13 August 2021 Morning Session Analysis
Dollar surged on high inflation data.
The Dollar Index which traded against a basket of six major currency pairs surged following the United States released its bullish data on yesterday. According to US Bureau of Labor Statistics, U.S. Producer Price Index (PPI) came in at 1.0%, confounding the market forecast for a reading up to 0.6%. Such high reading had indicated that the inflation risk in the United States could remain high as strong demand fueled by economic recovery continues to hurt supply chains. Investors would remain cautious for any signs of high inflation reading in future since it could potentially increase the probability for the contractional monetary policy from Fed to combat the inflation risk. Contractional monetary policy would decrease the money circulation in the financial market, which increasing the appeal of the US Dollar. As of writing, the Dollar Index appreciated by 0.01% to 93.00.
In the commodities market, the crude oil price slumped 0.26% to 68.85 per barrel as of writing following the International Energy Agency (IEA) warned that the Delta variant of the Covid-19 would slowdown the recovery for the oil demand. Nonetheless, as of now investors would continue to scrutinize the latest updates with regards of Covid-19 development to gauge the likelihood movement for this black commodity. On the other hand, the gold price depreciated by 0.03% to $1753.20 per troy ounces as of writing amid strengthening US Dollar.
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Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior rebound from the support level at 91.80. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 92.25.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3805. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3880, 1.3980
Support level: 1.3805, 1.3740
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.1705. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1850, 1.1955
Support level: 1.1705, 1.1635
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.55. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 110.95
Support level: 109.70, 109.20
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7320. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-temr as technical correction.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.2585. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2585, 1.2670
Support level: 1.2440, 1.2315
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.9230. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.9230, 0.9305
Support level: 0.9165, 0.9035
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 69.85. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 68.00.
Resistance level: 69.85, 71.10
Support level: 68.00, 66.25
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1751.95. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1751.95, 1773.35
Support level: 1737.25, 1717.30