10 June 2020 Morning Session Analysis
Dollar wobbles ahead of Fed meeting.
Dollar index which gauges its value against a basket of six major currencies unable to recover from its major losses yesterday as market highly expecting Federal Reserve may present a neutral statement in the upcoming meeting. Since the outbreak of novel pandemic, US Central Bank Federal Reserve has cooperated closely with US government to implement different types of stimulus plan to combat the fallout of virus and revive the nation economy from recession. As of now, market participants are now expect short term interest rates to remain steady at zero, while paying their full attention on the Fed Chairman’s statement for clues over the next move of US central bank. However, an upbeat employment data has slightly lifted up the appeal of US dollar yesterday. According to the Bureau of Labor Statistics, US JOLTs Job Openings data was came in at 5.046M, stronger than economist forecast at 5.000M, indicating that the rehiring activity increased after US economy reopened. As of writing, dollar index notched down 0.24% to 96.40.
In the commodities market, the crude oil price depreciates by 2.05% to $38.15 per barrel as yesterday inventory data showed large crude build in US. According to the API, US Weekly Crude Oil Stock has increased 8.400M, while analyst had predicted a draw of -0.500M. Large build in crude oil inventories has diminished the market confidence over the recent oil production cut plan could resolved the market supply glut. Besides, gold price rose 0.11% to $1716.55 a troy ounce as market preference over riskier asset heightened.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Economic Projections
(11th)
02:00 USD FOMC Statement
(11th)
02:30 USD FOMC Press Conference
(11th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:30 | USD – Core CPI (MoM)(May) | -0.4% | -0.1% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -2.077M | -1.738M | – |
| 02:00
(11th) |
USD – Fed Interest Rate Decision | 0.25% | 0.25% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 96.10. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 97.80, 99.05
Support level: 96.10, 94.35
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2745. MACD which illustrate bearish bias momentum suggest the pair to undergo technical correction toward the support level at 1.2570.
Resistance level: 1.2745, 1.2915
Support level: 1.2570, 1.2410
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.1240. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 1.1400, 1.1455
Support level: 1.1240, 1.1115
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 107.90. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement after it successfully breakout below the support level.
Resistance level: 108.95, 109.90
Support level: 107.90, 107.05
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level at 0.6965. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.6925.
Resistance level: 0.6965, 0.7005
Support level: 0.6925, 0.6885
NZDUSD, H1: NZDUSD was traded lower following prior retracement from the resistance level at 0.6530. MACD which illustrates bearish momentum signal suggest the pair to extend its losses toward the support level at 0.6465.
Resistance level: 0.6530, 0.6565
Support level: 0.6465, 0.6405
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3360. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3650.
Resistance level: 1.3650, 1.3830
Support level: 1.3360, 1.3075
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9500. MACD which illustrates diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 0.9555.
Resistance level: 0.9555, 0.9625
Support level: 0.9500, 0.9460
CrudeOIL, H4: Crude oil price was traded lower following prior retracement near the resistance level at 38.55. MACD which illustrate bearish bias momentum suggest the commodity to extend its retracement toward the lower level.
Resistance level: 38.55, 40.40
Support level: 36.05, 32.35
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1716.40. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its losses toward the support level at 1696.15.
Resistance level: 1716.40, 1736.10
Support level: 1696.15, 1677.70