21 September 2021 Morning Session Analysis
Japanese Yen surged amid risk-off mood.
The safe-haven Japanese Yen received significant bullish momentum yesterday following troubles at property group China Evergrande had spurred concerns over the spillover effect into the global economy, which stoked a shift in sentiment from the riskier asset into other safe-haven asset such as Japanese Yen and Swiss Franc. According to Reuters, China Evergrande Group, the second largest property company in China has more than $300 billion in liabilities, and reports suggest the company unable to repay its interest payment deadline on its offshore bonds due Thursday. Failure of debt repayments could force the company into bankruptcy, sparking a wider liquidity crisis in real estate sector. Besides, market participants speculated the Federal Reserve might be unleashing their hawkish tone during the FOMC meeting this week. Higher interest rate expectation tends to negatively affect earnings and the company intrinsic value, which weighing down the global stock market while increase the appeal of the safe-haven Japanese Yen. As of writing, USD/JPY depreciated by 0.05% to 109.55.
In the commodities market, the crude oil price surged 0.42% to $70.90 per barrel as of writing. The oil market edged higher amid investors remained optimism toward the Covid-19 vaccination program around the world. On the other hand, the gold price appreciated by 0.05% to $1763.50 per troy ounces as of writing amid risk-off sentiment in the market, increasing the appeal for the safe-haven gold.
Today’s Holiday Market Close
Time Market Event
All Day CNY Mid-Autumn Festival
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Building Permits (Aug) | 1.600M | 1.630M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 92.65. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 93.25, 94.10
Support level: 92.65, 91.80
GBPUSD, H4: GBPUSD was traded lower prior breakout below the previous support level at 1.3695. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3695, 1.3755
Support level: 1.3605, 1.3515
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1705. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1760, 1.1800
Support level: 1.1705, 1.1665
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 109.60. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.60, 110.40
Support level: 109.20, 108.45
AUDUSD, H4: AUDUSD was traded higher while currently near the resistance level at 0.7280. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7280, 0.7345
Support level: 0.7220, 0.7115
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7015. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7080, 0.7160
Support level: 0.7015, 0.6940
USDCAD, H4: USDCAD was traded lower while currently near the support level at 1.2780. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2850, 1.2905
Support level: 1.2780, 1.2725
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9305. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.9330.
Resistance level: 0.9305, 0.9375
Support level: 0.9330, 0.9100
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 72.30. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 72.30, 73.75
Support level: 70.40, 67.75
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1763.70. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1763.70, 1778.55
Support level: 1749.35, 1737.05
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives; risk associated and seek professional advice before deciding to trade or if you have any doubts.