20 May 2020 Afternoon Session Analysis
Euro rallied following the positive data was released.
The Euro surged over the backdrop of positive economic data from the Europe region yesterday. According to ZEW organization, the Germany ZEW Economic Sentiment unexpectedly spiked up from the previous reading of 28.2 to 51.0, exceeding the market forecast at 32.0, which dialled up the market optimism toward the economic progression in the European countries. Besides that, the euro extend its gains over the proposals of the economic stimulus from France and Germany in order to combat the economic damage from the coronavirus pandemic. According to Reuters, France and Germany proposed on Monday a 500-billion-euro Recovery Fund to enhance the liquidity and solvency problem for the regions and sectors which hit hardest by the coronavirus pandemic. If this stimulus plan is backed by member states, the European Commission would able to raise the fund through public markets. In fact, the commission is expected to outline their proposals before a European summit which scheduled on 27th May. Nonetheless, at this time, investors would continue to scrutinize the EU Finance Minister’ meeting today in order to gauge the likelihood movement for the pair. As of writing, the EUR/USD appreciated by 0.16% to 1.0939.
In the commodities market, the crude oil price surged 0.54% to $31.87 per barrels. The oil market edged higher following the positive oil inventory data was released. According to American Petroleum Institute, the U.S. API Weekly Crude Oil Stock had notched down from the previous reading of 7.580M to -4.800M, better than the market forecast at 2.400M while diminishing the fears upon the supply glut issue in the market. On the other hand, the gold market appreciated by 0.20% to $1748.15 per troy ounces due to the risk-off sentiment following a report from medical news website STAT claimed that the early data from Moderna Inc’s COVID-19 vaccine was inefficient.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Meeting Minutes
(21th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI (YoY)(Apr) | 1.5% | 0.9% | – |
| 17:00 | EUR – CPI (YoY)(Apr) | 0.5% | 0.3% | – |
| 20:30 | CAD – Core CPI (MoM)(Apr) | 0.7% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.350M | 1.000M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level 99.40. MACD which illustrate ongoing bearish momentum signal suggest the dollar to extend its losses after it breaks below the support level.
Resistance level: 99.40, 98.40
Support level: 100.25, 100.95
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level 1.2265. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to extend to experience a technical correction in short term towards the support level 1.2080.
Resistance level: 1.2265, 1.2435
Support level: 1.2080, 1.1870
EURUSD, H4: EURUSD was traded higher following recent breakout above the previous resistance level 1.0885. However, MACD which illustrate diminishing bullish bias signal suggest the pair to experience a short-term technical correction towards the current support level 1.0885.
Resistance level: 1.0995, 1.1140
Support level: 1.0885, 1.0805
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 107.95. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 107.35.
Resistance level: 107.95, 108.55
Support level: 107.35, 106.50
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.6560. However, MACD which illustrate diminishing bullish momentum signal suggest the pair may experience a short-term technical correction towards the support level 0.6390.
Resistance level: 0.6560, 0.6685
Support level: 0.6390, 0.6265
NZDUSD, H4: NZDUSD was traded higher following recent breakout above the previous resistance level 0.6070. However, MACD which display diminishing bullish bias signal suggest the pair to be traded lower as a technical correction in short term towards the current support level 0.6070.
Resistance level: 0.6150, 0.6250
Support level: 0.6070, 0.6005
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.3875. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 1.4015.
Resistance level: 1.4015, 1.4130
Support level: 1.3875, 1.3685
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9680. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9790, 0.9890
Support level: 0.9680, 0.9595
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 33.60. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to be traded lower as a technical correction towards the support level 28.00.
Resistance level: 33.60, 38.45
Support level: 28.00, 21.35
GOLD_, H4: Gold price was traded higher following prior rebound from the support level 1728.95. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 1768.05.
Resistance level: 1768.05, 1800.00
Support level: 1728.95, 1672.85