18 February 2021 Afternoon Session Analysis
Dollar extend gains following FOMC meeting.
During late Asian session, the dollar index which traded against a basket of six major currency pairs have continue to extend its rally following the release of meeting minutes from FED. According to the latest meeting minutes, Fed members stated that policy easing would be maintained for a longer period to support economic recovery. The suggestion was given due to the current economic situation which is still far from the set target and it will take time to recover gradually. However, Fed also commented that the momentum of economic recovery has been booming for the past few months and the job market has shown significant recovery signals. The Fed also noted that the inflation rate is expected to increase gradually due to surging consumer spending after vaccines were widely distributed and social imprisonment relaxed in the future. At the same time, high US treasury also continue to support the demand for the greenback. At the time of writing, dollar index rose 0.05% to 90.85.
In the commodities market, crude oil price soars 0.39% to $61.89 per barrel as of writing following Texas cold weather continue to affect oil supply. The ongoing snap continue to sweeping Texas and shut at least a fifth of U.S. refining output and a million barrels of crude production. Experts stated that the weather could continue to hamper crude output for a longer period. On the other hand, gold price rebounds 0.43% to $1784.12 a troy ounce amid technical correction after recently plunged about 1% due to dollar strength.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:30 EUR ECB Publishes Account of Monetary Policy Meeting
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Building Permits (Jan) | 1.704M | 1.679M | – |
| 21:30 | USD – Initial Jobless Claims | 793K | 765K | – |
| 21:30 | USD – Philadelphia Fed Manufacturing Index (Feb) | 26.5 | 20.0 | – |
| 00:00
(19th) |
CrudeOIL – CrudeOIL Inventories | -6.644M | -2.175M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level at 90.90. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 90.90, 91.55
Support level: 90.40, 90.00
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3845. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3950, 1.4085
Support level: 1.3845, 1.3750
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.2065. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2065, 1.2150
Support level: 1.2010, 1.1955
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 106.10. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 105.65.
Resistance level: 106.10, 106.50
Support level: 105.65, 105.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7720. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7815.
Resistance level: 0.7815, 0.7865
Support level: 0.7720, 0.7670
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.7165. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7255.
Resistance level: 0.7255, 0.7305
Support level: 0.7165, 0.7110
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2690. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2770, 1.2840
Support level: 1.2690, 1.2610
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.8980. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.8980, 0.9045
Support level: 0.8925, 0.8845
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 60.40. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 62.80.
Resistance level: 62.80, 65.20
Support level: 60.35, 58.40
GOLD_, Daily: Gold price was traded lower while currently testing the support level at 1777.80. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1821.75, 1872.75
Support level: 1777.80, 1720.70