22 May 2020 Morning Session Analysis
Dollar dipped amid downbeat economic data.
Dollar index which gauges its value against a basket of six major currencies plunged as a series of bleak economic data showed that US economy are still being haunted by the fallout of pandemic. According to the Department of Labor, US Initial Jobless Claims data was came in at 2,438K, weaker than the economist forecast at 2,400K, showing that the number of American filed for unemployment insurance claims has risen significantly amid the novel coronavirus. Since the outbreak of pandemic, all of the labour data from US that has disappointed the market participants as the nation was being forced to implement lockdown measure in order to avoid the spreading of virus. As such, US companies and manufacturer had to halt their operation to meet the imposition of government’s measures, leading massive number of people lose their jobs. Besides, U.S. Philadelphia Fed Manufacturing Index for the month of May still remained in negative territory at -43.1, despite it showed a slightly rebound while comparing to the previous reading of -56.6. This data shows that US manufacturers are still remained disappointing toward the prospect of business condition amid the pandemic remain unsolved. As of writing, dollar index down 0.02% to 99.35.
In the commodities market, crude oil price appreciates by 0.01% to $33.85 per barrel as recent data showed that stockpile in US eased, while the hopes for higher demand have also increase after countries lifted the lockdown measures. Besides, gold price notched down 0.04% to $1726.95 a troy ounce amid easing of country lockdown increased the market’s confidence toward riskier asset.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM)(Apr) | -5.8% | -22.2% | – |
| 20:30 | CAD – Core Retail Sales (MoM)(Mar) | -15.6% | -5.0% | – |
| 01:00
(23th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 258 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the upward trend line. However, MACD which illustrate bearish momentum with the formation of death cross suggest the pair to undergo technical correction in short term.
Resistance level: 99.45, 100.85
Support level: 98.30, 97.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.2215. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 1.2305, 1.2370
Support level: 1.2215, 1.2115
EURUSD, H4: EURUSD was traded lower following prior retracement from the higher level. MACD which illustrate bearish momentum with the formation of death cross suggest the pair to extend its losses toward the support level at 1.0940.
Resistance level: 1.1025, 1.1115
Support level: 1.0940, 1.0885
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 following prior breakout above the previous resistance level at 0.6555. MACD which illustrates bullish momentum signal suggest the pair to extend its gains toward the resistance level at 0.6705.
Resistance level: 0.6705, 0.7005
Support level: 0.6555, 0.6370
NZDUSD, H4: NZDUSD was traded lower following prior retracement near the resistance level at 0.6150. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward 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 bullish bias 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, H4: USDCHF was traded higher while currently testing the resistance level at 0.9710. MACD which illustrates bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9710.
Resistance level: 0.9710, 0.9750
Support level: 0.9660, 0.9585
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 35.30.
Resistance level: 35.30, 41.05
Support level: 33.00, 30.50
GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level at 1726.05. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1738.15.
Resistance level: 1738.15, 1757.60
Support level: 1726.05, 1718.20