22 March 2021 Afternoon Session Analysis
Dollar up following high treasury yield.
During late Asian session, the dollar index which traded against a basket of six major currency pairs have rose amid recent surging treasury yield and optimism towards U.S economic recovery. Last Friday, the 10-year U.S. Treasury yield hovered around its 14-month high on 1.7% after the Federal Reserve declined to extend a rule expiring at the end of the month that relaxed the supplementary leverage ratio for banks during the pandemic. While it has now retreated to 1.6%, sentiment remains strong as investors remain positive towards U.S economy due to U.S stimulus past few weeks ago which supposed to help boost economic activity. On the other hand, surprise move from Turkish Prime minister to fire its central bank governor which could also potentially disrupt global market also provide extra boost for the dollar as a safe-haven currency. At the time of writing, dollar index rose 0.08% to 91.96.
In the commodities market, crude oil price remains weak and fell 0.55% to $61.09 per barrel as of writing amid concerns over lockdown and fading hopes of demand recovery. Germany plans to extend a lockdown to contain COVID-19 infections into a fifth month which may delay further economic recovery and affect demand for fuel products after new cases exceeded levels that could cause hospital to be overstretched. On the other hand, gold price rose 0.11% to $1739.95 a troy ounce as of writing following safe-haven demand due to various factors such as Turkey surprising move to fire its central bank governor and virus in Europe.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – Existing Home Sales (MoM)(Feb) | 6.69M | 6.49M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following recent rebound from the support level 91.55. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the dollar to extend its gains towards the resistance level 92.40.
Resistance level: 92.40, 93.30
Support level: 91.55, 90.90
GBPUSD, H4: GBPUSD remain traded in a sideway channel while currently testing near the support level 1.3805. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.4005, 1.4180
Support level: 1.3805, 1.3675
EURUSD, H4: EURUSD remain traded in a sideway channel while currently testing near the support level 1.1850. However, MACD which display bearish momentum signal with the recent formation of death cross suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.1985, 1.2100
Support level: 1.1850, 1.1700
USDJPY, H4: USDJPY remain traded in a sideway channel while currently heading towards the support level 108. 40. However, MACD which display bearish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 109.20, 109.70
Support level: 108.40, 107.70
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7715. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.7805, 0.7885
Support level: 0.7715, 0.7640
NZDUSD, H4: NZDUSD remain traded in a sideway channel while currently testing near the support level 0.7110. However, MACD which illustrate bearish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.7270, 0.7380
Support level: 0.7110, 0.7010
USDCAD, H4: USDCAD was traded flat near the support level 1.2475. However, MACD which illustrate starting of diminishing bullish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 1.2610, 1.2745
Support level: 1.2475, 1.2360
USDCHF, H4: USDCHF remain traded in a sideway channel while currently testing near the resistance level 0.9300. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower towards the support level 0.9230.
Resistance level: 0.9300, 0.9365
Support level: 0.9230, 0.9155
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 61.70. MACD which illustrate diminishing bearish momentum signal with the starting formation of golden cross suggest the commodity to extend its gains after it breaks above the resistance level.
Resistance level: 61.70, 63.70
Support level: 59.55, 57.50
GOLD_, H4: Gold price was traded higher while currently testing the resistance level 1742.20. However, MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to experience a technical correction towards the support level 1702.30
Resistance level: 1742.20, 1767.45
Support level: 1702.30, 1677.25