8 April 2021 Morning Session Analysis
Dollar rose after FOMC Meeting Minutes released.
The dollar index which gauges its value against a basket of six major rival currencies managed to recover part of its previous losses and stand above the level of 92.00 after FOMC released minutes from the March 16-17 meeting. In the meeting, FOMC members agreed to keep their monetary policy loosened where to maintain their interest rate unchanged and continue buying at least $120 billion bond in each month. Besides, the meeting summary also indicated that they will not change the ultra-easy policy until “substantial further progress” could be seen in the US economy growth. It means that Federal Reserve (Fed) unfolding monetary policy will only be tightened when US economy achieved the dual goals of 2% underlying inflation and full employment. Despite, the committees were still optimistic toward the US economic outlook, having an upbeat GDP projection at 6.5% in year 2021. Nonetheless, the unprecedented pandemic still remains as the major challenges in the path of economic recovery. As of writing, the dollar index ticked up by 0.10% to 92.40.
In the commodities market, the crude oil price increased by 0.01% to $59.60 per barrel amid oil draw in US inventory level. According to the EIA, US crude oil inventory data came in at -3.522M, recording a drop larger than the economist forecast at -1.436M, boosting the appeal of this black commodity while temporarily ignoring the negative effect of pandemic. Besides, the gold prices dropped 0.07% to $1736.55 per troy ounce amid strengthening of dollar index.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:30 EUR ECB Monetary Policy Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (Mar) | 53.3 | 54.6 | – |
| 20:30 | USD – Initial Jobless Claims | 719K | 680K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 92.10. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains toward the resistance level at 92.60.
Resistance level: 92.60, 93.00
Support level: 92.10, 91.60
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3755. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.3675.
Resistance level: 1.3755, 1.3805
Support level: 1.3675, 1.3625
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1890. MACD which illustrated diminishing bullish momentum signal suggest the pair to extend its losses toward the support level at 1.1830.
Resistance level: 1.1890, 1.1990
Support level: 1.1830, 1.1755
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.75. MACD which illustrated diminishing bearish momentum signal suggest the pair to extend its gains toward the resistance level at 110.20.
Resistance level: 110.20, 110.80
Support level: 109.75, 109.20
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7655. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.7600.
Resistance level: 0.7655, 0.7700
Support level: 0.7600, 0.7565
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7030. MACD which illustrated bearish bias momentum signal suggests the pair to extend its losses toward the support level at 0.6945.
Resistance level: 0.7030, 0.7105
Support level: 0.6945, 0.6900
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2530. MACD which illustrated bullish bias momentum suggests the pair to extend its gains toward the resistance level at 1.2635.
Resistance level: 1.2635, 1.2740
Support level: 1.2530, 1.2465
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9310. However, MACD which illustrated diminishing bearish momentum suggests the pair to undergo technical correction in short term.
Resistance level: 0.9310, 0.9370
Support level: 0.9225, 0.9140
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 59.30. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 60.65.
Resistance level: 60.65, 61.70
Support level: 59.30, 57.40
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1738.95. MACD which illustrated bearish bias momentum signal suggest the commodity to extend its losses toward the support level at 1723.35.
Resistance level: 1738.95, 1754.30
Support level: 1723.35, 1710.80