5 October 2022 Afternoon Session Analysis
Euro extends its gains as hawkish tone from ECB.
The Euro extends its gains following the European Central Bank unleashed their hawkish tone toward the economic prospect. According to Reuters, the European Central Bank claimed that they would begin to stop stimulating the economy through its monetary policy as inflation rate climbed to all time high, while reiterating to increase interest rate back to its “neutral” territory. Earlier, the Euro zone inflation exceeded past forecasts to hit 10.0% in September, a new record high which will reinforce the European Central Bank for another jumbo interest rate hike next month. Recently, the energy prices started to rebound from its lower level over the speculation of OPEC oil cut, which continue to spur further inflation risk for the Euro zone. While the ECB’s next interest rate meeting is still almost a month away, the policymakers have already made statement with regards of another 75-basis point rate hike on 27th October following a combined 125 basis point of moves in earlier two meetings. As of writing, EUR/USD depreciated by 0.14% to 0.9965.
In the commodities market, the crude oil price appreciated by 0.01% to $86.15 per barrel as of writing over the backdrop of downbeat inventory data. According to American Petroleum Institute (API), US API Weekly Crude Oil Stock came in at -1.770M, missing the market forecast at 1.966M. On the other hand, the gold price appreciated by 0.39% to $1719.30 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
All Day CNY China – National Day
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
23:00 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Composite PMI (Sep) | 48.4 | 48.4 | – |
| 16:30 | GBP – Services PMI (Sep) | 49.2 | 49.2 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (Sep) | 132K | 205K | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Sep) | 56.9 | 56 | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -0.215M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level. MACD which illustrated increasing bearish momentum suggest the index to extend its losses.
Resistance level: 111.40, 113.65
Support level: 107.55, 104.85
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.1455, 1.1730
Support level: 1.1065, 1.0890
EURUSD, Daily: EURUSD was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level.
Resistance level: 1.0145, 1.0315
Support level: 0.9915, 0.9740
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 145.35, 152.80
Support level: 140.75, 136.55
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.6515, 0.6645
Support level: 0.6385, 0.6185
NZDUSD, Daily: NZDUSD was traded higher following prior rebounded from the support level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level.
Resistance level: 0.5850, 0.6030
Support level: 0.5590, 0.5465
USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level.
Resistance level: 1.3775, 1.3970
Support level: 1.3365, 1.3100
USDCHF, H4: USDCHF was traded lower while currently near the support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after breakout.
Resistance level: 0.9860, 0.9965
Support level: 0.9750, 0.9640
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower as technical correction.
Resistance level: 86.35, 89.65
Support level: 81.95, 76.80
GOLD_, H4: Gold price was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower as technical correction.
Resistance level: 1733.75, 1761.60
Support level: 1700.60, 1676.30