5 February 2020 Afternoon Session Analysis
Dollar remain strong as virus risk fade.
The dollar index continue to strengthen its value against its basket of six major currency pairs during late Asian session following easing concerns towards the coronavirus outbreak and strong data. According to US Census Bureau, U.S factory orders have soared to 1.8%, exceed market expectation of only 1.2% rise, marking it the largest gain since August 2018. The data was boosted by strong demand for defense aircraft. At the same time, the dollar also gained from easing fears about the coronavirus impact after China implement fresh stimulus measures to support the economy. The plan also caused majority investors to ditch their safe-haven assets such as Yen and favor the greenback. At the time of writing, dollar index rose 0.05% to 97.82 while USD/JPY also rose 0.04% to 109.45.
In the commodities market, crude oil price slips 0.15% to $50.12 per barrel at the time of writing as the potential threat of coronavirus towards the commodity demand continue to weigh the market sentiment. The virus have been estimated to cause a fall of 20% in China oil demand as quarantined cities and closed factories cripple industrial activity in the second largest economy in the world. In the other hand, gold price plummets 0.21% to $1554.15 a troy ounce as of writing following stronger dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:15 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Jan) | 52.4 | 52.4 | – |
| 17:30 | GBP – Services PMI (Jan) | 52.9 | 52.9 | – |
| 21:15 | USD – ADP Nonfarm Employment Change (Jan) | 202K | 159K | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Jan) | 55.0 | 55.1 | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 3.548M | – | – |
Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded higher while currently near the resistance level at 97.90. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 97.90, 98.15
Support level: 97.60, 97.25
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3030. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3030, 1.3075
Support level: 1.3000, 1.2965
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level 1.1095. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1015.
Resistance level: 1.1095, 1.1135
Support level: 1.1015, 1.09555
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.60. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.05.
Resistance level: 109.60, 110.200
Support level: 109.05, 108.35
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6720. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6755.
Resistance level: 0.6755, 0.6795
Support level: 0.6720, 0.6680
NZDUSD, Daily: NZDUSD was higher following prior rebound from the support level at 0.6445. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6535.
Resistance level: 0.6535, 0.6630
Support level: 0.6445, 0.6345
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3300. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3300, 1.3345
Support level: 1.3245, 1.3185
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9670. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9715.
Resistance level: 0.9715, 0.9745
Support level: 0.9670, 0.9625
CrudeOIL, Daily: Crude oil price was traded higher following prior rebound from the support level 49.30. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 50.80.
Resistance level: 50.80, 52.30
Support level: 49.30, 47.55
GOLD_, H4: Gold price was higher following prior rebound from the support level at 1552.90. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1564.55.
Resistance level: 1564.55, 1577.15
Support level: 1552.85, 1544.70