08 January 2021 Morning Session Analysis
US Dollar surged amid upbeat economic data.
The Dollar Index which traded against a basket of six major currency pairs surged on yesterday over the backdrop of a string of upbeat economic data, spurring positive prospect for the economic rebound in upcoming quarters. According to Department of Labour, the U.S. Initial Jobless Claims had notched down from the preliminary reading of 790K to 787K, better than the market forecast at 800K. Meanwhile, the U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI) increased significantly from the previous reading of 55.9 to 57.2, exceeding the market forecast at 54.6. Though, the spiking number of Covid-19 infections in the United States had diminished the recovery momentum in the US economy, which limited the gains experienced by the US Dollar. According to the Worldometer statistics, US still the country that recorded highest number of cases in the world where it has reported more than 20 million cases as of now, while the death toll has risen near to threshold of 370K. Investors would continue to scrutinize the latest updates with regards of the Non-farm payroll data tonight in order to receive further trading signal. As of writing, the Dollar Index appreciated by 0.32% to 89.73.
In the commodities market, the crude oil price surged 0.06% to $51.85 per barrel as of writing. The overall trading momentum for the crude oil remained bullish amid the hopes upon the Covid-19 vaccine development had dialled up the market optimism toward the crude oil demand in future. On the other hand, the gold price slumped 0.13% to $1916.32 per troy ounces as of writing amid strengthening US Dollar.
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 – Nonfarm Payrolls (Dec) | 245K | 100K | – |
| 21:30 | USD – Unemployment Rate (Dec) | 6.7% | 6.8% | – |
| 21:30 | CAD – Employment Change (Dec) | 62.1K | -5.0K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing resistance level at 89.85 MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 89.85, 90.50
Support level: 89.25, 88.55
GBPUSD, H1: GBPUSD was traded lower while currently testing the support level at 1.3560. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3635, 1.3685
Support level: 1.3560, 1.3495
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2305. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2205.
Resistance level: 1.2305, 1.2450
Support level: 1.2205, 1.2130
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 103.85. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 103.85, 104.55
Support level: 103.05, 102.00
AUDUSD, Weekly: AUDUSD was traded higher while currently testing the resistance level at 0.7860. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7860, 0.8135
Support level: 0.7130, 0.6815
NZDUSD, Weekly: NZDUSD was traded higher while currently testing the resistance level at 0.7340. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7340, 0.7555
Support level: 0.7110, 0.6905
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2655. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2785, 1.2925
Support level: 1.2655, 1.2415
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.8750. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9065, 0.9285
Support level: 0.8750, 0.8370
CrudeOIL, H1: Crude oil price was traded within a range while currently testing the resistance level at 51.05. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 51.05, 52.50
Support level: 50.05, 48.70
GOLD_, H4: Gold price was traded lower while currently near the support level at 1899.85. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1954.15, 2007.25
Support level: 1899.85, 1872.60