25 September 2020 Afternoon Session Analysis
Negative job data, triggering selloff in Dollar.
Dollar index which gauges its value against a basket of six major currencies slumped over the backdrop of the negative job data from the United States region on yesterday. According to the Department of Labor, the U.S. Initial Jobless Claims notched up from the preliminary reading of 866K to 870K, worse than the market forecast at 840K while signalling that the economic recovery was still running out of steam in the United States. Besides, Democrats in the U.S. House of Representatives are now working on a $2.4 trillion economic stimulus plan that will be voted on next week. Nonetheless, market participants remained doubts over whether the U.S. can overcome divisions when come to an agreement on the economic package, which dialled down further market optimism toward the economic progression in the United States. Nonetheless, the losses experienced by the US Dollar was limited following the upbeat housing data was released. Census Bureau reported that the U.S. New Home Sales had improved significantly from the previous reading of 965K to 1,011K, which fared better than the economist forecast at 895K. As of writing, the dollar index surged 0.01% to $94.32.
In the commodities market, the crude oil price surged 0.77% to $40.45 per barrel as of writing. The oil market edged higher on yesterday, buoyed by the renewed hopes for more stimulus plans to lift the U.S. economy out of its Covid-induced recession. Since the crude oil demand is highly correlated with the global economic performance, positive economic outlook will enhance the appeal of this black commodity. On the other hand, the gold market surged 0.01% to $1867.85 per troy ounces amid weakening US 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 |
| 20.30 | USD – Core Durable Goods Orders (MoM) (Aug) | 2.6% | 1.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 94.10. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 94.90.
Resistance level: 94.90, 95.95
Support level: 94.10, 93.60
GBPUSD, Daily: GBPUSD was traded higher following prior rebound from the support level at 1.2715. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2840.
Resistance level: 1.2840, 1.3045
Support level: 1.2715, 1.2480
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.1645. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 1.1645.
Resistance level: 1.1760, 1.1950
Support level: 1.1645, 1.1455
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 105.20. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 106.15.
Resistance level: 106.15, 106.95
Support level: 105.20, 104.30
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7005. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7080.
Resistance level: 0.7080, 0.7150
Support level: 0.7005, 0.6930
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6500. However, MACD which illustrated bearish bias momentum suggest the pair to undergo technical correction in short term toward the lower level.
Resistance level: 0.6615, 0.6685
Support level: 0.6500, 0.6380
USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level at 1.3420. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3315.
Resistance level: 1.3420, 1.3500
Support level: 1.3315, 1.3235
USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9225. MACD which illustrates bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9295.
Resistance level: 0.9295, 0.9365
Support level: 0.9225, 0.9180
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 40.45. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 40.45.
Resistance level: 40.45, 41.50
Support level: 39.65, 38.70
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1860.45. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 1877.55.
Resistance level: 1877.55, 1896.90
Support level: 1860.45, 1845.60