11 October 2021 Afternoon Session Analysis
Pound rose following hawkish signal from BoE.
The pound sterling which traded against the US dollar and other currency pairs have rose following hawkish stance from Bank of England (BoE). According to Bank of England policymaker Michael Saunders, he stated that markets are right to price in an earlier interest-rate hike than previously expected as inflation pressure mounted in the British economy. The recent inflation pressure has fueled market speculation that rate hike to be initiated by February next year. On top of that, pound sterling also receives further support from weak employment data in the U.S. The worse-than-expected US Nonfarm Payrolls data indicated that the U.S labor market remain weak despite with increasing wages, hence prompted investors to shift their portfolio into risker assets. However, the gains may be limited due following the surge of energy prices. UK energy manufacturers have warned that the spiking gas prices could be resulted in production halt. According to Reuters, the wholesale gas prices were 4 times higher in this year due to supply shortage and stronger demand from Asia. The possibility of production halt by energy manufacturers could be exerted damage toward the economy. As of writing, the pair of GBP/USD was up 0.01% to 1.3641.
In the commodities market, the crude oil price surged 1.51% to $80.86 per barrel as of writing amid positive prospect of oil demand. The oil market continues to extend its gains following robust growth of industrial activities in Asia, which reiterated stronger demand of oil. On the other hand, the gold price was up 0.12% to $1759.43 per troy ounces amid weakening US dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index remain traded in a sideway channel following recent retracement from its high level. However, MACD which illustrate bearish momentum signal with the recent formation of death cross suggest the dollar to extend its retracement towards the support level 93.70.
Resistance level: 94.35, 94.90
Support level: 93.70, 93.10
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level 1.3620. MACD which illustrate bullish bias signal suggest the pair to extend its gains towards the resistance level 1.3745.
Resistance level: 1.3745, 1.3875
Support level: 1.3620, 1.3435
EURUSD, H4: EURUSD was traded higher following recent rebound from its low level. MACD which illustrate bullish bias signal suggest the pair to extend its rebound towards the resistance level 1.1610.
Resistance level: 1.1610, 1.1690
Support level: 1.1515, 1.1440
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 112.60. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level 112.60.
Resistance level: 112.60, 113.20
Support level: 112.05, 111.50
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level 0.7320. MACD which illustrate bullish bias signal suggest the pair to extend its gains after it breaks above the resistance level 0.7320.
Resistance level: 0.7320, 0.7415
Support level: 0.7235, 0.7150
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level 0.6915. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.6990.
Resistance level: 0.6990, 0.7075
Support level: 0.6915, 0.6815
USDCAD, H4: USDCAD was traded lower while currently testing the support level 1.2455. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.2585, 1.2695
Support level: 1.2455, 1.2310
USDCHF, H4: USDCHF remain traded in a sideway channel following recent rebound from its low level. However, MACD which illustrate bullish bias signal suggest the pair to extend its rebound in short term towards the resistance level 0.9305.
Resistance level: 0.9305, 0.9365
Support level: 0.9240, 0.9185
CrudeOIL, H4: Crude oil was traded higher following prior breakout above the previous resistance level 79.40. MACD which illustrate persistent bullish momentum signal suggest the commodity to extend its gains towards the resistance level 82.50.
Resistance level: 82.50, 84.55
Support level: 79.40, 76.40
GOLD, H4: Gold price was traded flat near the support level 1747.50. However, MACD which illustrate diminishing bearish momentum signal suggest the commodity to be traded higher towards the resistance level 1779.50.
Resistance level: 1779.50, 1806.85
Support level: 1747.05, 1721.65