26 October 2021 Afternoon Session Analysis
Canadian dollar rose following upbeat economic outlook.
Canadian dollar which traded against the dollar and other currency pairs have rose following positive economic outlook. According to Reuters, the rising inflation and recovering job market have fueled up market speculation that Bank of Canada (BoC) will initiate its rate hike ahead of schedule. It was evidenced since the Canadian inflation has stayed above of the BoC’s 1%-3% target range for six months consecutively, while climbing in September to 18-years high of 4.4%. In addition, the Canada’s job market has also regained its momentum to pre-pandemic level. According to Bank of Canada’s latest Business Outlook Survey, it reported that firms were anticipating stronger output demand as the COVID-19 pandemic faded, but supply constraints threatened to limit sales and raised costs which eventually led to higher prices of goods and services. According to Reuters’ poll, Bank of Canada (BoC) is expected to taper its asset purchase program by C$1 billion from its current C$2 billion during its upcoming meeting. As of writing, the pair of USD/CAD was down 0.01% to 1.2380.
In the commodities market, the crude oil price slumped 0.05% to $83.73 per barrel as of writing amid lesser demand of oil. Oil prices received its bearish momentum following the intervention of China government to lower the coal prices hence diminished the usage of oil as substitution for power generation. On the other hand, the gold price was up 0.05% to $1807.80 per troy ounces amid weakening 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 |
| 22:00 | USD – CB Consumer Confidence (Oct) | 109.3 | 108.8 | – |
| 22:00 | USD – New Home Sales (Sep) | 740K | 755K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level 93.70. MACD which illustrate ongoing bullish momentum signal suggest the dollar to extend its gains towards the resistance level 94.45.
Resistance level: 94.45, 95.20
Support level: 93.70, 93.00
GBPUSD, H4: GBPUSD was traded flat while currently testing the support level 1.3755. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 1.3880.
Resistance level: 1.3880, 1.4005
Support level: 1.3755, 1.3650
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1615. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 1.1530.
Resistance level: 1.1615, 1.1680
Support level: 1.1530, 1.1455
USDJPY, H4: USDJPY was traded higher following prior rebound from its low level. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 114.60.
Resistance level: 114.60, 115.85
Support level: 111.20, 112.00
AUDUSD, H4: AUDUSD was traded flat while currently testing the support level 0.7485. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 0.7565.
Resistance level: 0.7565, 0.7660
Support level: 0.7485, 0.7410
NZDUSD, H4: NZDUSD was traded flat while currently testing the support level 0.7155. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 0.7230.
Resistance level: 0.7230, 0.7300
Support level: 0.7155, 0.7080
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.2335. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 1.2500.
Resistance level: 1.2500, 1.2620
Support level: 1.2335, 1.2200
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9215. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.9215, 0.9295
Support level: 0.9140, 0.9080
CrudeOIL, H4: Crude oil was traded lower following prior retracement from the resistance level 84.00. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its retracement towards the support level 79.35.
Resistance level: 84.00, 88.40
Support level: 79.35, 75.65
GOLD_, H4: Gold price was traded lower following prior retracement from its high level. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its retracement towards the support level 1791.50.
Resistance level: 1812.80, 1831.50
Support level: 1791.50, 1769.10.