6 February 2020 Afternoon Session Analysis
Greenback extend gains following optimism in virus.
The dollar index which measured against its basket of six major currency pair have continue to edge higher following hopes of economic impact from the coronavirus could be limited. According to the latest update, the death toll have increased another 73 people from the Chinese mainland which bring the total death toll to 563 while total number of infections stand at 28018. Despite this, global drugmakers and World Health Organization (WHO) have provide some positive reports on one step closer towards the cure. At the same time, the World Health Organization (WHO) expressed its confidence that the virus spread could be contained as it pointed out 99% of the cases are in China so far. The reports have help in easing market concerns and boosted market confidence towards the dollar. At the time of writing, dollar index rose 0.06% to 98.11 as of writing.
In the commodities market, crude oil price also gained 0.64% to $51.51 per barrel as of writing following optimism of rebound in the commodity demand. At the moment, market sentiment are buoyed by reports of a possible breakthrough in treatment drugs for the coronavirus. On the other hand, gold price fell 0.07% to $1555.22 a troy ounce at the time of writing as market continue to drift away from safe-haven markets and move towards greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 21:30 | USD – Initial Jobless Claims | 216K | 215K | – |
Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded higher while currently testing the resistance level at 98.15. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 98.15, 98.55
Support level: 97.90, 97.60
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.3000. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3000, 1.3030
Support level: 1.2965, 1.2940
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1015. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.0955.
Resistance level: 1.1015, 1.1095
Support level: 1.0955, 1.0895
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.05. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.20, 110.95
Support level: 109.60, 109.05
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6755. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
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, H4: USDCAD was traded within a range while currently testing the resistance level at 1.3300. MACD which illustrated increasing bearish 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 while currently testing the resistance level at 0.9745. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9745, 0.9780
Support level: 0.9715, 0.9670
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 52.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 52.30, 54.10
Support level: 50.80, 49.30
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1552.85. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1564.55, 1577.15
Support level: 1552.85, 1544.70