23 September 2020 Morning Session Analysis
Dollar extend gains following upbeat data.
The dollar index which measure its value against a basket of six major currency pairs continue to advance during early Asian session following positive housing data. According to the National Association of Realtors, the Existing Home Sales came in at 6M, which is also in line with the market expectation and higher than previous reading of 5.8M. Following the release of positive data, the sentiment for the greenback was further boosted. At the same time, another factor that was currently support the greenback was its safe-haven status due to renewed virus concerns. As of now, worsening coronavirus conditions in the Euro along with huge sell off in financial stocks due to dirty money scandal also weighing heavily on the market. Meanwhile, attention now will shift to U.S Fed Chairman Jerome Powell as he will make his appearance on Capitol Hill to discuss about potential measures from central bank to help the U.S economy and potentially triggered a huge momentum in the market. At the time of writing, dollar index rose 0.34% to 93.97.
In the commodities market, crude oil price fell 0.20% to $39.65 per barrel as of writing following downbeat report from API. According to the American Petroleum Institute (API), U.S crude inventories rose by 691,000 barrels last week, missing market expectation of a 4 million barrel decrease. The negative data have increase concerns that the recovery in demand is remain under threat, thus exert continuous pressure for the commodity. On the other hand, gold price remains weak and fell 0.04% to $1901.70 a troy ounce at the time of writing amid ongoing dollar strength which have diminished the appeal of yellow metal as safe-haven.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
10.00 NZD RBNZ Rate Statement
19.50 JPY BoJ Monetary Policy Statement
22.00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 10.00 | NZD – RBNZ Interest Rate Decision | 0.25% | 0.25% | – |
| 15.30 | EUR – German Manufacturing PMI (Sep) | 52.2 | 52.5 | – |
| 16.30 | GBP – Composite PMI | 59.1 | 56.3 | – |
| 16.30 | GBP – Manufacturing PMI | 55.2 | 54.1 | – |
| 16.30 | GBP – Services PMI | 58.8 | 56.0 | – |
| 22.30 | CrudeOIL – Crude Oil Inventories | -4.389M | -2.325M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel while currently testing the resistance level 93.90. However, MACD which display signs of diminishing bullish momentum suggest the dollar to experience a technical correction towards the support level 92.05.
Resistance level: 93.90, 95.70
Support level: 92.05, 90.70
GBPUSD, H4: GBPUSD was traded flat near the current resistance level 1.2785. However, MACD which illustrate signs of diminishing bearish momentum suggest the pair to be traded higher after it breaks back above the resistance level.
Resistance level: 1.2785, 1.3005
Support level: 1.2510, 1.2240
EURUSD, H4: EURUSD was traded lower while currently testing the support level 1.1710. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction towards the resistance level 1.1890.
Resistance level: 1.1890, 1.1995
Support level: 1.1710, 1.1575
USDJPY, H4: USDJPY was traded higher while currently testing near the resistance level 105.20. MACD which display ongoing bullish momentum suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 105.20, 106.20
Support level: 104.25, 103.65
AUDUSD, H4: AUDUSD was traded lower following recent breakout below the previous support level 0.7200. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a short term pullback back towards the current level 0.7200.
Resistance level: 0.7200, 0.7340
Support level: 0.7105, 0.6970
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level 0.6685. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction back towards the resistance level 0.6685.
Resistance level: 0.6685, 0.6775
Support level: 0.6595, 0.6510
USDCAD, H4: USDCAD was traded lower following retracement from the resistance level 1.3330. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 1.3230.
Resistance level: 1.3330, 1.3455
Support level: 1.3230, 1.3115
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing the resistance level 0.9205. However, MACD which display signs of diminishing bullish momentum suggest the pair to be traded lower in short term towards the support level 0.9035.
Resistance level: 0.9205, 0.9370
Support level: 0.9035, 0.8880
CrudeOIL, H4: Crude oil price was traded flat near the support level 39.00. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher in short term towards the resistance level 41.35.
Resistance level: 41.35, 43.95
Support level: 39.00, 36.65
GOLD_, H4: Gold price remain traded in a sideway channel while currently testing the support level 1902.20. However, MACD which illustrate diminishing bearish momentum suggest the commodity to be traded higher towards the resistance level 1970.55.
Resistance level: 1970.55, 2008.05
Support level: 1902.20, 1857.95