16 February 2021 Morning Session Analysis
Japanese Yen wobbled despite upbeat GDP data released.
Japanese Yen which acts as one of the major safe-haven currencies in the world drops in value since earlier last week in spite of recent GDP data showed some sign of recovery in Japan economy. According to the Cabinet Office, Japan GDP came in at 3.0%, stronger than the economist forecast at 2.3%, indicating that the nation’s economy is in the right pace of recovery while stepping closer back to the pre-pandemic level. Nonetheless, Japan Minister of Economic Affair revealed his point of view that economic recovery at a half-way point but still below the pre-pandemic levels. Besides, market participants chose to temporarily flee away from Japanese Yen market as Bank of Japan (BoJ) may seek to clarify in March policy review whether to further deepen its negative rates in order to combat the fallout of virus. Prior to now, BoJ Deputy Governor warned that they are ready to lower their nominal rates in order to fulfill their commitment on achieving the objective of 2% inflation rate. With the backdrop of huge uncertainty over the review in the BOJ meeting, there is no consensus been achieved within BoJ on the final decision yet. As of writing, the pair of USD/JPY rose 0.01% to 105.39.
In the commodities market, the crude oil price depreciated by 0.10% to $60.05 per barrel as of writing after hitting the one-year high level. As of now, this black commodity product was still supported by the ongoing OPEC+ oil production cut, while Middle East tension sparked market worries over oil supply’s disruption. Besides, gold price ticked up 0.03% to $1818.35 per troy ounce amid weakening of US dollar.
Today’s Holiday Market Close
Time Market Event
All Day CNY Spring Festival
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 18:00 | EUR – German ZEW Economic Sentiment (Feb) | 61.8 | 59.6 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.45. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 90.00.
Resistance level: 90.45, 90.75
Support level: 90.00, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3900. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.3960, 1.4000
Support level: 1.3900, 1.3855
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.2105. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2145.
Resistance level: 1.2145, 1.2180
Support level: 1.2105, 1.2065
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 105.10. MACD which illustrated bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 105.65.
Resistance level: 105.65, 106.00
Support level: 105.10, 104.65
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7785. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7785, 0.7815
Support level: 0.7740, 0.7670
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7240. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7240, 0.7300
Support level: 0.7165, 0.7105
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2650. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2610.
Resistance level: 1.2650, 1.2690
Support level: 1.2610, 1.2575
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8920. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.8850.
Resistance level: 0.8920, 0.8985
Support level: 0.8850, 0.8805
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 60.15. MACD which illustrated diminishing bullish momentum suggest the commodity to extend losses toward the support level at 59.45.
Resistance level: 60.15, 61.05
Support level: 59.45, 58.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1825.40. However, MACD which illustrated diminishing bearish momentum suggest the commodity to undergo technical correction toward the higher level.
Resistance level: 1825.40, 1839.40
Support level: 1803.00, 1765.15