1 April 2021 Morning Session Analysis
Dollar retreat following Biden unveiled $2 trillion infrastructure plan.
The dollar index which gauges its value against a basket of six major rival currencies stepped back from the 4 months high level after Biden rolled out the details of multi trillion infrastructure yesterday. In the speech at Pittsburgh, Biden outlined the first part of infrastructure plan which amounted to $2 trillion dollar in spending over 8 years, while revealing that the packages will most likely to be financed through tax hike on corporation and individual. In details, the packages will include massive spending on transportation infrastructure such as bridges, roads, public transit, environmentally friendly technology, as well as additional funds for childcare and adult care for the elderly and disabled. By implementing this massive plan, Biden said that it could benefit the US, reviving the nation overall economy growth especially the employment market where could create more jobs in the future. On the other side, Biden reiterated that the source of finance for implementing this multi-trillion plan will contributed by the rate hike of corporation from 21% to 28%, while repeating that families earning higher than 400k per year will be imposed by higher income tax. As of writing, dollar index dropped 0.10% to 93.20.
In the commodities market, the crude oil price dropped by 1.41% to $59.55 per barrel despite EIA reported a slightly drop in US oil inventories. According to the EIA, US crude oil stocks reduced by 0.876M, while the market economist forecasted an oil build of 0.107M. However, this black commodity is less appealing to investors as market concern are still over the resurgence of virus in Europe as well as the upcoming OPEC+ meeting. Besides, the gold prices rose 1.37% to $1708.40 per troy ounce amid weakening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 CrudeOIL OPEC Meeting
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Manufacturing PMI (Mar) | 66.6 | 66.6 | – |
| 16:30 | GBP – Manufacturing PMI (Mar) | 57.9 | 57.9 | – |
| 20:30 | USD – Initial Jobless Claims | 684K | 680K | – |
| 22:00 | USD – ISM Manufacturing PMI (Mar) | 60.8 | 61.3 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing near the support level at 93.00. MACD which illustrated bearish bias momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 93.35, 93.55
Support level: 93.00, 92.60
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3805. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower toward the support level at 1.3755.
Resistance level: 1.3805, 1.3880
Support level: 1.3755, 1.3675
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1755. MACD which illustrated diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.1695.
Resistance level: 1.1755, 1.1830
Support level: 1.1695, 1.1615
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.80. However, MACD which illustrated diminishing bullish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 110.80, 111.50
Support level: 110.25, 109.75
AUDUSD, H4: AUDUSD was traded lower while currently testing near 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.
Resistance level: 0.7655, 0.7700
Support level: 0.7600, 0.7565
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7030. MACD which illustrated diminishing bullish momentum signal suggests the pair to extend its losses toward the support level at 0.6945.
Resistance level: 0.7030, 0.7105
Support level: 0.6945, 0.6900
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2560. MACD which illustrated bearish bias momentum suggests the pair to extend its losses after it successfully breakout below the support level.
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 0.9430. Due to lack of signal from MACD, it is suggested to wait for further confirmation before entering into the market.
Resistance level: 0.9480, 0.9540
Support level: 0.9430, 0.9370
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 59.30. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward the resistance level at 60.65.
Resistance level: 60.65, 61.70
Support level: 59.30, 57.40
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1710.80. MACD which illustrated bullish bias momentum signal suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1710.80, 1723.35
Support level: 1699.60, 1679.75