7 May 2020 Morning Session Analysis
Dollar wobbles amid weakening of job data.
Dollar index which gauge its value against a basket of six major currencies plunged as the latest labour sector data weakened amid novel of coronavirus. According to ADP, the private payroll slumped by more than 20 million jobs in April as companies laid off most of their employees during the period of shutdown. Although the job losses of this scale is the biggest drop in history, however it is still understates the actual damage of the pandemic as the virus-spreading turn sourer and even worse throughout the month of April. In details, the virus has rippled the entire economy, not even single sector was able to survive from the fallout of Covid-19, especially the services and hospitality were the sectors that hit hardest by virus. As of writing, dollar index notched down 0.05% to 100.15. On the other hand, the pair of GBP/USD quoted down 0.09% to 1.2330 after UK Construction PMI showed a significant drop from 39.3 to 8.2, showing that the construction sector halted all the activity during the shutdown of country.
In the commodities market, crude oil price depreciates 1.78% to $23.70 per barrel as oversupply concern continues to weigh on this black commodity market. However, the loss of oil was limited after a report shows lower than expected rise in oil inventory. According to EIA, US crude oil inventories rose by 4.590M, lower than the economist’ forecast of 7.759M. Besides, gold price notched down 0.03% to $1684.50 a troy ounce due to heightening of market risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 GBP BoE Inflation Report
19:00 GBP BoE MPC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – BoE Interest Rate Decision (May) | 0.10% | 0.10% | – |
| 20:30 | USD – Initial Jobless Claims | 3,839K | 3,000K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.75. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the next resistance level at 100.85.
Resistance level: 100.85, 102.90
Support level: 99.75, 98.30
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.2370. MACD which illustrates bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2305.
Resistance level: 1.2370, 1.2435
Support level: 1.2305, 1.2215
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.0830. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.0765.
Resistance level: 1.0830, 1.0940
Support level: 1.0765, 1.0655
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 106.25. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 107.20, 108.20
Support level: 106.25, 104.50
AUDUSD, Daily: AUDUSD was traded lower following prior retracement from the resistance level at 0.6460. MACD which illustrates bearish momentum with the formation of death cross suggest the pair to extend its losses toward the support level at 0.6180.
Resistance level: 0.6460, 0.6705
Support level: 0.6180, 0.5975
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.5995. MACD which illustrates bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6065, 0.6120
Support level: 0.5995, 0.5945
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.4120. MACD which illustrates bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.4240.
Resistance level: 1.4240, 1.4390
Support level: 1.4120, 1.3980
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9750. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9750, 0.9795
Support level: 0.9710, 0.9660
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 25.90. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 21.80.
Resistance level: 25.90, 28.75
Support level: 21.80, 18.05
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1683.50. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1699.75, 1711.25
Support level: 1683.50, 1666.25