5 March 2021 Morning Session Analysis
Dollar surged as treasury yield jumps after Powell’s comment.
The dollar index which gauges its value against a basket of six major currencies managed to extend its rally yesterday while ended the session at the 3 months high-level following Federal Reserve (Fed) Chairman Jerome Powell statement. Earlier on, Powell revealed that there was potential for a temporary jump in inflation as economic reopening could create some upward pressure on good and services ’s prices. Besides, Jerome Powell also stated that he has noticed that the treasury yield in US has been rising significantly in the last few weeks, but mentioned that the Fed would continue observe before taking any action to try to influence the long-term yields. With the backdrop of rate hike expectation from the market participants, Powell responded that the US central bank will be “patient” and remains their unfolded monetary policy until the inflation rate has risen to their objective, which is above a sustainable level at 2%. Powell statement ended up boosted the 10 years treasury yield above 1.5%, exerting huge bullish momentum in dollar market. During Asian trading session, dollar index rose by 0.74% to 91.62.
In the commodities market, the crude oil price appreciated by 0.39% to $64.22 per barrel as OPEC+ coalition agreed to extend their current oil cut plan to April. In the OPEC meeting, OPEC and its allies achieved a consensus where they chose to not adjusting their oil cut plan for the month of April, reasoning that they are worry the pandemic could still undermine the recovering of oil demand. Besides, gold price dropped 0.04% to $1696.60 a troy ounce amid dollar strengthened.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Nonfarm Payrolls (Feb) | 49K | 18K | – |
| 21:30 | USD – Unemployment Rate (Feb) | 6.3% | 6.3% | – |
| 23:30 | CAD – Ivey PMI (Feb) | 48.4 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 91.55. MACD which illustrated bullish bias momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 91.55, 92.10
Support level: 90.90, 90.45
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3945. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3845.
Resistance level: 1.3945, 1.4000
Support level: 1.3845, 1.3755
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1950. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after its successfully breakout below the support level.
Resistance level: 1.2025, 1.2065
Support level: 1.1950, 1.1890
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 108.00. MACD which illustrated bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 108.00, 108.25
Support level: 107.70, 107.35
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7700. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7735, 0.7775
Support level: 0.7700, 0.7670
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7165. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7225, 0.7290
Support level: 0.7165, 0.7105
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2610. MACD which illustrate bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.2685.
Resistance level: 1.2685, 1.2770
Support level: 1.2610, 1.2555
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9290. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9290, 0.9370
Support level: 0.9225, 0.9180
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 64.80. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 64.80.
Resistance level: 64.80, 66.10
Support level: 63.55, 62.45
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1698.30. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses after its candle closed below the support level at 1698.30.
Resistance level: 1716.70, 1738.10
Support level: 1698.30, 1666.70