24 February 2021 Morning Session Analysis
Dollar dived amid Jerome Powell’s dovish stance on economic outlook.
The dollar index which gauges its value against a basket of six major currencies wobbles after Federal Reserve Chairman Jerome Powell delivered its pessimistic view with regard to the nation’s economy outlook during his presentation of semi-annual monetary policy report. In his statement, Powell revealed that the economy is still far away from the pre-pandemic level despite a strong rebound from recession could be seen recently, thus accommodative monetary policy will be remained where there will be no changes with the rock bottom interest rate as well as the ongoing large scale bond purchasing program. Moreover, he pointed that unemployment rate has started to decline after surging significantly last year, but the official jobless rate showing that the labour market in US is still weak and vulnerable. Besides, the underlying inflation pressure remains below their 2% of objective, prices of goods and services particularly soft due to adverse effect from the fallout of pandemic. Therefore, Federal Reserve is remains committed to use full range of available tools to support the economy through this difficult period. As of writing, dollar index ticked up 0.12% to 90.12.
In the commodities market, the crude oil price depreciated by 0.02% to $61.15 per barrel as investor took profit after the oil price hitting the 1 year high-level yesterday. Besides, US API has also reported some stock-build as of last week. According to the API, US Weekly Crude Oil Stock came in at 1.026M, missing the economist forecast at -5.372M, igniting the market worries over the equilibrium of oil market. Furthermore, the gold price dropped 0.03% to $1806.50 a troy ounce amid weakening of US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German GDP (QoQ)(Q4) | 8.5% | 0.1% | – |
| 23:00 | USD – New Home Sales (Jan) | 842K | 855K | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -7.258M | -5.190M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 90.00. However, MACD which illustrated diminishing bearish momentum suggest the index to undergo technical correction in short term.
Resistance level: 90.45, 90.75
Support level: 90.00, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.4085. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.4150.
Resistance level: 1.4150, 1.4215
Support level: 1.4085, 1.4010
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.2165. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.2105.
Resistance level: 1.2165, 1.2195
Support level: 1.2105, 1.2065
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 105.30. MACD which illustrated diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 105.30, 105.65
Support level: 105.10, 104.65
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the higher level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the lower level.
Resistance level: 0.7940, 0.7970
Support level: 0.7890, 0.7850
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7335. However, MACD which illustrated diminishing bullish momentum suggest the pair to undergo technical correction in short term.
Resistance level: 0.7335, 0.7375
Support level: 0.7300, 0.7240
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2615. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to undergo technical correction in short term.
Resistance level: 1.2610, 1.2685
Support level: 1.2555, 1.2485
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9040. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9080.
Resistance level: 0.9080, 0.9125
Support level: 0.9040, 0.8985
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 61.70. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 60.65.
Resistance level: 61.70, 62.45
Support level: 60.65, 59.80
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1803.00. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1825.40, 1839.50
Support level: 1803.00, 1786.55