21 September 2020 Morning Session Analysis
Loonie slips following weak Retail Sales.
The Canadian Loonie which traded against the dollar and other currency pairs have fell during early Asian session amid disappointing release of July Retail Sales recently. According to Statistics Canada, Canada’s Retail Sales in July have rose by 0.6% to $52.9 billion. The result was fell short of market expectation for an increase of 1% and also below the previous month’s increase of 0.7%. At the same time, core retail sales which exclude auto sales also came in weaker with the reading of -0.4% against market expectation of 0.5%. At the moment, the Loonie remains weighed down by the weak data while investors awaits for more catalyst to determine further direction. At the time of writing, USD/CAD rose 0.05% to 1.3200.
In the commodities market, crude oil price remain supported and gain 0.11% to $41.02 per barrel at the time of writing following Saudi Arabia reassurance. Despite with recent downbeat reports from IEA, the price was lifted by Saudi Arabia pledge to commit towards OPEC output cuts. Saudi Arabia have criticized noncompliant mmembers for trying to fool the market with overproduction and giving deadlines until December to make up for any overproduction. On the other hand, gold price remains stable and edge higher 0.02% to $1950.47 a troy ounce at the time of writing amid ongoing uncertainty on coronavirus and relations between U.S and China continue to support the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22.00 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel. However, MACD which illustrate bullish bias signal suggest the dollar to be traded higher in short term towards the resistance level 93.85.
Resistance level: 93.85, 95.70
Support level: 92.05, 90.70
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level 1.3005. MACD which display bearish bias signal with the formation of death cross suggest the pair to extend its retracement towards the support level 1.2810.
Resistance level: 1.3005, 1.3165
Support level: 1.2810, 1.2660
EURUSD, H4: EURUSD was traded flat while currently testing near the resistance level 1.1875. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction in short term towards the support level 1.1775.
Resistance level: 1.1875, 1.1965
Support level: 1.1775, 1.1700
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 104.35. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to experience a technical correction towards the resistance level 105.20.
Resistance level: 105.20, 106.20
Support level: 104.35, 103.65
AUDUSD, H4: AUDUSD was traded lower following recent retracement from its high. MACD which illustrate bearish momentum signal suggest the pair to extend its retracement towards the support level 0.7200.
Resistance level: 0.7340, 0.7410
Support level: 0.7200, 0.7075
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6775. MACD which illustrate diminishing bullish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 0.6685.
Resistance level: 0.6775, 0.6830
Support level: 0.6685, 0.6595
USDCAD, H4: USDCAD remain traded in a sideway channel. However, MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to be traded higher in short term towards the resistance level 1.3230.
Resistance level: 1.3230, 1.3330
Support level: 1.3115, 1.2995
USDCHF, H4: USDCHF was traded flat near the resistance level 0.9125. However, MACD which illustrate bullish momentum signal suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 0.9125, 0.9225
Support level: 0.8985, 0.8880
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level 41.35. However, MACD which illustrate diminishing bullish momentum signal with the formation of death cross suggest the commodity to be traded lower as a technical correction towards the support level 39.00.
Resistance level: 41.35, 43.95
Support level: 39.00, 36.65
GOLD_, H4: Gold price remain traded in a sideway channel. Due to lack of clear direction and momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1970.55, 2008.05
Support level: 1902.20, 1857.95