8 June 2020 Morning Session Analysis
Dollar soars amid upbeat NFP data.
Dollar index which gauges its value against a basket of six major currencies skyrocketed after US released the closely watched employment data, popularly known NonFarm Payroll data. According to the Bureau Labor of Statistics, US NFP data was came in at 2,509K, unexpected better than the economists forecast at -8,000K, indicating that the layoff in US labor market eased after US reopened its economy in May. These improvement in the labor market reflected resumption of economic activity in US as the nation economy slumped significantly during the implementation period of lockdown measure. At the same time, US unemployment rate for the month of May also notched down from previous reading at 14.7% to 13.3%, showing that the rehiring activity began to recover from the fallout of Covid-19. Nonetheless, it is noteworthy that the jobs report has included a note at the bottom which stated that there had been a misclassification error occurred. With the absent of error, the unemployment rate would be 3% higher than the actual reading of unemployment rate, in the condition of applying the same standards. During early Asian trading session, dollar index rose 0.28% to 96.95.
In the commodities market, the crude oil price appreciates by 2.93% to $40.10 per barrel after OPEC and allies agree to extend its oil production cut plan on last Saturday. In the online video conferences, OPEC and Non OPEC members agreed to cut their oil production for an additional month till the end of July 2020. Besides, gold price depreciates by 0.38% to $1678.75 a troy ounce as stronger than expected data lifted up the appeal of US dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 96.85. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 97.60.
Resistance level: 97.60, 98.25
Support level: 96.85, 95.95
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2750.
Resistance level: 1.2750, 1.2880
Support level: 1.2625, 1.2495
EURUSD, H1: EURUSD was traded higher while currently testing the resistance level at 1.1305. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.1305.
Resistance level: 1.1305, 1.1345
Support level: 1.1250, 1.1195
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 109.40. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 111.35.
Resistance level: 111.35, 113.15
Support level: 109.40, 108.20
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6810. MACD which illustrates bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.7005.
Resistance level: 0.7005, 0.7205
Support level: 0.6810, 0.6655
NZDUSD, H1: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6490. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6540.
Resistance level: 0.6540, 0.6600
Support level: 0.6490, 0.6430
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.3380. MACD which illustrates bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3670, 1.3855
Support level: 1.3380, 1.3095
USDCHF, H1: USDCHF was traded lower following prior retracement from the resistance level at 0.9650. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.9575.
Resistance level: 0.9650, 0.9700
Support level: 0.9575, 0.9535
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 38.00. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 41.05.
Resistance level: 41.05, 43.60
Support level: 38.00, 34.35
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1683.50. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1666.25.
Resistance level: 1683.50, 1695.15
Support level: 1666.25, 1644.85