20 August 2021 Morning Session Analysis
Dollar surged amid upbeat job data.
The Dollar Index which traded against a basket of six major currency pairs extend its gains over the backdrop of upbeat job data from the U.S. region yesterday. According to Department of Labor, U.S. Initial Jobless Claims notched down from the previous reading of 377K to 348K, better than the market forecast at 363K, which spurring hopes that the Federal Reserve might be tightening its monetary policy earlier than expected. In earlier, the minutes of the Fed’s July meeting minutes had indicated that the Fed’s members are largely expected to reduce their monthly bond purchasing program later this year, which increasing the U.S. government bond yields and making it more attractive for the investors to hold dollar-denominated assets. Nonetheless, the gains experienced by the US Dollar was limited amid negative manufacturing index on yesterday. According to Federal Reserve Bank of Philadelphia, U.S. Philadelphia Fed Manufacturing Index came in at 19.4, missing the market forecast at 23.0. As of writing, the Dollar Index appreciated by 0.46% to 93.55.
In the commodities market, the crude oil price extends its losses 0.03% to 63.85 per barrel as of writing. The oil market was traded lower amid the recent wave of Covid-19 infections worldwide had continue to diminish the demand for global travel and threaten economic activity, which spurring negative prospect for the crude oil price. On the other hand, the gold price depreciated by 0.03% to $1780.35 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
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (Jul) | 0.50% | 0.50% | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Jun) | -2.00% | 4.40% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 93.25. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3605. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3730, 1.3805
Support level: 1.3605, 1.3415
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1705. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1705, 1.1775
Support level: 1.1635, 1.1550
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.75. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.55, 111.10
Support level: 109.75, 109.20
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7240. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7240, 0.7320
Support level: 0.7135, 0.7045
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6915. MACD which illustrated increasing bearish momentum suggest the pair to extend it losses toward support level at 0.6765.
Resistance level: 0.6915, 0.7120
Support level: 0.6765, 0.6675
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.2770. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2935.
Resistance level: 1.2935, 1.3105
Support level: 1.2770, 1.2585
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9135. MACD which illustrated increasing bullish 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, Daily: Crude oil price was traded lower while currently testing the support level at 62.65. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 67.15, 73.75
Support level: 62.65, 57.30
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1773.35. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1794.30, 1812.50
Support level: 1773.35, 1754.40