10 April 2020 Morning Session Analysis
Dollar plummeted amid new lending program.
Dollar index which gauges its value against a basket of six major currencies plunged after Federal Reserve rolls out a new lending facility as a stimulus to the economy which will bolstered up the programs total up to $2.3 trillion. The additional measures were introduced by Federal Reserve after US Initial Jobless Claim data came in at a disappointed reading where its actual reading was 6,606K, whereas the economist forecast was 5,250K, reflecting the full damage of pandemic on US labour market. In details, the new lending program’s intention are to assist household and local businesses to go through the hardship during pandemic of coronavirus. Since the outbreak of coronavirus, US government and its central bank have implemented different types of stimulus plan to support the economy, combating while limiting the negative effect of coronavirus. However, a significant decline in US economy condition is doomed, indicating that the largest economy body in the world is also vulnerable against the hurricane of virus. Nonetheless, Federal Reserve revealed that they are remain committed to use the full range of tools to confront the virus. As of writing, dollar index plunged by 0.56% to 99.55.
In the commodities market, crude oil price dropped by 0.02% to $23.10 per barrel amid OPEC+ failed to reach a consensus in the meeting last night. The top oil producers in the world, Saudi Arabia and Russia have agreed to cut their oil production by 10M barrels per day in May and June, acting as a credential move to stop oil war while stabilising the oil market. However, Mexico rejected to vote a ‘yes’ to this oil cut production plan before the meeting end. Hence, market participants will continue eye on today OPEC’s meeting to determine the direction of oil price. Besides, gold price rose 0.05% to $1683.15 a troy ounce as Federal Reserve’s new lending program dragged down the appeal of greenback.
Today’s Holiday Market Close
Time Market Event
All Day USD Good Friday
All Day EUR Good Friday
All Day CHF Good Friday
All Day GBP Good Friday
All Day CAD Good Friday
All Day NZD Good Friday
All Day AUD Good Friday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
|
Time |
Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core CPI (MoM)(Mar) | 0.2% | 0.1% |
– |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 99.80. MACD which illustrate bearish bias momentum suggest the dollar to extend its losses toward the support level at 98.30.
Resistance level: 99.80, 101.20
Support level: 98.30, 97.60
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2470. MACD which illustrate bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.2470.
Resistance level: 1.2470, 1.2605
Support level: 1.2340, 1.2215
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.0940. MACD which illustrate diminishing bearish momentum suggests the pair to extend its gains after it successfully breakout above the resistance level at 1.0940.
Resistance level: 1.0940, 1.1025
Support level: 1.0830, 1.0765
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 108.55. MACD which illustrate diminishing bullish momentum signal suggests the pair to extend its losses after it successfully breakout below the support level at 108.55.
Resistance level: 109.25, 110.10
Support level: 108.55, 107.50
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6180. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the next resistance level at 0.6460.
Resistance level: 0.6460, 0.6705
Support level: 0.6180, 0.5975
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6055. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.6115.
Resistance level: 0.6115, 0.6205
Support level: 0.6055, 0.5995
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3980. Due to lack of signal from MACD, it is suggested to wait for further confirmation such as breakout or rebound before entering into the market.
Resistance level: 1.4105, 1.4240
Support level: 1.3980, 1.3805
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9650. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.9685.
Resistance level: 0.9685, 0.9745
Support level: 0.9650, 0.9570
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 23.90. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 21.80.
Resistance level: 23.90, 25.90
Support level: 21.80, 20.10
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1678.10. However, MACD which illustrate diminishing bullish momentum suggest the pair to undergo technical correction toward the support level at 1678.10.
Resistance level: 1700.15, 1732.30
Support level: 1678.10, 1658.80