21 May 2021 Morning Session Analysis
US dollar slumps back down.
Greenback retraced from its previous high levels as investors digested Federal Reserve signals with regards to monetary policy tightening. As of writing, the dollar index was down by 0.02% to 89.89 during Asian trading session. From the meeting minutes, several Fed officials commented to discuss with regards to tapering its bond purchasing program if US economy recovers substantially from the pandemic. However, investors realized that such action would require a significant timeframe as recent economic data from the US shows a rather mediocre recovery. For the month of May, Philadelphia Fed Manufacturing Index slumped from 50.2 to 31.5, significantly lower than forecast of 43.0. The depreciation in manufacturing activity arises from the difficulty of hiring new workers after Philadelphia raises its total number of working hours. In addition, the shortage of raw materials due to coronavirus pandemic has also led to a lower manufacturing activity in the region.
In the commodities market, crude oil price slump more than 5% on yesterday to $61.98 per barrel. According to SCMP, both Israel and Gaza have agreed to ceasefire as of 2AM this morning, diminishing the risk of oil supply disruption from the region. On the other hand, gold price fell by 0.06% to $1,875.84 a troy ounce due to diminishing tensions in between Israel and Gaza.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Retail Sales (MoM) (Apr) | 5.4% | 4.0% | – |
| 15:30 | EUR – German Manufacturing PMI (May) | 66.2 | 65.8 | – |
| 16:30 | GBP – Manufacturing PMI (May) | 60.7 | 60.7 | – |
| 16:30 | GBP – Services PMI (May) | 60.1 | 60.1 | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Mar) | 4.8% | 2.0% | – |
| 22:00 | USD – Existing Home Sales (Apr) | 6.01M | 6.09M | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was lower following a retracement near 90.20. MACD which illustrate bearish signal suggests the index to be traded lower after closing below 89.70.
Resistance level: 90.00, 90.20
Support level: 89.70, 89.45
GBPUSD, H4: GBPUSD was traded lower following a rebound from 1.4105. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 1.4255, 1.4345
Support level: 1.4180, 1.4105
EURUSD, H4: EURUSD was traded higher following a rebound from 1.2170. MACD which illustrate bullish signal suggests the pair to be traded higher after closing above 1.2230.
Resistance level: 1.2230, 1.2270
Support level: 1.2170, 1.2125
USDJPY, H1: USDJPY was traded higher following prior rebound from the lower level. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 109.00, 109.25
Support level: 108.85, 108.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from 0.7700. MACD which illustrate bullish suggests the pair to be traded higher in short-term.
Resistance level: 0.7805, 0.7850
Support level: 0.7755, 0.7700
NZDUSD, H4: NZDUSD was traded higher following prior rebound from 0.7145. MACD which illustrate bullish signal suggests the pair to be traded higher in short-term.
Resistance level: 0.7240, 0.7270
Support level: 0.7190, 0.7145
USDCAD, H4: USDCAD was lower following prior retracement from the higher level. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 1.2080, 1.2180
Support level: 1.2010, 1.1900
USDCHF, H1: USDCHF was traded higher following a rebound from the lower level. However, MACD which shows the formation of bearish signal suggest the pair to be traded lower in short-term.
Resistance level: 0.8985, 0.9000
Support level: 0.8960, 0.8940
CrudeOIL, H4: Crude oil price was higher following a rebound from the lower level. MACD which illustrate diminished downward momentum suggests its price to be traded higher in short-term.
Resistance level: 63.25, 64.70
Support level: 62.10, 60.95
GOLD_, H1: Gold price was traded lower following a retrace from the higher level. MACD which illustrate bearish signal suggests its price to be traded lower in short-term.
Resistance level: 1880.00, 1895.00
Support level: 1863.25, 1845.00