13 December 2021 Morning Session Analysis
Dollar slumped following inflation data.
The Dollar Index which traded against a basket of six major currency pairs slumped over the backdrop of downbeat inflation data last Friday. According to U.S. Bureau of Labor Statistics, U.S. Core Consumer Price Index (CPI) for last month notched down from the previous reading of 0.6% to 0.5%, roughly in line with market expectation. Though, market participants were bracing for much higher inflation due to the supply disruption and aggressive expansionary monetary policy when the Covid-19 pandemic hobbled the world economy almost single-handedly in 2019. Nonetheless, the overall trend for the US Dollar remained flat as traders are now gear up for the updates from the Federal Reserve’s meeting this week to receive further trading signal. The Fed will hold its final meeting of the year on 15-16th December while the Monetary Policy Committee (MPC) are expected to discuss accelerating the taper of the bond buying program to combat the high inflation risk. As of writing, the Dollar Index depreciated by 0.23% to 96.05.
In the commodities market, the crude oil price surged 1.89% to $72.25 per barrel as of writing. The oil market edged higher amid easing concerns over the Omicron variant. The latest data from medical experts indicated the symptom for the Omicron variant remained mile and can be mitigated with booster shots of the vaccine. On the other hand, the gold price surged 0.41% to $1782.75 per troy ounces as of writing amid weakening US Dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 96.35. MACD which illustrated increasing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 96.35, 96.80
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3195. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3355.
Resistance level: 1.3355, 1.3505
Support level: 1.3195, 1.3050
EURUSD, H4: EURUSD was traded within a range while currently near the resistance level at 1.1370. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1370, 1.1530
Support level: 1.1175, 1.1010
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 112.80. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 114.40.
Resistance level: 114.40, 115.40
Support level: 112.80, 112.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7175. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7175, 0.7280
Support level: 0.6995, 0.6825
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6815. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6815, 0.6950
Support level: 0.6640, 0.6530
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2720. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2720, 1.2825
Support level: 1.2645, 1.2585
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9260. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9155.
Resistance level: 0.9260, 0.9315
Support level: 0.9155, 0.9090
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 72.55. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 72.55, 75.60
Support level: 69.15, 65.60
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1790.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1790.00, 1811.50
Support level: 1762.20, 1729.60