12 July 2021 Morning Session Analysis
Dollar slumped amid risk-on sentiment.
The Dollar Index which traded against a basket of six major currency pairs slumped amid risk-on sentiment in the FX market following the global stock market steadying, which prompting investors to shift their portfolio from the safe-haven currencies such as Japanese Yen and US Dollar into other riskier asset. In addition, the rising tensions between U.S. and China relationship had also diminished the market demand on the US Dollar. Last Friday, the U.S. Department of Commerce claimed that they had added 14 companies and other entities to its economic blacklist, saying they have been implicated in human right violations. Besides, some analysts speculated that the depreciation of the US Dollar was mainly due to profit-taking ahead of key U.S. inflation data for June due next week. Investors would continue to scrutinize the latest updates with regards of further crucial economic data, US-China trade relationship as well as Covid-19 development in order to receive further trading signal for the US Dollar this week. As of writing, the Dollar Index depreciated by 0.01% to 92.15.
In the commodities market, the crude oil price surged 0.11% to 74.85 per barrel as of writing. The recent rally in oil prices was associated with demand optimism from emerging markets following rapid process of Covid-19 vaccination had eased the earlier lock-down restriction. On the other hand, the gold price surged 0.03% to 1807.95 per troy ounces as of writing amid weakening US Dollar.
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 92.00. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 92.65, 93.25
Support level: 92.00, 91.35
GBPUSD, Daily: GBPUSD was traded higher following prior rebound from the support level at 1.3750. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3960.
Resistance level: 1.3960, 1.4100
Support level: 1.3750, 1.3685
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1850. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1955, 1.2065
Support level: 1.1850, 1.1725
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 109.75. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 110.45.
Resistance level: 110.45, 110.95
Support level: 109.75, 109.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7440. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7590.
Resistance level: 0.7590, 0.7700
Support level: 0.7440, 0.7285
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6940. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7120, 0.7305
Support level: 0.6940, 0.6770
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2495. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2360.
Resistance level: 1.2495, 1.2605
Support level: 1.2360, 1.2275
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level at 0.9165. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9165, 0.9230
Support level: 0.9095, 0.9035
CrudeOIL, H1: Crude oil price was traded lower following prior breakout below the previous support level at 74.15. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 73.15.
Resistance level: 74.15, 77.05
Support level: 73.15, 72.45
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1813.05. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45