11 January 2022 Afternoon Session Analysis
Dollar was traded flat ahead of Fed Chair Powell Testimony.
The Dollar Index which traded against a basket of six major currency pairs hovered within a recent range amid market participants still wait for further catalyst from the Federal Reserve today in order to gauge the likelihood decision of monetary policy. Economists expected the Federal Reserve would increase the interest rate in short-term basis and reduce their bond buying program to combat the high inflation risk in future. U.S. December consumer inflation data would be released on Wednesday, with market expectation for the CPI to come in at a 7% on yearly basis. Against the backdrop of significant inflation rate, market participants continue to bet on the more aggressive pace of rate hikes in future, with economist consensus now leaning toward four rate hikes by the end of 2022. As of writing, the Dollar Index appreciated by 0.05% to 95.90.
In the commodities market, the crude oil price depreciated by 0.05% to $78.95 per barrel as of writing. The oil market edged lower amid concerns about demand fears stoked by the spiking numbers of Omicron variant around the world had continue to weigh down the appeal for this black-commodity. On the other hand, the gold price appreciated by 0.27% to $1806.60 per troy ounces as of writing amid technical correction. Nonetheless, investors would continue to scrutinize updates with regards of the Fed’s monetary policy statement to receive further trading signal.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:20 EUR ECB President Lagarde Speaks
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 95.70. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 96.80, 97.50
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3590. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3595, 1.3700
Support level: 1.3490, 1.3360
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1345. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1345, 1.1440
Support level: 1.1235, 1.1175
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 115.05. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 116.25, 117.50
Support level: 115.05, 114.25
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7165. MACD which illustrated bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7265, 0.7365
Support level: 0.7165, 0.6995
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6710. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6840, 0.6920
Support level: 0.6710, 0.6570
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2625. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2825, 1.2940
Support level: 1.2625, 1.2520
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9270. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9270, 0.9345
Support level: 0.9175, 0.9105
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 78.05. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 81.25, 85.40
Support level: 78.05, 75.80
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1809.95. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1809.95, 1830.55
Support level: 1786.30, 1760.20