14 December 2021 Morning Session Analysis
Dollar surged ahead of FOMC meeting.
The Dollar Index which traded against a basket of six major currency pairs surged ahead of crucial FOMC meeting this week. Market participants are speculating that the Federal Reserve to double the pace to reduce the bond buying program in order to combat the high inflation risk. The recent upbeat inflation and other crucial economic data had increased the odds for the Federal Reserve to increase interest rates soon afterward. The dot plot at the upcoming policy meeting will be closely monitored by the markets as investors try to forecast when the Federal Reserve might increase rates. Contractionary monetary policy will decrease the money circulation in the US market, which increasing the appeal for the US Dollar. Nonetheless, the overall sentiment from the Federal Reserve still mostly remained vague, hence investors would be suggested to continue scrutinize the crucial updates from the FOMC meeting to receive further trading signal. As of writing, the Dollar Index appreciated by 0.28% to 96.36.
In the commodities market, the crude oil price slumped 0.03% to $71.40 per barrel as of writing. The oil market received bearish momentum following the statement from the World Health Organization (WHO) yesterday. According to Reuters, the WHO claimed on Monday that Omicron variant poses a very high global risk, with evidence that it evades vaccine protection. On the other hand, the gold price depreciated by 0.03% to $1786.80 per troy ounces as of writing 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 |
| 15:00 | GBP – Average Earnings Index +Bonus (Oct) | 5.80% | 4.50% | – |
| 15:00 | GBP – Claimant Count Change (Nov) | -14.9K | – | |
| 21:30 | USD – PPI (MoM) (Nov) | 0.60% | 0.60% |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 96.35. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 96.35, 96.80
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3195. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3355, 1.3505
Support level: 1.3195, 1.3050
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1370. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1175.
Resistance level: 1.1370, 1.1530
Support level: 1.1175, 1.1010
USDJPY, Daily: USDJPY was traded higher following prior rebound from the support level at 112.80. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 114.40.
Resistance level: 114.40, 115.40
Support level: 112.80, 112.05
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.7175. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7175, 0.7280
Support level: 0.6995, 0.6825
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6815. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6640.
Resistance level: 0.6815, 0.6950
Support level: 0.6640, 0.6530
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2825. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2825, 1.2950
Support level: 1.2720, 1.2645
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9260. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9200.
Resistance level: 0.9260, 0.9315
Support level: 0.9200, 0.9155
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 72.65. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 69.15.
Resistance level: 72.65, 75.10
Support level: 69.15, 65.60
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1795.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1795.00, 1811.50
Support level: 1762.20, 1729.60