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23 June 2020                       Morning Session Analysis

 

Dollar plunged amid weak housing data.  

Dollar index which gauges its value against a basket of six major currencies dipped following the release of weak economic data yesterday. According to the National Association of Realtors, US Existing Home Sales data came in at 3.91M, blowing the estimation of economist at 4.12M, indicating that the housing sector is still being haunted by the fallout of pandemic. However, latest step from the US against China has successfully underpinned the US dollar market, as the currency’s safe haven appeal turned shiner after Trump administration announced 4 more Chinese State –run media organizations as foreign missions. In details, the companies that fall under foreign mission’s category will be required to submit a complete list of employees and a list of their real estate holdings to US government for checking purposes. The move is seemingly acting as the effort by Trump administration to counter against China aggressive policy. As a repercussion, market are now seeing China will most likely take retaliation actions on this issue amid unfair treatment on China companies in US. As of writing, dollar index dropped 0.62% to 97.00.

 

In the commodities market, crude oil price appreciated by 1.13% to $41.05 per barrel amid market optimism toward the global supply cut underpinned the oil market sentiment from the recent spike in Coronavirus cases. As of now, market participants are still eyeing on the upcoming inventory data to gauge the direction of this black commodity. Besides, gold price rose 0.05% to $1755.90 a troy ounce amid market worries over the second wave outbreak of the virus.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

16:45                     GBP                                        BoE Gov Bailey Speaks

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
15:30 EUR – German Manufacturing PMI (Jun) 36.6 41.5
16:30 GBP – Composite PMI 30.0
16:30 GBP – Manufacturing PMI 40.7
16:30 GBP – Services PMI 29.0
22:00 USD – New Home Sales (May) 623K 640K


 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 96.85. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 96.85.

 

Resistance level: 97.60, 98.35

Support level: 96.85, 95.95

 

GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.2485. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.2485.

 

Resistance level: 1.2485, 1.2585

Support level: 1.2250, 1.1965

 

EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1240. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after its candle successfully closed above the resistance level.

 

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 higher while currently testing the resistance level at 0.6935. MACD which display diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.6935.

 

Resistance level: 0.6935, 0.7215

Support level: 0.6655, 0.6310

 

NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6405. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.6565.

 

Resistance level: 0.6565, 0.6735

Support level: 0.6405, 0.6200

 

USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level at 1.3650. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.3360.

 

Resistance level: 1.3650, 1.3830

Support level: 1.3360, 1.3075

 

USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9540. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 0.9455.

 

Resistance level: 0.9540, 0.9625

Support level: 0.9455, 0.9335

 

CrudeOIL, H1: Crude oil price was traded higher following prior breakout above the previous resistance level at 40.35. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains toward the resistance level at 42.40.

 

Resistance level: 42.40, 43.75

Support level: 40.35, 38.95

 

GOLD_, H1: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1751.25.

 

Resistance level: 1763.15, 1773.45

Support level: 1751.25, 1743.75