27 July 2020                        Afternoon Session Analysis

 

Japanese Yen extend rally following heightening risk aversion.

During late Asian session, the safe-haven Japanese Yen continue to extend its gains relentlessly against the greenback and other currency pairs as tension between U.S and China and increasing coronavirus cases continue to dampened risk sentiment. The U.S. recorded a near record 74,000 new cases of COVID-19 on Friday according to Johns Hopkins University data. More than 1,000 Americans died each day between Tuesday and Friday, the worst death tally since late May. The numbers may lead to further closures and lockdowns. Also, recent escalation of tension between U.S and China also provide reason for investors to increase their bets on the safe-haven Yen where U.S. and China have both ordered the other shut a consulate in their respective countries, the China’s Houston consulate and the U.S. consulate in Chengdu. U.S. Secretary of State Mike Pompeo called for an end of “engagement,” a policy that has defined U.S.-China relations for nearly five decades. At the time of writing, USD/JPY plummets 0.58% to 105.51.

 

In the commodities market, the crude oil price fell 0.05% to $41.17 per barrel as of writing following increasing tensions between the two of the largest oil consumers in the world. Fears of a full blown diplomatic conflict over the next few months have dampened the expectation of a sharp increase in fuel demand, thus affecting the value of the commodity. At the same time, worsening coronavirus outlook also weigh on the market. On the other hand, gold price soars 1.77% to $1934.35 a troy ounce at the time of writing amid ongoing dollar weakness.

 

Today’s Holiday Market Close

Time                       Market                  Event

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Today’s Highlight Events

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Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
16:00 EUR – German Ifo Business Climate Index (Jul) 86.2 89.3
20:30 USD – Core Durable Goods Orders (MoM)(Jun) 3.7% 3.5%

 

Technical Analysis

DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 94.35. MACD which illustrate ongoing bearish momentum signal suggest the dollar to extend its losses towards the support level 93.15.

 

Resistance level: 94.35, 95.70

Support level: 93.15, 92.10

 

GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.2810. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.3005.

 

Resistance level: 1.3005, 1.3200

Support level: 1.2810, 1.2660

 

EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.1715. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level 1.1715.

 

Resistance level: 1.1715, 1.1810

Support level: 1.1610, 1.1505

 

USDJPY, H4: USDJPY was traded lower while currently testing near the support level 105.40. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.

 

Resistance level: 106.00, 106.60

Support level: 105.40, 104.60

 

AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.7160. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.

 

Resistance level: 0.7160, 0.7290

Support level: 0.7030, 0.6935

 

NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6670. MACD which illustrate diminishing bearish momentum signal with starting formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.

 

Resistance level: 0.6670, 0.6745

Support level: 0.6580, 0.6490

 

USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.3330. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.

 

Resistance level: 1.3485, 1.3685

Support level: 1.3330, 1.3195

 

USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9165. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.

 

Resistance level: 0.9230, 0.9315

Support level: 0.9165, 0.9075

 

CrudeOIL, H4: Crude oil price was traded flat near the current support level 41.00. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to be traded higher in short term towards the resistance level 42.45.

 

Resistance level: 42.45, 43.85

Support level: 41.00, 39.10

 

GOLD_, H4: Gold price was traded higher following recent breakout above the previous resistance level 1899.05. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains towards the resistance level 1950.25.

 

Resistance level: 1950.25, 1989.75

Support level: 1899.05, 1857.95