02 November 2021 Morning Session Analysis
Dollar slumped amid technical correction, eyed on FOMC meeting.
The Dollar Index which traded against a basket of six major currency pairs eased following posting its biggest daily rally in more than four months in the previous session amid technical correction. Nonetheless, the overall momentum for the US Dollar remained bullish amid market participants speculated the Federal Reserve will tend to announce a tapering of aggressive stimulus plan in order to combat the high inflation risk in future. Spiking numbers of inflation data has prompted some investment banks such as Goldman Sachs to advance their expectation of a rate hike by Fed as early as July 2022. In fact, money market predicted a 50% probability of a 25-basis point rate hike by next June, higher than the previous expectation at 15% probability, according to CME futures data. As for now, investors would continue to eye on the latest updates with regards of the monetary policy statement from Fed this week to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index depreciated by 0.25% to 93.90.
In the commodities market, the crude oil price appreciated by 0.04% to 84.20 per barrel as of writing. The oil market extends its gains amid upbeat demand outlook and strong economic recovery around the world following the Covid-19 restriction was lifted. On the other hand, the gold market surged 0.05% to $1791.50 per troy ounces as of writing amid technical correction.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Nov) | 0.10% | 0.10% | – |
| 16:55 | EUR – German Manufacturing PMI (Oct) | 58.2 | 58.2 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 94.05. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 93.40.
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 1.3655. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3730, 1.3825
Support level: 1.3655, 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 lower following prior retracement from the resistance level at 114.55. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 113.45.
Resistance level: 114.55, 115.40
Support level: 113.45, 112.05
AUDUSD, Daily: 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. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
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. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2440, 1.2525
Support level: 1.2295, 1.2170
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9075. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9155, 0.9225
Support level: 0.9075, 0.9005
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 83.30. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 85.85, 88.50
Support level: 83.30, 81.50
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1787.55. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1798.25.
Resistance level: 1798.25, 1808.90
Support level: 1787.55, 1778.15
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.