26 October 2021 Morning Session Analysis
Euro slumped amid bearish data.
The Euro slumped over the backdrop of bearish economic data from European region, which dialed down the market optimism toward the economic progression. According to ifo Institute for Economic Research, Germany Ifo Business Climate Index declined from the previous reading of 98.9 to 97.7, missing the market forecast at 97.9 as supply chain issues continue to intensify. Besides that, Euro received further bearish momentum following the Bank of Spain governor Pablo Hernandez De Cos unleashed his dovish tone yesterday. According to Reuters, he claimed that the high inflation rates currently are mainly transitory, while reiterating that the European Central Bank would continue to implement expansionary monetary policy for a “dilated period of time”. Indeed, he also added that the current supply chain disruption, higher energy prices as well as rising tensions between UK-EU with regards of post-Brexit deal are likely to weigh down the economic prospect for the European region. As of writing, EUR/USD depreciated by 0.35% to 1.1605.
In the commodities market, the crude oil price surged 0.06% to $83.55 per barrel as of writing, lifted by tight global supply and strengthening fuel demand following the Covid-19 restrictions were lifted around the world. On the other hand, the gold price appreciated by 0.60% to $1807.05 per troy ounces as of writing amid rising inflation risk around the world had prompted investors to enter the gold market in order to hedge against the inflation risk.
Today’s Holiday Market Close
Time Market Event
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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 |
| 22:00 | USD – CB Consumer Confidence (Oct) | 109.3 | 108.8 | – |
| 22:00 | USD – New Home Sales (Sep) | 740K | 755K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 93.50. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 94.05.
Resistance level: 94.05, 94.50
Support level: 93.50, 93.05
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3755. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3825, 1.3880
Support level: 1.3755, 1.3665
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1680. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1530.
Resistance level: 1.1680, 1.1875
Support level: 1.1530, 1.1370
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 113.45. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 114.55, 115.40
Support level: 113.45, 112.05
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7530. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7530, 0.7595
Support level: 0.7435, 0.7380
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7155. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7240, 0.7300
Support level: 0.7155, 0.7110
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2295. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2440.
Resistance level: 1.2440, 1.2525
Support level: 1.2295, 1.2170
USDCHF, Daily: 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: 0.9225, 0.9365
Support level: 0.9155, 0.9075
CrudeOIL, H4: Crude oil price was traded lower following prior retracement form the resistance level at 85.85. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 81.50.
Resistance level: 85.85, 88.50
Support level: 81.50, 78.90
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1808.9. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1808.90, 1816.10
Support level: 1799.55, 1787.55