6 May 2021 Morning Session Analysis
Dollar stumbled following the release of downbeat economic data.
The dollar index which gauges its value against a basket of six major currencies standstill while hovering near the recent high level as a series of downbeat data tumbled the dollar market sentiment. Yesterday, US ADP has reported the private sector employment data for the month of April at a softer-than-expected reading, where the actual reading and economist forecast were 742K and 800k respectively. Despite, the job data still posting the largest gains since September of 2020, indicating that the labor market managed to keep in track with the upward trend of acceleration and growth. However, the US ISM Services PMI posted a downbeat index at 62.7, lower than the market expectation at 64.3 and previous reading at 63.7. After a night of negative data released, dollar gains was limited while market participants are still awaiting for the upcoming crucial data such as Nonfarm Payroll in order to scrutinize the further direction of dollar index. During Asian early trading session, the dollar index dropped 0.03% to 91.25.
In the commodities market, crude oil price dropped by 0.20% to $65.10 per barrel despite a large draw in US oil inventories as the market participants are still concern over the resurgence of virus where it likely will continue to weigh on the demand of oil. Besides, the gold prices rose by 0.01% to $1786.75 a troy ounce amid weakening of dollar index.
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 |
|
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 lower following prior retracement from the resistance level at 91.25. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 90.95.
Resistance level: 91.25, 91.60
Support level: 90.95, 90.70
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3880. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.3925.
Resistance level: 1.3925, 1.3960
Support level: 1.3880, 1.3840
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1990. However, MACD which illustrated diminishing bearish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 1.2065, 1.2135
Support level: 1.1990, 1.1915
USDJPY, Daily: USDJPY was traded higher while currently testing near the resistance level at 109.20. MACD which illustrated bullish bias momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.20, 110.05
Support level: 108.30, 107.65
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7700. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7760.
Resistance level: 0.7760, 0.7805
Support level: 0.7700, 0.7665
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level at 0.7225. MACD which illustrated bullish bias momentum signal suggests the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7225, 0.7265
Support level: 0.7195, 0.7150
USDCAD, Daily: USDCAD was traded lower while currently testing near the support level at 1.2255. However, MACD which illustrated diminishing bearish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 1.2390, 1.2510
Support level: 1.2255, 1.2105
USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9110. MACD which illustrated diminishing bearish momentum suggests the pair to extend its gains toward the resistance level at 0.9185.
Resistance level: 0.9185, 0.9220
Support level: 0.9110, 0.9030
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 66.25. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 64.25.
Resistance level: 66.25, 67.60
Support level: 64.25, 62.20
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1787.05. MACD which illustrated bullish bias momentum signal suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1787.05, 1794.30
Support level: 1766.25, 1755.60