23 June 2021 Morning Session Analysis
Dollar slumped following Jerome Powell unleashed dovish tone.
The Dollar Index which traded against a basket of six major currency pairs slumped over the backdrop of dovish tone from the Federal Reserve Chairman Jerome Powell. According to Reuters, Federal Reserve Jerome Powell reaffirmed that the U.S. central bank would continue to implement its aggressive expansionary monetary policy to boost up the job market in United States, and not to raise interest rates too soon based only on the fear of coming inflation. Nonetheless, the Monetary Policy Committee (MPC) from the Fed have expressed different views on its monetary policy, the overall sentiment from Fed remained vague. The Fed officials will continue to scrutinize the economic data to determine when it will be appropriate to adjust and taper its monetary policy. Aggressive expansionary monetary policy would increase the money circulation in the market, which spurring higher inflation risk and diminishing the appeal of the US Dollar. As of writing, the Dollar Index slumped 0.21% to 91.70.
In the commodities market, the crude oil price surged 0.10% to $73.30 per barrel as of writing. The crude oil price extends its gains amid upbeat inventory data. According to American Petroleum Institute, U.S. API Weekly Crude Oil Stock came in at – 7.199M, better than the market forecast at -3.625M. On the other hand, the gold price surged 0.02% to $1779.05 per troy ounces as of writing amid weakening US Dollar.
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 |
| 15:30 | EUR – German Manufacturing PMI (Jun) | 63.0 | 64.4 | – |
| 16:30 | GBP – Manufacturing PMI | 65.6 | – | – |
| 16:30 | GBP – Services PMI | 62.9 | – | – |
| 20:30 | CAD – Core Retail Sales (MoM) (Apr) | -5.0% | 4.3% | – |
| 22:00 | USD – New Home Sales (May) | 870K | 863K | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -7.355M | -3.942M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 92.45. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 91.50.
Resistance level: 92.45. 93.25
Support level: 91.50, 90.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3925. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3990, 1.4100
Support level: 1.3925, 1.3810
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1955. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1955, 1.2065
Support level: 1.1855, 1.1725
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.90. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.90, 111.55
Support level: 110.35, 109.75
AUDUSD, Daily: AUDUSD was traded higher while currently testing the resistance level at 0.7585. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7585, 0.7700
Support level: 0.7465, 0.7365
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6940. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.7120.
Resistance level: 0.7120, 0.7300
Support level: 0.6940, 0.6770
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2360. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2275.
Resistance level: 1.2360, 1.2480
Support level: 1.2275, 1.2165
USDCHF, H1: USDCHF was traded lower while currently testing the support level at 0.9180. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9235, 0.9305
Support level: 0.9180, 0.9135
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 72.55. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 73.70, 75.10
Support level: 72.55, 71.30
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1766.85. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1793.60.
Resistance level: 1793.60, 1814.35
Support level: 1766.85, 1749.15