23 November 2021 Morning Session Analysis
Dollar surged amid nomination of Powell as Fed Chair.
The Dollar Index which traded against a basket of six major currency pairs surged significantly amid nomination of Jerome Powell to extend his service as Chair of Fed by President Joe Biden. According to Reuters, with the robust economic growth and creation of about 5.6 million jobs with lower unemployment rate, the US economy is said to be outstripping the rest of the developed world. These are considered as the testament to decisive actions by Chair Powell and the Federal Reserve to cushion the impact of the pandemic and get America’s economy back on track. In addition, according to the statement from President Biden, he voiced out his trust toward Jerome Powell is the best candidate to create a stable and independence Fed to handle the current inflation crisis. The nomination of Powell by Biden to continue his service as Chair of Fed has fueled up market optimism toward US dollar as the investors believe that Powell is ready to stick to his initiate plan by tapering monetary policy as the current US inflation pressure fulfill his consideration for hiking the lending rate earlier. As of writing, the Dollar Index appreciated by 0.07% to 96.45.
In the commodities market, the crude oil price slumped 0.11% to $76.35 as of writing. The oil market extended its losses after Japanese Prime Minister Fumio Kishida signaled his readiness to release his oil reserve over the weekend while the Indian government was rumored to have discussion with US on the release of oil from strategic reserves. On the other hand, the gold price slumped 0.25% to $1809.30 per troy ounces amid strengthening US dollar.
Today’s Holiday Market Close
Time Market Event
All Day JPY Public Holiday
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German GDP (QoQ) (Q3) | 1.90% | 2.2% | – |
| 16:30 | EUR – German Manufacturing PMI (Nov) | 57.8 | 56.9 | – |
| 17:30 | GBP – Composite PMI (Oct) | 54.1 | 54.1 | – |
| 17:30 | GBP – Manufacturing PMI (Oct) | 56.3 | 56.3 | – |
| 17:30 | GBP – Services PMI (Oct) | 54.6 | 54.6 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following closure above 96.15. MACD which shows bullish signal suggests the index to be traded higher after closing above 96.50.
Resistance level: 96.50, 97.00
Support level: 96.15, 95.75
GBPUSD, H4: GBPUSD was traded lower following prior closure below 1.3410. MACD which illustrate bearish signal suggests the pair to extend its losses in short-term.
Resistance level: 1.3410, 1.3465
Support level: 1.3355, 1.3300
EURUSD, H4: EURUSD was traded lower following prior closure below 1.1285. MACD which forms bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 1.1285, 1.1370
Support level: 1.1210, 1.1140
USDJPY, H4: USDJPY was traded higher following prior rebound from lower level. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 114.90, 115.70
Support level: 114.25, 113.60
AUDUSD, H4: AUDUSD was traded lower following prior closure below 0.7260. MACD which illustrate bearish signal suggests the pair to be traded lower after closing below 0.7220.
Resistance level: 0.7260, 0.7320
Support level: 0.7220, 0.7170
NZDUSD, H4: NZDUSD was traded lower following prior closure below 0.6985. MACD which illustrate bearish signal suggests the pair to be traded lower in short-term.
Resistance level: 0.6985, 0.7030
Support level: 0.6935, 0.6905
USDCAD, H4: USDCAD was traded higher following prior rebound from lower level. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2725, 1.2775
Support level: 1.2660, 1.2590
USDCHF, Daily: USDCHF was traded higher following prior rebound from lower level. MACD which illustrate bullish signal suggests the pair to extend its gains in mid-term.
Resistance level: 0.9340, 0.9400
Support level: 0.9260, 0.9200
CrudeOIL, H4: Crude oil price was traded lower following prior retrace from higher level. MACD which illustrate diminished upward momentum suggests its price to be traded lower in short-term after closing below 76.35.
Resistance level: 78.35, 80.80
Support level: 76.35, 74.35
GOLD_, H4: Gold price was traded higher following prior rebound from lower level. MACD which illustrate diminished bearish momentum suggests the pair to be traded higher in short-term.
Resistance level: 1813.50, 1835.75
Support level: 1791.20, 1763.60