19 August 2020 Morning Session Analysis
Greenback dipped amid exacerbating of ongoing risk
Dollar index which gauges its value against a basket of six major currencies failed to revive from its recent low level while extended its losses to lowest level since April 2018 amid heightening of uncertainty in US economy. Since the outbreak of Covid-19, US economy has been tampered tremendously as the novel urged the country to impose lockdown restriction in order to limit its damage, while it also halted the entire economy activity at the same time. Other than that, US central bank Federal Reserve has also implemented more than trillions worth of stimulus plan and relief package to help and support the economy from the fallout of virus. Despite, recent bleak of economic data still did not showed any sign of strong recovery in US economy, prompting the investors to seek for other currency market or financial product which can provide impressive return. According to the Worldometer, US confirmed cases has spiked up to a number approximately 5 million and more than 170K deaths, more than any country. As of now, investors are eyeing on the talk’s stalemate between Republican Party and Democratic Party, with regards to the new round of stimulus plan to scrutinize the further direction of dollar. During Asian trading session, dollar index inched down by 0.58% to 92.30.
In the commodities market, crude oil price appreciated by 0.41% to $42.75 per barrel after US crude oil inventories showed a surprise draw. According to the API, US API Weekly Crude Oil Stock came in at -4.264M, recording a bigger drop than the economist forecast at -2.900M, showing that the supply glut eased while demand has started to recover. Besides, gold priced up 0.13% to $2004.75 a troy ounce amid appealing of safe haven asset during heightening of uncertainty risk in US economy.
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, H4: Dollar index was traded lower following prior breakout below the previous support level at 92.55. MACD which illustrate bearish bias momentum signal suggest the dollar to extend its losses toward the support level at 91.45.
Resistance level: 92.55, 94.10
Support level: 91.45, 90.75
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3245. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3245, 1.3330
Support level: 1.3150, 1.3020
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1990. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1.1985.
Resistance level: 1.1985, 1.2060
Support level: 1.1900, 1.1840
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 106.15. MACD which display bearish bias momentum suggest the pair to extend its losses toward the support level at 105.05.
Resistance level: 106.15, 106.95
Support level: 105.05, 104.30
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7235. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.7290.
Resistance level: 0.7290, 0.7330
Support level: 0.7235, 0.7190
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.6580. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6580, 0.6755
Support level: 0.6480, 0.6380
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3210. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3055.
Resistance level: 1.3210, 1.3335
Support level: 1.3055, 1.2955
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9050. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.8975.
Resistance level: 0.9050, 0.9120
Support level: 0.8975, 0.8905
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 42.70. However, MACD which illustrate diminishing bullish momentum suggest the commodity to undergo technical correction toward lower level.
Resistance level: 43.55, 44.50
Support level: 42.70, 42.05
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1980.75. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 2069.75.
Resistance level: 2069.75, 2147.50
Support level: 1980.75, 1905.85