12 January 2021 Afternoon Session Analysis
Dollar surged over the rising treasury yields.
The Dollar Index which traded against a basket of six major currency pairs extend its gains amid the recent spike in U.S. Treasury yields and positive prospect of the U.S. economic with the expectation on higher U.S. fiscal stimulus. A sharp gain in U.S. yields had prompted investors to shift their portfolio from other region into United States, insinuating market demand on the US Dollar. Market participants remained confident over the President-elect Joe Biden, who takes office on 20th January 2021 with the Democrats power to control both houses of Congress would able to boost up the economic momentum in the United States. Besides, US Dollar extend its gains following the investors expected that the U.S. policymakers would slowdown the bond buying program by the end of 2021. According to Reuters, Chicago Fed President Charles Evans and Atlanta’s Raphael Bostic, said last week that they might agree to reduce the pace of bond buying by the year-end if the economy rebounded significantly. Lower bond buying process would be decreasing the money supply in circulation, which spurring further bullish momentum for the US Dollar. As of writing, the Dollar Index appreciated by 0.13% to 90.50.
In the commodities market, the crude oil price appreciated by 0.13% to $52.20 per barrel as of writing. The oil price extends its gains amid hopes upon the Covid-19 vaccines development had spurred positive prospect for the crude oil demand in future. On the other hand, the gold price depreciated by 0.10% to $1845.65 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
20.00 CrudeOIL EIA Short-Term Energy Outlook
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 23.00 | USD – JOLTs Job Openings (Nov) | 6.652M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 90.50. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 90.50, 90.95
Support level: 89.75, 89.30
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level 1.3480. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 1.3555.
Resistance level: 1.3555, 1.3650
Support level: 1.3480, 1.3400
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2160. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2210, 1.2210
Support level: 1.2105, 1.2060
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 104.30. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 104.30, 104.65
Support level: 103.85, 103.15
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7665. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7735.
Resistance level: 0.7735, 0.7770
Support level: 0.7665, 0.7610
NZDUSD, Weekly: NZDUSD was traded lower while currently testing the support level at 0.7110. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7320, 0.7555
Support level: 0.7110, 0.6915
USDCAD, H1: USDCAD was traded higher following prior rebound from the support level at 1.2765. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2795.
Resistance level: 1.2795, 1.2830
Support level: 1.2765, 1.2720
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level 0.8915. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 0.8765.
Resistance level: 0.8915, 0.8980
Support level: 0.8825, 0.8765
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 52.45. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 52.45, 56.10
Support level: 49.35, 47.35
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1850.25. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1850.25, 1861.10
Support level: 1837.40, 1817.80