22 January 2020 Morning Session Analysis
Greenback fell amid first virus case in U.S.
The dollar index have slipped against its basket of six major currency pairs after reports on deadly coronavirus have spread to the U.S. According to the reports from CNN, the U.S. Centers for Disease Control and Prevention confirmed the first case of the deadly virus originated from Wuhan where a man in the Washington state has been diagnosed with the mysterious virus that have already killed at least six people and sickened hundreds more. Following the previous outbreak of 2003 SARS virus which caused an estimate losses of USD 12.3 to 28.4 billion, investors are fearing that a widespread outbreak could disrupt tourism and seriously hurt economic growth. The current situation also triggered risk-aversion mode as investors are fleeing towards safe-haven markets such as the Japanese Yen. At the time of writing, dollar index fell 0.03% to 97.25 while USD/JPY fell 0.04% to 109.79.
In the commodities market, crude oil price remain pressured and fell 0.08% to $58.27 per barrel as of writing following recent builds in U.S fuel supplies. Recently, investors have barely shown any alarm toward the Libyan crisis and react towards the builds of 15.7 million barrels in U.S. gasoline stockpiles and 13.8 million in distillates inventories over the past two weeks, versus expectations of 5.8 million and 5 million respectively. On the other hand, gold price rose 0.07% to $1556.61 a troy ounce at the time of writing amid risk of global virus outbreak and a weakening dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23.00 CAD BoC Monetary Policy Report
23.00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17.30 | GBP – Retail Sales (YoY) (Dec) | 1.0% | 2.6% | – |
| 21.30 | CAD – Core CPI (MoM) (Dec) | -0.2% | – | – |
| 23.00 | USD – Existing Home Sales (MoM) (Dec) | 5.35M | 5.43M | – |
| 23.00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 97.35. However, MACD which illustrate bearish momentum signal with the formation of death cross suggest the dollar to experience a technical correction towards the support level 96.95.
Resistance level: 97.35, 97.80
Support level: 96.95, 96.45
GBPUSD, H4: GBPUSD remain traded in a sideway channel. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower in short term towards the support level 1.2965.
Resistance level: 1.3095, 1.3225
Support level: 1.2965, 1.2830
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1085. 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: 1.1165, 1.1250
Support level: 1.1085, 1.0990
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 109.70. MACD which illustrate ongoing bearish momentum suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 110.20, 110.65
Support level: 109.70, 109.25
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.6845. MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level 0.6845.
Resistance level: 0.6885, 0.6930
Support level: 0.6845, 0.6805
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6600. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 0.6560.
Resistance level: 0.6600, 0.6650
Support level: 0.6560, 0.6500
USDCAD, H4: USDCAD remain traded in a sideway channel while currently testing the resistance level 1.3070. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.3070, 1.3125
Support level: 1.3010, 1.2945
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9695. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.9695, 0.9755
Support level: 0.9625, 0.9550
CrudeOIL, H4: Crude oil was traded lower while currently testing near the support level 57.75. MACD which display bearish bias signal with the formation of death cross suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 59.55, 61.05
Support level: 57.75, 56.30
GOLD_, H4: Gold price was remain traded in a sideway channel while currently testing near the resistance level 1561.90. Due to lack of momentum and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1561.90, 1581.90
Support level: 1542.15, 1523.25