12 October 2021 Morning Session Analysis
Dollar surged on hawkish expectation from Fed.
The Dollar Index which traded against a basket of six major currency pairs surged yesterday amid surging energy prices had spurred stagflation fears in future, which stoked a shift in sentiment toward safe-haven asset such as US Dollar. Besides, the US 10-year Treasury yield hit a four-month high on Friday as market participants speculated that the US Federal Reserve will announce a tapering of its bond purchases next month. Contractionary monetary policy would reduce the money circulation in global financial market, which diminishing the inflation risk while increasing the appeal for the US Dollar. Nonetheless, investors as for now would continue to scrutinize the crucial inflation data from U.S. region this week to receive further trading signal. As of writing, the Dollar Index appreciated by 0.06% to 94.40.
In the commodities market, the crude oil price depreciated by 0.37% to $80.28 per barrel as of writing amid technical correction following its reached recent high. Nonetheless, the overall trend for the crude oil remained bullish amid rapid Covid vaccination program around the world had continued to be spurring positive prospect for the crude oil commodity. On the other hand, the gold price depreciated by 0.16% to $1751.35 per troy ounces amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index +Bonus (Aug) | 8.30% | 7.00% | – |
| 14:00 | GBP – Claimant Count Change (Sep) | -58.6K | – | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Oct) | 26.5 | 24 | – |
| 22:00 | USD – JOLTs Job Openings (Aug) | 10.934M | 10.925M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 94.25. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 94.40, 94.75
Support level: 93.75, 93.30
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3640. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3550.
Resistance level: 1.3640, 1.3735
Support level: 1.3550, 1.3415
EURUSD, H4: EURUSD was traded higher following prior retracement from the resistance level at 1.1585. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1525.
Resistance level: 1.1585, 1.1630
Support level: 1.1525, 1.1455
USDJPY, Daily: USDJPY was traded higher following prior breakout above the previous resistance level at 112.30. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 114.00.
Resistance level: 114.00, 115.40
Support level: 112.30, 110.95
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7320. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7400, 0.7475
Support level: 0.7320, 0.7235
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6925. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6975, 0.7030
Support level: 0.6925, 0.6860
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2455. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2580, 1.2685
Support level: 1.2455, 1.2310
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9305. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9330.
Resistance level: 0.9305, 0.9375
Support level: 0.9230, 0.9155
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 81.85. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 79.20.
Resistance level: 81.85, 83.05
Support level: 79.20, 76.60
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1746.00. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1768.05, 1780.65
Support level: 1746.00, 1725.50