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06 December 2021                            Morning Session Analysis

Dollar traded flat amid mixed economic data.

The Dollar Index which traded against a basket of six major currency pairs was traded within a range over the backdrop of mixed economic data from the United States last week. According to Bureau of Labor Statistics, U.S. Unemployment Rate notched down significantly from the previous reading of 4.6% to 4.2%, better than the market forecast at 4.5%. Though, U.S. Nonfarm Payrolls came in at 210K, worse than the market forecast at 550K. The overall economic prospect for the United States as for now remained vague amid uncertainty with regards of Omicron variant as well as mixed economic data, thus investors would continue to scrutinize the latest updates of further data to gauge the likelihood movement for the US Dollar. On the monetary policy front, the Federal funds rate futures, which track short-term interest rate expectations, was priced in a 74% chance of a 25-basis point increase in the benchmark overnight interest rate by May 2022 following the released of the jobs report. Contractionary monetary policy and rising interest rate would decrease the money circulation in the market, which spurring bullish momentum for the US Dollar. As of writing, the Dollar Index appreciated by 0.08% to 96.20.

 

In the commodities market, the crude oil price slumped 0.05% to $67.95 per barrel as of writing amid rising numbers of Covid-19 variant around the world had continue to limit the prospect for this black-commodity in future. On the other hand, the gold price surged 0.03% to $1782.65 per troy ounces as of writing amid uncertainty of the Covid-19 pandemic had stoked a shift in sentiment toward the safe-haven asset.

 

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 – Construction PMI (Nov) 54.6 52.0

 

Technical Analysis

DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 96.15. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.

 

Resistance level: 96.10, 96.75

Support level: 95.50, 94.90

 

GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3195. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 1.3355, 1.3505

Support level: 1.3195, 1.3050

 

EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1370. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 1.1370, 1.1530

Support level: 1.1175, 1.1010

 

USDJPY, H4: USDJPY was traded lower while currently testing the support level at 112.80. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.

 

Resistance level: 114.40, 115.40

Support level: 112.80, 112.05

 

AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.7115. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6915.

 

Resistance level: 0.7115, 0.7300

Support level: 0.6915, 0.6715

 

NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6810. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 0.6810, 0.6935

Support level: 0.6640, 0.6495

 

USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2825. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.

 

Resistance level: 1.2825, 1.2950

Support level: 1.2720, 1.2610

 

USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9155. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.

 

Resistance level: 0.9225, 0.9315

Support level: 0.9155, 0.9090

 

CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 66.95. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 71.35, 76.10

Support level: 66.95, 61.75

 

GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1783.80. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 1783.80, 1809.10

Support level: 1762.20, 1729.60

 

 

 

 

 

 

 

 

 

Risk Statement:
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