06 January 2020 Morning Session Analysis
Dollar slumped amid pessimistic economic data.
Dollar index which gauge its value against a basket of six major currencies plummeted amid recent economic data showed that US manufacturing sector is still within downturn stage. According to Institute for Supply Management, US ISM Manufacturing PMI data came in at a reading of 47.2, missing the economist forecast at 49.0, factory activity shrinks for the fifth consecutive month while recording the worst drop in more than 10 years. Despite recent de-escalation in trade war between US and China, uncertainties over trade war is still continue to weigh on US economic growth, haunting the economic performance of US region since the beginning of trade war. Besides, recent escalated tensions between US and Iran also tampered the dollar market sentiment even further. After US launched an air strike on Iran last Friday, Iran vowed that they will revenge and retaliate against US. On the other side, US President Donald Trump commented that if Iran really strikes back US, US will definitely hit back Iran ‘very fast and very hard’ while 52 important Iranian Sites have been targeted by US. Besides, Trump also revealed that Iran has been giving a lot of problem to the world for many years, and US wants no more threats, emphasized via twitter. As of writing, dollar index inched down 0.03% to 96.40.
In the commodities market, crude oil price skyrocketed 2.46% to $64.60 per barrel amid heightening of geopolitical tensions in Middle East region expected will significantly disrupt the crude oil supplies. As of now, market are still awaiting for further news regarding to US-Iran’s tensions to determine the direction of crude oil. Besides, gold prices rose 1.72% to $1578.10 a troy ounce as market risk-off sentiment lifted up this yellow metal’s demand.
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 |
| 17:30 | GBP – Composite PMI (Dec) | 48.5 | 48.6 | – |
| 17:30 | GBP – Services PMI (Dec) | 49.0 | 49.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the 50 moving average line (Blue). MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 96.25.
Resistance level: 96.85, 97.25
Support level: 96.25, 95.45
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3085. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3085.
Resistance level: 1.3085, 1.3165
Support level: 1.3035, 1.2965
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1170. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.1170.
Resistance level: 1.1170, 1.1240
Support level: 1.1075, 1.1005
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 107.95. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 108.15.
Resistance level: 108.15, 108.45
Support level: 107.95, 107.70
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.6925. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6965.
Resistance level: 0.6965, 0.7005
Support level: 0.6925, 0.6880
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the resistance level at 0.6665. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6640.
Resistance level: 0.6665, 0.6695
Support level: 0.6640, 0.6620
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2970. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower after it successfully breakout below the support level at 1.2970.
Resistance level: 1.3020, 1.3085
Support level: 1.2970, 1.2935
USDCHF, H4: USDCHF was traded flat near the 20 moving average line (Red). MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short term toward the support level at 0.9690.
Resistance level: 0.9725, 0.9775
Support level: 0.9690, 0.9660
CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the resistance level at 64.40. MACD which illustrated bullish momentum suggest the commodity to extend its gains toward the resistance level at 65.45.
Resistance level: 65.45, 66.45
Support level: 64.40, 63.60
GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level at 1572.10. However, MACD which illustrated diminishing bullish momentum suggest the commodity to undergo technical correction toward the lower level.
Resistance level: 1591.10, 1611.80
Support level: 1572.10, 1551.10