11 November 2021 Morning Session Analysis
Dollar surged amid rate hike speculation.
The Dollar Index which traded against a basket of six major currency pairs surged significantly following the U.S. Consumer Prices Index increased to their highest rate since 1990, insinuating hopes for the Federal Reserve to increase the interest rate sooner than expected. According to Bureau of Labor Statistics, U.S. Core Consumer Price Index (CPI) notched up significantly from the previous reading of 0.2% to 0.6%, exceeding the market forecast at 0.4%. Despite the Federal Reserve last week restated its belief that the current inflation hike would only be transitory, many investors fear that underestimating price increases could prove to be a costly policy mistake. Contractionary monetary policy as well as rising interest rate would decrease the money circulation in the financial market, which increasing the appeal for the US Dollar. Nonetheless, the gains experienced by the US Dollar was limited by the bearish job data. Department of Labor reported that the U.S. Initial Jobless Claims came in at 267K, missing the market forecast at 265K. As of writing, the Dollar Index appreciated by 1.01% to 94.90.
In the commodities market, the crude oil price depreciated by 3.87% to 81.50 per barrel as of writing amid technical correction following it reached the recent high. Nonetheless, the losses experienced by the crude oil was limited over the backdrop of bullish inventory data. U.S. Crude Oil Inventories came in at 1.001M, lower than the market forecast at 2.125M, according to Energy Information Administration (EIA). On the other hand, the gold price surged 1.05% to $1851.10 per troy ounces as of writing amid high inflation risk in future continue to increase the appeal for the safe-haven gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 EUR ECB Forecast
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 10:00 | CNY – Industrial Production (YoY) (Oct) | 3.10% | 3.10% | – |
| 15:00 | GBP – GDP (YoY) (Q3) | 23.60% | 6.80% | – |
| 15:00 | GBP – GDP (QoQ) (Q3) | 5.50% | 1.50% | – |
| 15:00 | GBP – Manufacturing Production (MoM) (Sep) | 0.50% | 0.10% |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 94.50. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 95.15.
Resistance level: 95.15, 95.60
Support level: 94.50, 93.80
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3405. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3615, 1.3815
Support level: 1.3405, 1.3305
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1530. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1370.
Resistance level: 1.1530, 1.1680
Support level: 1.1370, 1.1220
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 113.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 114.55.
Resistance level: 114.55, 115.40
Support level: 113.40, 112.80
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7305. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7380, 0.7435
Support level: 0.7305, 0.7220
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7055. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7110, 0.7165
Support level: 0.7055, 0.6995
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.2465. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2525.
Resistance level: 1.2525, 1.2590
Support level: 1.2465, 1.2400
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9155. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9225.
Resistance level: 0.9225, 0.9305
Support level: 0.9155, 0.9075
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 81.25. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 83.30, 85.85
Support level: 81.25, 79.15
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1855.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1855.00, 1870.40
Support level: 1830.65, 1809.10
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.