2 February 2021 Morning Session Analysis
Dollar surged following Republican’s lowball offer on stimulus plan.
The dollar index which gauges its value against a basket of six major currencies jumped significantly while lingering near the 8 weeks high level amid the likelihood of Biden administration bypass Republican lawmakers to fund its proposal increased as deadlock remained. In the latest round of negotiation, a group of 10 Republican members have introduced a idea of stimulus plan with a reported $600 billion monetary value, less than a third of the $1.9 trillion stimulus plan that sketched by Joe Biden during his first few days after taking over the White House office from former President Donald Trump. Inconformity over the size of President Joe Biden’s fiscal stimulus package stoked the market demand toward safe haven currency while carrying up the value of US dollar as of now. Despite a yawning gap exist between both parties, it is noteworthy that Democrats may use budget reconciliation, which known as a parliamentary measure to fund their relief package if no Republicans come onboard. Nonetheless, further negotiation on Covid-19 relief bill will be eyed by the investors in order to scrutinize the further direction of dollar index. As of writing, dollar index rose 0.46% to 91.00.
In the commodities market, the crude oil price appreciated by 0.13% to $53.60 per barrel as market participants are welcoming the oil production curb from OPEC+ as well as the voluntary additional 1 million bpd cut by its leader Saudi Arabia. Investors are seeing that the massive cut may tighten the market in the first quarter of 2021. Besides, gold price dropped 0.04% to $1860.00 per troy ounce amid strengthening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
All Day AUD RBA Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Jan) | 0.10% | 0.10% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the downward trendline. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 91.10.
Resistance level: 91.10, 91.60
Support level: 90.60, 90.25
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous upward trendline. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3620.
Resistance level: 1.3695, 1.3750
Support level: 1.3620, 1.3535
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2065. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.2020.
Resistance level: 1.2065, 1.2100
Support level: 1.2020, 1.1935
USDJPY, H4: USDJPY was traded lower following prior retracement from the higher level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 104.70.
Resistance level: 105.15, 105.50
Support level: 104.70, 104.35
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7635. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7635, 0.7670
Support level: 0.7565, 0.7505
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7165. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.7090.
Resistance level: 0.7165, 0.7240
Support level: 0.7090, 0.7015
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2865. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2865, 1.2930
Support level: 1.2790, 1.2695
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.8955. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.8985.
Resistance level: 0.8985, 0.9020
Support level: 0.8955, 0.8915
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 53.75. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 53.75.
Resistance level: 53.75, 54.50
Support level: 52.60, 51.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1861.75. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1842.90.
Resistance level: 1861.75, 1871.90
Support level: 1842.90, 1825.40