26 March 2020 Morning Session Analysis
Greenback plunged following a stimulus plan been approved.
Dollar index which gauge its value against a basket of six major currencies dipped as US stimulus plan has been approved in the vote of Senate level. After facing two tumbles of voting down by the Democrats in a row since the beginning of this week, US politician has finally nodded their head on the latest stimulus plan which act as a new catalyst to boost up the nation economy. In details, the stimulus consists of providing a lump sum of payment to taxpayer, jobless benefits and a $500 billion fund to underpin the local business which are being suppressed by this pandemic. As a result, stimulus package has temporarily steadied the market nerves toward the outbreak of coronavirus, prompted the market participants to sell off their holding on safe haven dollar while fleeing into riskier market. Moreover, pessimistic economic data from US region also further dragged down the appeal of greenback. According to the Census Bureau, U.S. Core Durable Goods Orders data for the month of February came in at -0.6%, missing the estimate of economist at -0.4%. However, the reading of this data does not fully reflect the fallout of virus yet and it is expected to decline substantially as the pandemic has brought the economy to a sudden halt. During early Asian trading session, dollar index notched down by 1.07% to 100.90.
In commodities market, crude oil prices depreciated by 0.38% to $24.20 per barrel amid oil market sentiment still remain chaos as virus’s pandemic continues to haunt the prospect of oil market. However, the losses of oil prices limited after US oil inventories data shows a smaller stockpile than market expectation. According to EIA, US crude oil inventories data came in at 1.623M, lower than the forecast of 2.774M. Besides, gold price dropped by 0.30% to $1,613.50 a troy ounce as market fled into riskier asset after a stimulus plan to pump up the market liquidity has been approved by the US government.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 GBP BoE MPC Meeting Minutes
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – Retail Sales (MoM)(Feb) | 0.9% | 0.2% | – |
| 20:00 | GBP – BoE Interest Rate Decision | 0.10% | 0.25% | – |
| 20:30 | USD – GDP (QoQ)(Q4) | 2.1% | 2.1% | – |
| 20:30 | USD – Initial Jobless Claims | 281K | 1,000K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 101.20. MACD which illustrate bearish bias momentum suggest the dollar to extend its losses toward the support level at 99.35.
Resistance level: 101.20, 102.90
Support level: 99.35, 97.60
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.1785. However, MACD which illustrate bearish momentum suggest the pair to undergo technical correction toward the support level at 1.1785.
Resistance level: 1.1900, 1.1975
Support level: 1.1785, 1.1700
EURUSD, H1: EURUSD was traded higher following prior breakout above the previous resistance level at 1.0835. However, MACD which illustrate diminishing bullish momentum suggests the pair to undergo technical correction toward the support level at 1.0835.
Resistance level: 1.0900, 1.0970
Support level: 1.0835, 1.0790
USDJPY, H1: USDJPY was traded lower following prior breakout below the upward wedge’s bottom level. MACD which illustrate bearish bias momentum signal suggests the pair to extend its losses toward the support level at 110.10.
Resistance level: 111.35 112.25
Support level: 110.10, 109.25
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6035. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5720.
Resistance level: 0.6035, 0.6350
Support level: 0.5720, 0.5375
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.5865. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.5595.
Resistance level: 0.5865, 0.6075
Support level: 0.5595, 0.5420
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.4175. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level at 1.4175.
Resistance level: 1.4335, 1.4535
Support level: 1.4175, 1.3990
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9785. MACD which illustrate bearish signal suggest the pair to extend its losses toward the support level at 0.9735.
Resistance level: 0.9785, 0.9815
Support level: 0.9735, 0.9680
CrudeOIL, Daily: Crude oil price was traded higher following prior rebound from the support level at 21.50. MACD which illustrate diminishing bearish 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 following prior rebound from the support level at 1602.55. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to undergo technical correction toward the support level at 1602.55.
Resistance level: 1634.90, 1664.70
Support level: 1602.55, 1579.00