18 March 2020 Morning Session Analysis
Dollar recovers amid further measures from Fed.
The dollar index which measured against a basket of six major currency pairs have rose during early Asian session on Tuesday as market regained risk appetite due to aggressive easing stance taken by U.S Fed and other central banks. According to the latest plan, the Fed have rolled out another extensive measures again this week after detailing plans to create a lending facility in order to support short-term commercial debt markets to avert a liquidity crisis from the impact of the coronavirus spread. On top of that, U.S Treasury Secretary Steve Mnuchin have pitched for $850 billion stimulus package to support the economy which include payroll tax cuts, checks mailed to taxpayers and support for industries such as airlines that have been battered by the outbreak. The measures have help rebuild investors’ confidence towards the market after the global spread of coronavirus have roiled market in recent weeks, therefor prompting investors to add their bets on the greenback. At the time of writing, dollar index soars 1.46% to 99.74. Meanwhile, GBP/USD remain weak and fell 0.13% to 1.2109 as of writing after the U.K government taken a different stance on coronavirus policy which could inflict considerable damage to the economy, thus dragging down investors sentiment and the value of the pair.
In the commodities market, crude oil price remain pressured and slips 0.11% to $27.18 per barrel as fear of oversupply and weak demand continue to dominate the market. As Saudi Arabia and Russia continue to battle for market share, Saudi energy ministry have stated that the kingdom’s crude exports are set to rise in coming months to more than 10 million barrels per day. On the other hand, gold price jumps 0.87% to $1541.68 a troy ounce at the time of writing following various rescue plan for the U.S economy helping the commodity to recover its appeal.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18.00 | EUR – CPI (YoY) (Feb) | 1.2% | 1.2% | – |
| 20.30 | USD – Building Permits (Feb) | 1.550M | 1.500M | – |
| 20.30 | CAD – Core CPI (MoM) (Feb) | 0.4% | – | – |
| 22.30 | CrudeOIL – Crude OIL Inventories | 7.664M | 3.256M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 99.80. MACD which illustrate bullish bias signal suggest the dollar to extend its gains after it breaks above the resistance level.
Resistance level: 99.80, 101.15
Support level: 98.65, 97.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.1955. MACD which illustrate diminished bearish momentum with the starting formation of golden cross suggests the pair to extend its rebound towards the resistance level 1.2420.
Resistance level: 1.2420, 1.2745
Support level: 1.1955, 1.1565
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.0970. MACD which illustrate diminishing bearish momentum suggests the pair to extend its rebound towards the resistance level 1.1065.
Resistance level: 1.1065, 1.1190
Support level: 1.0970, 1.0870
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 105.70. MACD which illustrate ongoing bullish signal suggests the pair to be extend its rebound towards the resistance level 108.60.
Resistance level: 108.60, 110.55
Support level: 105.70, 103.10
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.6150. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a technical correction in short term towards the current resistance level 0.6150.
Resistance level: 0.6150, 0.6450
Support level: 0.5770, 0.5515
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.5935. However, MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher as a technical correction towards the resistance level 0.6090.
Resistance level: 0.6090, 0.6205
Support level: 0.5935, 0.5790
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.4295. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction in short term towards the support level 1.4060.
Resistance level: 1.4295, 1.4610
Support level: 1.4060, 1.3765
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level 0.9620. MACD which illustrate diminishing bullish bias signal suggest the pair to extend its retracement towards the support level 0.9435.
Resistance level: 0.9620, 0.9745
Support level: 0.9435, 0.9235
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 28.05. MACD which illustrate bearish momentum signals with the formation of death cross suggest the commodity to extend its losses towards the support level 21.65.
Resistance level: 35.30, 43.25
Support level: 21.65, 14.00
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1518.70. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to extend its gains towards the resistance level 1586.45.
Resistance level: 1586.45, 1682.00
Support level: 1518.70, 1457.90