10 May 2021 Morning Session Analysis
US Dollar slumped amid bearish economic outlook.
The Dollar Index which traded against a basket of six major currency pairs slumped significantly last week over the backdrop of the string of downbeat crucial economic data from the US region. According to Bureau of Labor Statistics, US Nonfarm Payrolls had notched down significantly from the preliminary reading of 770K to 266K, worse than the market forecast at 978K. Meanwhile, US Unemployment Rate increased from previous reading of 6.0% o 6.1%, which also worse than the market forecast at 5.8%. As both crucial economic data fared worse-than-expectation, which dialled down the market optimism toward the economic progression in United States. Indeed, such downbeat data would be spurring expectation upon the Federal Reserve that they will continue to implement expansionary monetary policy in order to boost back the economic momentum. Previously, the US Central Bank pledged that they would continue to maintain its Quantitative Easing program until “further substantial” process is achieved on both employment and inflation rate. With huge aid plan outlook, the US Dollar remained bearish as huge a amount of dollars is expecting to be injected into the money market, which diminishing the appeal of the US Dollar. As of writing, the Dollar Index depreciated by 0.07% to 90.15.
In the commodities market, the crude oil price surged 1.02% to $65.50 per barrel as of writing. The crude oil price edged higher amid market participants speculated that the positive Covid-19 vaccine development would able to enhance the oil demand in future, which spurring bullish momentum on this black-commodity. On the other hand, the gold price surged 0.14% to $1833.75 per troy ounces as of writing amid weakening US Dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently near the support level at 90.00. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 90.45, 90.80
Support level: 90.00, 89.65
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.4000. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.4130.
Resistance level: 1.4130, 1.4230
Support level: 1.4000, 1.3810
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2165. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2165, 1.2265
Support level: 1.2065, 1.1985
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 108.45. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.05, 109.65
Support level: 108.45, 107.70
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7855. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7855, 0.7915
Support level: 0.7815, 0.7755
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7300. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7300, 0.7360
Support level: 0.7235, 0.7155
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2180. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2180, 1.2275
Support level: 1.2065, 1.1870
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8985. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9075, 0.9155
Support level: 0.8985, 0.8925
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 64.90. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 66.30.
Resistance level: 66.30, 67.80
Support level: 64.90, 63.35
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1841.65. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1841.65, 1869.80
Support level: 1811.50, 1794.40