06 January 2021 Afternoon Session Analysis
Dollar plunged, while Georgia run-off in focus.
Dollar index which gauges its value against a basket of six major currencies lingered near the lowest level in two and a half years ahead of the election result in Georgia, which will determine if Democrats or Republican control the power over the House of Senate. According to the BBC news, both senate run-off elections in Georgia were too close to calls as the polls closed in the early morning. The races were not only drawing outsized attention of the American, but also global investors as it is paving the way for further stimulus measure if Democratic Party successfully strives the control of senate away from Republican. As Joe Biden has said that his first priority is to implement further coronavirus relief package after taking offices, hence the process and time consumed to pass through the proposal would be shortened and easier if Democrats manages to unify the House of Congress. As of writing, dollar index rose by 0.14% to 89.55.
In the commodities market, the crude oil price surged by 0.32% to $50.00 per barrel amid Saudi Arabia surprise cut over the oil production in February and March. With voluntary additional cuts from Saudi Arabia, the total production cuts for upcoming two months will be 8.125 million bpd and 8.05 million bpd respectively. Besides, gold price appreciated by 0.08% to $1947.85 per troy ounce amid uncertainty over Georgia run-off sparked investors demand toward safe-haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Dec) | 50.7 | 50.7 | – |
| 17:30 | GBP – Services PMI (Dec) | 49.9 | 49.9 | – |
| 21:15 | USD – ADP Nonfarm Employment Change | 307K | – | – |
| 23:30 | USD – Crude Oil Inventories | -6.065M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 89.30. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward the resistance level at 89.60.
Resistance level: 89.60, 90.25
Support level: 89.30, 88.95
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3620. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3620.
Resistance level: 1.3620, 1.3710
Support level: 1.3535, 1.3470
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2300. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower toward the support level at 1.2260.
Resistance level: 1.2300, 1.2325
Support level: 1.2260, 1.2205
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 102.55. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 103.00.
Resistance level: 103.00, 103.65
Support level: 102.55, 102.00
AUDUSD, H1: AUDUSD was traded lower while currently testing the support level at 0.7740. MACD which illustrated bearish momentum suggest the pair to extend its losses after it closed below the support level at 0.7740.
Resistance level: 0.7785, 0.7820
Support level: 0.7740, 0.7680
NZDUSD, H1: NZDUSD was traded lower while currently testing the support level at 0.7235. MACD which illustrated bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.7235.
Resistance level: 0.7270, 0.7325
Support level: 0.7235, 0.7175
USDCAD, H4: USDCAD was traded higher following prior rebound from the lower level. However, MACD which illustrated bearish bias momentum suggest the pair to be traded lower toward the support level
Resistance level: 1.2695, 1.2770
Support level: 1.2625, 1.2530
USDCHF, H1: USDCHF was traded higher following prior rebound from the support level at 0.8775. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the support level at 0.8820.
Resistance level: 0.8820, 0.8855
Support level: 0.8775, 0.8740
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 50.20. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 50.20.
Resistance level: 50.20, 50.90
Support level: 49.40, 48.65
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1951.95. MACD which illustrated bearish bias momentum suggest the commodity to extend tis losses toward the support level at 1936.90.
Resistance level: 1951.95, 1960.35
Support level: 1936.90, 1923.65