21 March 2022 Morning Session Analysis
US Dollar surged following Fed unleashed hawkish tone.
The Dollar Index which traded against a basket of six major currencies surged on last Friday over the backdrop of hawkish tone from Federal Reserve. According to Reuters, two of the Federal Reserve policymakers claimed that the central bank needs to take more aggressive steps to tame inflation following its reached 40-year highs. St. Louis Fed president James Bullard claimed that he is in favor of a half-point increase interest, while reiterating that Fed’s overnight lending rate to increase to more than 3% this year. Most of the policymakers had expressed their support for more aggressive action, with seven projecting rates to rise above 2% in year of 2022. Nonetheless, investors would continue to scrutinize the latest updates with regards of further crucial economic data as well monetary policy plan to receive further trading signal. As of writing, the Dollar Index surged 0.26% to 98.25.
In the commodities market, the crude oil price appreciated by 1.20% to $105.45 per barrel as of writing amid rising tension between Russian-Ukraine continue to be spurring bullish momentum on the crude oil price. On the other hand, the gold price depreciated by 1.10% to $1921.30 per troy ounces as of writing amid hawkish expectation from Fed continue to drag down the appeal for inflation-hedging commodity such as gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:30 EUR ECB President Lagarde Speaks
22:00 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
N/A
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level. However, MACD which illustrated increasing bullish momentum suggest the index to be traded higher as technical correction.
Resistance level: 99.35, 100.40
Support level: 97.80, 96.45
GBPUSD, H4: GBPUSD was traded higher while currently testing resistance level. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.3190, 1.3420
Support level: 1.3010, 1.2855
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses.
Resistance level: 1.1135, 1.1245
Support level: 1.0980, 1.0820
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after breakout.
Resistance level: 119.20, 120.50
Support level: 117.50, 116.25
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains.
Resistance level: 0.7410, 0.7525
Support level: 0.7250, 0.7180
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6895. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.6905, 0.6965
Support level: 0.6800, 0.6715
USDCAD, Daily: USDCAD was traded lower while currently testing the support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses.
Resistance level: 1.2755, 1.2890
Support level: 1.2590, 1.2485
USDCHF, Daily: USDCHF was traded lower while currently testing the support level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses.
Resistance level: 0.9425, 0.9580
Support level: 0.9310, 0.9115
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower as technical correction.
Resistance level: 105.40, 111.60
Support level: 99.35, 92.30
GOLD_, H4: Gold price was traded lower while currently testing the support level. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout.
Resistance level: 1946.35, 1973.00
Support level: 1912.60, 1881.35