21 October 2021 Morning Session Analysis
Dollar slumped as risk-on sentiment.
The Dollar Index which traded against a basket of six major currency pairs dipped amid the risk-on sentiment in the global financial market following the US stock index reached an intraday record high yesterday. Investors remained optimism toward the better-than-expected third-quarter earnings from US companies. Despite some U.S. companies have been citing supply chain problems and higher costs earlier, they seem to be able to maintain profit margin by passing on costs to customers. Nonetheless, the expectation for the Federal Reserve to start tapering their aggressive monetary policy had limited the losses experienced by the US Dollar. Policymakers are poised to begin reducing their $120 billion in monthly asset purchases as soon as next month after what most see as substantial improvement in the labor market since the end of last year. As of writing, the Dollar Index depreciated by 0.14% to 93.60.
In the commodities market, the crude oil price surged 0.04% to 84.25 per barrel as of writing. The oil market edged higher over the backdrop of bullish inventory data yesterday. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories declined significantly from the previous reading of 6.088M to -0.431M, better than the market forecast at 1.857M. On the other hand, the gold price surged 0.03% to $1782.25 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 EUR EU Leaders Summit
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Initial Jobless Claims | 293K | 303K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Oct) | 30.7 | 24.5 | – |
| 22:00 | USD – Existing Home Sales (Sep) | 5.88M | 6.06M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 93.50. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 94.05, 94.50
Support level: 93.50, 93.05
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3825. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3825, 1.3880
Support level: 1.3755, 1.3665
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1680. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1680, 1.1815
Support level: 1.1530, 1.1370
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 114.55. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 114.55, 115.40
Support level: 113.45, 112.05
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7470. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7580.
Resistance level: 0.7580, 0.7655
Support level: 0.7470, 0.7335
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7155. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7240, 0.7300
Support level: 0.7155, 0.7110
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.2440. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2440, 1.2625
Support level: 1.2265, 1.2040
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9225. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward the support level at 0.9155.
Resistance level: 0.9225, 0.9365
Support level: 0.9155, 0.9075
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 81.50. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 85.85.
Resistance level: 85.85, 88.50
Support level: 81.50, 78.90
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1780.80. However, MACD which illustrated increasing bullish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1793.35, 1805.85
Support level: 1780.80, 1766.05