22 June 2020 Morning Session Analysis
Dollar surged amid fears over second wave of virus heightened.
Dollar index which gauges its value against a basket of six major currencies soars as the appeal of dollar as a safe haven currency has overshadowed the market concern over the recovery of US economy. Since the outbreak of Coronavirus, the global economy has been sent into an unprecedented recession stage where economic activity was being forced to halt, as a measure to mitigate the fallout of virus. However, the recent significant uptick of daily new coronavirus cases in US and some of other countries such as Germany has increased the market worries over the outbreak of second wave of virus. Later last week, US country has reported more than 30,000 new cases which has refreshed the highest daily new cases record since 1st of May while Florida has the highest number of new cases among all the states. Moreover, new cluster of virus has also been detected in country such as China and Germany which had successfully controlled the spread of virus over recent months, raised the fears of a resurgence of the virus in these countries. Hence, market participants chose to flee into safe haven currencies to avoid the risk of economic downturn which might be caused by the potential outbreak of another virus’s wave. As of writing, dollar index rose 0.04% to 97.65.
In the commodities market, crude oil price increased by 0.05% to $39.85 per barrel amid market optimism toward the OPEC+ supply cut. In the recent meeting, Iraq and Kazahkstan have agreed to comply better with oil cut, indicating that the issue of supply glut might be resolved along the production cut. Besides, gold price surged 0.19% to $1747.40 a troy ounce amid raising of market fears over the outbreak of another virus’s wave.
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 |
| 22:00 | USD – Existing Home Sales (May) | 4.33M | 4.10M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 97.60. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 97.60.
Resistance level: 97.60, 98.35
Support level: 96.85, 95.95
GBPUSD, Daily: GBPUSD was traded lower following prior breakout below the previous support level at 1.2485. MACD which illustrate bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2250.
Resistance level: 1.2485, 1.2585
Support level: 1.2250, 1.1965
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1240. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.1115.
Resistance level: 1.1240, 1.1400
Support level: 1.1115, 1.1025
USDJPY, Daily: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum signal suggest the pair to rebound from the lower level.
Resistance level: 107.15, 108.15
Support level: 106.20, 104.80
AUDUSD, Daily: AUDUSD was traded lower following prior retracement from the resistance level at 0.6935. MACD which display bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.6655.
Resistance level: 0.6935, 0.7215
Support level: 0.6655, 0.6310
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6405. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.6200.
Resistance level: 0.6405, 0.6565
Support level: 0.6200, 0.5925
USDCAD, Daily: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.3650.
Resistance level: 1.3650, 1.3830
Support level: 1.3360, 1.3075
USDCHF, Daily: USDCHF was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its gains toward the resistance level at 0.9540.
Resistance level: 0.9540, 0.9625
Support level: 0.9455, 0.9335
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 38.95. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 40.35.
Resistance level: 40.35, 42.40
Support level: 38.95, 37.55
GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level at 1743.75. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1753.85.
Resistance level: 1753.85, 1763.60
Support level: 1743.75, 1732.75