27 August 2021 Morning Session Analysis
Dollar surged amid Fed’s hawkish tone.
The Dollar Index which traded against a basket of six major currency surged following the Federal Reserve member unleashed their hawkish tone ahead of Fed’s Jackson Hole meeting. According to CNBC, St. Louis Federal Reserve President James Bullard claimed on yesterday that the central bank should begin to curb its monthly stimulus efforts soon and have the process wrapped up by the end of March to prevent the U.S. economy from overheating. Besides, many Fed leaders also believe that the central bank should reduce the pace of its monthly purchases in Treasury bond and mortgage-backed securities to prevent high inflation risk in future. Nonetheless, the gain experienced by the US Dollar was limited amid bearish economic data yesterday. According of Department of Labor, U.S. Initial Jobless Claims came in at only 353K, missing the market forecast at 350K. Meanwhile, Bureau of Economic Analysis reported that the U.S. Gross Domestic Product (GDP) for last quarter notched down from the previous reading of 6.5% to 6.6%, which also missing the market forecast at 6.7%. As of writing, the Dollar Index appreciated by 0.04% to 93.10.
In the commodities market, the crude oil price slumped 0.31% to $67.75 as of writing. The oil market depreciated amid Mexico restored some output after a fire disrupted supplies on Sunday. By Tuesday, the state oil firm Petroleos Mexicanos (Pemex) claimed that they had recovered 71,000 bpd of production and expected to add an additional 110,000 bpd this week. On the other hand, the gold price slumped 0.05% to $1793.90 per troy ounces as of writing amid strengthening US Dollar.
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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: 93.25, 94.10
Support level: 92.45, 91.80
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3730. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3605.
Resistance level: 1.3730, 1.3805
Support level: 1.3605, 1.3515
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1775. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1705.
Resistance level: 1.1775, 1.1850
Support level: 1.1705, 1.1635
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.75. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 111.10
Support level: 109.75, 109.20
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7280. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7115.
Resistance level: 0.7280, 0.7375
Support level: 0.7115, 0.7000
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: 0.7015, 0.7120
Support level: 0.6940, 0.6815
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2705. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2705, 1.2780
Support level: 1.2650, 1.2580
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9125. 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: 0.9125, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 68.00. However, MACD which illustrated bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 68.00, 69.85
Support level: 66.10, 63.55
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1794.30. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout the resistance level.
Resistance level: 1794.30, 1812.50
Support level: 1773.35, 1754.40