19 August 2021 Morning Session Analysis
Dollar surged following Fed unleashed hawkish tone.
The Dollar Index which traded against a basket of six major currency pairs surged over the backdrop of the hawkish statement from the Federal Reserve yesterday. According to Reuters, most Federal Reserve policymakers believe it could be appropriate for the Fed to start reducing bond buying program this year following the economic recovery significantly. Earlier, the Fed has set a threshold of “substantial further progress” to start scaling back bond purchases. Since the July meeting, the labor market from the United States has improved significantly as the economy generated 943,000 jobs last month. While the pace of inflation, which the chair of Federal Reserve Jerome Powell has repeatedly said is likely to be transitory, appears to be reaching a peak according to earlier inflation data. Nonetheless, the resurgence of Covid-19 cases around the world has cast doubt on the pace of recovery, reducing the hopes of tapering monetary policy. As of writing, the Dollar Index appreciated by 0.21% to 93.35.
In the commodities market, the crude oil price slumped 0.05% to $64.50 per barrel as of writing amid spiking numbers of the Delta variant around the world had continue to spur negative prospect for the crude oil demand. On the other hand, the gold price slumped 0.14% to $1785.60 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
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Initial Jobless Claims | 375K | 360K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Aug) | 21.9 | 25 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 93.25. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3740. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3805, 1.3880
Support level: 1.3740, 1.3605
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1705. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1635.
Resistance level: 1.1705, 1775
Support level: 1.1635, 1.1550
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.75. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward the resistance level at 110.55.
Resistance level: 110.55, 111.10
Support level: 109.75, 109.20
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7240. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7240, 0.7320
Support level: 0.7160, 0.7045
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6915. MACD which illustrated increasing bearish momentum suggest the pair to extend it losses toward support level at 0.6770.
Resistance level: 0.6915, 0.7120
Support level: 0.6765, 0.6675
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2670. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2670, 1.2770
Support level: 1.2585, 1.2440
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9135. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9230.
Resistance level: 0.9230, 0.9305
Support level: 0.9135, 0.9035
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 65.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 63.45.
Resistance level: 65.0, 66.25
Support level: 63.45, 61.45
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1794.30. MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1794.30, 1812.50
Support level: 1773.35, 1754.40