20 April 2021 Afternoon Session Analysis
Dollar plunged following inflation expectation low.
During late Asian session, the dollar index which traded against a basket of six major currency pairs have extend its weakness and fell after market reversed their speculation of Fed to tighten monetary policy soon. Previously, market expected that U.S recovery from coronavirus pandemic could push inflation higher and exert pressure for Fed to tighten monetary policy. However, dovish Fed comments and largely unsurprising US inflation data over the past week or so have poured cold water on the speculation. Fed recently stated that the central bank would unlikely to raise interest rate before 2024 despite with signs of recovery. On the other hand, investors are also selling the greenback in favor for other riskier currencies for their higher yields. At the time of writing, dollar index fell 0.10% to 90.83.
In the commodities market, crude oil price rose 0.80% to $63.95 per barrel as of writing following dollar weakness and expectations of a drawdown in U.S inventories. As of now, U.S dollar weakness continues to offer support to the commodities following a plunge in U.S treasury yields. On top of that, U.S crude stockpiles also expected to drop for last week, according to preliminary Reuter’s poll. On the other hand, gold price rose 0.15% to 1773.15 a troy ounce at the time of writing following weaker dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index +Bonus (Feb) | 4.8% | 4.8% | – |
| 14:00 | GBP – Claimant Count Change (Mar) | 86.6K | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 90.95. MACD which illustrated bearish bias momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 91.25, 91.55
Support level: 90.95, 90.70
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3990. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3990, 1.4045
Support level: 1.3945, 1.3910
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2030. MACD which illustrated bullish bias momentum signal suggest the pair to extend its gains toward the resistance level at 1.2060.
Resistance level: 1.2060, 1.2100
Support level: 1.2030, 1.1990
USDJPY, Daily: USDJPY was traded lower following prior breakout below the previous support level at 108.30. MACD which illustrated bearish bias momentum signal suggest the pair to extend its losses toward the support level at 107.65.
Resistance level: 108.30, 109.20
Support level: 107.65, 107.00
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7735. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7815.
Resistance level: 0.7815, 0.7905
Support level: 0.7735, 0.7665
NZDUSD, Daily: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7170. MACD which illustrated bullish bias momentum signal suggests the pair to extend its gains toward the resistance level at 0.7235.
Resistance level: 0.7235, 0.7300
Support level: 0.7170, 0.7110
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2510. MACD which illustrated bearish bias momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2510.
Resistance level: 1.2630, 1.2775
Support level: 1.2510, 1.2390
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9185. MACD which illustrated bearish bias momentum suggests the pair to extend its losses toward the support level at 0.9110.
Resistance level: 0.9185, 0.9220
Support level: 0.9110, 0.9030
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 63.70. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 63.70, 65.40
Support level: 62.50, 61.30
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1768.20. MACD which illustrated bearish bias momentum signal suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1788.50, 1803.40
Support level: 1768.20, 1755.60