12 January 2022 Morning Session Analysis
Powell testimony pushes greenback lower.
US dollar tumbles further on yesterday as market participants reacts negatively upon testimony in front of US Congress. In the testimony, Fed Chair Jerome Powell emphasized that they will control rising price of goods which surpasses their targeted rate of 2%. Likewise, Powell revealed that monetary policy tightening will include raising their interest rates as well reducing assets on hold in hopes to control overall economy from derailing due to high inflationary pressure. While monetary policy tightening will have negative impact upon economic momentum, Powell reassures that they will balance it out in between economic growth and inflation. His remarks have eased market speculation that Fed will focus solely on inflation in setting their monetary policy, triggering a selloff in both US dollar and US Treasury. As of writing, dollar index was down by 0.01% to 95.54 during Asian trading session.
In the commodities market, crude oil price was up by 0.03% to $81.26 per barrel. Oil price rose almost 4% on yesterday as the market expects lower impact from Omicron variant due to its mild nature when compared to Delta. On the other hand, gold price was up 0.01% to $1,821.11 a troy ounce due to weaker greenback.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Core CPI (MoM) (Dec) | 0.50% | 0.50% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -2.144M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests the index to be traded lower in short-term.
Resistance level: 95.65, 95.85
Support level: 95.35, 95.15
GBPUSD, H4: GBPUSD was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to be traded higher after breaking its resistance level.
Resistance level: 1.3630, 1.3690
Support level: 1.3570, 1.3510
EURUSD, H4: EURUSD was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to be traded higher after breaking its resistance level.
Resistance level: 1.1370, 1.1440
Support level: 1.1320, 1.1285
USDJPY, Daily: USDJPY was traded lower following prior retracement from higher levels. MACD which illustrate bearish momentum suggests the pair to be traded lower in short-term.
Resistance level: 115.40, 116.25
Support level: 114.55, 113.50
AUDUSD, H4: AUDUSD was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to be traded higher short-term.
Resistance level: 0.7225, 0.7280
Support level: 0.7180, 0.7140
NZDUSD, H4: NZDUSD was traded higher following prior rebound from lower levels. MACD which illustrate bullish signal suggests the pair to be traded higher after breaking its resistance level.
Resistance level: 0.6780, 0.6830
Support level: 0.6740, 0.6700
USDCAD, H4: USDCAD was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 1.2620, 1.2690
Support level: 1.2545, 1.2485
USDCHF, H4: USDCHF was traded lower following prior retracement from higher level. MACD which illustrate bearish signal suggests the pair to be traded lower after breaking its support level.
Resistance level: 0.9255, 0.9280
Support level: 0.9230, 0.9210
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from lower levels. MACD which illustrate bullish signal suggests its price to be traded higher after breaking the top level of upward channel.
Resistance level: 82.65, 84.60
Support level: 80.15, 77.35
GOLD_, H4: Gold price was traded higher following prior rebound from lower levels. MACD which illustrate bullish momentum suggests its price to be traded higher in short-term.
Resistance level: 1830.20, 1850.00
Support level: 1812.80, 1797.60