13 September 2021 Morning Session Analysis
Dollar surged amid expectation on contractionary monetary policy.
The Dollar Index which traded against a basket of six major currency surged with higher U.S. Treasury Yield following the United States released high inflation data. According to U.S. Bureau of Labor Statistics, U.S. Producer Price Index (PPI) for last month came in at 0.7%, higher than the market expectation at 0.6%. Such high inflation data would be spurring hopes that the Federal Reserve might begin to reduce its asst purchases as well as taper their monetary policy in order to combat the high inflation risk. Besides, US Dollar extend its gains over the backdrop of hawkish statement from the Fed last Friday. According to Reuters, Cleveland Fed President Loretta Mester also claimed on Friday that she would still be likely to support the central bank to contract their monetary policy this year. Nonetheless, investors would continue to scrutinize the latest updates with regards of Covid-19 development as well as further crucial economic data to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index appreciated by 0.05% to 92.65.
In the commodities market, the crude oil price appreciated by 0.69% to 70.25 per barrel as of writing. The crude oil price edged higher amid market participants remained optimism toward the demand outlook for this black-commodity following the rapid Covid-19 vaccination rollout around the world. On the other hand, the gold price slumped 0.04% to $1787.60 per troy ounces as of writing amid strengthening US Dollar.
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Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 92.70. MACD which illustrated increasing bearish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 92.70, 93.25
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3805. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3880, 1.3945
Support level: 1.3805, 1.3735
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1800. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1840, 1.1895
Support level: 1.1800, 1.1760
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.65. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 110.40, 111.10
Support level: 109.65, 109.20
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7340. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7480, 0.7590
Support level: 0.7340, 0.7280
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7080. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7160, 0.7255
Support level: 0.7080, 0.7015
USDCAD, H4: USDCAD was traded higher following prior rebounded from the support level at 1.2625. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2690.
Resistance level: 1.2690, 1.2725
Support level: 1.2625, 1.2580
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9230. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.9100.
Resistance level: 0.9230, 0.9305
Support level: 0.9109, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 69.85. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 69.85, 71.55
Support level: 67.70, 66.10
GOLD_, H4: Gold price was traded lower while currently near the support level ta 1778.55. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1796.55, 1807.15
Support level: 1778.55, 1754.70
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives; risk associated and seek professional advice before deciding to trade or if you have any doubts.