06 January 2022 Afternoon Session Analysis
Euro surged amid hawkish tone from ECB.
The Euro surged over the backdrop of hawkish sentiment from the European Central Bank. According to Reuters, European Central Bank (ECB) governing council member Martins Kazaks claimed that the ECB is ready to increase interest rates and reduce aggressive stimulus plan in order to combat the high inflation risk. The central bank also expected that the Euro zone inflation rate will take longer to fall back to target than earlier thought. According to latest data, the Euro zone inflation ate hit 4.9% last month, a record high and most economist do not see it back under the ECB’s target until very late 2022. High inflation risk in future will prompt the central bank to implement contractionary monetary policy in future, insinuating market demand on the Euro. As of writing, EUR/USD appreciated by 0.01% to 1.1315.
In the commodities market, the crude oil price depreciated by 0.28% to $77.20 per barrel as of writing following OPEC+ agreed on Tuesday to increase another 400,000 barrels per day (bpd) of supply on February. On the other hand, the gold price depreciated by 0.15% to $1808.00 per troy ounces as of writing amid rate hike expectation for the global central bank.
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 |
| 17:30 | GBP – Composite PMI (Dec) | 57.6 | 53.2 | – |
| 17:30 | GBP – Services PMI (Dec) | 58.5 | 53.2 | – |
| 21:30 | USD – Initial Jobless Claims | 198K | 200K | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Dec) | 69.1 | 67.2 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 95.65. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward resistance level at 96.90.
Resistance level: 96.90, 97.50
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3615. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3475.
Resistance level: 1.3615, 1.3690
Support level: 1.3475, 1.3350
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1345. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1235.
Resistance level: 1.1345, 1.1440
Support level: 1.1235, 1.1175
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 116.25. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 116.25, 118.40
Support level: 112.85, 110.85
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7175. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7365, 0.7535
Support level: 0.7175, 0.6995
NZDUSD, Daily: NZDUSD was traded lower following prior retracement from the resistance level at 0.6840. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6710.
Resistance level: 0.6840, 0.6920
Support level: 0.6710, 0.6570
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.2625. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2825.
Resistance level: 1.2825, 1.2940
Support level: 1.2625, 1.2520
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9175. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9175, 0.9260
Support level: 0.9105, 0.9035
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 78.40. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 75.35.
Resistance level: 78.40, 80.60
Support level: 75.35, 72.50
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1806.90. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1830.55, 1850.40
Support level: 1806.90, 1786.30