6 July 2022 Morning Session Analysis
Recession sentiment keep lingering in the market, US Dollar surged.
The Dollar Index which traded against a basket of six major currencies skyrocketed on Tuesday amid the backdrop of the rising market concern on economy recession. According to Bloomberg, the war-driven inflation in several countries had reach its all-time high, which brought negative prospects toward economic progression of the countries. Despite the major central banks had emphasized that they would likely to implement aggressive rate hike in order to bring down the spiking inflation, the aggressive move might also bring other side effects such as stagflation risk as the rate hike would likely to increase the borrowing cost of consumers. Thus, it prompted investors to shift their capitals toward safe-haven assets such as US Dollar. Besides, the market participants are also eyeing on the interest rate decisions from Federal Reserve in the upcoming meeting as Fed had vowed that they would take forcefully actions to tackle inflation if necessary, which sparkling the appeal of US Dollar. As of writing, the Dollar Index surged by 1.34% to 106.31.
In the commodities market, crude oil price appreciated by 1.42% to $100.91 per barrel after a sharp decline throughout the overnight trading session over the market recession fears which dragged down the oil demand. On the other hand, gold price edged up by 0.16% to $1766.70 per troy ounces as of writing. Nonetheless, gold price slumped on yesterday following the surge of 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 |
| 16:30 | GBP – Construction PMI (Jun) | 56.4 | 55.0 | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Jun) | 55.9 | 54.5 | – |
| 22:00 | USD – JOLTs Job Openings (May) | 11.400M | 11.050M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the index to extend its gains.
Resistance level: 106.95, 107.70
Support level: 105.90, 105.25
GBPUSD, H4: GBPUSD was traded lower following prior breakout the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 1.2010, 1.2115
Support level: 1.1870, 1.1755
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 1.0315, 1.0385
Support level: 1.0235, 1.0145
USDJPY, H4: USDJPY was traded lower while currently testing the support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses if successfully breakout the support level.
Resistance level: 136.65, 137.35
Support level: 135.55, 134.25
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level. MACD which illustrated decreasing bearish momentum suggest the pair to extend it gains.
Resistance level: 0.6850, 0.6930
Support level: 0.6770, 0.6665
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains.
Resistance level: 0.6235, 0.6295
Support level: 0.6145, 0.6060
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses.
Resistance level: 1.3035, 1.3095
Support level: 1.2940, 1.2875
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.9740, 0.9820
Support level: 0.9675, 0.9595
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level. MACD which illustrated decreasing bearish momentum suggest the commodity to extend its gains.
Resistance level: 103.30, 107.60
Support level: 97.70, 93.55
GOLD_, H4: Gold price was traded higher while currently testing the resistance level. MACD which illustrated decreasing bearish momentum suggest the commodity to extend its gains if successfully breakout the resistance level.
Resistance level: 1771.10, 1785.90
Support level: 1753.25, 1737.30