10 February 2021 Morning Session Analysis
Dollar dived amid heightening of hopes over stimulus plan.
Dollar index which gauges its value against a basket of six major currencies failed to recover its losses after being rejected from the two months high level amid positive development of US stimulus plan. Last week, U.S. Senate approved a budget resolution with the voting of 51-to-50 that will allow for a fast tracking of the $1.9 trillion coronavirus relief plan proposed by the Biden administration to be approved without Republican support. The democrats have released part of the plan’s detail yesterday which including $1400 direct payment to each American, expand tax credits for families with children and so on. With the backdrop of massive fiscal relief plan, a large amount of dollar will be injected into the market, interrupting the balance between supply and demand in dollar market, thus it is believingly will depreciates the value of US dollar. Besides, ultra-easing monetary policy in US is also restricting the gains of dollar, as Fed insisted that no rate hike in short term of future until economic inflation pressure and unemployment make a substantial gain. As of writing, dollar index dropped 0.52% to 90.45.
In the commodities market, the crude oil price depreciated by 0.14% to $58.36 per barrel after API released another consecutive week with crude oil drawn. According to the API, US Weekly Crude Oil Stock reduced by 3.500M, while the economist forecast a gain at 1.340M, diminished the market worries over the unbalancing oil market under the fallout pandemic. Besides, gold price ticked up by 0.02% to $1838.60 a troy ounce amid weakening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:00 EUR ECB President Lagarde Speaks
01:00 GBP BoE Gov Bailey Speaks
(11th)
01:30 USD US Federal Budget
(11th)
03:00 USD Fed Chair Powell Speaks
(11th)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core CPI (MoM)(Jan) | 0.1% | 0.2% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -0.994M | 0.985M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.45. MACD which illustrated bearish bias momentum suggest the index to extend its losses toward the support level at 90.00.
Resistance level: 90.45, 90.75
Support level: 90.00, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3800. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.3855.
Resistance level: 1.3855, 1.3900
Support level: 1.3800, 1.3750
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2105. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.2145.
Resistance level: 1.2145, 1.2180
Support level: 1.2105, 1.2065
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 104.65. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses toward the support level at 104.35.
Resistance level: 104.65, 105.10
Support level: 104.35, 104.00
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7740. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 0.7740, 0.7785
Support level: 0.7670, 0.7635
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7235. MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 0.7235, 0.7300
Support level: 0.7165, 0.7105
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2685. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2770, 1.2800
Support level: 1.2685, 1.2610.
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.8920. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.8850.
Resistance level: 0.8920, 0.8985
Support level: 0.8850, 0.8760
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 57.80. However, MACD which illustrated bearish bias momentum suggest the commodity to undergo technical correction in short term.
Resistance level: 58.65, 59.45
Support level: 57.80, 56.65
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1839.50. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 1825.40.
Resistance level: 1839.50, 1862.50
Support level: 1825.40, 1803.00