22 September 2020 Morning Session Analysis
Euro plummets amid fears of second wave.
During early Asian session, the Euro which traded against the greenback and other currency pairs have experience a tremendous selling pressure and plummet following the resurgence of coronavirus cases have increased the odds of Europe to re-impose lockdown measures. According to WHO regional director Hans Kluge, Europe have reported 300,000 new infections last week, the most significant weekly increase ever. European health ministers have once again aware on the potential impact of a second wave. German Heath Minister Jens Spahn warned that Germany could also see infection spikes following a spread in countries such as France, Austria and Netherlands. Some countries like Denmark and Greece have announced new restrictions while U.K also consider plans of new lockdown. Following the worsening situation, a stricter restriction may be imposed that would completely affect the recovery from coronavirus and forcing the ECB to add more stimulus, thus dragging the Euro with huge pressure. At the time of writing, EUR/USD fell 0.09% to 1.1765.
In the commodities market, crude oil price slips 0.15% to $39.85 per barrel as of writing amid concerns over coronavirus. Crude demand outlook is taking a hit once again after statistic on Monday showed more than 30 million infected people worldwide. A stricter lockdown could be re-imposed which may affect the already fragile demand for the commodity, thus triggering a massive sell off in the market. On the other hand, gold price slides 0.31% to $1915.06 a troy ounce at the time of writing amid strong dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
10.00 NZD RBNZ Rate Statement
22.30 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22.00 | USD – Existing Home Sales (Aug) | 5.86M | 6.00M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel while currently testing near the resistance level 93.85. However, MACD which illustrate bullish momentum signal suggest the dollar to be traded higher after it successfully breaks above the resistance level.
Resistance level: 93.85, 95.70
Support level: 92.05, 90.70
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.2810. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3005, 1.3165
Support level: 1.2810, 1.2660
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1715. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.1890, 1.1995
Support level: 1.1715, 1.1575
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 104.25. MACD which illustrate bullish momentum signal with the recent formation of golden cross suggest the pair to extend its rebound towards the resistance level 105.20.
Resistance level: 105.20, 106.20
Support level: 104.25, 103.65
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7200. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7340, 0.7410
Support level: 0.7200, 0.7105
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6685. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 0.6595.
Resistance level: 0.6685, 0.6775
Support level: 0.6595, 0.6510
USDCAD, H4: USDCAD was traded higher while currently testing near the resistance level 1.3330. MACD which display ongoing bullish momentum suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 1.3330, 1.3455
Support level: 1.3230, 1.3115
USDCHF, H4: USDCHF was traded higher following recent breakout above the previous resistance level 0.9125. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction back towards the current support level 0.9125.
Resistance level: 0.9225, 0.9365
Support level: 0.9125, 0.9000
CrudeOIL, H4: Crude oil price was traded lower while currently testing near the support level 39.00. MACD which display bearish momentum signal with the recent formation of death cross suggest the commodity to extend its losses after it breaks below the support level 39.00.
Resistance level: 41.35, 43.95
Support level: 39.00, 36.65
GOLD_, H4: Gold price remain traded in a sideway channel following recent rebound from the support level 1902.20. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 1970.55.
Resistance level: 1970.55, 2008.05
Support level: 1902.20, 1857.95