17 June 2021 Morning Session Analysis
US Dollar surged on hawkish tone.
The Dollar Index which traded against a basket of six major currency pairs extend its gains following the Federal Reserve unleashed their hawkish tone toward the economic outlook. The 10-year Treasury yield surged significantly amid the Monetary Policy Committee (MPC) signaled two quarter-point rate hikes by the end of 2023. Besides, the projections showed the U.S. economic outlook for inflation would increase this year, while the overall economic growth is expected to hit 7%. According to Reuters, the Federal Reserve also made technical adjustments aimed at keeping tis key overnight benchmark interest rate from falling too low. The Fed raised the reverse repo rates during the U.S. central bank at the end of a two-day policy meeting. Nonetheless, as for now the Federal Reserve kept its interest rates and monthly bond buying steady until the labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2%. As of writing, the Dollar Index surged 0.95% to 91.40.
In the commodities market, the crude oil price slumped 0.20% to $71.50 per barrel as of writing due to technical correction following its reached at multi-year highs. Nonetheless, the overall sentiment toward the crude oil commodity remained bullish amid positive inventory data yesterday. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories notched down significantly from the previous reading of -5.241M to -7.355M, better than the market forecast at -3.290M. On the other hand, the gold price slumped 0.15% to $1818.15 per troy ounces amid strengthening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Monetary Policy Statement
Tentative JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (May) | 1.80% | 9.20% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 91.50. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 91.50. 92.45
Support level: 90.35, 89.50
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.4020. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3915.
Resistance level: 1.4020, 1.4100
Support level: 1.3915, 1.3810
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1985. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2060, 1.2110
Support level: 1.1985, 1.1915
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.90. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 110.90, 111.55
Support level: 110.30, 109.75
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7585. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7700, 0.7805
Support level: 0.7585, 0.7465
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.7060. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7120, 0.7225
Support level: 0.7060, 0.6955
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.2035. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2380.
Resistance level: 1.2380, 1.2605
Support level: 1.2040, 1.1785
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9095. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9095, 0.9175
Support level: 0.8930, 0.8850
CrudeOIL, Weekly: Crude oil price was traded higher while currently testing the resistance level at 73.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 73.70, 78.50
Support level: 66.30, 59.35
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1814.35. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1852.75, 1871.45
Support level: 1814.35, 1794.70