27 February 2020 Morning Session Analysis
Dollar gains after solid housing data.
The dollar index which traded against a basket of six major currency pairs have rose during early Asian session after the positive of New Home Sales data. According to US Census Bureau, new housing purchases have rose to 764K, exceeding market expectation of 710K. The data showed that the condition of housing market remains strong despite with the ongoing coronavirus outbreak. At the same time, the positive data also help in reduce market expectation that the U.S Federal Reserve will signal more policy easing as the deadly virus continue to spread outside China. Fed Vice Chairman Richard Clarida stated that it is still too soon to determine whether the Fed would need to make changes in its monetary policy. At the time of writing, the dollar index have rose 0.17% to 99.03.
In the commodities market, crude oil price plummeted 0.11% to $49.57 as of writing as fear of coronavirus continue to weigh on the market sentiment. Despite with recent positive U.S crude data, market remains fearful and concern towards the future outlook after another spike in global reports of Covid-19 cases made clear to investors that a pandemic largely confined to China until last month was now becoming a global issue. On the other hand, gold price remains steady and edge higher 0.03% to $1641.35 a troy ounce at the time of writing as the ongoing risk of coronavirus continue to support the demand of the 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 |
| 21.30 | USD – Core Durable Goods Orders (MoM) (Jan) | -0.1% | 0.2% | – |
| 21.30 | USD – GDP (QoQ) (Q4) | 2.1% | 2.1% | – |
| 23.00 | USD – Pending Home Sales (MoM) (Jan) | -4.9% | 2.2% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level 98.90. MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its rebound towards the resistance level 99.40.
Resistance level: 99.40, 99.90
Support level: 98.90, 98.35
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.2865. MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level 1.2865.
Resistance level: 1.2960, 1.3080
Support level: 1.2865, 1.2750
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.0885. However, MACD which illustrate diminishing bullish momentum suggest the pair to experience a technical correction towards the support level 1.0785.
Resistance level: 1.0885, 1.0990
Support level: 1.0785, 1.0680
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 110.10. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 110.90.
Resistance level: 110.95, 112.10
Support level: 110.10, 10920
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.6595. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.6500.
Resistance level: 0.6595, 0.6675
Support level: 0.6500, 0.6420
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.6305. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.6210.
Resistance level: 0.6305, 0.6385
Support level: 0.6210, 0.6135
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.3325. MACD which illustrate ongoing bullish momentum suggest the pair to extend its gains towards the resistance level 1.3380.
Resistance level: 1.3380, 1.3435
Support level: 1.3325, 1.3260
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9750. However, MACD which illustrate diminishing bearish momentum with the starting formation of golden cross suggest the pair to be traded higher as a technical correction towards the resistance level 0.9835.
Resistance level: 0.9835, 0.9915
Support level: 0.9750, 0.9695
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 49.40. MACD which illustrate persistent bearish momentum signal suggest the commodity to extend its losses towards the support level 47.05.
Resistance level: 49.40, 51.20
Support level: 47.05, 44.40
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1639.25. MACD which illustrate bearish bias signal suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 1683.10, 1717.10
Support level: 1639.25, 1613.35