20 May 2020 Morning Session Analysis
Sterling pound rose following the release of mixed job data.
Among all the major currencies, Sterling pound was managed to extend its bullish momentum while reaching the highest level in one week after UK released mixed labour data yesterday. According to the Office of National Statistics, UK Claimant Count Change data was came in at 856.5K, higher than the economist forecast at 676.5K, showing a significant rise in the number of UK citizen file for unemployment insurance during the novel of coronavirus. Amidst the pandemic, UK economy has been hammered tremendously similar as other countries, where the local businesses and manufacturers were being forced to halt their operation in order to combat the fallout of coronavirus. However, the unemployment rate in UK for the month of March was unexpectedly better than the economist forecast, whereas 3.9% versus 4.4%. Mixed signals in pound market is seemingly attracting than US dollar market as Jerome Powell dovish comment regarding to the changes in monetary policy continue to suppress this currency. As of writing, GBP/USD rose 0.02% to 1.2250.
In the commodities market, crude oil price appreciates by 0.05% to $31.95 per barrel amid heightening of market’s hopes over the oil production cut may successfully resolve the supply glut. Moreover, easing of country lockdown has also lifted up the market confidence toward this black commodity market. Besides, gold price depreciates 0.01% to $1744.35 a troy ounce amid strengthening of market risk on sentiment.
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, Daily: Dollar index was traded lower while currently testing the support level at 99.45. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 99.45.
Resistance level: 100.85, 102.90
Support level: 99.45, 98.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from 50 moving average line (Blue). MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2215.
Resistance level: 1.2305, 1.2370
Support level: 1.2215, 1.2115
EURUSD, H4: EURUSD was traded lower following prior retracement near the resistance level at 1.0940. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.0885.
Resistance level: 1.0940, 1.1025
Support level: 1.0885, 1.0830
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 107.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 108.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6555. MACD which illustrates diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6555, 0.6705
Support level: 0.6370, 0.6180
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6065. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.6065.
Resistance level: 0.6150, 0.6205
Support level: 0.6065, 0.5995
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.3855. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3980.
Resistance level: 1.3980, 1.4120
Support level: 1.3855, 1.3670
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9710. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 0.9750, 0.9795
Support level: 0.9710, 0.9660
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 33.00. MACD which illustrate bearish divergence signal suggest the commodity to extend its losses toward the support level at 30.50.
Resistance level: 33.00, 35.30
Support level: 30.50, 28.75
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1738.15. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1757.60.
Resistance level: 1757.60, 1766.35
Support level: 1738.15, 1726.05