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22 November 2022                            Afternoon Session Analysis

Germany PPI unexpectedly dropped, Euro sinks.

The EUR/USD, which well known by majorities of investor slipped on yesterday after the inflationary data has been released. According to Destatis, the Germany Producer Price Index (PPI) MoM in October accidentally notched down from the previous reading of 2.3% to -4.2%, far lower than the consensus expectation of 0.9%. With the backdrop of easing inflationary pressure in Germany, it would likely to the diminishing of inflation risk in Eurozone, which decrease the odds of aggressive tightening monetary policy by European Central Bank (ECB). On the other hand, the Euro’s losses was extended following the smaller rate hike was implied. According to Reuters, ECB chief economist Philip Lane appeared a speech on Monday that the ECB would raise interest rate again in December, but the rate increase might be smaller than the prior. Thus, it might hinted that the 50 basis point rate hike would likely to be carried out in the next meeting, which dragged down the appeal of Euro. As of writing, EUR/USD rose by 0.24% to 1.0266.

 

In the commodities market, the crude oil price rallied by 0.36% to $80.33 per barrel as of writing. Nonetheless, the overall trend of oil price remained bearish over the exacerbating pandemic Covid-19 in China. In addition, the gold price appreciated by 0.28% to $1744.85 per troy ounce as of writing following the value of US Dollar weakened.

 

 

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
21:30 CAD – Core Retail Sales (MoM) (Sep) 0.7% -0.6%

 

 

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level. MACD which illustrated decreasing bearish momentum suggest the index to extend its gains.

 

Resistance level: 108.45, 109.95

Support level: 107.05, 105.20

 

GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains.

 

Resistance level: 1.2040, 1.2245

Support level: 1.1835, 1.1635

 

EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.

 

Resistance level: 1.0335, 1.0465

Support level: 1.0210, 1.0090

 

USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains if successfully breakout the resistance level.

 

Resistance level: 142.10, 145.75

Support level: 139.00, 135.35

 

AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains.

 

Resistance level: 0.6705, 0.6830

Support level: 0.6590, 0.6500

 

NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.

 

Resistance level: 0.6150, 0.6260

Support level: 0.6025, 0.5920

 

USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses.

 

Resistance level: 1.3455, 1.3635

Support level: 1.3320, 1.3155

 

USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.

 

Resistance level: 0.9680, 0.9815

Support level: 0.9550, 0.9400

 

CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains.

 

Resistance level: 83.55, 86.25

Support level: 80.15, 77.40

 

GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the commodity to be traded higher as technical correction.

 

Resistance level: 1756.05, 1783.50

Support level: 1725.65, 1700.05