1 July 2022 Morning Session Analysis
US Dollar slumped over the downbeat economic data.
The Dollar Index which traded against a basket of six major currencies slumped on Thursday amid the backdrop of bearish economic data. According to Bureau of Economic Analysis, the US Core PCE Price Index MoM for May came in at the reading of 0.3%, missing the market expectation of 0.4%. The Core PCE Price Index was used to determine the changes in the price of goods and services purchased by consumers for the purpose of consumption, which excluding food and energy. The lower-than-expected reading indicated that the inflation started to slow down, which reducing the odds of rate hike from Federal Reserve. Besides, despite the US Initial Jobless Claims notched down from the previous reading of 233K to 231K, the reading still higher than the market forecast of 228K. The fragile labor market would jeopardize the economic progression in US, which prompting investors to shift their capital toward other assets which having better prospects. As of writing, the Dollar Index depreciated by 0.33% to 104.50.
In the commodities market, crude oil price appreciated by 0.32% to $106.10 per barrel after a sharp decline throughout the overnight session as concerns over slowing economic growth beaten down the market demand. On the other hand, gold price eased by 0.06% to $1806.25 per troy ounce as of writing amid major central banks adopting aggressive rate hike to combat inflation risk.
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 |
| 15:55 | EUR – German Manufacturing PMI (Jun) | 52.0 | 52.0 | – |
| 16:30 | GBP – Manufacturing PMI (Jun) | 53.4 | 53.4 | – |
| 17:00 | EUR – CPI (YoY) (Jun) | 8.1% | 8.3% | – |
| 22:00 | USD – ISM Manufacturing PMI (Jun) | 56.1 | 55.0 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level. MACD which illustrated increasing bearish momentum suggest the index to extend its losses.
Resistance level: 104.80, 105.90
Support level: 103.65, 102.50
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 1.2190, 1.2270
Support level: 1.2115, 1.2010
EURUSD, H4: EURUSD 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: 1.0530, 1.0605
Support level: 1.0450, 1.0385
USDJPY, H4: USDJPY was traded lower while currently testing the support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 136.65, 137.35
Support level: 135.55, 134.25
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend it losses.
Resistance level: 0.6930, 0.7005
Support level: 0.6850, 0.6770
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains.
Resistance level: 0.6295, 0.6350
Support level: 0.6235, 0.6145
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: 1.2875, 1.2940
Support level: 1.2800, 1.2730
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses.
Resistance level: 0.9595, 0.9675
Support level: 0.9520, 0.9455
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the commodity to be traded higher as technical correction.
Resistance level: 107.60, 111.35
Support level: 103.30, 97.70
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the commodity to be traded higher as technical correction.
Resistance level: 1807.95, 1819.70
Support level: 1798.50, 1785.90