28 January 2020 Morning Session Analysis
Yen climbs up, coronavirus in focus.
Greenback experienced some bearish pressure this morning over the backdrop of bearish housing data from the United States. According to US Commerce Department, New Home Sales for the month of December fell by 0.4% to 694,000 units, lower than analysts’ forecast of 730,000 units. Sales of new homes has slipped for its third consecutive month which is likely due to a shortage of affordable homes in the United States. However, many traders believe that US housing market remains supported by lower mortgage rates after Federal Reserve cut interest rates by three times last year. As of writing, the dollar index ticked down 0.03% to 97.66. On the other hand, safe-haven Japanese yen extended its gains following higher concern over China’s coronavirus which may bring possible impact towards its economy. According to The Hill, the coronavirus could have claimed more than 100 lives and infected more than 30,000 individuals within China, significantly higher than official data released by Beijing. Policymakers in China has banned travels and extended the Lunar New Year break in order to prevent further infections domestically and internationally. Analysts’ postulate that consumer spending and tourism business is expected to take a toll, which may further impact China’s economy which has significant signs of slowdown. During Asian trading session, pair of USD/JPY ticked down 0.01% to 108.97.
As for commodities market, crude oil price was traded flat near $52.90 per barrel. Oil futures were dumped since last week as fears over economic impact on coronavirus spur speculation of a lower crude oil demand if the pandemic persists. On the other hand, gold price ticked up 0.02% to $1,581.91 a troy ounce due to higher risk aversion in the market over the backdrop of coronavirus pandemic.
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) (Dec) | -0.1% | 0.2% | – |
| 23:00 | USD – CB Consumer Confidence (Jan) | 126.5 | 128.0 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retrace from the higher levels. MACD which illustrate diminished upward momentum suggests the index to be traded lower in short-term as technical correction.
Resistance level: 97.90, 98.15
Support level: 97.65, 97.20
GBPUSD, H4: GBPUSD was traded lower while currently testing at the support of 1.3055. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 1.3135, 1.3200
Support level: 1.3055, 1.3010
EURUSD, H1: EURUSD was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1050, 1.1080
Support level: 1.1005, 1.0990
USDJPY, H4: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 109.20, 109.65
Support level: 108.50, 108.00
AUDUSD, Daily: AUDUSD was traded lower while currently testing at the support of 0.6750. MACD which illustrate bearish signal suggests the pair to be traded lower after closing below the support level.
Resistance level: 0.6790, 0.6840
Support level: 0.6750, 0.6700
NZDUSD, H4: NZDUSD was traded lower while currently testing at the support of 0.6540. MACD which illustrate bearish signal suggests the pair to extend its losses after closing below the support level.
Resistance level: 0.6590, 0.6650
Support level: 0.6540, 0.6490
USDCAD, Daily: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to extend its gains, towards the direction of 1.3215.
Resistance level: 1.3215, 1.3275
Support level: 1.3140, 1.3060
USDCHF, H4: USDCHF was traded higher following prior rebound from the lower level. MACD which illustrate diminished downward momentum suggests the pair to extend its gains in short-term.
Resistance level: 0.9725, 0.9780
Support level: 0.9670, 0.9615
CrudeOIL, H4: Crude oil price was traded flat near the support of 52.05. MACD which begin to form bullish signal suggest its price to be traded higher in short-term as technical correction.
Resistance level: 54.20, 56.25
Support level: 52.05, 49.55
GOLD_, H4: Gold price was traded lower while currently testing at the support near 1580.00. MACD which illustrate bearish signal suggests its price to extend its losses after closing below the support level.
Resistance level: 1598.80, 1615.00
Support level: 1580.00, 1563.20