05 August 2021 Morning Session Analysis
Dollar surged on hawkish statement.
The Dollar Index which traded against a basket of six major currency pairs surged following a top U.S. Federal Reserve official unleashed its hawkish statement toward the US economic outlook. According to Reuters, the Fed Vice Chair Richard Clarida claimed that the Federal Reserve may start to taper its aggressive monetary policy as the US economy had recovered faster than widely thought. The bullish comments from the Federal Reserve had spurred a rebound in U.S. Treasury yields, which increasing the appeal of the US Dollar. On the economic data front, the crucial economic data from United States yesterday came in at mixed results. According to Automatic Data Processing (ADP), U.S. ADP Nonfarm Employment Change notched down significantly from the previous reading of 680K to 330K, missing the market forecast at 695K. Nonetheless, U.S ISM Non-Manufacturing Purchasing Managers Index (PMI) came in at 64.1, better than the market forecast at 60.5. As of writing, the Dollar Index appreciated by 0.03% to 92.30.
In the commodities market, the crude oil price slumped 0.35% to $68.40 per barrel as of writing over the backdrop of bearish inventory data. According to Energy Information Administration, U.S. Crude Oil Inventories came in at 3.626M, missing the market forecast at -3.102M. On the other hand, the gold price slumped 0.08% to $1810.30 per troy ounces amid strengthening US 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 – Construction PMI (Jul) | 66.3 | 63.8 | – |
| 19:00 | GBP – BoE Interest Rate Decision (Aug) | 0.10% | 0.10% | – |
| 20:30 | USD – Initial Jobless Claims | 400K | 380K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level at 91.80. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward resistance level at 92.25.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3880. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3980, 1.4100
Support level: 1.3880, 1.3805
EURUSD, H4: EURUSD was traded lower following prior retracement form the resistance level at 1.1885. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1775.
Resistance level: 1.1885, 1.1955
Support level: 1.1775, 1.1725
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.75. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.75, 110.55
Support level: 109.20, 108.45
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7410. MACD which illustrated increasing bearish momentum suggest the pair to extend it losses toward support level at 0.7320.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7120.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2550. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2550, 1.2670
Support level: 1.2440, 1.2275
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9035. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9135, 0.9230
Support level: 0.9035, 0.8940
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 68.00. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 71.10, 74.80
Support level: 68.00, 65.05
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1813.05. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1813.05, 1823.35
Support level: 1795.70, 1773.45