26 May 2020 Morning Session Analysis
Dollar hovered during Memorial Holiday.
Dollar index which gauges its value against a basket of six major currencies was traded flat, having a mixed pattern as investors contributed light trading during US Memorial holiday while new catalyst is required now. Despite, the bullish momentum is still continue ride on the US dollar as the appeal of safe haven dollar has risen up following the pro-democracy protests again erupted in Hong Kong. Recently, China has proposed to implement national security legislation in Hong Kong, where it will allow China to punish anyone found to have engaged in terrorism in Hong Kong. With this new law legislation, it could have negative effect toward the business activity and increase risk for companies and professionals in Hong Kong, dragging down the reputation of Hong Kong as an international financial centre. Therefore, US have also ramped up their criticism against China by revealing that US Senate are now formulating a new sanction plan, which will be imposed on China if national security laws legalised in Hong Kong. As of writing, dollar index notched down 0.03% to 99.75.
In the commodities market, crude oil price appreciates by 1.89% to $33.90 per barrel as coronavirus lockdown eased, lifting up the appeal of this black commodity. However, the gains of crude oil capped as US-China tensions heightened, which possibly will disrupt the future demand of oil product. Besides, gold price inched down 0.08% to $1727.65 a troy ounce amid rising of market hopes toward economy’s recovery.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
05:00 CAD BoC Gov Poloz Speaks
(27th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – CB Consumer Confidence (May) | 86.9 | 88.0 | – |
| 22:00 | USD – New Home Sales (Apr) | 627K | 490K | – |
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. However, MACD which illustrate bearish momentum suggest the pair to undergo technical correction toward the lower level.
Resistance level: 1.2215, 1.2305
Support level: 1.2115, 1.2010
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0885. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.0940, 1.1025
Support level: 1.0885, 1.0830
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 107.20. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 108.20.
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, H1: NZDUSD was traded lower following prior retracement near the resistance level at 0.6150. MACD which illustrates diminishing bullish 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 following prior breakout below the previous support level at 1.3980. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3855.
Resistance level: 1.3980, 1.4120
Support level: 1.3855, 1.3670
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 higher while currently testing near the resistance level at 34.35. MACD which illustrate diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 34.35.
Resistance level: 34.35, 38.00
Support level: 31.25, 28.80
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1726.05. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains toward the resistance level at 1738.15.
Resistance level: 1738.15, 1757.60
Support level: 1726.05, 1718.20