20 March 2020 Afternoon Session Analysis
Dollar soars as liquidity fears dominate.
The dollar index which traded against a basket of six major currency pairs have slightly retreat from its high after climbing to its highest level in more than three years during late Asian session as investors continue to seek for cash amid concerns of liquidity issues despite efforts from Fed to calm the market. The Federal Reserve have stated it would expand the currency swap lines which is a measure to boost U.S. dollar funding markets to nine more countries, including central banks in Singapore, South Korea, Brazil, Sweden, Australia, New Zealand, Mexico, Norway and Denmark. However, the plan proved ineffective to regain investors’ confidence. At the current moment, the coronavirus pandemic along with strict quarantine measures have causing commercial ground to a temporary halt and driving a massive demand for dollars to borrow so that these business could cover its cost. Besides that, stock market losses also cause traders to turn any assets to dollar in order to cover their losses. At the time of writing, dollar index slips 0.74% to 102.82.
In the commodities market, crude oil price rose 4.59% to $26.51 at the time of writing as the market turned positive after a hint of potential intervention from U.S President Donald Trump in the price war between Saudi Arabia and Russia. At the same time, Trump administration also stated that it will buy oil to top up the nation’s reserves and support American drillers. Next, gold price remains struggling and fell 0.21% to $1484.61 a troy ounce as of writing following market continue to dump gold in order to raise cash and cover losses in other markets.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | CAD – Core Retail Sales (MoM)(Jan) | 0.5% | 0.2% | – |
| 22:00 | USD – Existing Home Sales (Feb) | 5.46M | 5.50M | – |
| 01:00
(21th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 683 | – | – |
Technical Analysis
DOLLAR_INDX, H1：Dollar index was traded lower following prior retracement from the resistance level at 103.55. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 101.85.
Resistance level: 103.55, 104.75
Support level: 101.85, 99.70
GBPUSD, H4: GBPUSD was traded within a range while currently testing the support level at 1.1525. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2160, 1.2835
Support level: 1.1405, 1.0335
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.0645. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.0835.
Resistance level: 1.0835, 1.0965
Support level: 1.0645, 1.0475
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 111.20. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 109.75.
Resistance level: 111.20, 112.15
Support level: 109.75, 108.45
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.5895. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.5895, 0.6020
Support level: 0.5710, 0.5500
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level at 0.5635. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.5825.
Resistance level: 0.5825, 0.5950
Support level: 0.5635, 0.5455
USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level at 1.4505. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.4250.
Resistance level: 1.4505, 1.4730
Support level: 1.4250, 1.3980
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9845. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.9755.
Resistance level: 0.9835, 0.9885
Support level: 0.9755, 0.9665
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 27.30. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 27.30, 29.20
Support level: 24.15, 22.45
GOLD_, H1: Gold price was traded higher while currently near the resistance level at 1490.50. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1490.50, 1510.30
Support level: 1469.00, 1449.25