04 August 2021 Afternoon Session Analysis
Dollar slips as market cautious ahead of job data.
The dollar index which traded against t a basket of six major currency pairs have fell as traders reluctant to take huge positions ahead of key U.S jobs data at the end of the week. Since Fed Chairman Jerome Powell indicated recently that they will not consider increase rate in near term, the dollar has been experiencing selling pressure and trended lower. On data front, recent U.S manufacturing growth slowed for the second straight month which further confirm Powell’s belief that more economic progress was needed before considering any changes in bond-buying program. Weak data and dovish note are expected to keep the dollar under pressure while market will focus towards U.S official jobs reports on Friday to access the recovery rate of U.S. At the time of writing, dollar index fell 0.07% to 91.95.
In the commodities market, crude oil price fell 0.03% to $70.40 per barrel as of writing following concerns of Delta variant will diminish crude demand. Following latest development, the world’s two biggest oil consumer, U.S and China are battling with rapidly spreading Delta variant outbreak which may limit fuel demand. The spread of inland cities has cause China authorities to impose strict measures in order to control the outbreak. On the other hand, gold price rose 0.25% to $1814.13 a troy ounce at the time of writing following weak 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 |
| 16:30 | GBP – Services PMI (Jul) | 57.8 | 57.8 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Jul) | 692K | 700K | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Jul) | 60.1 | 60.4 | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -4.089M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level 92.05. MACD which illustrate diminishing bullish momentum signal suggest the dollar to extend its retracement towards the support level 91.60.
Resistance level: 92.05, 92.65
Support level: 91.60, 91.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.3890. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 1.3990.
Resistance level: 1.3990, 1.4105
Support level: 1.3890, 1.3735
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1880. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 1.1810.
Resistance level: 1.1880, 1.1950
Support level: 1.1810, 1.1755
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level 109.20. MACD which illustrate bearish bias signal suggest the pair to extend its losses towards the support level 108.65.
Resistance level: 109.20, 109.70
Support level: 108.65, 108.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.7415. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.7415, 0.7485
Support level: 0.7330, 0.7245
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.7075. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level.
Resistance level: 0.7075, 0.7135
Support level: 0.7000, 0.6925
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level 1.2530. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 1.2440.
Resistance level: 1.2530, 1.2600
Support level: 1.2440, 1.2350
USDCHF, H4: USDCHF was traded lower while currently testing the support level 0.9040. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9090, 0.9135
Support level: 0.9040, 0.8990
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 71.10. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses towards the support level 68.40.
Resistance level: 71.10, 74.60
Support level: 68.40, 66.25
GOLD_, H4: Gold price was traded flat currently testing the resistance level 1815.80. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 1815.80, 1831.85
Support level: 1792.10, 1762.20