21 May 2021 Afternoon Session Analysis
Euro extend gains following recovery optimism.
During late Asian session, the Euro which traded against the dollar and other currency pairs have continue to extend its gains as market remains optimistic towards economic recovery in the long run. According to data, the number of COVID-19 cases have seen a drop of 60% in weekly cases. With Europe’s vaccination campaign continue at full force and is seeing better results, government also slowly relaxed social restrictions and reopen the economy. According to reports, an agreement has been reached to introduce an EU-wide COVID travel pass for the summer season. The pass would allow vaccinated individuals to travel to EU without any checks and quarantine. At the time of writing, EUR/USD rose 0.07% to 1.2229.
In the commodities market, crude oil price fell 0.09% to $62.05 per barrel at the time of writing following possible return of Iranian oil supply. According to reports, Iranian President Hassan Rouhani stated that the sanctions on oil, shipping, petrochemicals, insurance and the central bank had been dealt with in the talks. While the success was not guaranteed, it still raises concerns of potential increase of crude oil supply in the future. On the other hand, gold price remains steady and edge higher 0.11% to $1873.32 a troy ounce at the time of writing following dollar weakness.
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 |
| 14:00 | GBP – Retail Sales (MoM) (Apr) | 5.4% | 4.0% | – |
| 15:30 | EUR – German Manufacturing PMI (May) | 66.2 | 65.8 | – |
| 16:30 | GBP – Manufacturing PMI (May) | 60.7 | 60.7 | – |
| 16:30 | GBP – Services PMI (May) | 60.1 | 60.1 | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Mar) | 4.8% | 2.0% | – |
| 22:00 | USD – Existing Home Sales (Apr) | 6.01M | 6.09M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level 89.80. MACD which illustrate bearish momentum signal with the formation of death cross suggest the dollar to extend its losses towards the support level 89.25.
Resistance level: 89.80, 90.45
Support level: 89.25, 88.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.4150. MACD which illustrate diminishing bearish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.4235.
Resistance level: 1.4235, 1.4380
Support level: 1.4150, 1.4020
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.2230. MACD which illustrate diminishing bearish momentum signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 1.2230, 1.2290
Support level: 1.2180, 1.2130
USDJPY, H4: USDJPY was traded lower following recent breakout below the previous support level 109.05. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 108.45.
Resistance level: 109.05, 109.75
Support level: 108.45, 107.60
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7760. MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7805, 0.7860
Support level: 0.7760, 0.7700
NZDUSD, H4: NZDUSD was traded lower following prior retracement from its high level. MACD which illustrate bearish bias signal suggest the pair to extend its retracement towards the support level 0.7145.
Resistance level: 0.7225, 0.7280
Support level: 0.7145, 0.7065
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.2030. However, MACD which illustrate bullish bias signal suggest the pair to experience a technical correction towards the resistance level 1.2135.
Resistance level: 1.2135, 1.2270
Support level: 1.2030, 1.1915
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.8950. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9020, 0.9080.
Support level: 0.8950, 0.8880.
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 62.35. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses towards the support level 60.75.
Resistance level: 62.35, 64.25
Support level: 60.75, 58.15
GOLD_, H4: Gold price remain traded in a sideway channel following recent retracement from the resistance level 1877.00. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses towards the support level 1863.25.
Resistance level: 1877.00, 1894.55
Support level: 1863.25, 1846.05