26 May 2021 Morning Session Analysis
Dollar slumped on bearish economic outlook.
The Dollar Index which traded against a basket of six major currency pairs extend its losses over the backdrop of the string of bearish crucial economic data from the U.S. region, which dialled down the market optimism toward the economic progression in the United States while spurring selloff on the US Dollar. According to Conference Board, U.S. CB Consumer Confidence notched down from the preliminary reading of 117.5 to 117.2, missing the economist forecast at 119.2. Meanwhile, Census Bureau reported that the U.S. New Home Sales had declined significantly from the previous reading of 917K to 863K, missing the market forecast at 970K. Besides, the US Dollar received further bearish momentum following the U.S. Treasury yield fell as market participants speculated that the Federal Reserve will still maintain its easing monetary policy plan despite current inflationary forces. Nonetheless, as for now investors would continue to scrutinize the updates with regards of the Covid-19 development as well as Federal Reserve monetary policy plan in order to gauge the likelihood movement for the currency. As of writing, the Dollar Index depreciated by 0.20% to 89.65.
In the commodities market, the crude oil price depreciated by 0.14% to $66.00 per barrel as of writing following the American Petroleum Institute (API) reported that U.S. API Weekly Crude Oil Stock came in at -0.439M, worse than the market forecast at -1.279M. On the other hand, the gold price surged 0.05% to $1,899.00 per troy ounces amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:00 NZD RBNZ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.321M | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 89.55. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 90.10, 90.70
Support level: 89.55, 89.10
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.4130. MACD which illustrated bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.4130, 1.4335
Support level: 1.4130, 1.4000
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2260. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2260, 1.2340
Support level: 1.2165, 1.2065
USDJPY, H4: USDJPY was traded lower while currently near the support level at 108.60. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.20, 109.65
Support level: 108.55, 108.10
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7780. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.7715.
Resistance level: 0.7780, 0.7815
Support level: 0.7715, 0.7685
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7240. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7240, 0.7300
Support level: 0.7155, 0.7110
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2040. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term amid technical correction.
Resistance level: 1.2265, 1.2400
Support level: 1.2055, 1.1840
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.8950. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9075, 0.9155
Support level: 0.8950, 0.8875
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 66.50. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 66.50, 67.80
Support level: 64.85, 63.60
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1886.95. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1921.30.
Resistance level: 1921.30, 1943.50
Support level: 1886.95, 1847.20