21 December 2020 Afternoon Session Analysis
Dollar soars following safe-haven demand amid lockdowns.
During late Asian session, the dollar index which traded against a basket of six major currency pairs have rose with investors rush to safe-haven market after many countries tightened their lockdown measures to control COVID-19 virus. Following latest development, the number of coronavirus cases in the world have surpassed 77 million and still showed no signs of stopping. U.K and its European neighbours which including France, Germany, Italy, the Netherlands, Ireland and Belgium have imposed a stricter measure and closing their borders to travellers. Other countries are also mulling similar bans. As the lockdown and rapidly spreading virus starting to cause alarm, investors are shifting their assets away from riskier market and heading to safe-haven, thus driving up the strength of the greenback. On top of that, new of U.S Congress reach a deal for a $900 billion aid package also provide further boost for the greenback. At the time of writing, dollar index rose 0.50% to $90.26.
In the commodities market, crude oil price extends losses and fell 3.17% to $47.70 per barrel as of writing following concerns over new coronavirus strain. A new variant of the coronavirus in Britain and tighter travel restrictions in Europe sparked fears over slower economic recovery, thus prompting investors to unwind long positions. On the other hand, gold price soars 0.87% to $1897.84 a troy ounce at the time of writing amid increasing demand for safe-haven.
Today’s Holiday Market Close
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 89.95. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the dollar to extend its gains towards the resistance level 90.55.
Resistance level: 90.55, 91.40
Support level: 89.95, 89.35
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.3300. MACD which illustrate bearish momentum signal with the recent formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3505, 1.3735
Support level: 1.3300, 1.3150
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.2165. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.2355, 1.2515
Support level: 1.2165, 1.2010
USDJPY, H4: USDJPY was traded flat near the MA lines. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower towards the support level 102.90.
Resistance level: 103.65, 104.50
Support level: 102.90, 102.05
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7555. 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: 0.7655, 0.7755
Support level: 0.7555, 0.7450
NZDUSD, H4: NZDUSD was traded lower while testing the support level 0.7095. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7175, 0.7280
Support level: 0.7095, 0.7010
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.2830. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend it gains after it breaks above the resistance level.
Resistance level: 1.2830, 1.2955
Support level: 1.2680, 1.2540
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the support level 0.8840. However, MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher in short term towards the resistance level 0.8920.
Resistance level: 0.8920, 0.8985
Support level: 0.8840, 0.8775
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 48.60. MACD which illustrate bearish momentum signal with the formation of death cross suggest the commodity to extend its losses towards the support level 46.40.
Resistance level: 48.60, 50.85
Support level: 46.40, 43.45
GOLD_, H4: Gold price was traded higher following prior rebound from the support level 1881.25. MACD which illustrate bullish bias signal suggest the commodity to extend its gains towards the resistance level 1920.00.
Resistance level: 1920.00, 1955.00
Support level: 1881.25, 1850.45.