8 July 2021 Afternoon Session Analysis
Aussie plunged on dovish RBA Lowe comments.
The Australian dollar which traded against the dollar and other currency pairs have fell following recent downbeat comments from RBA Governor Phillip Lowe. According to reports, RBA’s Governor Phillip Lowe state that the virus outbreak and extended lockdowns have made the Australia’s economic recovery uncertain. Besides that, he also emphasizes that a step down from A$5 billion to A$4 billion bond purchases weekly not a representation of withdrawal of support in this area and would like to see inflation remain above 2% for a number of quarters. With that said, the inflation is not expected to come at the central’s banks target range before 2024. On the other hand, coronavirus woes also added extra pressure for the Aussie as New South Wales continue to record new infections. At the time of writing, AUD/USD fell 0.21% to $0.7465.
In the commodities market, crude oil price fell 0.19% to $72.22 a troy ounce as of writing as investors keeping an eye on dispute between Saudi Arabia and UAE. The fallout between the Saudis and the Emiratis was threatening to undo the discipline and cohesiveness of the larger 23-member OPEC+ alliance, which have brought down the sentiment for the commodity. At the time of writing, gold price fell 0.31% to $1798.05 a troy ounce at the time of writing following dollar strength.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:30 EUR ECB Monetary Policy Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – Initial Jobless Claims | 364K | 350K | – |
| 23:00 | CrudeOIL – Crude Oil Inventories | -6.718M | -4.033M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 92.70. MACD which illustrate bullish momentum signal suggest the dollar to extend its gains after it breaks above the resistance level.
Resistance level: 92.70, 93.05
Support level: 92.25, 91.65
GBPUSD, H4: GBPUSD was traded lower while currently testing near the support level 1.3750. MACD which illustrate bearish momentum signal with the recent formation of death cross suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3885, 1.3990
Support level: 1.3750, 1.3675
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1765. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.1850, 1.1920
Support level: 1.1765, 1.1705
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 110.30. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher as a technical correction towards the resistance level 111.00.
Resistance level: 111.00, 111.60
Support level: 110.30, 109.75
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level 0.7475. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.7395.
Resistance level: 0.7475, 0.7545
Support level: 0.7395, 0.7330
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level 0.7010. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.6925.
Resistance level: 0.7010, 0.7075
Support level: 0.6925, 0.6825
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.2490. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.2560.
Resistance level: 1.2560, 1.2640
Support level: 1.2490, 1.2420
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level 0.9245. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.9310.
Resistance level: 0.9310, 0.9355
Support level: 0.9245, 0.9195
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 72.40. MACD which illustrate bearish bias signal suggest the commodity to extend its losses towards the support level 70.25.
Resistance level: 72.40, 74.20
Support level: 70.25, 68.35
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level 1812.10. MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to extend its retracement towards the support level 1767.55.
Resistance level: 1812.10, 1856.00
Support level: 1767.55, 1725.50