27 May 2020 Afternoon Session Analysis
US Dollar surged over the US-China tension.
The Dollar index which traded against a basket of six major currency pairs appreciated as investors’ fears upon the U.S. response to China’s proposed security law for Hong Kong, which stoked a shift in sentiment toward safe-haven currency. Meanwhile, the global financial markets have been caught in a tug-of-war between optimism and pessimism about the global outlook. Some investors are speculating on hopes of positive prospect for economic momentum after the few countries had decided to reopen the economy, though others worry the threat of the U.S. sanction against China for its treatment of Hong Kong could be diminishing risk appetite. According to Reuters, the Trump’s administration is considering sanctions on Chinese official, while the U.S. President Donald Trump reiterated that the U.S. will announce its response toward China’s planned security bill before the end of the week. Nonetheless, at this time investors would continue to scrutinize the latest updates with regards of the trade tensions between U.S. and China in order to receive further trading signal. On the economic data front, the US Dollar received further bullish momentum over the backdrop of the positive data from the U.S. region. According to Census Bureau, the U.S. New Home Sales notched up from the preliminary reading of 619K to 623K, exceeding the economist forecast at 490K. As of writing, the Dollar index surged 0.22% to 99.06.
In the commodities market, the crude oil price appreciated by 0.25% to $34.06 per barrel as of writing. The oil market edged higher as market participants expected the oil production cut from OPEC and its allies would able to tackle a supply glut due to the coronavirus crisis. On the other hand, the gold price slumped 0.16% to $1708.45 per troy ounces amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
15.30 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
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Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 98.95. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 98.95.
Resistance level: 100.65, 101.95
Support level: 98.95, 98.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2305.
Resistance level: 1.2370, 1.2435
Support level: 1.2305, 1.2215
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.0995. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.0940.
Resistance level: 1.0995, 1.1025
Support level: 1.0940, 1.0885
USDJPY, Daily: USDJPY was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 107.20.
Resistance level: 108.20, 109.40
Support level: 107.20, 106.25
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6555. MACD which illustrates bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 0.6705.
Resistance level: 0.6705, 0.6810
Support level: 0.6555, 0.6370
NZDUSD, H4: NZDUSD was traded lower following prior retracement near the resistance level at 0.6205. MACD which illustrates diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6150.
Resistance level: 0.6205, 0.6250
Support level: 0.6150, 0.6065
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.3855. MACD which illustrates bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3670.
Resistance level: 1.3855, 1.3980
Support level: 1.3670, 1.3380
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9650. MACD which illustrates diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.9710.
Resistance level: 0.9710, 0.9740
Support level: 0.9650, 0.9575
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 lower following prior breakout below the previous support level at 1709.45. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1695.15.
Resistance level: 1709.45, 1718.20
Support level: 1695.15, 1683.50