5 November 2021 Afternoon Session Analysis
BoE’s dovish stances pushes pound sterling lower.
The Pound Sterling was traded lower against US dollar amid dovish stances from Bank of England (BoE). Bank of England (BoE) has made its decision by maintaining the interest rate at 0%, while keeping its bond buying programme amounted at 895 billion pounds. Yesterday’s interest rate announcement from BoE has faded hopes of investors whom placed their bet on the central bank to be one of the world’s central bank for hiking lending rates. BoE’s policymakers added that they worry about the fall of UK inflation well below of their 2% target in 2023 and 2024 due to projection of drop-off in energy prices in the second half of 2022. In addition, Bank of England also concerned about the post-Covid wage growth in the region. According to BoE Governor Andrew Bailey, he would like to find more clue from future labour market data due to the recent abolishment of furlough scheme prior. As of writing, the pair of GBP/USD slumped 0.02% to 1.3499.
In the commodities market, crude oil price was up 0.37% to $79.67 per barrel as of writing amid positive oil demand outlook. Oil prices rebounded as the OPEC and its members agreed to stick to their plan to raise their oil output by 400,000 barrels per day (bpd) from December, while ignoring request from US for extra output to cool rising prices. On the other hand, the gold price surged 0.07% to $1792.84 per troy ounces amid risk off sentiment.
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 – Nonfarm Payrolls (Oct) | 194k | 450K | – |
| 20:30 | USD – Unemployment Rate (Oct) | 4.8% | 4.7% | – |
| 20:30 | CAD – Employment Change (Oct) | 157.1K | 50.0k | – |
| 22:00 | CAD – Ivey PMI (Oct) |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing near the resistance level 94.45. However, MACD which illustrate diminishing bullish momentum signal suggest the dollar to experience a technical correction in short term towards the support level 93.85.
Resistance level: 94.45, 95.20
Support level: 93.85, 93.35
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.3545. MACD which illustrate ongoing bearish momentum signal suggest the pair to extend its losses towards the support level 1.3420.
Resistance level: 1.3545, 1.3650
Support level: 1.3420, 1.3300
EURUSD, H4: EURUSD was traded lower while currently testing near the support level 1.1535. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction towards the resistance level 1.1615.
Resistance level: 1.1615, 1.1680
Support level: 1.1535, 1.1455
USDJPY, H4: USDJPY remain traded in a sideway channel. However, MACD which illustrate bearish bias signal suggest the pair to be traded lower in short term towards the support level 113.20.
Resistance level: 114.60, 115.85
Support level: 113.20, 112.00
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7385. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level 0.7385.
Resistance level: 0.7455, 0.7550
Support level: 0.7385, 0.7310
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level 0.7080. MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7155, 0.7230
Support level: 0.7080, 0.6990
USDCAD, H4: USDCAD was traded higher following recent breakout above the previous resistance level 1.2410. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a short term technical correction back towards the level 1.2410.
Resistance level: 1.2410, 1.2500
Support level: 1.2295, 1.2200
USDCHF, H4: USDCHF was traded flat near the resistance level 0.9145. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower towards the support level 0.9060.
Resistance level: 0.9145, 0.9215
Support level: 0.9060, 0.8990
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 79.10. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to experience a technical correction towards the resistance level 81.65.
Resistance level: 81.65, 84.75
Support level: 79.10, 75.85
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level 1779.00. MACD which illustrate persistent bullish momentum signal suggest the commodity to extend its gains towards the resistance level 1808.30.
Resistance level: 1808.30, 1831.50
Support level: 1779.95, 1748.55