08 December 2020 Morning Session Analysis
Dollar slumped amid stimulus hopes.
The Dollar index which traded against a basket of six major currency slumped on Monday amid the spiking numbers of the Covid-19 cases and hopes upon the new Covid-19 U.S. stimulus deal had sapped the market demand on the US Dollar. According to the latest data, the Covid-19 infections from the U.S. region had notched up more than 173,000 people on yesterday, which dialled down market optimism toward the economic progression in the United States following some of the Covid-19 restrictions were imposed. Though, as for now market participants would continue to scrutinize the latest updates with regards of the Covid-19 vaccine development in order to receive further trading signal. Besides, the US Dollar extend its losses amid the hopes upon the U.S. stimulus plan emerged. According to Reuters, the White House economic adviser Larry Kudlow on Monday claimed that another round of stimulus funding to deal with deadly Covid-19 pandemic are getting closer to agreement. In fact, investors speculated that the Federal Reserve would continue to expand its quantitative easing programme later in this month, which spurring further negative prospect for the US Dollar. As of writing, the Dollar Index depreciated 0.19% to 90.80.
In the commodities market, the crude oil price was surged 0.07% to $45.85 per barrel as of writing amid positive development of the Covid-19 vaccine had spurred market optimism toward the oil demand in future. On the other hand, the gold price appreciated by 0.04% to $1863.35 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 USD EIA Short-Term Energy Outlook
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18:00 | EUR – German ZEW Economic Sentiment (Dec) | 54.5 | 51.5 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 90.45. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 91.80, 94.05
Support level: 90.45, 89.10
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.3405. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3330.
Resistance level: 1.3405, 1.3490
Support level: 1.3330, 1.3250
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2165. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2075.
Resistance level: 1.2165, 1.2230
Support level: 1.2075, 1.1985
USDJPY, Daily: USDJPY was traded within a range while currently testing the resistance level at 104.50. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 104.50, 105.95
Support level: 103.10, 101.25
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.7435. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7435, 0.7680
Support level: 0.7135, 0.6825
NZDUSD, Daily: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6930. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7160, 0.7345
Support level: 0.6930, 0.6755
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2765. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3025, 1.3370
Support level: 1.2765, 1.2520
USDCHF, Daily: USDCHF was traded lower while currently near the support level at 0.8815. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9095, 0.9325
Support level: 0.8815, 0.8585
CrudeOIL, Weekly: Crude oil price was traded higher following prior breakout above the previous resistance level at 41.65. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 50.05.
Resistance level: 50.05, 60.65
Support level: 41.65, 33.35
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1864.10. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1864.10, 1888.30
Support level: 1840.35, 1811.45