25 June 2021 Morning Session Analysis
Pound slumped following BoE maintained dovish tone.
Pound Sterling slumped following yesterday the Bank of England maintained their interest rate at 0.1%. Besides the Monetary Policy Committee (MPC) also sets the expansionary monetary policy to achieve 2% inflation target, and also boost up economic growth and employment rate. Besides, the Committee also voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases and continue with its existing program of UK government bond purchases, maintaining the target for the government bond purchases at £875 billion and total target stock of asset purchases at £895 billion. On top of that, the MPC forecasted that the UK GDP was expected to recover significantly over 2021, to pre-Covid levels. Nonetheless, the Bank of England will continue to scrutinize the situation closely and will take whatever action is necessary to stabilize the economic growth. As of writing, GBP/USD depreciated by 0.04% to 1.3915.
In the commodities market, the crude oil price was traded flat at $73.62 per barrel as market participants still waited for further catalyst while focusing on the Covid-19 pandemic updates in order to gauge the likelihood movement for the commodity. On the other hand, the gold price depreciated by 0.01% to $1774.85 per troy ounces as of writing. The gold price was traded lower yesterday over the backdrop of bearish economic job data from United States.
Today’s Holiday Market Close
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Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 92.35. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 92.35. 93.25
Support level: 91.35, 90.35
GBPUSD, H1: GBPUSD was traded lower following prior retracement from the resistance level at 1.3940. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3940, 1.3990
Support level: 1.3870, 1.3810
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1955. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
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 111.00. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 111.00, 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 higher following prior rebound from the support level at 1.2275. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2360.
Resistance level: 1.2360, 1.2480
Support level: 1.2275, 1.2165
USDCHF, H4: 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, Weekly: Crude oil price was traded higher while currently testing the resistance level at 73.95. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 73.95, 81.00
Support level: 64.15, 52.95
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1793.95. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1764.75.
Resistance level: 1793.95, 1814.00
Support level: 1764.75, 1735.85