14 July 2021 Morning Session Analysis
Dollar surged amid hawkish expectation toward Fed.
The Dollar Index which traded against a basket of six major currency pairs surged significantly over the backdrop of bullish inflation data from Unites States yesterday, which spurring hopes that the Federal Reserve would start to taper its bond purchasing program while scaling back its massive asset purchases to combat the high inflation risk in future. A reduction in bond purchases would send panic into global bond markets, while diminishing the money circulation in the US Dollar and providing further bullish momentum on the US Dollar. According to U.S. Bureau of Labor Statistics, U.S. Core Consumer Price Index (CPI) MoM notched up significantly from the previous reading of 0.7% to 0.9%, exceeding the market forecast at 0.4%. Meanwhile, investors would be suggested to focus on the statement from Federal Reserve to receive further trading signal. As of writing, the Dollar Index appreciated by 0.06% to 92.81.
In the commodities market, the crude oil price appreciated by 0.10% to $75.10 per barrel. The oil market received bullish momentum following the high inflation reading was released on yesterday, which prompting investors to shift their portfolio toward the commodity product to hedge against the inflation risk. On the other hand, the gold price slumped 0.13% to $1804.97 per troy ounces as of writing amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 CAD BoC Monetary Policy Report
Tentative CAD BOC Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – CPI (YoY) (Jun) | 2.10% | 2.20% | – |
| 20:30 | USD – PPI (MoM) (Jun) | 0.80% | 0.50% | – |
| 22:00 | CAD – BoC Interest Rate Decision | 0.25% | 0.25% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -6.866M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level at 92.00. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward resistance level at 93.25.
Resistance level: 93.25, 94.10
Support level: 92.00, 91.35
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3960. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3750.
Resistance level: 1.3960, 1.4100
Support level: 1.3750, 1.3565
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1850. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1725.
Resistance level: 1.1850, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded higher following prior breakout above the resistance level at 110.45. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 110.95.
Resistance level: 110.95, 111.55
Support level: 110.45, 109.75
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7440. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7590, 0.7700
Support level: 0.7440, 0.7285
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6940. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7120, 0.7305
Support level: 0.6940, 0.6770
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2440. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2585.
Resistance level: 1.2585, 1.2770
Support level: 1.2440, 1.2275
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9140. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9230.
Resistance level: 0.9230, 0.9305
Support level: 0.9135, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 74.60. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 74.60, 76.90
Support level: 72.75, 71.20
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1813.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1788.95.
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45