27 March 2020 Morning Session Analysis
Dollar dips following the announcement of downbeat data.
Dollar index which gauge its value against a basket of six major currencies unsuccessfully return to its previous upward trend, shattering the record of 4 days low in a row following unexpected hike in US jobless claim amount. According to the Department of Labor, US Initial Jobless Claims data came in at 3,283K, blowing the estimates of 1,650k while indicating the pandemic of Covid-19 drives the US economy into recession. Since the virus start spreading over the states of US, widespread of pandemic virus has bring devasting impact toward the US economy especially the US labour market, unleashing a wave of layoff among the local businesses. The spike in claiming unemployment benefits are foreseeably to rise even higher in the upcoming weeks as the spread of coronavirus are still sweeping the entire US, prompting the unemployment rate rising in a lightning pace. During early Asian trading session, dollar index notched down 1.57% to 99.50. On the other hand, the pair of GBP/USD quoted down 0.32% to 1.2160 after hitting the 10 days high level following BoE decided to maintain its cash rate at 0.1% as widely expected. Besides, BoE board members also unanimously voted to keep its quantitative easing program at £645 billion after injecting £200 million last week. However, BoE are ready to further loosening their monetary policy if stimulus is needed to cure the economy from virus’s outbreak.
In commodities market, crude oil prices depreciated by 0.05% to $23.00 per barrel after Iran intends to increase the capacity of its oil fields in West Karoun during this suppressing period. By implementing this strategy, it enables Iran to gains higher income even in the low oil price environment. Besides, gold price inched down by 0.02% to $1630.00 a troy ounce as heightening of market risk appetite.
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 |
| 20:30 | USD – Core PCE Price Index (MoM) | 0.1% | 0.2% | – |
| 22:00 | USD – Michigan Consumer Sentiment (Mar) | 95.9 | 90.0 | – |
| 01:00
(28th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 664 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following while currently testing the support level at 99.35. MACD which illustrate bearish bias momentum suggest the dollar to extend its losses after it successfully breakout below the support level at 99.35.
Resistance level: 101.20, 102.90
Support level: 99.35, 97.60
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.2230. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2115.
Resistance level: 1.2230, 1.2390
Support level: 1.2115, 1.1975
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1040. However, MACD which illustrate bullish bias momentum suggests the pair to extend its gains toward the resistance level at 1.1120.
Resistance level: 1.1120, 1.1200
Support level: 1.1040, 1.0970
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.25. MACD which illustrate bearish bias momentum signal suggests the pair to extend its losses after it successfully breakout below the support level at 109.25.
Resistance level: 110.10, 111.35
Support level: 109.25, 108.75
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.6035. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6035, 0.6350
Support level: 0.5720, 0.5375
NZDUSD, Daily: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.5865. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.6075.
Resistance level: 0.6075, 0.6250
Support level: 0.5865, 0.5620
USDCAD, H4: USDCAD was traded lower following prior breakout below the support level at 1.4175. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.3990.
Resistance level: 1.4175, 1.4335
Support level: 1.3990, 1.3805
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9625. MACD which illustrate bearish signal suggest the pair to extend its losses toward the support level at 0.9580.
Resistance level: 0.9625, 0.9680
Support level: 0.9580, 0.9520
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 23.05. MACD which illustrate diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level at 23.05.
Resistance level: 25.00, 27.65
Support level: 23.05, 21.40
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1634.90. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into market.
Resistance level: 1634.90, 1664.70
Support level: 1602.55, 1579.00