24 March 2020 Morning Session Analysis
The release of massive expansionary plan swept off dollar’s gains.
Dollar index which gauge its value against a basket of six major currencies sinks after Federal Reserve unveiled an extensive new measure’s plan to support the US economy from the pandemic of coronavirus. In latest FOMC statement, Fed board’s members enacted full range of tools which including purchase unlimited amounts of US Treasuries and agency mortgage-backed securities as an extraordinary move that goes even further than 2008 financial crisis. Besides, Federal reserve also set up few additional lending tools to support the economy go through nation hardship, combating the negative effect of virus spreading. Massive policy loosening put market in confusion as it may acted as a double-edged knife where it could hurt nation growth tremendously if it does not carry out properly. On the other side, rescue bill which was voted down by the majority of Democrats faces stumble in second vote, as they insist the plan was disproportionately tilt toward helping companies, instead of supporting families and health care providers. During Asian trading session, dollar index dropped by 0.34% to 102.47.
In the commodities market, crude oil prices appreciated by 1.96% to $23.89 per barrel as market sentiment remain mixed despite Federal Reserve throw a massive loosening plan to the economy. As of now, unbalance market supply and demand continue weigh on this black commodity, and market are now eyes on the development of oil war between Saudi Arabia and Russia. Besides, gold up by 0.56% to $1561.10 a troy ounce due to weakening of dollar.
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 |
| 16:30 | EUR – German Manufacturing PMI (Mar) | 48.0 | 39.6 | – |
| 17:30 | GBP – Composite PMI | 53.0 | 45.1 | – |
| 17:30 | GBP – Manufacturing PMI | 51.7 | 45.0 | – |
| 17:30 | GBP – Services PMI | 53.2 | 45.0 | – |
| 22:00 | USD – New Home Sales (Feb) | 764K | 750K | – |
| 04:30
(25th) |
CrudeOIL – API Weekly Crude Oil Stock | -0.421M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 103.75. MACD which illustrate bearish bias momentum suggest the dollar to extend its losses toward the support level at 102.90.
Resistance level: 103.75, 105.00
Support level: 102.90, 101.20
GBPUSD, H1: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.1545. MACD which illustrate diminishing bearish momentum suggest the pair to be traded higher toward the resistance level at 1.1760.
Resistance level: 1.1760, 1.1900
Support level: 1.1545, 1.1440
EURUSD, H1: EURUSD was traded higher following prior rebound form the support level at 1.0715. MACD which illustrate diminishing bearish momentum suggests the pair to extend its gains toward the resistance level at 1.0790.
Resistance level: 1.0790, 1.0835
Support level: 1.0715, 1.0650
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 111.35. MACD which illustrate bearish bias momentum signal suggests the pair to be extend its losses toward the support level at 110.10.
Resistance level: 111.35, 112.25
Support level: 110.10, 109.25
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.5740. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.5985.
Resistance level: 0.5985, 0.6350
Support level: 0.5740 0.5375
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.5595. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.5865.
Resistance level: 0.5865, 0.6075
Support level: 0.5595, 0.5420
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.4535. MACD which illustrate bearish momentum signal suggest the pair to extend its losses toward the support level at 1.4325.
Resistance level: 1.4535, 1.4605
Support level: 1.4325, 1.4175
USDCHF, H1: USDCHF was traded lower following prior breakout below the previous support level at 0.9840. MACD which illustrate bearish signal suggest the pair to extend its losses toward the support level at 0.9785.
Resistance level: 0.9840, 0.9905
Support level: 0.9785, 0.9735
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 21.50. MACD which illustrate bullish momentum and the formation of golden cross suggest the commodity to extend its gains toward the resistance level at 25.75.
Resistance level: 25.75, 30.50
Support level: 21.50, 19.10
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1536.95. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains toward the resistance level at 1579.00
Resistance level: 1579.00, 1606.15
Support level: 1536.95, 1503.40