12 May 2020 Morning Session Analysis
US Dollar surged amid risk-off sentiment.
Dollar index which gauge its value against a basket of six major currencies surged as high U.S. Treasury yield and risk-off sentiment had spurred demand for the safe-haven US Dollar. As for now, investors cautiously managed their portfolio with an eye on warnings of a second wave of coronavirus infections as more countries had started to reopen their economy activities. According to Reuters, a new coronavirus infection cases were increasing exponentially from the Germany region while the South Korean infections had also rebounded to a one-month high after early steps to ease its lockdown. Nonetheless, investors at this time would scrutinize the latest updates with regards of Federal Reserve Chair Jerome Powell’s speech on Wednesday and also the development of the coronavirus in order to receive further trading signal. On the other hand, the China proxy currency such as Australian Dollar slumped yesterday amid hope upon resolution of trade war had diminish following the U.S. President Donald Trump says the United States would not reopen the trade talks with China with relax terms, which spurring significant selloff for the riskier asset. As of writing, dollar index appreciated by 0.50% to 100.22 while AUD/USD slumped 0.07% to 0.6483.
In the commodities market, the crude oil price surged 0.63% to $25.63 per barrel as of writing. The oil market edged higher following the United Arab Emirates and Saudi Arabia claimed that they will cut even more oil production in June, reported by Al Mazrouei. Nonetheless, the future prospect for the crude oil is remained vague amid the fear of the coronavirus. On the other hand, the gold price slumped 0.02% to $1696.70 per troy ounces amid strengthening US Dollar.
Today’s Holiday Market Close
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Today’s Highlight Events
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core CPI (MoM) (Apr) | -0.1% | -0.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level at 99.60. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 100.80.
Resistance level: 100.80, 102.00
Support level: 99.60, 98.75
GBPUSD, H1: GBPUSD was traded lower while currently testing the support level at 1.2285. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2335, 1.2385
Support level: 1.2285, 1.2225
EURUSD, H4: EURUSD was traded lower while currently near the support level at 1.0780. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.0975, 1.1080
Support level: 1.0780, 1.0655
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 107.75. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 107.10.
Resistance level: 107.75, 108.40
Support level: 107.10, 106.15
AUDUSD, Daily: AUDUSD was traded lower while currently near the support level at 0.6405. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6560, 0.6680
Support level: 0.6405, 0.6235
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6135. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6005.
Resistance level: 0.6135, 0.6255
Support level: 0.6005, 0.5905
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.4015. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.4155.
Resistance level: 1.4155, 1.4230
Support level: 1.4015, 1.3875
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9760. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9760, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, H1: Crude oil price was traded within a range while currently near the resistance level at 26.15. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 26.15, 29.95
Support level: 22.80, 19.30
GOLD_, H1: Gold price was traded lower while currently testing the support level at 1693.90. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1706.95, 1720.70
Support level: 1693.90, 1683.45