15 October 2021 Morning Session Analysis
Dollar slumped as inflation fears eased.
The Dollar Index which traded against a basket of six major currency pairs slumped over the backdrop of bearish inflation data from United States yesterday. The benchmark U.S. 10-year Treasury yield fell on Thursday as such bearish inflation data had eased worries that the Federal Reserve may need to take action earlier than expected to combat high inflation rate. According to U.S. Bureau of Labor Statistics, U.S. Producer Price Index (PPI) for last month notched down from the previous reading of 0.7% to 0.5%, missing the market forecast at 0.6%. Nonetheless, the losses experienced by the US Dollar was limited following the United States released its upbeat job data. According to Department of Labor, U.S. Initial Jobless Claims declined from the previous reading of 329K to 293K, better than the market forecast at 319K, which spurring positive prospect for the economic momentum in United States. As of writing, the Dollar Index depreciated by 0.05% to 94.05.
In the commodities market, the crude oil price appreciated by 0.20% to $81.80 per barrel as of writing. The overall momentum for the crude oil remained bullish amid rapid vaccination rollout around the world as well as easing Covid-19 cases had insinuated positive prospect for the crude oil demand in future. Nonetheless, the gains experienced by the crude oil was limited by the bearish inventory data. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories notched up from the previous reading of 2.346M to 6.088M, exceeding the market forecast at 0.702M. On the other hand, the gold price depreciated by 0.04% to $1795.40 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
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core Retail Sales (MoM) (Sep) | 1.80% | 0.50% | – |
| 20:30 | USD – Retail Sales (MoM) (Sep) | 0.70% | -0.20% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 94.40. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 94.40, 94.75
Support level: 93.75, 93.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3735. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3640.
Resistance level: 1.3735. 1.3805
Support level: 1.3640, 1.3550
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1575. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1630, 1.1675
Support level: 1.1575, 1.1525
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 114.00. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 114.00, 115.40
Support level: 112.30, 110.95
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7400. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7400, 0.7475
Support level: 0.7320, 0.7235
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7035. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7035, 0.7075
Support level: 0.6970, 0.6925
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level at 1.2425. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2310.
Resistance level: 1.2425, 1.2580
Support level: 1.2310, 1.2170
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9215. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9305.
Resistance level: 0.9305, 0.9375
Support level: 0.9215, 0.9155
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 81.85. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 81.85, 83.05
Support level: 79.20, 76.60
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1780.65. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1805.25, 1828.55
Support level: 1780.65, 1768.05