23 July 2020 Morning Session Analysis
Euro appreciated following enthusiasm on EU deal.
The euro which traded against the greenback and other currency pairs have continue to extend its gain and rose to its highest since October 2018 following successful EU deal. After meeting for 4 days, Europeans leaders managed to successfully sort out an agreement which reflects the difficulty of confirming the details of the EU recovery fund. Following the agreement, the fund which worth 750 billion euros will be allocated as 2 different part that is 390 billion in funds and 360 billion in low-interest loans. In addition, the EU also agreed on a seven-year trillion budget that worth 1.07 trillion euros. Following the success of EU summit, market confidence was boosted greatly, thus spurred high demand for the Euro. At the time of writing, EUR/USD rose 0.03% to 1.1567.
In the commodities market, crude oil price jumps 0.08% to $41.78 per barrel as of writing despite increasing U.S stockpiles. According to reports from EIA, U.S crude oil stockpiles have increased by 4.892M, missed market expectation of a 2.088M decrease. Despite that, market sentiment for the commodity remains strong as investors remain confident towards demand recovery for gasoline, thus supporting the price. On the other hand, gold price rose 0.08% to $1869.31 a troy ounce at the time of writing amid ongoing dollar weakness.
Today’s Holiday Market Close
Time Market Event
All Day JPY Marine Day
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20.30 | USD – Initial Jobless Claims | – | 1,300K | 1,300K |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following recent breakout below the previous support level 95.70. However, MACD which illustrate diminishing bearish momentum signal suggest the dollar to experience a short term technical correction towards the back to the level 95.70.
Resistance level: 95.70, 97.55
Support level: 94.35, 93.15
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.2660. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower back towards the level.
Resistance level: 1.2810, 1.3005
Support level: 1.2660, 1.2510
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1610. MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction towards the support level 1.1505.
Resistance level: 1.1610, 1.1715
Support level: 1.1505, 1.1435
USDJPY, H4: USDJPY remain traded in a sideway channel while currently testing near the resistance level 107.40. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to be traded higher after it breaks above the resistance level.
Resistance level: 107.40, 108.00
Support level: 106.60, 106.00
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.7160. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.7030.
Resistance level: 0.7160, 0.7290
Support level: 0.7030, 0.6935
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6670. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.6580.
Resistance level: 0.6670, 0.6745
Support level: 0.6580, 0.6490
USDCAD, H4: USDCAD was traded lower following recent breakout below the previous support level 1.3485. However, MACD which illustrate diminishing bearish momentum suggest the pair to experience a short term technical correction towards the resistance level 1.3485.
Resistance level: 1.3485, 1.3685
Support level: 1.3330, 1.3195
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level 0.9315. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher as a short term technical correction back towards the level 0.9315.
Resistance level: 0.9315, 0.9365
Support level: 0.9230, 0.9165
CrudeOIL, H4: Crude oil price traded flat near the current support level 41.30. However, MACD which illustrate bearish bias signal suggest the commodity to be traded lower after it breaks below the support level 41.30.
Resistance level: 43.85, 48.35
Support level: 41.30, 37.70
GOLD_, H4: Gold price was traded higher following recent breakout above the previous resistance level 1850.00. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to experience a technical correction back towards the level 1850.00.
Resistance level: 1880.65, 1931.95
Support level: 1850.00, 1814.20