12 March 2020 Morning Session Analysis
Dollar remains weak following WHO declaration.
The dollar index which measured its value against a basket of six major currency pairs have slip during early Asian session as market fears were realized after WHO have officially declared the coronavirus a global pandemic. According to the statement of the Director of WHO Dr. Tedros Adhanom Ghebreyesus, the number of cases outside China have increased by 13 fold and the number of affected countries have also tripled. Besides that, he also stated that the number of cases, deaths and affected countries are expected to climb even higher in the days ahead. In the U.S, Washington State confirmed another 366 cases of the coronavirus (COVID-19), with 29 more added to the death toll. Meanwhile, Italy also recorded 168 new deaths from the coronavirus, the highest cases in a single day within the country while number of infections soared past 10000. Coronavirus fear are expected to persist further and continue to diminish the confidence of investors. At the time of writing, dollar index slips 0.08% to 96.39.
In the commodities market, crude oil price fell 0.11% to $33.20 per barrel as of writing amid plans for higher capacity. According to latest report, Saudi Arabia’s energy minister have instructed oil producer Saudi Aramco to raise its output capacity to 13 million from 12 million barrels per day (bpd). Besides that, UAE national oil company ADNOC also said it would raise crude supply to more than 4 million bpd in April. In the other hand, gold price rose 0.52% to $1643.74 a troy ounce as the increasing fears of coronavirus continue to increase the appeal of the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20.45 EUR ECB Monetary Policy Statement
21.30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20.30 | USD – PPI (MoM) | 0.5% | -0.1% | – |
| 20.45 | EUR – Deposit Facility Rate (Mar) | -0.50% | -0.50% | – |
| 20.45 | EUR – ECB Marginal Lending Facility | 0.25% | 0.25% | – |
| 20.45 | EUR – ECB Interest Rate Decision (Mar) | 0.00% | 0.00% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 96.60. However, MACD which illustrate diminishing bullish momentum suggest the dollar to be traded lower as a short term technical correction towards the support level 96.00.
Resistance level: 96.60, 97.10
Support level: 96.00, 95.35
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.2870. MACD which illustrate persistent bearish momentum signal suggest the pair to extend it losses towards the support level 1.2730.
Resistance level: 1.2870, 1.3020
Support level: 1.2730, 1.2570
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1335. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 1.1190.
Resistance level: 1.1335, 1.1460
Support level: 1.1190, 1.1085
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level 105.50. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 103.65.
Resistance level: 105.50, 106.95
Support level: 103.65, 101.90
AUDUSD, H4: AUDUSD was traded lower while currently near the support level at 0.6450. MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6530, 0.6650
Support level: 0.6450, 0.6385
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6305. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement towards the support level 0.6210.
Resistance level: 0.6305, 0.6385
Support level: 0.6210, 0.6135
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3785. However, MACD which illustrate bearish bias signal with the starting formation of death cross suggest the pair to be traded lower as a technical correction towards the support level 1.3665.
Resistance level: 1.3785, 1.3900
Support level: 1.3665, 1.3575
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9365. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9460.
Resistance level: 0.9460, 0.9550
Support level: 0.9365, 0.9265
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level 35.05. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its retracement in short term towards the support level 30.60.
Resistance level: 35.05, 39.25
Support level: 30.60, 27.20
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level 1652.40. MACD which illustrate ongoing bearish momentum suggest the commodity to extend its losses towards the support level 1613.35.
Resistance level: 1652.40, 1684.80
Support level: 1613.35, 1588.05