5 July 2021 Morning Session Analysis
US dollar slumps after Nonfarm Payrolls.
Greenback depreciates slightly during early Asian trading session as latest employment data portrays mixed signals to investors. For the month of May, Nonfarm Payrolls came in at 850,000 jobs, beating forecast of 700,000 jobs. The increase is significant when compared to previous month which came in at only 583,000 jobs. However, unemployment rate rose from 5.8% to 5.9%, missing forecast of 5.7%. Investors were concerned that the uptick in unemployment rate may be contributed by expanded unemployment benefits that may hinder individuals from seeking jobs for the time being. However, analysts believed that the overall report shows strong rebound and uptrend in terms of hiring while any uptick in unemployment rate may be transitional factors. Likewise, the data has cemented the case for Federal Reserve to start tapering its asset purchases sooner than expected as employment market is expected to extend its recovery into the second half of 2021. As of writing, the dollar index was down 0.01% to 92.19.
In the commodities market, crude oil price depreciates by 0.02% to $74.70 per barrel. Oil prices extended its losses after OPEC+ failed to reach an agreement last Friday with regards to oil production increase quota. They are expected to resume the meeting later today which may provide more market signals to investors. On the other hand, gold price ticked up 0.01% to $1,786.26 a troy ounce over the backdrop of a weaker greenback.
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 |
|
16:30 |
GBP – Composite PMI (Jun) |
61.7 |
61.7 |
– |
|
16:30 |
GBP – Services PMI (Jun) |
61.7 |
61.7 |
– |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following a rebound from the lower levels. MACD which illustrated decreasing bearish momentum suggest the index to extend its gains in short-term.
Resistance level: 92.55, 92.85
Support level: 92.20, 91.90
GBPUSD, H4: GBPUSD was traded lower following prior retracement from higher level. MACD which illustrated diminished bullish momentum suggest the pair to be traded lower in short-term.
Resistance level: 1.3860, 1.3900
Support level: 1.3805, 1.3750
EURUSD, H4: EURUSD was traded lower following prior retrace from 1.1870. MACD which illustrated diminished bullish momentum suggest the pair to be traded lower in short-term.
Resistance level: 1.1879, 1.1915
Support level: 1.1840, 1.1810
USDJPY, H4: USDJPY was traded higher following prior rebound from 110.95. MACD which illustrated diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 111.30, 111.60
Support level: 110.95, 110.70
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7510. MACD which shows diminished bullish momentum suggests the pair to extend its losses after closing below 0.7510.
Resistance level: 0.7650, 0.7600
Support level: 0.7510, 0.7475
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7015. MACD which illustrate diminished bullish momentum suggests the pair to extend its losses after closing below 0.7015.
Resistance level: 0.7070, 0.7115
Support level: 0.7015, 0.6975
USDCAD, H1: USDCAD was traded higher following prior rebound from the support level at 1.2315. MACD which illustrated bullish momentum suggest the pair to extend its gains after closing above 1.2340.
Resistance level: 1.2340, 1.2370
Support level: 1.2315, 1.2285
USDCHF, H4: USDCHF was traded higher following a rebound near 0.9200. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.9230, 0.9270
Support level: 0.9200, 0.9135
CrudeOIL, H1: Crude oil price continues to trade within a tight range. Due to the lack of signal from both MACD and price action, it is suggested to wait for a breakout before entering the market.
Resistance level: 75.45, 76.05
Support level: 74.70, 74.00
GOLD_, H1: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate bearish momentum suggests its price to extend its losses after closing below 1783.00.
Resistance level: 1795.00, 1813.00
Support level: 1783.00, 1772.00