05 August 2020                  Afternoon Session Analysis

 

Dollar extend retreat amid ongoing recovery concerns.

The dollar index which traded against a basket of six major currency pair remains weak and fell during late Asian session as hopes of U.S recovery from the COVID-19 pandemic continue to falter. On top of that, the failure of reaching a consensus over the country’s latest stimulus measure from U.S Congress also added further worries for the market. According to reports, U.S. Treasury Secretary Steven Mnuchin warned that “we’re not going anywhere close” to the $3.4 trillion price tag sought by Democrats, despite with White House negotiators vowed to work “around the clock” in order to reach a consensus by the end of this week. Following latest progress, both sides are still seem far apart on the $600 per week unemployment benefits. Besides that, adding further selling pressure for the greenback was the falling yields where U.S yields went further to negative territory and record lows. At the time of writing, dollar index slips 0.27% to 93.04.

 

In the commodities market, crude oil price soars 0.37% to $41.63 per barrel at the time of writing following explosion in Lebanon stoking feats of instability in the region. According to reports, an explosion emerged in the area around the Port of Beirut. Authorities stated that it was caused by highly explosive materials at the port, but didn’t immediately say whether it was an accident or an attack. On the other hand, gold price extend gains and rose 0.15% to $2015.42 a troy ounce at the time of writing following dollar weakness and various geopolitical risk.

 

 

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
16:30 GBP – Composite PMI (Jul) 47.7 57.1
16:30 GBP – Services PMI (Jul) 47.1 56.6
20:15                 USD – ADP Nonfarm Employment Change (Jul) 2,369K 1,500K
22:00 USD – ISM Non-Manufacturing PMI (Jul) 57.1 55.0
22:30 CrudeOIL – Crude Oil Inventories -10.612M 0.357M

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support levle at 92.55. MACD whic illustrate diminishing bearish momentum suggest the index to be traded higher in short term.

 

Resistance level: 94.10, 95.95

Support level: 92.55, 91.45

 

 

 

GBPUSD, H1: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3060. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance levle at 1.3150.

 

Resistance level: 1.3150, 1.3245

Support level: 1.3060, 1.2985

 

 

 

EURUSD, H1: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1775. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.1830.

 

Resistance level: 1.1830, 1.1900

Support level: 1.1775, 1.1695

 

 

 

USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 106.15. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 105.00.

 

Resistance level: 106.15, 106.95

Support level: 105.00, 104.30

 

AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7175. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 0.7175, 0.7205

Support level: 0.7120, 0.7080

 

 

 

NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6755.

 

Resistance level: 0.6755, 0.6920

Support level: 0.6580, 0.6480

 

USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3335. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3210.

 

Resistance level: 1.3335, 1.3505

Support level: 1.3210, 1.3045

 

 

 

USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9125. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.9125.

 

Resistance level: 0.9170, 0.9220

Support level: 0.9125, 0.9065

 

CrudeOIL, H4: Crude oil was traded higher while currently testing the resistance level at 41.70. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 41.70, 42.45

Support level: 41.15, 40.45

 

 

 

GOLD_, H4: Gold was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum suggest the commodity to undergo technical correction toward the lower level.

 

Resistance level: 2040.60, 2090.10

Support level: 1984.10, 1939.50