12 April 2021 Morning Session Analysis
Dollar slumped following Fed Clarida dovish’s statement.
The dollar index which gauges its value against a basket of six major rival currencies failed to recoup its losses, while extending its losses for another consecutive trading day after Federal Reserve (Fed) Vice Chairman Richard Clarida cemented the possibility of no rate hike in the near term. Last Friday, Fed Clarida revealed that they will continue to eye on the economic recovery progress, especially in term of employment rate and underlying inflation pressure of the nation before any revert adjustment to be made in the unfolding monetary policy. Besides, he also warned public that the unprecedented risk of pandemic still shadowed the path of future economic growth of US, the inflation pressure has high possibility to rise over 2% this year but unlikely to last for a long period. On the other hand, if the inflation goes against their expectation and become a threat, the US Central Bank do have several of tools to deal with it. However, a slightly rebound on US Treasury Yield has eventually saved the dollar from breaching below the lowest level in 2 weeks. During Asian early trading session, the dollar index ticked up by 0.04% to 92.20.
In the commodities market, the crude oil price rose by 0.32% to $59.50 per barrel, while both parties still remain stumbled over the talk of nuclear deal. As of now, market participants are eyeing on the next talk on this week to figure out if US will remove the sanctions on Iran in order to get Iran back to the deal’s compliance. Besides, the gold price dropped 0.15% to $1741.40 a troy ounce amid strengthening of US dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 92.40. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 91.95.
Resistance level: 92.40, 92.85
Support level: 91.95, 91.60
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3725. However, MACD which illustrated diminishing bearish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.3725, 1.3810
Support level: 1.3675, 1.3625
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1865. However, MACD which illustrated bearish bias momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 1.1955, 1.2030
Support level: 1.1865, 1.1795
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.20. MACD which illustrated bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 110.05.
Resistance level: 110.05, 110.80
Support level: 109.20, 108.30
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7665. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.7565.
Resistance level: 0.7665, 0.7735
Support level: 0.7565, 0.7505
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7060. MACD which illustrated bearish bias momentum signal suggests the pair to extend its losses toward the support level at 0.7000.
Resistance level: 0.7060, 0.7110
Support level: 0.7000, 0.6945
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2570. MACD which illustrated bearish bias momentum suggests the pair to extend its losses toward the support level at 1.2510.
Resistance level: 1.2570, 1.2635
Support level: 1.2510, 1.2465
USDCHF, H4: USDCHF was traded lower while currently testing near the support level at 0.9230. However, MACD which illustrated bullish bias momentum suggests the pair to undergo technical correction in short term.
Resistance level: 0.9280, 0.9360
Support level: 0.9330, 0.9185
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level at 59.85. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 59.85, 61.30
Support level: 58.70, 57.45
GOLD_, H4: Gold price was traded lower following prior breakout below the support level at 1745.25. MACD which illustrated bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1735.05.
Resistance level: 1745.25, 1755.60
Support level: 1735.05, 1723.85