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7 December 2022                              Morning Session Analysis

 

Greenback surged amid risk-off sentiment heightened.

The dollar index, which was traded against a basket of six major currencies, lingered near the recent high, but still recorded some gains over the previous trading session despite the market was lack of catalyst. Yesterday, the dollar index received some buy-in pressures as the stock market was hit badly amid recession worries jolt markets. In the recent weeks, some major layoffs have been noticed in the giant companies, which further increases the odds that a hard landing in 2023 and enter a deep recession might be happened. The recent layoff trend has been extended following the news that Morgan Stanley is planning to cut 2% of its workforce as sluggish deal markets weigh on its profits. As such, the greenback benefited from the bearish sentiment in the equity market, and thus, pushing the value of the US dollar slightly higher in the last trading session. As of writing, the dollar index headed up 0.26% to 105.55.

 

In the commodities market, the crude oil price plummeted by -3.89% to $74.70 per barrel as the recession worries jitter the market sentiment. Besides, the gold prices jumped 0.17% to $1771.15 per troy ounce amid the strengthening of dollar index.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

23:00                     CAD                                        BoC Rate Statement

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
23:00 CAD – BoC Interest Rate Decision 3.75% 4.25%
23:30 CrudeOIL – Crude Oil Inventories -12.580M -3.305M

 

 

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 105.00. MACD which illustrated diminishing bearish momentum suggests the index to extend its gains toward the resistance level at 106.65.

 

 

Resistance level: 106.65, 107.95

Support level: 105.00, 103.15

 

GBPUSD, Daily: GBPUSD was traded lower while currently testing the support level at 1.2200. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.

 

Resistance level: 1.2345, 1.2470

Support level: 1.2200, 1.2000

 

EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0475.  MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.

 

Resistance level: 1.0615, 1.0775

Support level: 1.0475, 1.0365

 

USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 136.45. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 136.45, 138.90

Support level: 134.15, 131.25

 

AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6725. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6640.

 

Resistance level: 0.6725, 0.6860

Support level: 0.6640, 0.6530

 

NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the previous support level at 0.6355. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.6255.

 

Resistance level: 0.6355, 0.6460

Support level: 0.6255, 0.6170

 

USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3600. MACD which illustrated bullish bias momentum suggests the pair to extend it gains after it successfully breakout above the resistance level.

 

Resistance level: 1.3600, 1.3740

Support level: 1.3505, 1.3400

 

 

USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9405. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9530.

 

Resistance level: 0.9530, 0.9625

Support level: 0.9405, 0.9310

 

CrudeOIL, Daily: Crude oil price was traded lower following prior breakout below the previous support level at 76.10. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward the support level at 72.35.

 

Resistance level: 76.10, 80.60

Support level: 72.35, 66.25

 

GOLD_, H4: Gold price was traded lower following prior retracement from the higher level. However, MACD which illustrated diminishing bearish momentum suggests the commodity to undergo technical correction in short term.

 

Resistance level: 1786.00, 1807.30

Support level: 1759.15, 1729.85