25 March 2020 Morning Session Analysis
Dollar plunged following an over-optimistic statement from Trump.
The dollar index failed to hold its whopping gains while ended it’s 10-day hot rally record after Donald Trump calls for a quick end for coronavirus lockdown in US despite US had the biggest jump in coronavirus death cases attributed to the pandemic on yesterday. Other than that, he also reiterated that he would like to have the country opened up by Easter, even though the World Health Organisation warning US could be the next epicentre of coronavirus. The excessive optimistic view from Trump is seemingly will worsen the spread of coronavirus in US nation, prompting the market participants to sell off their current holding on greenback. Moreover, aggressive expansionary monetary policy which unveiled by Federal Reserve within these few weeks have also flooded the FX market with sufficient liquidity, while shifting the investor’s investment preference toward the equity market. During Asian early trading session, dollar index quoted down by 0.69% to 101.80. On the other hand, the pair of EUR/USD rose 0.19% to 1.0806 despite a dovish statement was given by ECB Chairman Christine Lagarde yesterday. Christine Lagarde emphasized that it is foreseeable that Eurozone economy will shrink significantly as big part of economy is temporarily frozen, putting the economic activity in a suppressed zone.
In the commodities market, crude oil prices appreciated by 0.92% to $24.55 per barrel as US shows a surprise draw in oil inventories level. According to API Institute, crude oil inventories came in at -1.250M, higher reduction than the economist forecast at -0.421M. Nevertheless, ongoing oil prices war within OPEC+ countries and persisting market fears over the outbreak of coronavirus’s pandemic are still continue weigh on this black commodity. Besides, gold price inched up 1.25% to $1636.90 a troy ounce as worsening of this pandemic prompted investor fled into safe haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
|
Time |
Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – CPI (YoY)(Feb) | 1.8% | 1.7% | – |
| 17:00 | EUR – German Ifo Business Climate Index (Mar) | 96.0 | 87.7 | – |
| 20:30 | USD – Core Durable Goods Orders | 0.8% | -0.4% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.954M | 2.900M |
– |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous resistance level at 102.90. MACD which illustrate bearish bias momentum suggest the dollar to extend its losses toward the support level at 101.20.
Resistance level: 102.90, 103.75
Support level: 101.20, 99.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.1760. MACD which illustrate bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.1900.
Resistance level: 1.1900, 1.1975
Support level: 1.1760, 1.1545
EURUSD, H1: EURUSD was traded higher following prior rebound from the upward trendline. MACD which illustrate diminishing bearish momentum suggests the pair to extend its gains toward the resistance level at 1.0835.
Resistance level: 1.0835, 1.0900
Support level: 1.0790, 1.0715
USDJPY, H1: USDJPY was traded lower following prior retracement from the top level of upward wedge. MACD which illustrate diminishing bullish 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 while currently testing the resistance level at 0.5985. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above 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 retracement from the resistance level at 0.9840. However, MACD which illustrate bullish signal suggest the pair to undergo technical correction toward the resistance level at 0.9840.
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 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 while currently testing the resistance level at 1634.90. MACD which illustrate bullish bias momentum signal suggest the commodity to extend its gains after it successfully breakout above the resistance level at 1634.90.
Resistance level: 1634.90, 1664.70
Support level: 1606.15, 1579.00