11 May 2021 Morning Session Analysis
Greenback slumped on inflation risk.
The Dollar Index which traded against a basket of six major currency pairs extend its losses amid expectation on expansionary monetary policy in long-term basis had prompted investors bet against the rising inflation rate, which diminishing the appeal of the US Dollar. According to Reuters, the five-year breakeven inflation rate had reached its highest since April 2011 on Monday. Besides, downbeat economic data from the US region had increased the possibility that the Federal Reserve would continue to launch its “Quantitative Easing” program, which injecting significant amount of dollar into money market in order to boost up the economic momentum in the United States. The Quantitative Easing may cause higher inflation than desired if the amount of easing required is overestimated and too much money is created by purchase of liquid assets, which creating asset burble while insinuating financial risk in the market. As for now, it is crucial for investors to maintain their focus on the future inflation risk as well as the Covid-19 development in order to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index slumped 0.04% to 90.25.
In the commodities market, the crude oil price slumped 0.02% to $64.90 per barrel as of writing. The oil market edged lower on yesterday following the data showed that the OPEC+ crude oil production rises in April. According to latest S&P Global Platts survey, Iran and also Russia had started to boost its output yet again, bringing total production by OPEC and its allies to a three-month high. On the other hand, the gold price surged 0.01% to $1835.85 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 CrudeOIL EIA Short-Term Energy Outlook
22:30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | German ZEW Economic Sentiment (May) | 70.7 | 71.0 | – |
| 22:00 | JOLTs Job Openings (Mar) | 7.367M | 7.500M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level at 90.50. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 89.65.
Resistance level: 90.50, 91.30
Support level: 89.65, 89.10
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.4130. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.4130, 1.4230
Support level: 1.4000, 1.3810
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2165. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2065.
Resistance level: 1.2165, 1.2265
Support level: 1.2065, 1.1985
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 108.45. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 109.05.
Resistance level: 109.05, 109.65
Support level: 108.45, 107.70
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7885. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.7815.
Resistance level: 0.7885, 0.7910
Support level: 0.7815, 0.7755
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7300. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.7235.
Resistance level: 0.7300, 0.7360
Support level: 0.7235, 0.7155
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2055. 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, 1.2400
Support level: 1.2055, 1.1840
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8985. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9075, 0.9155
Support level: 0.8985, 0.8925
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 64.75. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 66.30, 67.80
Support level: 64.75, 63.35
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1841.65. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1841.65, 1869.80
Support level: 1812.25, 1794.40