30 January 2020 Morning Session Analysis
Greenback surged following Fed maintained its interest rate
Dollar index surged yesterday following the U.S. Central Bank announced that they would leave the interest rate unchanged while providing hawkish statement which claiming that the jobs market in the United States still remained strong. Besides that, the uncertainty about the impact of the outbreak of the corona virus had stoked a shift in sentiment towards safe-haven asset, which spurred some significant demand for the US Dollar. According to CNBC, China’s National Health Commission confirmed an additional 38 deaths and 1,737 new cases had infected by the corona virus. China government reiterated that it had increased to the total of 170 deaths and 7,711 cases with regards of the virus while 170 people had been cured and discharged from the hospital. However, the gains experienced by the US Dollar was limited following the released of the bleak housing data from the United States. According to National Association of Realtors, U.S. Pending Homes Sales for last month notched down from the previous reading of 1.2% to -4.9%, missing the economist forecast at 0.5%, dialing down the market optimisms towards the economic progression in the United States. As of writing, the dollar index appreciated by 0.04% to 97.80.
In the commodities market, the crude oil price surged 0.11% to $53.14 per barrels as of writing. However, the oil market edged lower yesterday following the crude oil data from the U.S. was released. According to Energy Information Administration (EIA), U.S. Crude Oil inventories had increased from the previous reading of -0.405M to 3.548M, higher than the market forecast at 0.482M while providing some bearish momentum on this black commodity. On the other hand, the gold price appreciated by 0.22% to $1579.87 per troy ounces amid to the risk-off sentiment in the markets due to the outbreak of the corona virus, which insinuating the demand for the safe-haven metal.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 GBP BoE Inflation Report
20:00 GBP BoE MPC Meeting Minutes
20:30 GBP BoE Gov Carney Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Unemployment Change (Jan) | 8K | 5K | – |
| 20:00 | GBP – BoE Interest Rate Decision (Jan) | 0.75% | 0.75% | – |
| 21:30 | USD – GDP (QoQ) (Q4)) | 2.1% | 2.1% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior retracement from the resistance level at 97.85. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 97.60.
Resistance level: 97.85, 98.15
Support level: 97.60, 97.35
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.2980. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3065.
Resistance level: 1.3065, 1.3145
Support level: 1.2980, 1.2920
EURUSD, H4: EURUSD was traded within a range while currently testing the support level at 1.1005. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1080, 1.1135
Support level: 1.1005, 1.0955
USDJPY, H4: USDJPY was traded lower while currently near the support level at 108.75. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.55, 110.15
Support level: 108.75, 107.85
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6765. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6765, 0.6850
Support level: 0.6710, 0.6670
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the support level at 0.6655. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6435.
Resistance level: 0.6555, 0.6625
Support level: 0.6435, 0.6325
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3165. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3245, 1.3335
Support level: 1.3165, 1.3100
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9725. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9760, 0.9795
Support level: 0.9725, 0.9670
CrudeOIL, Daily: Crude oil price was traded lower following prior retracement from the resistance level at 53.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 53.95, 55.60
Support level: 52.15, 50.75
GOLD_, H1: Gold price was traded higher while currently near the resistance level at 1579.85. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1579.85, 1585.45
Support level: 1573.05, 1568.10