19 May 2020 Afternoon Session Analysis
Euro retreats following ECB Lagarde defiance.
During late Asian session, the Euro which traded against the greenback and other currency pairs have retreat from its higher after ECB President Christine Lagarde defies Germany’s top court ruling on QE and plans to continue with the institution’s bond-buying programs. Germany’s top court have ruled this month that the 2015 asset purchase program, which has bought 2.7 trillion euros ($3 trillion) of debt and is still running, might not be proportionate to the risk of adverse side effects and so might be illegal. It gave the ECB three months to justify the policy or the Bundesbank will have to drop out. However, according to the latest development, Christine Lagarde have signalled the ECB is ready to defy that prospect. On top of that, she also emphasized that the central bank will not hesitate to expand further if necessary. The news has triggered some anxiety in the market, the weakness dollar helped support the Euro value in overall while investors looking for further signal to determine future direction for the pair. At the time of writing, EUR/USD edge lower 0.01% to 1.0909.
In the commodities market, crude oil price remains strong and rose 0.09% to $32.04 per barrel as of writing following increasing optimism on output cut and also demand recovery. According to reports, OPEC+ has cut its oil exports sharply in the first half of May, companies that track the shipments said, suggesting a strong start in complying with a new production cut agreement. On other hand, gold price rebounds 0.44% to $1740.19 a troy ounce following weakness in dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index + Bonus (Mar) | 2.8% | 2.6% | – |
| 14:00 | GBP – Claimant Count Change (Apr) | 12.1K | 676.5K | – |
| 17:00 | EUR – German ZEW Economic Sentiment (May) | 28.2 | 32.0 | – |
| 20:30 | USD – Building Permits (MoM)(Apr) | 1.350M | 1.000M | – |
| 04:30
(20th) |
CrudeOIL – API Weekly Crude Oil Stock | 7.580M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 99.60. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 100.45, 100.85
Support level: 99.60, 98.75
GBPUSD, Daily: GBPUSD was traded higher following prior rebound from the support level at 1.2095. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2305.
Resistance level: 1.2305, 1.2510
Support level: 1.2095, 1.1830
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.0915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.0915, 1.0945
Support level: 1.0875, 1.0845
USDJPY, H1: USDJPY was traded within a range while currently testing the resistance level at 107.35. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher after it successfully breakout above the resistance level.
Resistance level: 107.35, 107.80
Support level: 106.75, 106.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.6560. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6560, 0.6685
Support level: 0.6405, 0.6235
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6005. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6065.
Resistance level: 0.6065, 0.6150
Support level: 0.6005, 0.5925
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.3970. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3970, 1.4010
Support level: 1.3935, 1.3905
USDCHF, Daily: USDCHF was traded within a range while currently testing the resistance level at 0.9755 MACD which illustrated increasing bullish momentum suggest the pair to be traded higher after it successfully breakout above the resistance level.
Resistance level: 0.9755, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level at 32.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 28.85.
Resistance level: 32.75, 35.70
Support level: 28.85, 25.90
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1739.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1739.65, 1749.95
Support level: 1731.30, 1721.65