22 April 2020 Morning Session Analysis
Dollar surged over the risk-off sentiment
Dollar index which gauges its value against a basket of six major currencies surged following the big crash in oil prices, which stoked a shift in sentiment toward safe-haven asset such as Dollar index. On yesterday, the U.S. crude oil futures for May 2020 moved into historical negative territory, as a sharp fall in global demand for the oil due to the coronavirus pandemic, creating a huge supply glut and a shortage of storage capacity. The factory closures and travel curbs enforced in order to slow the pace of new coronavirus pandemic have triggered a collapse in oil prices. Besides, according to Reuters, the U.S. Congress had reached a tentative agreement on yesterday with U.S. President Donald Trump on nearly $500 billion coronavirus relief bill that would top up the $349 billion small business rescue program, while spurring some positive market sentiment in the United States. On the economic data front, the gains experienced by the Dollar Index was limited over the backdrop of the bleak housing data from the U.S. According to National Association of Realtor, the U.S. Existing Home Sales notched down from the preliminary reading of 5.76M to 5.27M, worse than the market forecast at 5.30M. As of writing, the dollar index appreciated by 0.25% to 100.30.
In the commodities market, the crude oil price surged 2.22% to $13.34 per barrel. However, the oil market was traded lower on yesterday following the Official U.S. government data shows that the oil storage at Cushing was already 70% full during the mid-April. Nonetheless, both Saudi Arabia and Russia claimed on Tuesday that they were ready to take extra measures to stabilize oil markets along with other producers. On the other hand, the gold price slumped 0.03% to $1685.55 per troy ounces amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI (YoY) (Mar) | 1.7% | 1.5% | – |
| 20:30 | CAD – Core CPI (MoM) (Mar) | 0.7% | – | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 19.248M | 15.150M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 100.3. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 100.35, 100.85
Support level: 99.40, 98.80
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2230. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2385.
Resistance level: 1.2385, 1.2620
Support level: 1.2230, 1.2045
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0825. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.0975, 1.1125
Support level: 1.0825, 1.0660
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 107.90. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 107.40.
Resistance level: 107.90, 108.40
Support level: 107.40, 106.90
AUDUSD, H4: AUDUSD was traded lower while currently near the support level at 0.6220. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6460, 0.6640
Support level: 0.6220, 0.5985
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.5955. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6075, 0.6215
Support level: 0.5955, 0.5840
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.4175. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.4390, 1.4530
Support level: 1.4175, 1.4070
USDCHF, H4: USDCHF was traded higher while currently near the resistance level at 0.9715. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9715, 0.9775
Support level: 0.9595, 0.9510
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 12.25. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 25.50, 34.05
Support level: 12.25, 6.55
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1666.00. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1701.20.
Resistance level: 1701.20, 1737.25
Support level: 1666.00, 1634.75