24 September 2021 Afternoon Session Analysis
Dollar slips following easing concerns over China Evergrande bankruptcy.
The dollar index which traded against a basket of six major currency pairs have fell to near one-week low following easing concerns about contagion from China Evergrande potential bankruptcy which improved risk sentiment. According to sources, Evergrande is likely to undergo restructuring to pay off debts that have been deferred previously. Reports from the Central Bank of China show that they have carried out a “reverse repo” operation worth 110 billion yuan in the past 7 days. The move suggests that the Central Bank of China has increased liquidity in financial markets should the restructuring increase the negative impact in the future. Economists argue that the Chinese government will take drastic action to protect its citizens who have purchased properties developed by Evergrande. Moreover, the Chinese government is likely to stress the importance of restructuring so that the momentum of economic recovery in China is not affected. At the time of writing, dollar index fell 0.37% to $93.05.
In the commodities market, crude oil price rose 0.15% to $73.10 per barrel at the time of writing amid expectation of tighter supply. According to Energy Information Administration (EIA) data, capacity utilization rates at U.S. East Coast refineries increased to 93%, the highest since May 2019. On top of that, some of the OPEC members also struggled to raise output due to delays to maintenance work. On the other hand, gold price rose 0.54% to 1752.25 a troy ounce as of writing following dollar weakness.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:00 | EUR – German Ifo Business Climate Index (Sep) | 99.4 | 98.9 | – |
| 22:00 | USD – New Home Sales (Aug) | 708K | 713K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index traded lower while currently testing the support level 93.05. MACD which illustrate bearish momentum signal suggest the dollar to extend its losses after it breaks below the support level 93.05.
Resistance level: 93.65, 94.20
Support level: 93.05, 92.65
GBPUSD, H4: GBPUSD was traded higher while currently testing near the resistance level 1.3765. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 1.3605.
Resistance level: 1.3765, 1.3875
Support level: 1.3605, 1.3460
EURUSD, H4: EURUSD was traded higher following prior rebound from the support level 1.1705. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 1.1800.
Resistance level: 1.1800, 1.1885
Support level: 1.1705, 1.1625
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 110.20. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains towards the resistance level 110.75.
Resistance level: 110.75, 111.55
Support level: 110.20, 109.60
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.7335. MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.7235.
Resistance level: 0.7335, 0.7415
Support level: 0.7235, 0.7150
NZDUSD, H4: NZDUSD was traded higher while currently testing near the resistance level 0.7075. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 0.6990.
Resistance level: 0.7075, 0.7145
Support level: 0.6990, 0.6920
USDCAD, H4: USDCAD was traded flat while currently testing the resistance level 1.2685. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher after it breaks above the resistance level 1.2685.
Resistance level: 1.2685, 1.2770
Support level: 1.2585, 1.2510
USDCHF, H4: USDCHF was traded flat while currently testing the support level 0. 9240.However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 0.9310.
Resistance level: 0.9310, 0.9375
Support level: 0.9240, 0.9185
CrudeOIL, H4: Crude oil price was traded higher following recent breakout above the previous resistance level 72.45. However, MACD which illustrate diminishing bullish momentum signal suggest the commodity to be traded lower as a short-term technical correction back towards the support level 72.45.
Resistance level: 74.30, 77.00
Support level: 72.45, 70.45
GOLD, H4: Gold price was traded lower while currently testing the support level 1745.40. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses after it breaks below the support level 1745.40.
Resistance level: 1778.55, 1806.85
Support level: 1745.40, 1715.60
Risk Statement:
Forex, Gold, Crude Oil, Commodities, CFD and all other margin trading investment products involve high level of risk and may not be suitable for all investors. Your previous investment success in stock, futures or any other investment achieved does not mean that all your future investment will obtain the same results. You should carefully consider your investment objectives; risk associated and seek professional advice before deciding to trade or if you have any doubts.