11 March 2020 Morning Session Analysis
Dollar surged amid to hope upon the economic stimulus.
The dollar index surged on yesterday as investors expected that the global monetary policymakers will launch further stimulus plans to ease the economic impact of the coronavirus outbreak, which prompting the U.S. stock market rebounded on yesterday while insinuating further demand for US Dollar. According to CNBC, US President Donald Trump told the Republican Senators that two options would be implemented in order to offset the damage cause by the coronavirus. He suggested that the government would be to waive the payroll tax through year-end or make tax cut permanent-source during their meeting. Investors expected that such policy would able to increase the consumer spending while boosting the economic momentum in the United Stated. On the other hand, the pound sterling slumped as investors fears that the Bank of England would choose to reduce its interest rates within a short-term in order to boost the economic growth in the UK region. Besides that, the uncertainty with regards of the trade negotiation between UK and Europe is also weighing on the demand of the Pound Sterling. However, at this time investors would continue to scrutinize the latest updates with regards of the UK Budget Meeting in today in order to gauge the likelihood movement of the currency. As of writing, dollar index depreciated by 0.14% to 96.18 while the GBP/USD slumped 0.01% to 1.1318.
In the commodities market, the crude oil price depreciated by 1.50% to $34.25 per barrel. The oil market edged lower as investors afraid that the continually outbreak of the coronavirus would harm the oil demand in the future, spurring some bearish momentum to this black commodity. On the other hand, the gold price surged 0.55% to $1658.19 per troy ounces amid to risk-off sentiment in the FX market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative GBP Autumn Budget
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – GDP (MoM) | 0.3% | 0.2% | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Jan) | 0.3% | 0.5% | – |
| 20:30 | USD – Core CPI (MoM) (Feb) | 0.2% | 0.2% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 0.785M | – | – |
Technical Analysis
DOLLAR_INDX, H4：Dollar index was traded lower following prior retracement from the resistance level at 96.40. However, MACD which illustrated increasing bullish momentum suggest the index to be trade higher in short-term as technical correction.
Resistance level: 96.40, 97.00
Support level: 95.95, 95.45
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2875. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2930, 1.2970
Support level: 1.2875, 1.2825
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1405. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1210.
Resistance level: 1.1405, 1.1555
Support level: 1.1210, 1.1020
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 104.95. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 104.95, 106.45
Support level: 103.25, 101.40
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.6480. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6450. MACD which illustrated diminishing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6315.
Resistance level: 0.6315, 0.6385
Support level: 0.6250, 0.6195
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3745. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3745, 1.3840
Support level: 1.3645, 1.3460
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9390. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9390, 0.9510
Support level: 0.9250, 0.9170
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 35.65. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 35.65, 37.65
Support level: 30.15, 27.70
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1658.10. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1658.10, 1680.65
Support level: 1641.35, 1627.65