24 September 2020 Morning Session Analysis
Euro fell amid signs of Covid hurting economy.
During early Asian session, the Euro which traded against the dollar and other currency pairs have continue to extend its losses and fell to a nearly two-month low as recent data signalled the resurgence of Covid-19 is affecting the EU’s economic recovery. According to data published on Wednesday, the HIS Markit Flash Eurozone Purchasing Manager’s Index for service have deteriorate to 47.6 in September from the previous month reading of 50.5. The data was also the first time that it had dropped below a reading of 50 which signalling a contraction and it was also the lowest level since May. With some of the countries in the EU have continue to witness a steady increase in cases over the past few weeks, the outlook for economic recovery is further diminished as government may be forced to imposed tighter restrictions that could potentially weakening the economic recovery. At the time of writing, EUR/USD slips 0.02% to 1.1653.
In the commodities market, crude oil price remains weak and fell 0.63% to $39.23 per barrel as of writing following weak demand outlook continue to dominate market sentiment. Despite EIA reported a decline in crude inventories, the optimism could not last as market remains concerned over demand outlook due to rising cases of coronavirus. On the other hand, gold price plunged 0.46% to $1854.76 a troy ounce at the time of writing amid stronger dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15.30 CHF SNB Monetary Policy Assessment
19.50 GBP BoE Gov Bailey Speaks
22.00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.30 | CHF – SNB Interest Rate Decision | -0.75% | -0.75% | – |
| 16.00 | EUR – German Ifo Business Climate Index (Sep) | 92.6 | 93.8 | – |
| 20.30 | USD – Initial Jobless Claims | 860K | 840K | – |
| 22.00 | USD – New Home Sales | 901K | 895K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 93.90. However, MACD which illustrate signs of diminishing bullish momentum suggest the dollar to experience a short term pullback towards back the current support level 93.90.
Resistance level: 95.70, 97.55
Support level: 93.90, 92.05
GBPUSD, H4: GBPUSD was traded lower following recent breakout below the previous support level 1.2785. However, MACD which illustrate bullish bias signal with the starting formation of golden cross suggest the pair to be traded higher as a short term technical correction towards the current resistance level 1.2785.
Resistance level: 1.2785, 1.3005
Support level: 1.2510, 1.2340
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1720. However, MACD which illustrate diminishing bearish momentum suggest the pair to be experience a short term technical correction back towards the current resistance level 1.1720.
Resistance level: 1.1720, 1.1890
Support level: 1.1575, 1.1455
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 105.25. However, MACD which illustrate signs of diminishing bullish momentum suggest the pair to be traded lower as a technical correction after it breaks back below the current support level 105.25.
Resistance level: 106.20, 106.95
Support level: 105.25, 104.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7105. However, MACD which illustrate signs of diminishing bearish momentum suggest the pair to experience a short term technical correction towards the current resistance level 0.7105.
Resistance level: 0.7105, 0.7200
Support level: 0.6970, 0.6820
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6595. MACD which display ongoing bearish momentum suggest the pair to extend its losses towards the support level 0.6510.
Resistance level: 0.6595, 0.6685
Support level: 0.6510, 0.6445
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.3330. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a short term technical correction towards the current support level 1.3330.
Resistance level: 1.3455, 1.3635
Support level: 1.3330, 1.3230
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9205. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction back towards the current support level 0.9205.
Resistance level: 0.9370, 0.9455
Support level: 0.9205, 0.9035
CrudeOIL, H4: Crude oil price remains traded flat while currently testing near the support level 39.00. However, MACD which display bearish bias signal suggest the commodity to be traded lower after it breaks below the support level.
Resistance level: 41.35, 43.95
Support level: 39.00, 36.65
GOLD_, H4: Gold price was traded lower while currently testing the support level 1857.95. MACD which illustrate ongoing bearish momentum signal suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1902.20, 1970.55
Support level: 1857.95, 1790.05