19 August 2020 Afternoon Session Analysis
Japanese Yen slips as risk sentiment soars.
During late Asian session, the Japanese Yen which traded against the greenback and other currency pairs have lost its shine and fell following the heightening risk appetite. Despite with the rally in Asian stocks, market are now flocking back to the greenback following the official announcement of Joe Biden as the Democratic nominee for the US Presidential Elections which will be held in November. At the same time, expectation of Federal Reserve may soon signal a greater tolerance also help increasing the risk appetite. Speculation has been doing the rounds for months now that the Fed would adopt an RBA-style yield curve control program. Some observers think the central bank may signal greater tolerance for above-target (2%) inflation. At the same time, Japan’s record contraction also continue to weigh on the sentiment which provide reason for sellers to dump the safe-haven Yen. At the time of writing, USD/JPY rose 0.13% while dollar index rose 0.07%.
In the commodities market, crude oil price remain stable and rose 0.49% to $42.85 per barrel as of writing amid mixed sentiment that fail to provide a clear direction for the commodity. While recently API reported a draw of 4.264 million barrels which exceed market expectation, investor remain concerned over U.S fuel demand recovery amid failure of reach a consensus on latest stimulus from U.S congress. On the other hand, gold price retreats 0.43% to $1993.47 a troy ounce at the time of writing following dollar rebound.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Meeting Minutes
(20th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI(YoY)(Jul) | 0.6% | 0.6% | – |
| 17:00 | EUR – Core CPI (YoY)(Jul) | 0.4% | 0.4% | – |
| 20:30 | CAD – Core CPI (MoM)(Jul) | 0.4% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -4.512M | -2.670M | – |
Technical Analysis
DOLLAR_INDX, Weekly: Dollar index was traded lower following prior breakout below the previous support level at 93.25. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 91.30.
Resistance level: 93.25, 95.55
Support level: 91.30, 88.85
GBPUSD, H1: GBPUSD was traded higher while currently testing the resistance level at 1.3250. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3250, 1.3340
Support level: 1.3175, 1.3125
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1885. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2040, 1.2175
Support level: 1.1885, 1.1790
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 105.30. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 106.40.
Resistance level: 106.40, 107.35
Support level: 105.30, 104.25
AUDUSD, H4: AUDUSD was higher while currently testing the resistance level at 0.7240. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7240, 0.7330
Support level: 0.7105, 0.7015
NZDUSD, H4: NZDUSD was traded higher while currently near the resistance level at 0.6625. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6625, 0.6690
Support level: 0.6575, 0.6530
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.3235. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3235, 1.3315
Support level: 1.3110, 1.3010
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9060. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.8860.
Resistance level: 0.9060, 0.9195
Support level: 0.8860, 0.8675
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 43.05. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 43.05, 44.55
Support level: 42.10, 40.95
GOLD_, H4: Gold price was traded lower while currently testing the resistance level at 1995.25. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the resistance level.
Resistance level: 1995.25, 2022.10
Support level: 1969.10, 1937.40