4 February 2020 Afternoon Session Analysis
Dollar soars amid rebound in manufacturing activity.
The dollar index which traded against its basket of six major currency pairs continue to rose during late Asian session as market remains positive after the release of manufacturing data. According to the Institute for Supply Management (ISM), U.S. factory activity have surprisingly improved to 50.9, surpassed market expectation of 48.5. The data showed that the U.S. factory activity unexpectedly rebounded in January after contracting for five straight months amid a surge in new orders, thus boosting the appeal of the greenback. However, market also remain vigilant and focus towards the ongoing coronavirus as the number of cases and death showed little signs of slowdown and potentially could affect further the global market. At the time of writing, dollar index climbs 0.04% to 97.83.
In the commodities market, crude oil price have rebound 1.08% to $50.42 per barrel after the commodity suffered tremendous sell-off amid fear of coronavirus. However, market remains concern in overall towards the coronavirus as the death toll for the coronavirus exceeds that of the SARS outbreak in 2002/2003. Next, gold price slides 0.03% to $1576.82 as of writing amid profit taking on stronger dollar.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Feb) | 0.75% | 0.75% | – |
| 17:30 | GBP – Construction PMI (Jan) | 46.0 | 44.4 | – |
| 05:30
(5th) |
CrudeOIL – API Weekly Crude Oil Stock | -4.267M | – | – |
Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded higher following prior breakout above the previous resistance level 97.35. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the dollar to extend its gains towards the resistance level 97.80.
Resistance level: 97.80, 98.35
Support level: 97.35, 96.95
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2965. MACD which illustrate ongoing bearish momentum suggest the pair to extend its gains after it breaks below the support level
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1085. MACD which illustrate diminishing bullish momentum signal with the starting formation of death cross suggest the pair to extend its retracement towards the support level 1.0990.
Resistance level: 1.1085, 1.1165
Support level: 1.0990, 1.0925
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 108.45. MACD which illustrate diminishing bearish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 108.90.
Resistance level: 108.90, 109.25
Support level: 108.45, 107.90
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6435. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction towards the resistance level 0.6500.
Resistance level: 0.6730, 0.6775
Support level: 0.6675, 0.6600
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6435. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to experience a technical correction in short term towards the resistance level 0.6500.
Resistance level: 0.6500, 0.6560
Support level: 0.6435, 0.6380
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.3260. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.3320.
Resistance level: 1.3320, 1.3385
Support level: 1.3260, 1.3185
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9625. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.9695.
Resistance level: 0.9695, 0.9755
Support level: 0.9625, 0.9550
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level 50.00. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its rebound towards the resistance level 52.60.
Resistance level: 52.60, 54.65
Support level: 50.50, 48.30
GOLD_, H4: Gold price was traded flat near the MA lines. However, MACD which illustrate bearish bias signal suggest the commodity to be traded lower in short term towards the support level 1561.90.
Resistance level: 1588.00, 1613.35
Support level: 1561.90, 1542.15