22 April 2022 Afternoon Session Analysis
Euro slumped following ECB unleashed dovish tone.
The Euro extends its losses over the backdrop of the dovish tone from European Central Bank yesterday. According to Reuters, European Central Bank President Christine Lagarde claimed that the ECB may need to downgrade its growth outlook further amid the rising tensions between Russia-Ukraine continue to dial down the market optimism toward the economic progression in the European region. The Money Markets, which had eased rate hike expectation following the ECB meeting, were now pricing in a more than 20 basis-point (bps) rate hike by July and nearly 80 basis point of rate hike by year-end. On the other hand, the New Zealand Dollar slumped following the release of bearish economic data. According to Statistics, New Zealand, the Consumer Price Index (CPI) for last quarter in New Zealand region came in at only 1.8%, worse than the market forecast at 2.0%. Lower inflation data would likely to diminish the probability of aggressive contractionary monetary policy, dragging down the appeal for the New Zealand Dollar. As of writing, EUR/USD depreciated by 0.01% while NZD/USD slumped 0.31% to 0.6720.
In the commodities market, the crude oil price slumped 1.31% to $103.40 per barrel as of writing. The crude oil price was traded lower as investors remained concerns about the spiking number of Covid-19 cases in China would likely to weigh down the demand on this black commodity. On the other hand, the gold price slumped 0.03% to $1950.65 per troy ounces as of writing amid rate hike expectation from Federal Reserve.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:00 EUR ECB President Lagarde Speaks
22:30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (Mar) | -0.30% | -0.30% | – |
| 15:30 | EUR – German Manufacturing PMI (Apr) | 56.9 | 54.4 | – |
| 16:30 | GBP – Manufacturing PMI | 55.2 | – | – |
| 16:30 | GBP – Services PMI | 62.6 | – | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Feb) | 2.50% | 2.40% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower as technical correction.
Resistance level: 101.20, 102.20
Support level: 99.25, 97.80
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2995. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after breakout.
Resistance level: 1.3135, 1.3200
Support level: 1.2995, 1.2855
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses.
Resistance level: 1.0905, 1.0975
Support level: 1.0770, 1.0690
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 129.45, 132.30
Support level: 127.65, 126.00
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses.
Resistance level: 0.7355, 0.7455
Support level: 0.7270, 0.7180
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses.
Resistance level: 0.6715, 0.6820
Support level: 0.6630, 0.6535
USDCAD, Daily: USDCAD was traded higher while currently near the resistance level. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.2635, 1.2750
Support level: 1.2485, 1.2315
USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level.
Resistance level: 0.9580, 0.9710
Support level: 0.9455, 0.9230
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after breakout the support level.
Resistance level: 107.10, 111.60
Support level: 101.50, 97.75
GOLD_, H4: Gold price was traded higher following prior rebound from the support level. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level.
Resistance level: 1963.00, 1975.00
Support level: 1945.05, 1917.95