11 February 2020 Afternoon Session Analysis
Safe-haven stumbles, all eyes on coronavirus.
Japanese yen remains under pressure as market participants digests the latest development in coronavirus epidemic as well as recent bullish data from the United States. Pair of USD/JPY rose 0.09% to 109.84 during Asian trading session. Last Friday, Nonfarm Payrolls report for the month of January confounded forecast, cementing the course for a strong restart in hiring process after experiencing some shortage last December. The data has increased speculation that Federal Reserve may held off from loosening their monetary policy later this year if overall economic momentum picks up consistently. However, gains on the pair of USD/JPY were limited as coronavirus continues to spread largely in Asian region. According to South China Morning Post, China has reported 2,478 new cases while death toll reaches 1,018. Investors fear that coronavirus epidemic may bring significant impact upon global economic momentum, spurring higher risk aversion in the financial market. For the time being, investors will continue to monitor upcoming economic data from the US as well as coronavirus developments in order to gain market signals.
In the commodities market, crude oil price rose 1.13% to $50.20 per barrel. Oil futures received some bullish momentum after Azerbaijan announces their plans to lower oil production due to existing level of reserves. Otherwise, gold price depreciates by 0.18% to $1,569.12 a troy ounce due to stronger greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22.00 EUR ECB President Lagarde Speaks
23.00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.30 | GBP – GDP (MoM) | -0.3% | – | – |
| 17.30 | GBP – Manufacturing Production (MoM) (Dec) | -1.7% | 0.5% | – |
| 23.00 | USD – JOLTs Job Openings (Dec) | 6.800M | 7.000M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 98.65. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward the resistance level at 99.05.
Resistance level: 99.05, 99.55
Support level: 98.65, 98.20
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2920. However, MACD which illustrated bullish bias momentum suggest the pair to be traded higher in short term as technical correction.
Resistance level: 1.2920, 1.2975
Support level: 1.2870, 1.2820
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.0935. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.0895.
Resistance level: 1.0935, 1.0960
Support level: 1.0895, 1.0855
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.60. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 110.20.
Resistance level: 110.20, 110.55
Support level: 109.60, 109.25
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6705. MACD which illustrated diminishing bearish momentum with the formation of positive divergence suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.6705.
Resistance level: 0.6705, 0.6720
Support level: 0.6680, 0.6665
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6405. However, MACD which illustrated diminishing bearish momentum suggest the pair to undergo short term technical correction toward the resistance level at 0.6405.
Resistance level: 0.6405, 0.6455
Support level: 0.6365, 0.6325
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3265. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower toward the support level at 1.3265.
Resistance level: 1.3335, 1.3395
Support level: 1.3265, 1.3210
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9780. However, MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9780.
Resistance level: 0.9780, 0.9810
Support level: 0.9750, 0.9720
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 49.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 50.65.
Resistance level: 50.65, 51.75
Support level: 49.65, 48.80
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1571.35. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1564.15.
Resistance level: 1571.35, 1578.25
Support level: 1564.15, 1558.00