27 August 2020 Morning Session Analysis
Dollar slumped ahead of key Fed speech.
The Dollar index which gauge against a basket of six major currency slumped amid market participants are bracing for the Federal Reserve latest massive policy in order to boost up the U.S. economy during the annual Jackson Hole retreat on Thursday. Besides, the US Dollar extend its losses following the data on Wednesday showed that the growth in the U.S. Durable goods orders remained subdued in July, highlighting policymakers’ concerns over the economic growth from the United Stated. According to Census Bureau, the U.S Core Durable Goods Orders for last month notched down significantly from the previous reading of 4.0% to 2.4%, though the data was still slightly fared better than market expectation at 2.0%. In addition, the failure for the U.S. government to manage the outbreak of the coronavirus had spurred further bearish momentum for the US Dollar. According to Worldometers.info, the coronavirus infections from the US region had spiked up more than 45,000 people while 1169 people were killed by the coronavirus on yesterday. Nonetheless, investors would scrutinize the latest updates with regards on the Jackson hole Symposium meeting to receive further trading signal. As of writing, the Dollar Index depreciated by 0.14% to 92.85.
In the commodities market, the crude oil price surged 0.12% to $43.40 per barrel as of writing over the backdrop of the upbeat crude oil inventory data on yesterday. According to Energy Information Administration, the U.S. Crude oil inventories declined from the preliminary reading of -1.632M to -4.689M, much lesser than the market forecast at -3.694M. On the other hand, the gold price surged 0.05% to $1953.10 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:10 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – GDP (QoQ) (Q2) | -32.9% | -32.6% | – |
| 20:30 | USD – Initial Jobless Claims | 1,106K | 1,000K | – |
| 22:00 | USD – Pending Home Sales (MoM) (Jul) | 16.6% | 4.5% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the resistance level at 93.25. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 92.55.
Resistance level: 93.25, 93.80
Support level: 92.55, 92.05
GBPUSD, H1: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3155. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3250, 1.3340
Support level: 1.3155, 1.3060
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1785. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.1885.
Resistance level: 1.1885, 1.1955
Support level: 1.1785, 1.1710
USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 106.40. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 105.40.
Resistance level: 106.40, 107.35
Support level: 105.40, 104.25
AUDUSD, H1: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7240. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7270.
Resistance level: 0.7270, 0.7315
Support level: 0.7240, 0.7205
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6625. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6690, 0.6735
Support level: 0.6625, 0.6575
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3130. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3225, 1.3315
Support level: 1.3130, 1.3060
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9065. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9130, 0.9185
Support level: 0.9065, 0.9010
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the previous resistance level at 43.40. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 43.05.
Resistance level: 43.40, 43.75
Support level: 43.05, 42.65
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1956.60. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1956.60, 2005.65
Support level: 1911.40, 1867.70