5 October 2021 Afternoon Session Analysis
Euro slips amid dovish stance from ECB.
The Euro which traded against the dollar and other currency pair remain pressured and fell following recent dovish statement from ECB. According to President of the European Central Bank, Christine Lagarde, she claimed that Eurozone was facing huge structural labor issues. More than one third proportion of unemployed people in Germany and France were out of work for at least 12 months. As a result, European Central Bank (ECB) emphasized to maintain its loose monetary policy through Pandemic Emergency Purchase Program (PEPP). On the other hand, recent hawkish statement from Fed is expected to continue provide support for the dollar, which at the same time diminishing the appeal for the Euro. The Fed has sent a clear signal that it will announce QE tapering plans “soon” which most likely means at their next meeting on 3rd November. On the other hand, EUR/USD fell 0.15% to $1.1602.
In the commodities market, crude oil price rose 0.10% to $77.54 per barrel as of writing following news of oil spill in California. According to Reuters, about 3,000 barrels of oil had been spilled into the Pacific Ocean from a pipeline connected to an offshore facility owned by a unit of Amplify Energy Corp. On the other hand, the gold price was up 0.05% to $1767.37 per troy ounces amid weakening US dollar.
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 |
| 11:30 | AUD – RBA Interest Rate Decision (Oct) | 0.10% | 0.10% | – |
| 16:30 | GBP – Composite PMI (Sep) | 54.1 | 54.1 | – |
| 16:30 | GBP – Services PMI (Sep) | 54.6 | 54.6 | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Sep) | 61.7 | 60 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level 93.70. MACD which illustrate diminishing bearish momentum signal suggest the dollar to extend its rebound towards the resistance level 94.35.
Resistance level: 94.35, 94.90
Support level: 93.70, 93.10
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level 1.3605. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 1.3605.
Resistance level: 1.3605, 1.3745
Support level: 1.3435, 1.3300
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level 1.1610. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses towards the support level 1.1515.
Resistance level: 1.1610, 1.1690
Support level: 1.1515, 1.1440
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level 110.75. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 111.50.
Resistance level: 111.50, 112.15
Support level: 110.75, 110.05
AUDUSD, H4: AUDUSD was traded lower following prior retracement from its high level. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its retracement towards the support level 0.7235.
Resistance level: 0.7335, 0.7415
Support level: 0.7235, 0.7150
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6915. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.6990, 0.7075
Support level: 0.6915, 0.6815
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.2585. MACD which illustrate diminishing bullish momentum signal suggest the pair to extend its rebound towards the resistance level 1.2695.
Resistance level: 1.2695, 1.2770
Support level: 1.2585, 1.2510
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9240. MACD illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9310.
Resistance level: 0.9310, 0.9375
Support level: 0.9240, 0.9185
CrudeOIL, H4: Crude oil was traded higher while currently testing near the resistance level 78.75. MACD which illustrate bullish momentum signal suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 78.75, 80.45
Support level: 76.40, 74.20
GOLD, H4: Gold price was traded lower following prior retracement from its high level. MACD which illustrate diminishing bullish momentum signal suggest the commodity to extend its retracement towards the support level 1747.05.
Resistance level: 1779.70, 1806.85
Support level: 1747.05, 1721.65