6 January 2022 Morning Session Analysis
Fed minutes pushes greenback forward.
US dollar rebounds from lower levels earlier today after Federal Reserve delivered bullish signal within their meeting minutes. According to the minutes, several Fed officials suggests that monetary policy should be tightened faster than expected as US jobs market recovered substantially for the past few months. At the same time, Feds also discussed the possibility to reduce their balance sheet after rate hike was initiated in order to curb rising inflation. After the release of meeting minutes, Fed Rate Monitor Tool shows that investors are currently pricing in for an 80% chance of rate hike during March’s policy meeting. Although Omicron spreads rapidly in the US, Fed is expected to take a more aggressive action as inflation continues to hover at 30 years high. Likewise, market sentiment towards the US dollar remains positive even as US recorded more than 1 million new coronavirus cases last Monday. As of writing, the dollar index was up 0.01% to 96.12.
As for commodities, crude oil price was down 0.09% to $77.14 per barrel. Last night, data from US shows that its crude oil inventory levels were down by -2.144M, significantly lower than forecasted reading of -3.283M. On the other hand, gold price was down 0.06% to $1,811.30 a troy ounce due to stronger 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 |
| 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 lower levels. MACD which shows bullish signal suggests the index to be traded higher in short-term.
Resistance level: 96.35, 96.60
Support level: 96.10, 95.85
GBPUSD, H4: GBPUSD was traded lower following prior retracement from higher level. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower in short-term.
Resistance level: 1.3570, 1.3630
Support level: 1.3510, 1.3470
EURUSD, H4: EURUSD was traded lower following prior retracement from higher level. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower in short-term.
Resistance level: 1.1320, 1.1370
Support level: 1.1285, 1.1250
USDJPY, Daily: USDJPY was traded higher following prior rebound from lower levels. MACD which illustrate bullish signal suggests the pair to be traded higher after breaking its resistance level.
Resistance level: 116.25, 117.00
Support level: 115.40, 114.55
AUDUSD, H4: AUDUSD was traded lower following prior retracement from higher level. MACD which illustrate bearish signal suggests the pair to be traded lower short-term.
Resistance level: 0.7225, 0.7280
Support level: 0.7180, 0.7140
NZDUSD, H4: NZDUSD was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 0.6830, 0.6870
Support level: 0.6780, 0.6740
USDCAD, H4: USDCAD was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to be traded higher after closing above 1.2765.
Resistance level: 1.2765, 1.2835
Support level: 1.2690, 1.2620
USDCHF, H4: USDCHF was traded higher following prior rebound from lower level. MACD which illustrate bullish momentum suggests the pair to be traded higher in short-term.
Resistance level: 0.9190, 0.9210
Support level: 0.9165, 0.9130
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from higher levels. MACD which illustrate diminished bullish momentum suggests its price to be traded lower in short-term.
Resistance level: 77.35, 80.15
Support level: 75.15, 72.90
GOLD_, H4: Gold price was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests its price to be traded lower in short-term.
Resistance level: 1812.80, 1830.20
Support level: 1797.60, 1784.90