12 May 2021 Morning Session Analysis
US Dollar extend losses amid fears upon inflation data.
The Dollar Index which traded against a basket of six major currency pairs was traded within a lower boundary ahead of US consumer price data amid investors fear that the high inflation rate in United States would diminish the appeal of the US Dollar. Earlier, a much disappointing employment report last week had triggered significant selloff for the US Dollar amid market participants speculated the Federal Reserve will continue to implement expansionary monetary policy long-term basis to boost up the economic momentum in United States. Indeed, aggressive Quantitative Easing program from Fed, which injecting huge amount of US Dollar into money market had also spurred further risk for inflation. Nonetheless, as of now investors would continue to scrutinize the latest updates with regards of the inflation data as well as future Federal Reserve’s monetary policy plan to receive further trading signal. As of writing, the Dollar Index depreciated by 0.05% to $90.90.
In the commodities market, the crude oil price appreciated by 0.04% to $65.40 per barrel as of writing. The oil market surged over the backdrop of upbeat inventory data. According to American Petroleum Institute, US API Weekly Crude Oil Stock came in at -2.533M, exceeding the market forecast at -2.250M. On the other hand, the gold price surged $1837.45 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
17:00 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP (QoQ) (Q1) | 1.3% | -1.7% | – |
| 14:00 | GBP – Manufacturing Production (MoM) (Mar) | 1.3% | 1.0% | – |
| 17:00 | GBP – BoE Gov Bailey Speaks | – | – | – |
| 20:30 | USD – Core CPI (MoM) (Apr) | 0.3% | 0.3% | – |
| 22:30 | CrudeOIL Crude Oil Inventories | -7.990M | -2.346M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 91.25. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 89.65.
Resistance level: 91.25, 92.05
Support level: 89.65, 88.75
GBPUSD, Daily: GBPUSD was traded higher while currently testing the resistance level at 1.4135. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after if successfully breakout above the resistance level.
Resistance level: 1.4135, 1.4235
Support level: 1.4010, 1.3910
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2170. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2070.
Resistance level: 1.2170, 1.2265
Support level: 1.2070, 1.1990
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 108.55. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 109.10, 109.75
Support level: 108.55, 108.20
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7880. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7805.
Resistance level: 0.7880, 0.7990
Support level: 0.7805, 0.7710
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7300. MACD which illustrated increasing bullish momentum suggest the pair to extend its losses toward support level at 0.7240.
Resistance level: 0.7300, 0.7360
Support level: 0.7240, 0.7140
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2075. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2180, 1.2605
Support level: 1.2075, 1.1785
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8995. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9180, 0.9305
Support level: 0.8995, 0.8450
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 64.15. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 65.80.
Resistance level: 65.80, 67.55
Support level: 64.15, 62.20
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1840.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1840.30, 1850.40
Support level: 1828.70, 1812.90