01 November 2021 Morning Session Analysis
Dollar surged amid hawkish expectation from Fed.
The Dollar Index which traded against a basket of six major currency pairs rebounded significantly following the US Treasury yields rose on the expectation that the Federal Reserve might start to taper their aggressive monetary policy in order to combat the high inflation risk in future. According to US Department of Commerce, U.S. PCE Price Index notched up significantly from the previous reading of 4.2% to 4.4% annual rate in September, continuing a run of inflation at levels not seen in 30 years. As for now, controlling inflation is one of the Fed’s top priorities to maintain their economic stability. Such high inflation rate would increase the probability for the Monetary Policy Committee (MPC) to announce their policy meeting this week to drawback in their monthly purchases of bonds and securities. Despite that, the overall statement from the Fed remained vague, hence investors would continue to scrutinize the crucial updates from Fed to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index appreciated by 0.89% to 94.15.
In the commodities market, the crude oil price surged 0.20% to 83.65 per barrel as of writing. The oil market edged higher amid market participants remained positive that the rapid vaccination program around the world as well as easing Covid-19 cases would insinuate the crude oil demand in future. On the other hand, the gold price slumped 0.85% to $1783.40 per troy ounces as of writing amid strengthening 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 |
| 17:30 | GBP – Manufacturing PMI (Oct) | 57.7 | 57.7 | – |
| 23:00 | USD – ISM Manufacturing PMI (Oct) | 61.1 | 60.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 94.05. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 94.05, 94.50
Support level: 93.40, 93.05
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3665. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3730, 1.3825
Support level: 1.3665, 1.3580
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.1530. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1680, 1.1875
Support level: 1.1530, 1.1370
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 113.45. 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: 113.45, 112.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7530. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7530, 0.7595
Support level: 0.7435, 0.7380
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7155. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7240, 0.7300
Support level: 0.7155, 0.7110
USDCAD, H4: USDCAD was traded higher while currently near the resistance level at 1.2440. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2440, 1.2525
Support level: 1.2295, 1.2170
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9155. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9155, 0.9225
Support level: 0.9075, 0.9005
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 83.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 83.30, 85.85
Support level: 81.50, 78.90
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1778.15 MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1787.55, 1798.25
Support level: 1778.15, 1766.05
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.