06 May 2021 Afternoon Session Analysis
Aussie plunged following tension between China and Australia.
During late Asian session, the Australian which traded against the dollar and other currency pairs have experience a sharp drop after news of Beijing suspend high level economic dialogue with Australia. According to reports, China’s top economic planner stated that it has “indefinitely suspended” its high-level economic dialogue with. The decision is following on Australia’s move to revoke Victoria state’s participation in China’s Belt and Road Initiative. Escalating tension between U.S and China would potentially affect trade relationship and diminishing investors’ confidence, thus causing a huge sell off pressure for the Aussie. At the time of writing, AUD/USD fell 0.43% to 0.7711.
In the commodities market, crude oil price rose 0.81% to $65.77 per barrel as of writing following expectations of rising global demand. Despite with coronavirus situation remain serious in certain countries, overall sentiment remains positive as rising mobility, the reopening of the economies, and the stimulus packages all point to strong economic growth and consequently, strong oil demand growth. On the other hand, gold price rose 0.17% to $1789.67 a troy ounce at the time of writing amid dollar retreat.
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 – Composite PMI (Apr) | 56.4 | 60.0 | – |
| 16:30 | GBP – Services PMI (Apr) | 56.3 | 60.1 | – |
| 19:00 | GBP – BoE Interest Rate Decision (May) | 0.10% | 0.10% | – |
| 20:30 | USD – Initial Jobless Claims | 553K | 540K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 91.30. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 91.30, 91.70
Support level: 90.80, 90.45
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3910. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3800.
Resistance level: 1.3910, 1.4000
Support level: 1.3800, 1.3755
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1985. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2055, 1.2130
Support level: 1.1985, 1.1920
USDJPY, H4: USDJPY was traded within a range while currently near the support level at 109.05. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 109.65, 110.35
Support level: 109.05, 108.45
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7695. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7755, 0.7815
Support level: 0.7695, 0.7655
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.7110. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7235, 0.7320
Support level: 0.7110, 0.7015
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2255. However, MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2335, 1.2410
Support level: 1.2255, 1.2140
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9080. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9225.
Resistance level: 0.9225, 0.9365
Support level: 0.9080, 0.8985
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 64.90. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 66.40, 67.90
Support level: 64.90, 63.25
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1794.40. MACD which illustrated increasing bullish momentum suggest the commodity to extn edits gains after it successfully breakout above the resistance level.
Resistance level: 1794.40, 1814.15
Support level: 1765.65, 1745.35