10 November 2021 Morning Session Analysis
Dollar slumped amid falling US Treasury yield.
The Dollar Index which traded against a basket of six major currency pairs extend its losses over the backdrop of dropping U.S Treasury yields pullback on yesterday following the producer price inflation data was released. According to U.S. Bureau of Labor Statistics, the U.S. Producer Price Index (PPI) rose by 0.6% from September, align with the market expectation. Economists predicted that such inflation rate would consider to be acceptable in short-term basis, while lowering the probability for the Federal Reserve to increase interest rate in order to combat high inflation risk. Though, Fed Vice Chairman Richard Clarida claimed on Monday that the central bank would continue to focus on the inflation, employment, and gross domestic product to determine the monetary policy in future. Nonetheless, the overall movement for the US Dollar remained subdued as investors were holding back on big moves ahead of consumer price index data which would be released today. Economists predicted that the monthly CPI data would increase to 0.4% from the previous month’s 0.2% rise, well above the Fed’s average annual 2% target. As of writing, the Dollar Index depreciated by 0.08% to 93.95.
In the commodities market, the crude oil price appreciated by 0.05% to $84.75 per barrel as of writing. The oil market surged over the backdrop of bullish inventory data. According to American Petroleum Institute (API), U.S. API Weekly Crude Oil Stock came in at -2.485M, lower than the market expectation at 1.900M. On the other hand, the gold price surged 0.05% to $1831.95 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
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core CPI (MoM) (Oct) | 0.20% | 0.40% | – |
| 21:30 | USD – Initial Jobless Claims | 269K | 265K | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 3.291M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 93.75. 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 higher while currently testing the resistance level at 1.3565. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3565, 1.3640
Support level: 1.3435, 1.3305
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1575. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1630, 1.1675
Support level: 1.1575, 1.1525
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 113.35. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 113.35, 114.50
Support level: 112.40, 111.60
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7375. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7455, 0.7545
Support level: 0.7375, 0.7300
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7105. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7210, 0.7275
Support level: 0.7105, 0.7030
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2460. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2460, 1.2580
Support level: 1.2310, 1.2170
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9100. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9215, 0.9305
Support level: 0.9100, 0.9020
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 84.50. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 84.50, 87.90
Support level: 81.30, 79.00
GOLD_, Daily: Gold price was traded higher while currently testing the resistance level at 1830.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1830.70, 1907.90
Support level: 1725.25, 1726.10
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives; risk associated and seek professional advice before deciding to trade or if you have any doubts.