25 May 2020 Morning Session Analysis
Dollar surged amid US -Sino tensions heightened.
Dollar index which gauges its value against a basket of six major currencies soared as US and China tensions revived following the recent news shows that China will imposed national security legislation on Hong Kong. In fact, geopolitical tensions between US and China has been increased significantly since the outbreak of novel coronavirus as US criticized that Covid-19 was originated from the city of China, blaming them from covering up the truth and helped the virus to spread around the world. In this instance, US ramped up the criticism toward China by emphasizing that the move of imposing new national security legislation could endanger the future of ‘one country, two systems, as Hong Kong people right will actually be deprived under this new law legislation. As simmering of tensions between both countries, market participants fled to safe haven currencies such as US dollar. However, dollar market is widely expected to have slow movement during the Memorial Holiday in US while investors are still waiting for more catalyst to further gauge the direction of this currency. During Asian early trading session, dollar index rose 0.02% to 99.85.
In the commodities market, crude oil price appreciates by 0.10% to $33.30 per barrel as overall sentiment in this black commodity market are still remain scented. Moreover, total number of oil rig in US also plunges for 11th straight week, which provide further support for oil prices. Besides, gold price notched down by 0.11% to $1733.25 a troy ounce amid market risk appetite increased.
Today’s Holiday Market Close
Time Market Event
All Day USD Memorial Day
All Day GBP Bank Holiday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German GDP (QoQ)(Q1) | -2.2% | -2.2% | – |
| 16:00 | EUR – German Ifo Business Climate Index (May) | 74.3 | 78.3 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.45. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 100.85.
Resistance level: 100.85, 102.90
Support level: 99.45, 98.30
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound toward the downward trend line.
Resistance level: 1.2215, 1.2305
Support level: 1.2115, 1.2010
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level at 1.0885. MACD which illustrate bullish momentum signal suggest the pair to extend its gains toward the resistance level at 1.0940.
Resistance level: 1.0940, 1.1025
Support level: 1.0885, 1.0830
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 108.20. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 107.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6555. MACD which illustrates diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 0.6370.
Resistance level: 0.6555, 0.6705
Support level: 0.6370, 0.6180
NZDUSD, H4: NZDUSD was traded lower following prior retracement near the resistance level at 0.6150. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6065.
Resistance level: 0.6150, 0.6205
Support level: 0.6065, 0.5995
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3980. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.4120, 1.4240
Support level: 1.3980, 1.3855
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9710. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9710.
Resistance level: 0.9710, 0.9750
Support level: 0.9660, 0.9585
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 32.70. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level at 32.70.
Resistance level: 35.30, 38.00
Support level: 32.70, 31.10
GOLD_, H4: Gold price was traded lower following prior retracement from the downward trend line. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to undergo technical correction in short term.
Resistance level: 1738.15, 1757.60
Support level: 1726.05, 1718.20