10 September 2021 Morning Session Analysis
Euro slumped over dovish tone.
The pair of EUR/USD slumped following the European Central Bank unleashed their dovish tone yesterday. According to the monetary policy statement, the European Central Bank had kept its monetary policy unchanged but opted to slow down the pace of bond buying process under its pandemic emergency purchase program (PEPP). The Monetary Policy Committee voted to maintain their interest rate on main refinancing operations at 0%, on the marginal lending facility at 0.25% and deposit facility at -0.5%. The central bank also reiterated that they would continue to implement their aggressive expansionary monetary policy until the inflation stabilize at 2% over the medium term. On the inflation front, the Euro zone inflation rate had notched a decade high of 3% in August, spurring further worries for the ECB as to the danger of inflation becoming persistent rather than “transitory”. Some analysts speculated that the ECB would announce the reduction of its aggressive stimulus package in December to combat the high inflation risk. As of writing, EUR/USD slumped 0.04% to 1.1825.
In the commodities market, the crude oil price depreciated by 0.04% to 67.95 per barrel as of writing over the backdrop of negative inventory data. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories came in at -1.529M, missing the market forecast at -4.612M. On the other hand, the gold price was traded flat at $1795.05 per troy ounces as of writing amid market participants still waited for further catalyst in the global financial market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
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, Daily: Dollar index was traded higher while currently testing the resistance level at 92.70. MACD which illustrated increasing bearish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 92.70, 93.25
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3805. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3880.
Resistance level: 1.3880, 1.3945
Support level: 1.3805, 1.3735
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1840. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1840, 1.1895
Support level: 1.1800, 1.1760
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.65. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.55, 111.10
Support level: 109.65, 109.20
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7340. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7480, 0.7590
Support level: 0.7340, 0.7280
NZDUSD, H4: NZDUSD was traded lower while currently testing the resistance level at 0.7090. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7160, 0.7255
Support level: 0.7080, 0.7015
USDCAD, H1: USDCAD was traded higher following prior rebounded from the support level at 1.2625. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2690.
Resistance level: 1.2690, 1.2725
Support level: 1.2625, 1.2580
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9230. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.9100.
Resistance level: 0.9230, 0.9305
Support level: 0.9109, 0.9035
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 67.70. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 69.85, 71.55
Support level: 67.70, 66.10
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1796.55. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level .
Resistance level: 1796.55, 1807.15
Support level: 1778.55, 1754.70
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives; risk associated and seek professional advice before deciding to trade or if you have any doubts.