12 June 2020 Morning Session Analysis
Dollar revived amid market worries over second wave of virus outbreak.
Dollar index which gauges its value against a basket of six major currencies managed to rebound from its recent low level as investors fled into safe haven dollar amid sceptical toward the evolution of the virus. According to the Worldometer Statistics, global daily new cases on 10th June has increased by 135,578, recorded the highest number of people infected by Covid-19 since the outbreak of this pandemic. In details, Brazil and United States still remained as the country which infected the most among all the countries, spiked up by 27,644 and 22,095 cases respectively yesterday. As of now, the sign of virus’s resurgence surfaced following most of the countries decided to reopen their economies by removing the lockdown restriction. However, Federal Reserve’s dour comment toward the prospect of economic growth formed a ceiling which limited the gains of dollar. The chairman of Federal Reserve Jerome Powell emphasized that current low interest rate will remain unchanged until further sign of recovery appeared while bond-purchasing in place during this period as well. As of now, dollar index rose by 0.89 to 96.80.
In the commodities market, the crude oil price depreciates by 1.98% to $35.60 per barrel as market worries over resurgence in coronavirus tamper demand outlook. The recent spike in number of cases has diminished the market hopes over supply glut resolved, fading the shininess of this black commodity. Besides, gold price inched up 0.11% to $1729.45 a troy ounce amid easing of market preference toward riskier asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP(MoM) | -5.8% | -18.7% | – |
| 14:00 | GBP – Manufacturing Production (MoM)(Apr) | -4.6% | -15.8% | – |
| 01:00
(13th) |
CrudeOIL – U.S Baker Hughes Oil Rig Count | 206 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior from the lower level. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 96.90.
Resistance level: 96.90, 98.35
Support level: 96.25, 95.00
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2585. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2720, 1.2870
Support level: 1.2585, 1.2485
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1400. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.1240.
Resistance level: 1.1400, 1.1555
Support level: 1.1240, 1.1115
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 107.15. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 106.20.
Resistance level: 107.15, 108.15
Support level: 106.20, 104.80
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6935. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.6655.
Resistance level: 0.6935, 0.7215
Support level: 0.6655, 0.6310
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6445. MACD which illustrates diminishing bullish momentum signal suggest the pair to be traded lower toward the support level at 0.6200.
Resistance level: 0.6445, 0.6600
Support level: 0.6200, 0.5925
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3650. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3650.
Resistance level: 1.3650, 1.3830
Support level: 1.3360, 1.3075
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9395. MACD which illustrates bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9500, 0.9575
Support level: 0.9395, 0.9265
CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 38.45. MACD which illustrate bearish bias momentum suggest the commodity to extend its losses toward the support level at 32.25.
Resistance level: 38.45, 41.20
Support level: 32.25, 24.55
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1734.85. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1710.20.
Resistance level: 1734.85, 1763.85
Support level: 1710.20, 1668.40