13 July 2020 Afternoon Session Analysis
Greenback plunged amid Covid-19 exacerbated economic growth.
Dollar index which gauge its value against a basket of six major currencies dipped during the early trading session this week, amid downbeat economic data continue suppressed the appeal of dollar index. According to the US Bureau of Labor Statistics, US PPI data came in at a disappointed reading of -0.2%, weaker than the economist forecast at 0.4%, indicating that underlying inflation pressure in US remains subdued where increased the possibility of pumping more money into the economy to combat the negative effect of Covid-19. Amidst the novel of Covid-19, US economy condition has been hammered significantly as lockdown measure sent the economy into freezing state where the entire economy activity halted for more than 2 months. Due to lifting lockdown restriction too early, it has caused deadly consequences in United States where the nation showed an obvious spike up in Covid-19 cases. As of now, investors still putting their attention over the upcoming economic data and development of vaccine in order to gauge the further direction of dollar index. During Asian trading session, dollar index notched down 0.20% to 96.45.
In the commodities market, crude oil price depreciated by 1.04% to $40.15 per barrel amid increasing of market worries over the pandemic. According to Covid-19 statistics, the total number of reported cases remains in high level where the countries such as US, Brazil and India still register biggest number of Covid-19 cases. Besides, gold price appreciated by 0.26% to $1804.00 a troy ounce amid pandemic’s condition heightened.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 96.90. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 96.10.
Resistance level: 96.90, 97.55
Support level: 96.10, 95.65
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2665. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2665.
Resistance level: 1.2665, 1.2730
Support level: 1.2580, 1.2525
EURUSD, H1: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1320. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.1350.
Resistance level: 1.1350, 1.1390
Support level: 1.1320, 1.1285
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 106.95. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction toward the higher level.
Resistance level: 106.95, 107.50
Support level: 106.35, 106.05
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.6810. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 0.7115, 0.7295
Support level: 0.6810, 0.6500
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.6580. However, MACD which illustrate bearish momentum suggest the pair to undergo technical correction toward the lower level.
Resistance level: 0.6580, 0.6755
Support level: 0.6480, 0.6380
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3500. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.3675.
Resistance level: 1.3675, 1.3865
Support level: 1.3500, 1.3355
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9430. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.9380.
Resistance level: 0.9430, 0.9475
Support level: 0.9380, 0.9320
CrudeOIL, H1: Crude oil price was traded flat above the support level at 40.15. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 40.15.
Resistance level: 40.95, 42.05
Support level: 40.15, 39.45
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1797.00. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1813.90.
Resistance level: 1813.90, 1823.80
Support level: 1797.00, 1786.25