27 January 2021 Morning Session Analysis
Dollar eases ahead of Federal Reserve’s Meeting.
The dollar index which gauges its value against a basket of six major currencies dipped as market participants are still remain cautious toward the outcome of the meeting. Since the last meeting of Federal Reserve, rolling out of vaccines and a $900 billion of relief package was unveiled during the last two month. However, it is noteworthy that Federal Reserve likely will still underscore its commitment of low interest rate policies as the ongoing pandemic chaos continue override the effectiveness of vaccine’s distribution. In the recent talks from Fed Chairman Jerome Powell, he had reiterated that the Congress and White House should unleash a new stimulus plan as soon as possible in order to support the economy from further slowdown. Besides, it is expected that Jerome Powell may remain its current Quantitative Programme (QE) unchanged , while unlikely to reduce its bond purchase before the economy recover back to pre-pandemic level. Nonetheless, investors are now waiting for the Fed Meeting to scrutinize the further direction of US dollar. As of writing, dollar index dropped 0.24% to 90.15.
In the commodities market, the crude oil price rebounds by 0.11% to $52.73 per barrel as of writing amid a huge draw in US oil inventories as of last week. According to the API, US Crude Oil Inventories data came in at -5.272M, unexpectedly lower than the forecast of economist at 0.603M, slightly diminish the investor concern over the oil market’s balance. Besides, gold price up 0.02% to $1850.70 a troy ounce amid weakening of dollar index.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
03:00 USD FOMC Statement
(28th)
03:00 USD FOMC Press Conference
(28th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core Durable Goods Orders (MoM)(Dec) | 0.4% | 0.5% | – |
| 23:30 | USD – Crude Oil Inventories | 4.351M | 0.430M | – |
| 03:00 (28th) |
USD – Fed Interest Rate Decision | 0.25% | 0.25% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.25. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 89.90.
Resistance level: 90.25, 90.60
Support level: 89.90, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3700. MACD which illustrated bullish bias momentum suggest the pair to be traded higher toward the resistance level at 1.3805.
Resistance level: 1.3805, 1.3900
Support level: 1.3700, 1.3620
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2155. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2205.
Resistance level: 1.2205, 1.2250
Support level: 1.2155, 1.2120
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 103.70. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 103.35.
Resistance level: 103.70, 104.00
Support level: 103.35, 103.00
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7735. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7770.
Resistance level: 0.7770, 0.7820
Support level: 0.7735, 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 at 0.7240.
Resistance level: 0.7240, 0.7305
Support level: 0.7165, 0.7090
USDCAD, H4: USDCAD was traded lower while currently testing near the support level at 1.2695. MACD which illustrate bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2800, 1.2865
Support level: 1.2695, 1.2615
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8885. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.8855.
Resistance level: 0.8885, 0.8915
Support level: 0.8855, 0.8820
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 52.60. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 53.75.
Resistance level: 53.75, 54.50
Support level: 52.60, 51.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1861.05. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 1842.90.
Resistance level: 1861.05, 1871.90
Support level: 1842.90, 1825.40