02 August 2021 Morning Session Analysis
Dollar surged on hawkish tone.
The Dollar Index which traded against a basket of six major currency pairs rebounded on last Friday following the member of Federal Reserve James Bullard unleashed its hawkish tone. According to Reuters, James Bullard claimed that the Federal Reserve should start to reduce its $120 billion in monthly bond purchases and contract its monetary policy in the first months of 2022 and paves the way to increase interest rate that year if needed in order to combat the high inflation risk. Bullard was the first Fed member to speak publicly following the central bank’s meeting this week. Nonetheless, Fed Chair Jerome Powell said that the US job market recovery still “a way off” from Fed’s target while Fed still needed to maintain its aggressive monetary policy to boost the economic momentum. The overall statement from the Fed remained vague, hence investors should continue to scrutinize the latest updates with regards of the future monetary policy plan to gauge the likelihood movement for the US Dollar. As of writing, The Dollar Index surged 0.10% to 92.08.
In the commodities market, the crude oil price extends its gains by 0.10% to $73.80 per barrel as of writing. The oil market edged higher amid market participants speculated that the rapid Covid-19 vaccination program would able to enhance the oil demand in future. On the other hand, the gold price slumped 0.10% to $1816.15 per troy ounces as of writing amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Manufacturing PMI (Jul) | 65.6 | 65.6 | – |
| 16:30 | GBP – Manufacturing PMI (Jul) | 60.4 | 60.4 | – |
| 22:00 | USD – ISM Manufacturing PMI (Jul) | 60.6 | 60.9 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 91.80. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3890. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3980, 1.4100
Support level: 1.3890, 1.3830
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1885. However, MACD which diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1885, 1.1955
Support level: 1.1775, 1.1725
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.70. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.70, 110.55
Support level: 109.05, 108.55
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7320. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded higher following prior rebounded from the support level at 1.2440. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2535.
Resistance level: 1.2535, 1.2670
Support level: 1.2440, 1.2275
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9035. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9135, 0.9230
Support level: 0.9035, 0.8940
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 72.25. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 74.80, 76.20
Support level: 72.25, 69.85
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1813.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1832.25, 1851.85
Support level: 1813.05, 1799.60