24 March 2021 Morning Session Analysis
Dollar surged following Jerome Powell Testimony.
Dollar index which gauges its value against a basket of six major currencies jumped amid Federal Reserve (Fed) Chairman has given some optimistic view with regards the outlook of economy in the recent testimony. Overnight, Jerome Powell mentioned in the testimony that he is expecting a strong economic rebound this year following the vaccine rollout but emphasized that the U.S. recovery is far from complete. Besides, Mr. Powell also said that the central bank has tools to deal with rising price pressures if necessary, but he doesn’t expect the recent stimulus package which worth $1.9 will lead to an unwelcome increase in inflation. Other than this, Powell also emphasized that he expects the economy will start to pick up this year as a series of recent economic data have showed an upturn result especially which related to economic activity as well as employment market. On the other side, the resurgence of Covid-19 in Europe also boosted up the market demand toward the US dollar, as market worry that the third wave of virus will put the EU economy into freezing stage once again. With the sign of third wave’s virus getting obvious in term of cases number, the countries such as Germany, France and Italy have decided to extend their movement control measures in order to limit the spread of virus. As of writing, dollar index rose 0.66% to 92.35.
In the commodities market, the crude oil price dropped by 0.11% to $57.40 per barrel amid surprise build in inventory level dragged down the appeal of this black commodity product. According to the API, US crude oil inventories level increased 2.927M, higher than the economist forecast at -0.900M, further weighing on the oil price on top of the weak demand outlook amid virus’s resurgence. Besides, the gold price dropped 0.01% to $1727.10 per troy ounce amid strengthening of dollar index.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – CPI (YoY)(Feb) | 0.7% | 0.8% | – |
| 16:30 | EUR – German Manufacturing PMI (Mar) | 60.7 | 60.8 | – |
| 17:30 | GBP – Composite PMI (Mar) | 49.6 | – | – |
| 17:30 | GBP – Manufacturing PMI (Mar) | 54.9 | 54.9 | – |
| 17:30 | GBP – Services PMI (Mar) | 49.5 | – | – |
| 20:30 | USD – Core Durable Goods Orders (MoM)(Feb) | 1.3% | 0.6% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 2.396M | -0.272M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded following prior breakout above the previous resistance level at 92.10. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 92.60.
Resistance level: 92.60, 93.00
Support level: 92.10, 91.55
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3755. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3625.
Resistance level: 1.3755, 1.3845
Support level: 1.3625, 1.3540
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1830. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1890, 1.1990
Support level: 1.1830, 1.1755
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 109.20. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses toward the support level at 108.35.
Resistance level: 109.20, 109.65
Support level: 108.35, 107.85
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7600. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.7600.
Resistance level: 0.7655, 0.7700
Support level: 0.7600, 0.7560
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7015. MACD which illustrated bearish bias momentum suggests the pair to extend its losses toward the support level at 0.6960.
Resistance level: 0.7015, 0.7105
Support level: 0.6960, 0.6905
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.2560. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.2610.
Resistance level: 1.2610, 1.2685
Support level: 1.2560, 1.2485
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9310. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9370.
Resistance level: 0.9370, 0.9430
Support level: 0.9310, 0.9280
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 57.40. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 59.30, 60.65
Support level: 57.40, 56.00
GOLD_, H4: Gold price was traded lower following prior breakout below the previous upward trendline. MACD which illustrated bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1718.15.
Resistance level: 1738.10, 1750.60
Support level: 1718.15, 1694.30