10 December 2020 Morning Session Analysis
Dollar surged amid upbeat economic data.
The Dollar Index which traded against a basket of six major currency pairs surged on yesterday over the backdrop of the upbeat economic data from the United Stated region. According to Bureau of Labor Statistics, the U.S. JOLTs Job Openings had notched up from the previous reading of 6.494M to 6.652M, confounding of the market expectation for a reading up to 6.3000M. Such better-than-expected data had dialled up the market optimism toward the economic progression in the United States, which spurring significant demand for the US Dollar. Nonetheless, the gains experienced by the US Dollar was limited amid lack of progress of the U.S. economic stimulus. The stimulus talk between the U.S. government remains elusive while the Covid-19 pandemic spreads and related lockdowns are expected to anchor an economic recovery. According to Reuters. the U.S. Senate Majority Leader Mitch McConnell stated that lawmakers are still looking for a path toward an agreement on the stimulus plan. As for now investors would continue to scrutinize the latest updates with regards of the Covid-19 vaccine development from Pfizer and BioNTech as well as economic stimulus plan from U.S. government in order to receive further trading signal. As of writing, the Dollar Index appreciated by 0.15% to 90.07.
In the commodities market, the crude oil price depreciated by 0.02% to $45.63 per barrel as of writing following the Energy Information Administration (EIA) reported that the U.S. Crude Oil Inventories had increased significantly from the preliminary reading of -0.679M to 15.189M, exceeding the market forecast at -1.424M. On the other hand, the gold price slumped 0.20% to $1835.55 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
20:45 EUR ECB Monetary Policy Statement
21:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – GDP (MoM) | 1.1% | – | – |
| 17:30 | GBP – Manufacturing Production (MoM) (Oct) | 0.2% | 0.2% | – |
| 20:45 | EUR – ECB Interest Rate Decision (Dec) | 0.00% | – | – |
| 21:30 | USD – Core CPI (MoM) (Nov) | 0.2% | 0.1% | – |
| 21:30 | USD – Initial Jobless Claims | 712K | 725K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded within a range while currently near the support level at 90.45. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 91.80, 94.10
Support level: 90.45, 89.10
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3475. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3295.
Resistance level: 1.3475, 1.3655
Support level: 1.3295, 1.3100
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.2075. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2165, 1.2230
Support level: 1.2075, 1.1985
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 104.50. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 104.50, 105.95
Support level: 103.20, 101.25
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7480. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.7370.
Resistance level: 0.7480, 0.7590
Support level: 0.7370, 0.7265
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7015. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7090, 0.7165
Support level: 0.7015, 0.6930
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2765. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3025, 1.3370
Support level: 1.2765, 1.2520
USDCHF, H4: USDCHF was traded within a range while currently testing the resistance level at 0.8915. MACD which illustrated increasing bullish momentum suggest the pair to be traded higher after it successfully breakout above the resistance level.
Resistance level: 0.8915, 0.8980
Support level: 0.8835, 0.8760
CrudeOIL, Weekly: Crude oil price was traded higher following prior breakout above the previous resistance level at 41.75. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 50.00.
Resistance level: 50.00, 60.65
Support level: 41.75, 33.30
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1841.50. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1841.50, 1858.10
Support level: 1829.45, 1816.45