6 May 2020 Morning Session Analysis
Euro fall amid German court ruling lifted uncertainty.
In FX market, the euro weakened against other major currencies after Germany high court ruled that ECB mass bond purchasing program has violated the German Constitution, fuelling up the uncertainty in euro market. In details, Germany high court revealed that the Public Sector Purchase Programme (PSPP) which launched in year 2015 has against the Germany Constitution as the purchases were disproportionate, violating the EU ban on one Eurozone member subsidizing the debts of another. However, the court decision does not apply on to the ECB latest bond purchasing program which aimed to fight against the pandemic of Covid-19, hence the ruling does not create ripple on the financial market. As of writing, the pair of EUR/USD down 0.01% to 1.0835. On the other hand, the single currency of pound was traded lower after UK shows the deepest downturn in economy growth, igniting investors to sell off the holding of pound sterling. According to the Markit Economics, UK Composite PMI came in at 13.8, lower than the economist forecast at 36.0, recording the worst slump in economy contraction. Besides, UK Services PMI also dropped from 34.5 to 13.4, indicating the weakness of UK economy during the pandemic. During Asian early trading session, the pair of GBP/USD slightly rebound 0.10% to 1.2445.
In the commodities market, crude oil price appreciates by 0.55% to $25.50 per barrel as more countries would begin to ease their lockdown restrictions, lifting up the appeal of this black commodity market. Besides, gold price notched down 0.05% to $1705.20 a troy ounce amid dollar’s strengthen.
Today’s Holiday Market Close
Time Market Event
All Day JPY Constitution Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Apr) | 39.3 | 22.0 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Apr) | -27K | -20,050K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 8.991M | 8.125M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 99.75. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 99.75, 100.85
Support level: 98.30, 97.60
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2435. However, MACD which illustrates diminishing bearish momentum signal suggest the pair to be traded higher in short term.
Resistance level: 1.2520, 1.2620
Support level: 1.2435, 1.2370
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0830. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support.
Resistance level: 1.0940, 1.1025
Support level: 1.0830, 1.0765
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 107.20. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 106.25.
Resistance level: 107.20, 108.20
Support level: 106.25, 104.50
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the 20 moving average line (Red). Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 0.6460, 0.6705
Support level: 0.6180, 0.5975
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6065. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 0.6065, 0.6120
Support level: 0.5995, 0.5945
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.4120. MACD which illustrate bearish bias momentum suggests the pair to extend its losses toward the support level at 1.3980.
Resistance level: 1.4120, 1.4240
Support level: 1.3980, 1.3855
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9710. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9750.
Resistance level: 0.9750, 0.9795
Support level: 0.9710, 0.9660
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 25.90. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 25.90.
Resistance level: 25.90, 28.75
Support level: 21.80, 18.05
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1711.25. MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower toward the support level at 1699.75.
Resistance level: 1711.25, 1718.20
Support level: 1699.75, 1683.50