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20 January 2022                 Morning Session Analysis

 

UK inflation at its highest since 1992.

UK inflation appreciates at its fastest pace in 30 years despite rising coronavirus cases during last December. According to UK’s Office for National Statistics (ONS), Consumer Price Index rose for the fifth month with 5.4%, its highest level since March 1992. The rise in inflation is mainly attributed to the rising cost of commodities such as gasoline as well as food and non-alcoholic drinks. During a speech, Bank of England’s Governor Andrew Bailey commented that commodity prices are “sticky” and that it might take a longer period of time to retrace from its recent high levels. Moreover, Bailey emphasized that rising tension in between Russia and Ukraine may help propel commodity prices further, with the market speculating for a possible deficit in supply if war breaks out. Rising inflation in the UK has also sparked discussion of a possible rate hike as early as March from the Bank of England. As of writing, pair of GBP/USD depreciates by 0.05% to 1.3609.

 

As for commodities market, crude oil price slumped 0.43% to $85.07 per barrel following bearish inventory data from the US. According to American Petroleum Institute, last week’s oil inventory was up by 1.4 million barrels, missing economist’s forecast for a draw of 1.1 million barrels. On the other hand, rising tension in between Russia and Ukraine has provided further support for gold price. During Asian trading session, gold price rose 0.02% to $1,838.94 a troy ounce.

 

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
18:00 EUR – CPI (YoY) (Dec) 5.00% 5.00%
21:30 USD – Initial Jobless Claims 230K 220K
21:30 USD – Philadelphia Fed Manufacturing Index (Jan) 15.4 20
23:00 USD – Existing Home Sales (Dec) 6.46M 6.43M

 

 

 

Technical Analysis

DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from lower levels. MACD which illustrate diminished bearsih signal suggests the index to be traded higher in short-term.

 

Resistance level: 95.95, 96.30

Support level: 95.45, 95.00

 

GBPUSD, H1: GBPUSD was traded lower following prior retracement from higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.

 

Resistance level: 1.3630, 1.3690

Support level: 1.3570, 1.3510

 

EURUSD, H4: EURUSD was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish signal suggests the pair to be traded higher in short-term.

 

Resistance level: 1.1380, 1.1440

Support level: 1.1310, 1.1260

 

USDJPY, Daily: USDJPY was traded lower following retracement from 114.55. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.

 

Resistance level: 114.55, 115.50

Support level: 113.50, 112.75

 

AUDUSD, H4: AUDUSD was traded lower following retracement from higher level. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower in short-term.

 

Resistance level: 0.7225, 0.7280

Support level: 0.7180, 0.7140

 

NZDUSD, H4: NZDUSD was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.

 

Resistance level: 0.6780, 0.6830

Support level: 0.6740, 0.6700

 

USDCAD, H4: USDCAD was traded lower following prior retracement from higher levels. MACD which illustrate diminished bullish momentum suggests the pair to be traded lower after closing below 1.2485.

 

Resistance level: 1.2545, 1.2620

Support level: 1.2485, 1.2410

 

USDCHF, H4: USDCHF was traded lower following prior retracement from higher levels. MACD which illustrate diminished bullish signal suggests the pair to be traded lower in short-term.

 

Resistance level: 0.9165, 0.9190

Support level: 0.9130, 0.9100

 

CrudeOIL, H4: Crude oil price was traded lower following prior retracement from higher levels. MACD which illustrate bearish signal suggests its price to be traded lower after breaking its support level.

 

Resistance level: 87.40, 89.50

Support level: 84.60, 82.65

 

GOLD_, H4: Gold price was traded higher following prior rebound from lower levels. MACD which illustrate bullish signal suggests its price to be traded higher in short-term.

 

Resistance level: 1850.00, 1873.80

Support level: 1830.20, 1812.80