22 February 2021 Afternoon Session Analysis
Dollar slumped amid risk-on sentiment.
The Dollar Index which traded against a basket of six major currency pairs slumped following the number of global Covid-19 cases reported has continued to fall, with 2.7 million new cases last week, a 16% decline compared to the previous week, which spurring risk-on sentiment in the FX market while stoking in shift in sentiment toward riskier currencies such as Pound Sterling and Australian Dollar. The Australia was also set a report of no local cases for a third consecutive day, while UK Prime Minister Boris Johnson plan to ease the current Covid-19 lockdowns today. Investors speculated that the safe-haven greenback is likely to slump further amid positive expectation on the global economic recovery from Covid-19. Nonetheless, the US Dollar had limited its losses amid the recent gains in long-term Treasury yields and an improved US Covid-19 response had spurred some positive prospect on the US Dollar. Nonetheless, investors would continue to scrutinize the latest updates with regards of the US economic stimulus plan in order to gauge the likelihood movement for the index. As of writing, the Dollar Index depreciated by 0.02% to 90.30.
In the commodities market, crude oil price surged 1.19% to $59.70 per barrel as of writing over the backdrop of positive oil inventory data from US region. According to Energy Information Administration, the U.S. Crude oil inventory data came in at -7.258M, which better than the market expectation at -2.429M, which providing some bullish momentum on this black commodity. On the other hand, the gold price appreciated by 0.05% to $1784.05 per troy ounces as of writing amid weakening US Dollar.
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Today’s Highlight Events
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – German Ifo Business Climate Index (Feb) | 90.1 | 90.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 90.40. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 90.40, 90.85
Support level: 90.00, 89.60
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3955. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.4085, 1.4175
Support level: 1.3955, 1.3855
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.2065. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2150, 1.2215
Support level: 1.2065, 1.2020
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 105.65. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 105.65, 106.00
Support level: 105.10, 104.55
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7880. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7880, 0.7940
Support level: 0.7800, 0.7720
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7305. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7305, 0.7350
Support level: 0.7255, 0.7165
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2600. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2690, 1.2770
Support level: 1.2600, 1.2540
USDCHF, H4: USDCHF was traded higher while currently testing the resistance level at 0.8980. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.8980, 0.9045
Support level: 0.8925, 0.8845
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 58.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 60.50.
Resistance level: 60.50, 61.65
Support level: 58.65, 57.65
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1764.10. AMCD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1795.35.
Resistance level: 1795.35, 1825.25
Support level: 1764.10, 1731.65