18 June 2020 Morning Session Analysis
Acceleration coronavirus cases spurred demand for safe-haven Dollar.
The dollar index which measured its value against a basket of six major currency pairs extend its gains as evidence of a surge in coronavirus cases in United States and China had stoked a shift in sentiment toward safe-haven asset such as US Dollar. According to Reuters, the coronavirus cases from Florida had spiked up to over 2,600 new infections while the cases in Arizona notched up more than 1,800 people, which is the second-highest daily increase for both states. Besides, Beijing cancelled scores of flights, close down the schools and blocked off some neighbourhoods in order to combat the coronavirus pandemic following the number of coronavirus cases in Beijing spiked up in last few days. Nonetheless, the gains experienced by the Dollar Index was limited following the bleak economic data from the United States region was released. According to Census Bureau, the U.S. Building Permits for last month came in at 1.220M, missing the market forecast at 1.228M while spurring further negative prospect for the economic momentum of the United States. As of writing, the dollar index surged 0.12% to 97.00.
In the commodities market, the crude oil price slumped 0.53% to $37.70 per barrel as of writing. The oil market edged lower over the backdrop of the negative oil inventory data from the EIA. According to Energy Information Administration (EIA), the U.S. Crude Oil Inventories came in at 1.215M, exceeding the economist forecast at only -0.152M. On the other hand, the gold market surged 0.06% to $1728.00 per troy ouns amid the risk-off sentiment in the FX market, which insinuating demand for the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:30 CHF SNB Monetary Policy Assessment
16:00 CHF SNB Press Conference
19:00 GBP BoE MPC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | CHF – SNB Interest Rate Decision | -0.75% | -0.75% | – |
| 19:00 | GBP – BoE Interest Rate Decision | 0.10% | 0.10% | – |
| 20:30 | USD – Initial Jobless Claims | 1,542K | 1,277K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Jun) | -43.1 | -25.0 | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded within a range while currently testing the resistance level at 97.15. MACD which illustrated increasing bearish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 97.15, 98.15
Support level: 96.30, 95.40
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2535. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2640, 1.2710
Support level: 1.2535, 1.2465
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1225. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1405, 1.1500
Support level: 1.1225, 1.1140
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 107.30. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 106.15.
Resistance level: 107.30, 108.55
Support level: 106.15, 104.90
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level at 0.6915. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6815.
Resistance level: 0.6915, 0.7015
Support level: 0.6815, 0.6715
NZDUSD, H1: NZDUSD was traded lower while currently testing the support level at 0.6440. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6480, 0.6515
Support level: 0.6440, 0.6395
USDCAD, H4: USDCAD was traded within a range while currently near the support level at 1.3525. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3675, 1.3800
Support level: 1.3525, 1.3355
USDCHF, H1: USDCHF was traded lower while currently testing the support level at 0.9480. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9515, 0.9545
Support level: 0.9480, 0.9445
CrudeOIL, H1: Crude oil price was traded lower following prior breakout below the previous support level at 37.90. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 36.95.
Resistance level: 37.90,39.15
Support level: 36.95, 35.95
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1723.00. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1738.70.
Resistance level: 1738.70, 1752.05
Support level: 1723.00, 1714.15