06 November 2020 Morning Session Analysis
Dollar extend losses following prospect of Biden’s victory.
The dollar index which traded against a basket of six major currency pairs have fell to the lowest level since 2018 as the U.S is likely to witness a new potential leadership under Joe Biden. As the vote counting continued for the second day in a very close presidential race, Joe Biden remain in huge lead over President Donald Trump with just 6 electoral votes short from the 270 needed to win its path to the White House. As of now, all eyes are on the states of Nevada where and Joe Biden is currently in the lead and its electoral votes would allowed Joe Biden to be declared the winner of the presidential race. The Republican president have escalated his legal efforts hoping to slow down his opponent and accusing Democrats of voting fraud, but Trump’s lawsuit is unlikely to affect the eventual outcome of the election. Following the prospect of Biden’s presidency which could pave way for a higher economic stimulus, the appeal for the greenback which was traded as a safe-haven currency fell tremendously, thus dragging its value. At the time of writing, dollar index slips 0.84%.
In the commodities market, crude oil price retreats 0.05% to $38.43 per barrel as of writing amid demand concerns continue weigh on the market. With restriction currently on place and COVID-19 show no signs of slowing, the European Union’s executive commission have lowered its economic forecast, adding that said the economy would not rebound to pre-virus levels until 2023. On the other hand, gold price soars 0.22% to $1946.02 a troy ounce at the time of writing amid dollar weakness.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21.30 | USD – Nonfarm Payrolls (Oct) | 661K | 600K | – |
| 21.30 | USD – Unemployment Rate (Oct) | 7.9% | 7.7% | – |
| 21.30 | CAD – Employment Change (Oct) | 378.2K | 100.0K | – |
| 23.00 | CAD – Ivey PMI (Oct) | 54.3 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 92.45. MACD which illustrate persistent bearish momentum signal suggest the dollar to extend its losses towards the support level 92.45.
Resistance level: 93.00, 93.80
Support level: 92.45, 91.75
GBPUSD, H4: GBPUSD was traded higher while currently testing near the resistance level 1.3170. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.3170, 1.3285
Support level: 1.3060, 1.2880
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level 1.1760. However, MACD which display diminishing bullish momentum signal suggest the pair to experience a short term technical correction towards the support level 1.1760.
Resistance level: 1.1880, 1.1995
Support level: 1.1760, 1.1615
USDJPY, H4: USDJPY was traded lower while currently testing the support level 103.45. MACD which illustrate persistent bearish bias signal suggest the pair extend its losses after it breaks below the support level.
Resistance level: 104.25, 105.10
Support level: 103.45, 102.15
AUDUSD, H4: AUDUSD was traded higher following recent breakout above the previous resistance level 0.7340. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction towards the support level 0.7200.
Resistance level: 0.7340, 0.7410
Support level: 0.7200, 0.7105
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6775. However, MACD which illustrate diminishing bullish bias signal suggest the pair to be traded lower as a short term technical correction towards the support level 0.6725.
Resistance level: 0.6775, 0.6830
Support level: 0.6725, 0.6670
USDCAD, H4: USDCAD was traded higher following prior rebound its low level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound in short term towards the resistance level 1.3105.
Resistance level: 1.3105, 1.3240
Support level: 1.2995, 1.2890
USDCHF, H4: USDCHF was traded lower following recent breakout below the previous support level 0.9085. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 0.9000.
Resistance level: 0.9085, 0.9185
Support level: 0.9000, 0.8935
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 39.25. MACD which illustrate diminishing bullish momentum signal wth the starting formation of death cross suggest the commodity to extend its retracement towards the support level 36.55.
Resistance level: 39.25, 41.55
Support level: 36.55, 34.10
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1919.00. MACD which illustrate ongoing bullish momentum signal suggest the commodity to extend its gains towards the resistance level 1970.55.
Resistance level: 1970.55, 2010.30
Support level: 1919.00, 1879.05