14 April 2020 Afternoon Session Analysis
Dollar fell following moody earning season expectation.
The dollar index which traded against a basket of six major currency pairs have resume its decline during late Asian session as market braced for disappointing U.S earning seasons. The expectation came after U.S. announced on Thursday that over 16 million people claimed unemployment since March 21. With the U.S earnings season began on Tuesday; investors are bracing for dire economy reports during the crisis darkest months. On top of that, increasing U.S debt and budget deficit also exert additional pressure for the greenback. According to reports. The U.S. federal budget deficit is on track to exceed $3.8 trillion this year even if Congress doesn’t enact any more stimulus spending, and the nation’s debt could rise to levels not seen since the country emerged from World War II. Meanwhile, pound sterling continues to climbs despite extended lockdown in the U.K. Despite with coronavirus death toll in U.K surged beyond 11,000, market was mostly unfazed by the numbers as investors are concentrating on more than 20,000 from the US, which is the global epicentre. On top of that, the recent exit of U.K Prime Minister Boris Johnson from the ICU continue to support the demand for the pound sterling. According to the Guardian, Boris Johnson’s spokesman stated that he is currency focusing on recovery. At the time of writing, dollar index fell 0.18% to 99.17 while GBP/USD gains 0.48% to 1.2564.
In the commodities market, crude oil price remains pressured and edge lower 0.23% to $22.63 per barrel as of writing following investors’ scepticism on the deal by the world’s biggest producers to cut output could help stabilize the market from the coronavirus pandemic. Despite with the agreement of 9.7 million barrels output cut recently, investors still expressing doubt as the global market remains very oversupplied, and Aramco is still prepared to fight for its market share. On the other hand, gold price soars 0.15% to $1716.62 a troy ounce at the time of writing amid broad weakness of the greenback prompt investors to shift their portfolio into safe-haven gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 99.05. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 100.15, 100.75
Support level: 99.05, 98.35
GBPUSD, H1: GBPUSD was traded higher while currently near the resistance level at 1.2585. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2585, 1.2765
Support level: 1.2435, 1.2205
EURUSD, H1: EURUSD was traded higher while currently testing the resistance level at 1.0945. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.0945, 1.1025
Support level: 1.0850, 1.0775
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 107.55. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.25, 110.25
Support level: 107.55, 106.40
AUDUSD, Daily: AUDUSD was traded higher while currently near the resistance level at 0.6450. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6460, 0.6640
Support level: 0.6185, 0.5985
NZDUSD, Daily: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6070. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6205.
Resistance level: 0.6205, 0.6340
Support level: 0.6070, 0.5955
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.4005. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1.4005, 1.4255
Support level: 1.3805, 1.3610
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9635. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9765, 0.9890
Support level: 0.9635, 0.9495
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 23.90. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 23.90, 26.05
Support level: 21.60, 19.75
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1725.15. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1725.15, 1745.60
Support level: 1683.25, 1646.30