22 April 2021 Morning Session Analysis
Loonie surged amid hawkish tone from Bank of Canada.
The Canadian Dollar surged significantly against the US Dollar on yesterday over the hawkish tone from the Bank of Canada. Investors remained optimistic toward the economic progression in Canada following the Bank of Canada to dial back emergency support for the economy. According to the statement from Bank of Canada, the central bank claimed that they will remain their interest rate at the effective lower bound until the 2% inflation target is sustainably achieved. Though, the Bank of Canada remained confident toward the economic progression in the country, thanks to the successful vaccine rollout and the improvement of the consumer spending. The Bank of Canada signaled that they could be tightening their monetary policy in late 2022 in order to combat the inflation risk in future while reiterated that their economic development as for now had became stable. Indeed, the Bank of Canada cut the pace of bond purchases from C$4 billion to C$3 billion per week. As of writing, USD/CAD depreciated by 0.08% to 1.2500.
In the commodities market, the crude oil price surged 0.13% to $61.10 per barrel as of writing. Nonetheless, the crude oil price was edged lower yesterday amid spiking numbers of the Covid-19 cases around the world had spurred negative prospect for the crude oil demand. As for now, investors would continue to remain their focus on the Covid-19 development in order to gauge the likelihood movement for this black-commodity. On the other hand, the gold price appreciated by 0.05% to $1794.25 per troy ounces amid risk-off sentiment in the FX market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 19:45 | EUR – ECB Interest Rate Decision (Apr) | 0.00% | 0.00% | – |
| 20:30 | USD – Initial Jobless Claims | 576K | 625K | – |
| 22:00 | USD – Existing Home Sales (Mar) | 6.22M | 6.18M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 91.30. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 90.80.
Resistance level: 91.30, 92.00
Support level: 90.80, 90.25
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3905. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.4000, 1.4130
Support level: 1.3905, 1.3800
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level at 1.1985. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2055.
Resistance level: 1.2055, 1.2130
Support level: 1.1985, 1.1920
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 108.45. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 107.70.
Resistance level: 108.45, 109.20
Support level: 107.70, 106.95
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7755. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7755, 0.7815
Support level: 0.7705, 0.7665
NZDUSD, Daily: NZDUSD was traded higher while currently testing the resistance level at 0.7235. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7235, 0.7320
Support level: 0.7110, 0.6960
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2460. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2535, 1.2615
Support level: 1.2460, 1.2395
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9225. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9225, 0.9365
Support level: 0.9060, 0.8910
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 61.85. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 59.90.
Resistance level: 61.85, 63.60
Support level: 59.90, 57.40
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1781.95. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1812.50.
Resistance level: 1812.50, 1853.30
Support level: 1781.95, 1755.50