10 September 2021 Afternoon Session Analysis
Dollar dips following comments from Fed members, U.S yields.
The dollar index which traded against a basket of six major currency pairs have retreat from its high amid mixed comments from various Fed members. Currently, investors are speculating on when the Federal Reserve is likely to begin paring bond purchases as it balances rising price pressures against a still relatively soft employment picture. Fed Governor Michelle Bowman stated that weak August jobs report likely won’t throw off the central bank plan to trim its $120 billion monthly bond purchases this year. However, Chicago Federal Reserve President Charles Evans stated the U.S economy is “not out of the woods yet”. Despite with strong economic growth and also promise of vaccines, challenges still remain such supply chain and labor market bottlenecks. On top of that, falling U.S Treasury Yields also further pressured the greenback as the U.S government saw strong demand for a sale of 30-years bond. At the time of writing, dollar index fell 0.04% to 92.39.
In the commodities market, crude oil price fell 0.11% to $68.31 per barrel as of writing amid news of China plan to release crude from its reserves. According to reports, China’s state reserves administration stated that it would release crude oil reserves to the market via public auction to ease pressure of high cost on domestic refiners. The move will add more supply into the market which would drag down the price. On the other hand, gold price rose 0.25% to $1799.19 a troy ounce at the time of writing following dollar retreat.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP (MoM) | 0.80% | – | – |
| 14:00 | GBP – Manufacturing Production (MoM) (Jul) | 0.20% | 0.10% | – |
| 20:30 | USD – PPI (MoM) (Aug) | 1.00% | 0.60% | – |
| 20:30 | CAD – Employment Change (Aug) | 94.0K | 75.0K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar was traded lower following prior retracement from the resistance level 92.70. MACD which illustrate bearish momentum signal with the formation of death cross suggest the dollar to extend its losses towards the support level 92.05.
Resistance level: 92.70, 93.10
Support level: 92.05, 91.60
GBPUSD, H4: GBPUSD was traded higher while currently testing near the resistance level 1.3885. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level 1.3885.
Resistance level: 1.3885, 1.3990
Support level: 1.3765, 1.3600
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1805. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 1.1885.
Resistance level: 1.1885, 1.1950
Support level: 1.1805, 1.1705
USDJPY, H4: USDJPY remain traded in a sideway channel following recent rebound from the support level 109.60. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 110.20.
Resistance level: 110.20, 110.75
Support level: 109.60, 109.15
AUDUSD, H4: AUDUSD was traded lower following recent rebound from its low level. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 0.7415.
Resistance level: 0.7415, 0.7485
Support level: 0.7330, 0.7250
NZDUSD, H4: NZDUSD was traded higher following prior rebound from its low level. MACD which illustrate bullish bias signal suggest the pair with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.7145.
Resistance level: 0.7145, 0.7225
Support level: 0.7075, 0.6990
USDCAD, H4: USDCAD was traded lower following recent retracement from the resistance level 1.2685. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 1.2585.
Resistance level: 1.2685, 1.2770
Support level: 1.2585, 1.2510
USDCHF, H4: USDCHF remain traded in a sideway channel following recent retracement from the resistance level 0.9200. MACD which illustrate bearish momentum signal with the formation of death cross suggest the pair to extend its losses towards the support level 0.9100.
Resistance level: 0.9200, 0.9245
Support level: 0.9100, 0.9025
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level 68.05. MACD which illustrate bearish bias signal suggest the commodity to extend its losses after it breaks below the support level.
Resistance level: 70.55, 74.30
Support level: 68.05, 65.35
GOLD, H4: Gold price was traded higher following prior rebound from the support level 1792.35. MACD which illustrate bullish momentum signal suggest the commodity to extend its gains towards the resistance level 1831.85.
Resistance level: 1831.85, 1866.85
Support level: 1792.35, 1760.35