02 February 2021 Afternoon Session Analysis
Euro remains pressured following vaccine woes.
During late Asian session, the euro which traded against the dollar and other currency pairs have fell following growing crisis over vaccine supply shortages in the EU. Following latest development, France and Germany have threaten to take legal action against AstraZeneca over a shortage of deliveries of coronavirus vaccines even as an inspection of a plant in Belgium confirmed the company’s claims of production problems. With the shortage of vaccine and slow vaccination rollout, Europe still don’t have any contingency plan to resolve the slowdown issue of the vaccination process and it resulted in a continuous decline in optimism towards economic recovery in the EU. On the other hand, IMF have cut its growth expectations for the EU region by 1 percentage point to 4.2% this year and does not expect the euro area economy to return to end-of-2019 growth levels before the end of 2022. This have added further pressure for the pair and dragging the value further down. At the time of writing, EUR/USD sips 0.03% to 1.2079.
In the commodities market, crude oil price soars 1.12% to $54.10 per barrel as of writing following demand recovery hopes. Saudi Aramco estimates that demand will return to pre-COVID-19 levels later in the year, adding that it is confident the worst of the pandemic is now over. At the same time, output cut from Saudi Arabia also continue to support the price. Next, gold price edge lower 0.25% to $1855.93 a troy ounce amid dollar strength.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was lower following prior retracement from the resistance level at 90.90. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 90.45.
Resistance level: 90.90, 91.35
Support level: 90.45, 90.00
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3665. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3740.
Resistance level: 1.3740, 1.3795
Support level: 1.3665, 1.3610
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.2065. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2165, 1.2215
Support level: 1.2065, 1.1985
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 105.00. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 105.00, 105.35
Support level: 104.50, 103.80
AUDUSD, H4: AUDUSD was traded higher while currently near the resistance level at 0.7670. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7670, 0.7735
Support level: 0.7615, 0.7565
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7165. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7235, 0.7305
Support level: 0.7165, 0.7110
USDCAD, H1: USDCAD was traded lower following prior retracement from the resistance level at 1.2865. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2780.
Resistance level: 1.2865, 1.2925
Support level: 1.2770, 1.2690
USDCHF, Daily: USDCHF was traded higher while currently near the resistance level at 0.8980. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.8980, 0.9040
Support level: 0.8920, 0.8845
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the resistance level at 53.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 55.60.
Resistance level: 55.60, 57.10
Support level: 53.70, 52.05
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1875.95. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1847.30.
Resistance level: 1875.95, 1892.60
Support level: 1847.30, 1824.50