8 July 2021 Morning Session Analysis
Dollar surged amid hawkish stance from Fed.
The Dollar Index which traded against a basket of six major currency pairs surged following the Federal Reserve unleashed their hawkish statement in the meeting minutes. According to Minutes of Federal Open Market Committee, the US Central Bank officials discussed about tapering their aggressive monetary policy plan and reducing asset purchases to combat the inflation risk. Some members indicated that the economic recovery in United States was proceeding faster than expectation while the inflation risk will be continued to be higher in future. Nonetheless, most of the members agreed that the economy in United States had yet to meet the “substantial further progress” benchmark set by Fed for any significant shift in policy. The overall statement from the Federal Reserve remained vague, hence the market movement remained subdued following the FOMC meeting minutes was released. As for now, investors would continue to scrutinize the latest updates with regards of crucial economic data as well as Covid-19 development to receive further trading signal. As of writing, the Dollar Index appreciated by 0.07% to 92.70.
In the commodities market, the crude oil price appreciated by 0.05% to $72.25 per barrel as of writing. The oil market rebounded from its lower boundary amid upbeat inventory data had spurred bullish momentum on the oil market. According to American Petroleum Institute, U.S. API Weekly Crude Oil Stock came in at -7.983M, better than the market forecast at -3.925M. On the other hand, the gold price slumped 0.03% to $1803.60 per troy ounces as of writing amid strengthening US Dollar.
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 |
| 22:00 | USD – Initial Jobless Claims | 364K | 350K | – |
| 23:00 | CrudeOIL – Crude Oil Inventories | -6.718M | -4.033M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher while currently testing the resistance level at 92.65. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 92.65, 93.25
Support level: 92.10, 91.15
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3790. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3960, 1.4100
Support level: 1.3790, 1.3685
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1845. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1725.
Resistance level: 1.1845, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 110.45. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 110.95, 111.55
Support level: 110.45, 109.75
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7465. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7590, 0.7700
Support level: 0.7465, 0.7365
NZDUSD, Daily: NZDUSD was traded lower following prior retracement from the resistance level at 0.7120. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6940.
Resistance level: 0.7120, 0.7305
Support level: 0.6940, 0.6770
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2495. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2495, 1.2605
Support level: 1.2360, 1.2275
USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9230. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9305, 0.9375
Support level: 0.9230, 0.9165
CrudeOIL, H1: Crude oil price was traded higher while currently near the resistance level at 72.15. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 72.15, 73.15
Support level: 71.05, 70.10
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1788.95. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45