing risk-on mood due to recent upbeat news. Despite with growing concerns towards the worsening coronavirus conditions around the globe, market sentiment remained mostly upbeat due to recent upbeat PMI from China and hopes of vaccine. According to reports, pharmaceutical companies like Pfizer and biotech firm BioNTech have shared positive trial results of a vaccine. The news have continue to support the investor’s optimism. Moreover, latest Fed meeting minutes didn’t provide any worrisome details and also silently favoured the risk-on mood. However, as relationship between U.S and China remains tense where Donald Trump is threatening sanctions on China due to its Hong Kong security law, market participants remained cautious while awaiting further development. At the time of writing, AUD/USD rose 0.10% to 0.6919.
In the commodities market, crude oil price gains 0.15% to $39.57 per barrel at the time of writing on drawdown in crude oil stockpiles. According to data from EIA, US crude oil inventories have decreased by 7.2 million in the week ending June 26th. On the other hand, gold price retreats 0.04% to $1769.71 a troy ounce amid heightening risk appetite.
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 |
| 20.30 | USD – Initial Jobless Claims | 1480K | 1355K | – |
| 20.30 | USD – Nonfarm Payrolls (Jun) | 2509K | 3000K | – |
| 20.30 | USD – Unemployment Rate (Jun) | 13.3% | 12.3% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level 97.55. MACD which display ongoing bearish momentum signal suggest the dollar to extend its retracement towards the support level 95.85.
Resistance level: 97.55, 98.80
Support level: 95.85, 94.65
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level 1.2510. MACD which illustrate ongoing bullish momentum suggest the pair to extend its gains after it breaks above the resistance level 1.2510.
Resistance level: 1.2510, 1.2660
Support level: 1.2340, 1.2165
EURUSD, H4: EURUSD remain traded in a sideway channel following recent rebound from the support level 1.1175. However, MACD which illustrate bullish bias signal suggest the pair to be traded higher in short term towards the resistance level 1.1320.
Resistance level: 1.1320, 1.1410
Support level: 1.1175, 1.1090
USDJPY, H4: USDJPY was traded lower while currently testing the support level 107.40. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 108.00, 108.60
Support level: 107.40, 106.60
AUDUSD, H4: AUDUSD remain traded in a sideway channel following recent rebound from low levels. However, MACD which display bullish momentum signal suggest the pair to be traded higher in short term towards the resistance level 0.7020.
Resistance level: 0.7020, 0.7195
Support level: 0.6820, 0.6680
NZDUSD, H4: NZDUSD remain traded in a sideway channel while currently testing the resistance level 0.6490. However, MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.6490, 0.6580
Support level: 0.6370, 0.6235
USDCAD, H4: USDCAD remain traded in a sideway channel. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher in short term towards the resistance level 1.3685.
Resistance level: 1.3685, 1.3820
Support level: 1.3485, 1.3330
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the support level 0.9450. However, MACD which illustrate bearish bias signal with recent formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.9545, 0.9650
Support level: 0.9450, 0.9365
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 40.45. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to experience a technical correction towards the support level 35.05.
Resistance level: 40.45, 43.85
Support level: 35.05, 31.05
GOLD_, H4: Gold price was traded lower while currently testing the support level 1764.25. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses after it breaks below the support level 1764.25.
Resistance level: 1795.80, 1825.25
Support level: 1764.25, 1736.80