03 November 2021 Morning Session Analysis
Euro slumped amid downbeat data.
The Euro slumped over the backdrop of bearish economic data from European region yesterday. According to Markit Economics, Germany Manufacturing Purchasing Managers Index (PMI) notched down significantly from the previous reading of 58.4 to 57.8, missing the market forecast at 58.2. Ongoing disruptions caused by the Covid-19 pandemic, alongside with Brexit tensions between the European Union and UK, has caused supply shortage and left factories struggling to get the raw materials they need. Economist expected that input shortages and transportation issues would continue to harm the manufacturing sector in European region and stay for foreseeable future. Supply chain issues and also rising inflation would continue to be dialing down the market optimism toward the economic progression. Nonetheless, European Central Bank President Christine Lagarde acknowledged that if inflation continue to persist, the ECB would likely to announce an ECB interest rate hike as soon as next year in order to combat such risk. As of writing, EUR/USD depreciated by 0.01% to 1.1575.
In the commodities market, the crude oil price depreciated by 0.18% to $83.15 per barrel as of writing. The oil market edged lower following bearish inventory data was released. According to American Petroleum Institute (API), U.S. API Weekly Crude Oil Stock came in at 3.594M, exceeding the market forecast at 1.567M. On the other hand, the gold price slumped 0.05% to $1786.85 per troy ounces as of writing amid market participants anticipated that the Federal Reserve might start to announce tapering bond purchasing program during the FOMC meeting this week.
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 |
| 17:30 | GBP – Composite PMI (Oct) | 56.8 | 56.8 | – |
| 17:30 | GBP – Services PMI (Oct) | 58 | 58 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Oct) | 568K | 400K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 4.267M | – | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Oct) | 61.9 | 62.1 | – |
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 following prior breakout below the previous support level at 1.3650. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3650, 1.3730
Support level: 1.3580, 1.3530
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 diminishing bearish 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 lower while currently testing the support level at 0.7435. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
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 0.7110. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7155, 0.7240
Support level: 0.7110, 0.7015
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 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 lower while currently testing the support level at 82.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 84.75, 85.85
Support level: 82.75, 80.95
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1787.55. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
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.