4 June 2020 Morning Session Analysis
Dollar soars amid upbeat labor data.
Dollar index which gauge its value against a basket of six major currencies managed to recover part of its losses yesterday after US released a better than expected labour data. According to Automatic Data Processing (ADP), U.S. Nonfarm Employment Change came in at -2,760K, far better than economist forecast at -9,000K, showing that US companies continued to shed jobs due to outbreak of pandemic. Amidst the novel of virus’s pandemic, US companies has trimmed workers massively as virus has sent the US economy into recession, where companies and manufacturers were being forced to halt their business operation to limit the negative effect of virus-spreading. However, a series of employment data that released recently have provide some optimism ahead of Friday Nonfarm payroll report. Nonetheless, protests activity over the death of George Floyd has overshadowed the gains of US dollar as unrest continues in the US, suppressing the US economy from virus recovery stage. As of writing, dollar index rose 0.05% to 97.30.
In the commodities market, the crude oil price depreciates by 0.49% to $36.55 per barrel as market in doubts due to dispute over oil quota cheating. Uncertainty risk over this black commodity market has dragged down the oil price while investors are still eyeing on the upcoming OPEC+ meeting. Nevertheless, a surprise drop in US crude oil inventories level has limited the losses of oil price. According to EIA, US Crude Oil Inventories data came in at -2.077M while the economist forecasted reading was 3.038M. Besides, gold price notched down 0.03% to $1698.60 a troy ounce as spreading of virus eased.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:45 EUR ECB Monetary Policy Statement
20:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (May) | 8.2 | 29.7 | – |
| 19:45 | EUR – Deposit Facility Rate (Jun) | -0.50% | -0.50% | – |
| 19:45 | EUR – ECB Marginal Lending Facility | 0.25% | – | – |
| 19:45 | EUR – ECB Interest Rate Decision (Jun) | 0.00% | 0.00% | – |
| 20:30 | USD – Initial Jobless Claims | 2,123K | 1,800K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 97.60. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 96.85.
Resistance level: 97.60, 98.25
Support level: 96.85, 95.95
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2625. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2495.
Resistance level: 1.2625, 1.2750
Support level: 1.2495, 1.2435
EURUSD, H1: EURUSD was traded lower following prior retracement from the resistance level at 1.1250. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.1195.
Resistance level: 1.1250, 1.1305
Support level: 1.1195, 1.1155
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 108.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 109.40.
Resistance level: 109.40, 111.35
Support level: 108.20, 107.20
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6810. MACD which illustrates bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.7005.
Resistance level: 0.7005, 0.7205
Support level: 0.6810, 0.6655
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6430. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6385.
Resistance level: 0.6430, 0.6490
Support level: 0.6385, 0.6325
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3670. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3380.
Resistance level: 1.3670, 1.3855
Support level: 1.3380, 1.3095
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9650. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.9595.
Resistance level: 0.9650, 0.9700
Support level: 0.9595, 0.9575
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 38.00. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 34.35.
Resistance level: 38.00, 41.05
Support level: 34.35, 31.25
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1695.15. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound toward the resistance level at 1709.45.
Resistance level: 1709.45, 1718.20
Support level: 1695.15, 1683.50