9 September 2021 Afternoon Session Analysis
Canadian Loonie slips following dovish BoC.
The Canadian dollar which traded against the greenback and other currency pairs have fell following recent interest rate decision from Bank of Canada. The Canada central bank decided to keep its interest rate unchanged at 0.25%. At the same time, the quantitative easing program is also maintained at C$ 2 billion per week. Despite matching wide market forecasts of inaction, the Bank of Canada (BOC) conveyed economic fears amid the fourth wave of the coronavirus. The central bank stated that global economic recovery continued through Q2, mainly driven by strong US growth and carries solid momentum into the Q3. However, supply chain disruptions restrain activity in some sectors, and COVID-19 outbreaks in some regions threaten to slow global recovery. While CPI inflation remains above 3% as expected but the BoC expects the rise in prices to be transitory, therefore it will be firmly monitored. At the time of writing, USD/CAD rose 0.07% to 1.2691.
In the commodities market, crude oil price rose 0.02% to $69.35 per barrel at the time of writing following support from lower U.S output. U.S production remain struggling to recover from Hurricane Ida as about 77% of U.S. Gulf production or about 1.4 million barrels per day remained offline on Tuesday. The market has lost about 17.5 million barrels of oil so far. On the other hand, gold price fell 0.04% to $1788.46 a troy ounce at the time of writing amid dollar strength.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:45 EUR ECB Monetary Policy Statement
20:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 19:45 | EUR – ECB Interest Rate Decision (Aug) | 0.00% | 0.00% | – |
| 20:30 | USD – Initial Jobless Claims | 340K | 335K | – |
| 23:00 | CrudeOIL – Crude Oil Inventories | -7.169M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar was traded higher while currently testing the resistance level 92.70. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as technical correction towards the support level 92.05.
Resistance level: 92.70, 93.10
Support level: 92.05, 91.60
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level 1.3765. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.3885, 1.3990
Support level: 1.3765, 1.3600
EURUSD, H4: EURUSD was traded lower following recent breakout below the previous support level 1.1830. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses towards the support level 1.1770.
Resistance level: 1.1830, 1.185
Support level: 1.1770, 1.1705
USDJPY, H4: USDJPY was traded higher following prior retracement from the resistance level 110.20. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 109.60.
Resistance level: 110.20, 110.75
Support level: 109.60, 109.15
AUDUSD, H4: AUDUSD was traded lower while currently testing near the support level 0.7330. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7415, 0.7485
Support level: 0.7330, 0.7250
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.7075. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7145, 0.7225
Support level: 0.7075, 0.6990
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level 1.2685. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains towards the resistance level 1.2770.
Resistance level: 1.2770, 1.2870
Support level: 1.2685, 1.2585
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9200. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9245, 0.9310
Support level: 0.9200, 0.9100
CrudeOIL, H4: Crude oil price was traded higher following recent rebound from the support level 68.05. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to extend its rebound towards the resistance level 70.55.
Resistance level: 70.55, 74.30
Support level: 68.05, 65.35
GOLD, H4: Gold price was traded lower following prior breakout below the previous support level 1792.35. MACD which illustrate persistent bearish momentum signal suggest the commodity to extend its losses towards the support level 1760.35.
Resistance level: 1792.35, 1831.85
Support level: 1760.35, 1725.50