25 October 2021 Morning Session Analysis
Dollar slumped following Fed unleashed dovish stance.
The Dollar Index which traded against a basket of six major currency pairs received bearish momentum following the Federal Reserve unleashed their dovish statement last Friday, which diminishing hopes for increasing interest rates in short-term basis. According to Reuters, Federal Reserve Chair Jerome Powell claimed on Friday that the U.S. Central Bank should start the process of tapering its earlier massive bond purchasing program during November but added that it is still not time to increase interest rates yet. The Fed has promised to maintain their benchmark overnight interest rate at the current near-zero level until the economy has recovered to maximum employment rate despite the inflation rate is still staying moderately above the central bank’s 2% goal. More than half of Fed policymakers speculated a rate hike will be needed in 2022, with a few suggesting it may have to come by the summer. Nonetheless, as for now market participants will continue to scrutinize the latest updates with regards of future monetary statement from Fed to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index depreciated by 0.17% to 93.60.
In the commodities market, the crude oil price appreciated by 1.60% to $84.55 per barrel as of writing amid upbeat demand outlook for this black commodity. The U.S. Energy Information Administration (EIA) had showed a more than 500,000 b/d uptick in weekly US crude export over the week ended 15th October, indicating that strong economic recovery around the world had continue to insinuate market demand on the crude oil. On the other hand, the gold price appreciated by 0.53% to $1792.45 per troy ounces as of writing amid weakening US Dollar.
Today’s Holiday Market Close
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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 |
| 16:00 | EUR – German Ifo Business Climate Index (Oct) | 98.8 | 97.9 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 93.75. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 93.30.
Resistance level: 93.75, 94.40
Support level: 93.30, 92.80
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3735. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3805, 1.3880
Support level: 1.3735, 1.3640
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1630. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1675, 1.1740
Support level: 1.1630, 1.1575
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 113.35. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 114.70, 116.75
Support level: 113.35, 111.95
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7450. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7515, 0.7590
Support level: 0.7450, 0.7385
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7140. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7200, 0.7250
Support level: 0.7140, 0.7080
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2310. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2425.
Resistance level: 1.2425, 1.2580
Support level: 1.2310, 1.2170
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9155. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9215, 0.9305
Support level: 0.9155, 0.9105
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 81.25. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 86.15.
Resistance level: 86.15, 89.15
Support level: 81.25, 78.85
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1780.65. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1805.25, 1828.55
Support level: 1780.65, 1768.05