20 March 2020 Morning Session Analysis
Pound wobbled after BoE loosen up its policy.
In the forex market, Pound sterling failed to retain its overnight gains following the decision of easing their unfolding monetary policy, recording the historical low level in over 30 years. After an emergency meeting been held among the BoE board’s members, BoE decided to slash its interest rate by 15bps from 0.25% to 0.10%, and increase their holding in bond by another 200 billion pound which adding up the total amount of debt to 645 billion. In BoE meeting, all of the board members unanimously voted a ticket of ‘yes’ for these series of stimulus plan as the pandemic of coronavirus are continues haunting the economic condition, in a hope that new round of stimulus plan is able to boost up the UK economy against the spreading of virus. However, BoE new governor reiterated that they will try to avoid for negative rates at the moment as the banking sector will be hurt significantly if they flip over the existing policy to a rate lower than zero. However, BoE does not rule out the possibility of more stimulus plan would be implemented if this unprecedented virus problem unable to be solved within a short time of period. For the time being, market participants are still eyeing on the next scheduled meeting of BoE on 25 March in order to scrutinize the further direction of pound. During early Asian trading session, the pair of GBP/USD inched down 0.05% to 1.1435.
In the commodities market, crude oil prices appreciated by 2.50% to a barrel of $26.35 after its three worst drops in history as US trump administration is considering to intervene the dispute between Saudi Arabia and Russia in order to stabilize the oil market. However, Saudi Aramco signalled to the market that they are not stepping down from this oil price war by insisting to increase production throughout the next two months. Besides, gold price quoted down 0.19% to $1470.00 a troy ounce as market are in favour of selling gold to avoid the risk of margin call in equity market.
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, Daily: Dollar index was traded higher while currently testing the resistance level at 103.75. MACD which illustrate bullish bias signal suggest the dollar to extend its gains after it breaks above the resistance level.
Resistance level: 103.75, 105.00
Support level: 102.89, 99.35
GBPUSD, H4: GBPUSD was traded higher following prior rebound near the support level at 1.1460. MACD which illustrate bullish momentum suggest the pair to be traded higher toward the resistance level at 1.1570.
Resistance level: 1.1570, 1.1760
Support level: 1.1460, 1.1315
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.0715. MACD which illustrate bearish bias momentum suggests the pair to extend its losses toward the support level at 1.0615.
Resistance level: 1.0715, 1.0790
Support level: 1.0615, 1.0535
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 111.15. MACD which illustrate bullish bias momentum suggests the pair to be extend its gains toward the resistance level at 112.25.
Resistance level: 112.25, 113.15
Support level: 111.15, 110.05
AUDUSD, H1: AUDUSD was traded higher following prior rebound from the support level at 0.5660. MACD which illustrate bullish momentum suggest the pair to extend its gains toward the resistance level at 0.5985.
Resistance level: 0.5985, 0.6350
Support level: 0.5660, 0.5375
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support level at 0.5595. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.5870.
Resistance level: 0.5870, 0.6075
Support level: 0.5595, 0.5420
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.4520. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.4325.
Resistance level: 1.4520, 1.4605
Support level: 1.4325, 1.4150
USDCHF, H1: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9840. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction toward the support level at 0.9840.
Resistance level: 0.9905, 0.9975
Support level: 0.9840, 0.9785
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 25.75. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 30.50.
Resistance level: 30.50, 35.30
Support level: 25.75, 21.70
GOLD_, Daily: Gold price was traded lower following prior breakout below the previous support level at 1477.00. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses toward the support level at 1442.30.
Resistance level: 1477.00, 1503.40
Support level: 1442.40, 1381.15