13 March 2020 Morning Session Analysis
Dollar plummets following Trump’s disappointing response.
The dollar index have fell against its basket of six major currency pairs during early Asian session following the lack of detailed response from U.S President Donald Trump. On Wednesday, U.S President Donald Trump have stated that the U.S will enforce a ban on travellers from 26 European countries entering the U.S for a month. Despite that, the lack of details on further measures such as stimulus package which never came have sending the market into a chaos as market was hoping for more such as public health measures like sick leave, free testing and treatment. Investors also increased their bets that the Fed could possibly reduce their interest rate to 0% in the midst of the coronavirus storm. On data perspective, the U.S PPI for the month of February are also unable to regain market confidence where the data came in at -0.6%, lower than market expectation of -0.1%. At the time of writing, dollar index slips 0.32% to 97.13.
On the commodities market, crude oil price fell 0.26% to $30.87 per barrel as of writing following travel ban from the U.S and a lowered forecast from International Energy Agency (IEA). The European travel ban meant even fewer flights, delivering new pressure to airlines already teetering on the brink of collapse and the weakening demand of the commodity. At the same time, International Energy Agency also lowering its annual forecast by almost 1 million barrels per day this week. On the other hand, gold price plunged 0.35% to $1575.81 a troy ounce at the time of writing following investors scramble to liquidate their safe-haven assets for cash to cover margins and losses on Wall Street.
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 |
| 22.00 | USD – Michigan Consumer Sentiment (Mar) | 101.0 | 95.0 | – |
| 01.00 (14th March) | CrudeOIL – U.S. Baker Hughes Oil Rig Count | 682 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 97.60. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses in short term towards the support level 97.05.
Resistance level: 97.60, 98.30
Support level: 97.05, 96.55
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.2570. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction towards the resistance level 1.2730.
Resistance level: 1.2730, 1.2870
Support level: 1.2570, 1.2400
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.1190. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.1190, 1.1335
Support level: 1.1085, 1.1000
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 following prior breakout below the previous support level 0.6310. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 0.6205.
Resistance level: 0.6310, 0.6450
Support level: 0.6205, 0.6100
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6135. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 0.6015.
Resistance level: 0.6135, 0.6210
Support level: 0.6015, 0.5910.
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.3955. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.3955, 1.4120
Support level: 1.3785, 1.3625
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level 0.9460. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.9365.
Resistance level: 0.9460, 0.9550
Support level: 0.9365, 0.9265
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 30.60. MACD which illustrate bearish bias signal suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 35.05, 39.25
Support level: 30.60, 27.20
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1564.05. MACD which illustrate ongoing bearish momentum suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1607.30, 1637.15
Support level: 1564.05, 1532.20