02 November 2020 Morning Session Analysis
Euro extend losses despite strong growth in Germany.
During early Asian session, the Euro which traded against the dollar and other currency pairs have continue to extend its decline and heading to two-month lows despite with strong quarterly economic growth in Germany. According to data, German’s GDP have rose to 8.2% in the third quarter, exceed market expectation for a rise of 7.3%. However, as the second wave coronavirus have forced the country into lockdown, the economic growth is expected to decline in the fourth quarter by 1%. On coronavirus front, Germany have seen new increase of 19,409 in just 24 hours in Friday and also exceed 500,000 mark. Other EU countries such France, Spain and Italy also continue to witness a consistent increase in new cases. With the coronavirus continue to threaten the recovery of the economy, market confidence towards the economic outlook remains weak, thus continue to weigh heavily on the Euro pair. At the time of writing, EUR/USD fell 0.06% to 1.1642.
In the commodities market, crude oil price plunged 4.87% to $34.00 per barrel as of writing amid worsening demand outlook. As coronavirus cases continue to skyrocket, several countries such as Germany and France have imposed lockdown and led to fears of wider lockdowns in Europe and elsewhere that have continue to weigh negatively on the demand outlook. On the other hand, gold price slips 0.07% to $1877.67 a troy ounce at the time of writing amid dollar strength.
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 (Oct) | 58.0 | 58.0 | – |
| 17.30 | GBP – Manufacturing PMI (Oct) | 53.3 | 53.3 | – |
| 23.00 | USD – ISM Manufacturing PMI (Oct) | 55.4 | 55.8 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat near the support level 93.85. However. MACD which illustrate bearish bias signal suggest the dollar to be traded lower after it breaks below the support level.
Resistance level: 94.65, 95.75
Support level: 93.85, 93.00
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2875. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term towards the resistance level 1.3065.
Resistance level: 1.3065, 1.3245
Support level: 1.2875, 1.2700
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1615. However, MACD which illustrate diminishing bearish momentum suggest the pair to be experience a technical correction towards the resistance level 1.1765.
Resistance level: 1.1765, 1.1880
Support level: 1.1615, 1.1455
USDJPY, H4: USDJPY was traded lower following prior retracement from the MA lines. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses in short term towards the support level 104.25.
Resistance level: 105.10, 105.80
Support level: 104.25, 103.65
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7005. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7105, 0.7200
Support level: 0.7005, 0.6925
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6575. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6670, 0.6725
Support level: 0.6575, 0.6510
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.3455. MACD which illustrate bullish bias signal suggest the pair to extend its gains towards the resistance level 1.3455.
Resistance level: 1.3455, 1.3635
Support level: 1.3335, 1.3240
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9185. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.9085.
Resistance level: 0.9185, 0.9295
Support level: 0.9085, 0.9000
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 34.70. MACD which illustrate ongoing bearish momentum signal suggest the commodity to extend its losses towards the support level 31.05.
Resistance level: 34.70, 36.55
Support level: 31.05, 26.65
GOLD_, H4: Gold price was traded flat while currently testing the resistance level 1879.05. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to be traded higher after it breaks above the resistance level.
Resistance level: 1879.05, 1919.00
Support level: 1847.70, 1790.05