17 February 2021 Morning Session Analysis
Rising US treasury yields, spurring bullish momentum on US Dollar.
The Dollar index which traded against a basket of six major currency pairs had surged significantly following the U.S. treasury yields rose to the highest level since February 2020, as investors start to factor in the full economic impact of a stimulus plan totaling as much as $1.9 trillion. Such big fluctuation in US bond market on Tuesday would indicate that investors seem to be betting on a stronger economic recovery ahead while speculating that the Federal Reserve would have a less accommodative monetary easing program in long run. Higher bond yielding would attract further capital inflow into United States, which spurring significant bullish momentum on the US Dollar. Besides, the US Dollar extend its gains over the backdrop of the positive hopes upon the resolution of Covid-19 pandemic. US President Joe Biden claimed that he believes the U.S. would able to achieve 100 million vaccines shots within 100 days, which dialed up the further market optimism toward the economic progression in the United States. As of writing, the Dollar Index appreciated by 0.11% to 90.60.
In the commodities market, the crude oil price appreciated by 0.10% to $60.10 per barrel as of writing. The oil market edged higher amid wintry conditions had destructed the oil production in Texas, the biggest energy producing state in the United States. According to Bloomberg, as much as 1 million barrels a day of crude oil production has been affected by the winter storm, spurring fears upon the supply destruction of this black commodity. On the other hand, the gold price slumped 1.31% to $1794.10 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
16:00 EUR ECB Monetary Policy Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | GBP – CPI (YoY) (Jan) | 0.6% | 0.5% | – |
| 21:30 | USD – Core Retail Sales (MoM) (Jan) | -1.4% | 1.0% | – |
| 21:30 | USD – PPI (MoM) (Jan) | 0.3% | 0.4% | – |
| 21:30 | CAD – Core CPI (MoM) (Jan) | -0.4% | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 90.40. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 90.85.
Resistance level: 90.85, 91.55
Support level: 90.40, 90.00
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3985. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3855.
Resistance level: 1.3985, 1.4085
Support level: 1.3855, 1.3775
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2150. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2065.
Resistance level: 1.2150, 1.2215
Support level: 1.2065, 1.2010
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 106.00. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 106.00, 106.50
Support level: 105.65, 105.10
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7765. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7670.
Resistance level: 0.7765, 0.7865
Support level: 0.7670, 0.7590
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.7255. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7165.
Resistance level: 0.7255, 0.7305
Support level: 0.7165, 0.7110
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2690. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2690, 1.2770
Support level: 1.2610, 1.2540
USDCHF, Daily: USDCHF was traded within a range while currently testing the resistance level at 0.8925. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.8925, 0.8980
Support level: 0.8845, 0.8775
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 59.60. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 60.75.
Resistance level: 60.75, 62.00
Support level: 59.60, 58.85
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1791.00. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1816.50, 1841.05
Support level: 1791.00, 1764.65