2 October 2020 Morning Session Analysis
US stimulus package nowhere to be seen.
US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin remains far from agreement with regards to additional Covid-19 relief due to differences on key areas as of today. Both parties failed to bridge a consensus which Pelosi described as differences over “dollars and values”. Previously, Democratic Congress which is led by Pelosi has proposed a USD2.2 trillion package in response to coronavirus pandemic which has forced millions out of work. However, her proposal was rejected by Republicans as it was deemed too high. Instead, Republican has suggested a lower amount of stimulus package amounting to USD1.6 trillion which was later dismissed by Democrats as the offer was deemed “not serious”. For the time being, negotiations in between both parties will continue while investors will be remained focus on the event in order to attain more market signals. On the other hand, investors will also place their limelight upon the release of Nonfarm Payrolls report due later tonight in order to gauge US economic recovery momentum in terms of employment market. As of writing, the dollar index was down 0.17% to 93.72.
As for commodities, crude oil price plunged 0.57% to $38.50 per barrel. Oil futures received substantial selloff after Libya reportedly increased their production to 270,000 barrels per day following easing political instability. On the other hand, gold price rose 0.03% to $1,905.00 a troy ounce over the backdrop of weaker US dollar.
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 |
| 17:00 | EUR – CPI (YoY) (Sep) | -0.2% | -0.1% | – |
| 20:30 | USD – Nonfarm Payrolls (Sep) | 1,371K | 850K | – |
| 20:30 | USD – Unemployment Rate (Sep) | 8.4% | 8.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from 93.50. MACD which illustrate diminished downward momentum suggests the index to be traded higher in short-term.
Resistance level: 94.10, 94.70
Support level: 93.50, 92.70
GBPUSD, H1: GBPUSD was traded lower following prior retrace from the upper level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2885, 1.2940
Support level: 1.2850, 1.2810
EURUSD, H4: EURUSD was traded lower following prior retrace from 1.1760. MACD which begins to form bearish signal suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1760, 1.1800
Support level: 1.1705, 1.1675
USDJPY, H4: USDJPY remains traded within a sideways channel. Due to the lack of signal from MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 105.70, 106.15
Support level: 105.30, 104.80
AUDUSD, H4: AUDUSD was traded lower while currently testing near 0.7160. MACD which illustrate diminished upward momentum suggests the pair to extend its losses after closing below 0.7160.
Resistance level: 0.7210, 0.7255
Support level: 0.7160, 0.7100
NZDUSD, H4: NZDUSD was traded flat near 0.6650. MACD which illustrate diminished upward momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6650, 0.6685
Support level: 0.6620, 0.6580
USDCAD, H4: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3310, 1.3355
Support level: 1.3250, 1.3200
USDCHF, H4: USDCHF was traded higher following prior rebound from the lower level. MACD which illustrate diminished bearish momentum suggest the pair to be traded higher in short-term.
Resistance level: 0.9230, 0.9280
Support level: 0.9180, 0.9145
CrudeOIL, H4: Crude oil price remains traded within a downward channel. MACD which illustrate bearish signal suggest its price to be traded lower in short-term.
Resistance level: 39.00, 39.85
Support level: 37.95, 37.00
GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term.
Resistance level: 1912.00, 1940.00
Support level: 1883.00, 1855.00