22 October 2021 Morning Session Analysis
Dollar surged amid upbeat data.
The Dollar Index which traded against a basket of six major currency pairs surged over the backdrop of bullish economic data on yesterday, which spurring positive prospect toward the economic momentum in the United States while prompting the U.S. Treasury yields extend its gains. According to National Association of Realtors, U.S. Existing Home Sales notched up to eight-month high from the previous reading of 5.8M to 6.29M, exceeding the market forecast at 6.09M. Meanwhile, the Department of Labor reported that the U.S. Initial Jobless Claims came in at 290K, which also fared better-than-expectation at 300K. Market participants speculated that such upbeat economic data would increase the probability for the Federal Reserve to slowdown their bond buying program as well as tighten the monetary policy during their monetary policy meeting. Such contractionary monetary policy would reduce the money circulation in the US market, which diminishing inflation risk in future while increasing the appeal for the US Dollar. As of writing, the Dollar Index appreciated by 0.21% to 93.75.
In the commodities market, the crude oil price surged 0.10% to 82.95 per barrel as of writing. The oil market extends its gains amid easing Covid-19 cases around the world had prompted the authorities to lift up the earlier movement control, which insinuating hopes for economic recovery in future while spurring further bullish momentum for the crude oil price. On the other hand, the gold price depreciated by 0.10% to $1785.70 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
18:00 EUR EU Leaders Summit
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (Sep) | -0.90% | 0.40% | – |
| 15:30 | EUR – German Manufacturing PMI (Oct) | 58.4 | 56.9 | – |
| 16:30 | GBP – Composite PMI (Oct) | 54.9 | – | – |
| 16:30 | GBP – Manufacturing PMI (Oct) | 57.1 | – | – |
| 16:30 | GBP – Services PMI (Oct) | 55.4 | – | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Aug) | -1.00% | 3.00% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 93.50. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 94.05.
Resistance level: 94.05, 94.50
Support level: 93.50, 93.05
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3825. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3755.
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 lower following prior retracement from the resistance level at 114.55. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 114.55, 115.40
Support level: 113.45, 112.05
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7530. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7435.
Resistance level: 0.7580, 0.7655
Support level: 0.7470, 0.7335
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7155. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
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. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 85.85, 88.50
Support level: 81.50, 78.90
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1780.80. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1793.35, 1805.85
Support level: 1780.80, 1766.05