25 August 2021 Morning Session Analysis
Euro surged amid positive data.
The pair of EUR/USD surged on yesterday over the backdrop of upbeat economic data from the Germany region. According to Statistisches Bundesamt Deutschland, Germany Gross Domestic Product (GDP) for last quarter had notched up significantly from the previous reading of -1.8% to 1.6%, exceeding the market forecast at 1.5%. As such crucial data had fared better than market expectation, which dialed up the market optimism toward the economic progression in the European region while spurring hopes for European Central Bank to taper its monetary policy earlier-than-expected. On the Covid-19 front, Chancellor Angela Merkel said on Monday that Germany has decided to stop using the Covid-19 infections rate as its yardstick for deciding if restrictions should be in force to combat the spread of the virus. Since the number of people who are fully vaccinated continue to rise in Germany, the government will instead monitor hospitalization as a key indicator for the determination of the “lock-down” policy. Investors remained positive that high vaccination level in the European region would limit the probability for the authorities to implement lock-down measures. As of writing, EUR/USD slumped 0.08% to 1.1745.
In the commodities market, the crude oil price slumped 0.37% to 67.55 per barrel as of writing. The oil market received some bearish momentum in early trading session following bearish inventory data was released. According to American Petroleum Institute, U.S. API Weekly Crude Oil Stock came in at -1.622M, missing the market forecast at -2.367M. On the other hand, the gold price depreciated by 0.40% to $1795.95 per troy ounces as of writing amid market participants speculated the Fed might provide hawkish tone during the Jackson Hole meeting in this Friday.
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 |
| 16:00 | German Ifo Business Climate Index (Aug) | 100.8 | 100.4 | – |
| 20:30 | Core Durable Goods Orders (MoM) (Jul) | 0.50% | 0.50% | – |
| 22:30 | Crude Oil Inventories | -3.234M | -1.055M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 93.25. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 91.80.
Resistance level: 92.25, 92.65
Support level: 91.80, 90.75
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3730. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3730, 1.3805
Support level: 1.3605, 1.3415
EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level at 1.1705. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1775, 1.1850
Support level: 1.1705, 1.1635
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.75. MACD which illustrated increasing bearish suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.55, 111.10
Support level: 109.75, 109.20
AUDUSD, H4: AUDUSD was traded higher following prior rebounded from the support level at 0.7115. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7255, 0.7375
Support level: 0.7115, 0.7000
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level at 0.6815. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6940, 0.7120
Support level: 0.6765, 0.6675
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2650. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2780, 1.2935
Support level: 1.2650, 1.2580
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9125. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9230, 0.9305
Support level: 0.9125, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 68.00. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 68.00, 69.85
Support level: 66.10, 63.55
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1794.30. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1812.50, 1833.70
Support level: 1794.30, 1773.35