17 June 2020 Morning Session Analysis
Dollar turned positive on second wave fears.
The dollar index which measured its value against a basket of six major currency pairs have recovered from its previous losses and rebound during early Asian session amid signs of sharp rise on Covid-19 infections in the U.S and other countries. According to reports, some states in the U.S have seen a sharp rise in Covid-19 infections just after a month U.S lifting its lockdown restrictions. Texas reported that Covid-19 hospitalizations rose 8.3%, to 2,518 people, the highest number the state has seen since the pandemic began, while Florida for the second time this week set a daily record for new infections. On the other parts of the world, Beijing extends its lockdown to 18 more residential communities after new cases of coronavirus resurfaced recently. According to Beijing city spokesman Xu Hejian, he mention that the current epidemic situation in the capital is extremely severe. The fresh signs of coronavirus have once again stoking fears about a potential second wave, thus prompting investors to enter safe-haven markets such as dollar. At the time of writing, dollar index rose 0.33% to 97.03.
In the commodities market, crude oil price gains 0.15% to $37.99 per barrel as of writing on demand hopes. Despite with increasing stockpiles reported by API, overall sentiment remains positive after International Energy Agency forecast global oil demand at 91.7 million barrels per day in 2020, higher than previous forecast for May. On the other hand, gold price remains steady and edge higher by 0.05% to $1727.32 at the time of writing following increasing risk-off appetite due to fear of second wave coronavirus.
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 – CPI (YoY) (May) | 0.8% | 0.5% | – |
| 17.00 | EUR – CPI (YoY) (May) | 0.1% | 0.1% | – |
| 20.30 | USD – Building Permits (May) | 1.228M | 1.066M | – |
| 20.30 | CAD – Core CPI (MoM) (May) | 0.4% | – | – |
| 22.30 | CrudeOIL – Crude Oil Inventories | 5.720M | -0.152M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel following recent rebound from its lows. However, MACD which illustrate bullish bias signal with the formation of golden cross suggest the dollar to be traded higher in short term towards the resistance level 97.40.
Resistance level: 97.40, 98.80
Support level: 95.90, 94.65
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.2620. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 1.2435.
Resistance level: 1.2620, 1.2775
Support level: 1.2435, 1.2225
EURUSD, H4: EURUSD remain traded in a sideway channel while currently retest the support level 1.1245. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.1390, 1.1490
Support level: 1.1245, 1.1090
USDJPY, H4: USDJPY was traded flat while currently testing the resistance level 107.40. However, MACD which illustrate bullish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 107.40, 108.00
Support level: 106.60, 106.00
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.6860. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level 0.6260.
Resistance level: 0.7020, 0.7195
Support level: 0.6860, 0.6680
NZDUSD, H4: NZDUSD was traded flat in a sideway channel. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower in short term towards the support level 0.6370.
Resistance level: 0.6490, 0.6580
Support level: 0.6370, 0.6235
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.3485. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3645, 1.3810
Support level: 1.3485, 1.3330
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9460. MACD which illustrate persistent bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9550.
Resistance level: 0.9550, 0.9650
Support level: 0.9460, 0.9365
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 39.25. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to experience a short term technical correction towards the support level 35.05.
Resistance level: 39.25, 43.85
Support level: 35.05, 31.05
GOLD_, H4: Gold price was traded higher following recent rebound from its low levels. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound in short term towards the resistance level 1736.80.
Resistance level: 1736.80, 1761.25
Support level: 1701.70, 1676.00