27 January 2022 Afternoon Session Analysis
Canada Dollar slumped following BoC statement.
The Canada Dollar slumped following the Bank of Canada held its target for the overnight rate unchanged at 0.25%, with the bank rate at 0.5% and deposit rate at 0.25%. Besides, the bank is continuing to maintain its bond buying program unchanged. On the inflation side, the Canada CPI inflation rate remains well above the target range, weighing down the economic momentum in the Canada. Persistent supply constraints combined with higher food and energy prices, are expected to cause the CPI inflation rate rose to 5% in the first half of 2022. In overall, the Bank of Canada projects the global GDP growth to moderate from 6.45% in the year of 2021 to 3.5 % in the year of 2022 and 2023. In Canada, GDP growth in the 2nd quarter of 2021 now looks to have been even stronger than expected. Nonetheless, investors would continue to focus on the Covid-19 development and crucial economic data to gauge the likelihood movement for Canada Dollar. As of writing, USD/CAD appreciated by 0.34% to 1.2705.
In the commodities market, the crude oil price depreciated by 0.88% to $86.40 per barrel as of writing amid bearish inventory data. According to Energy Information Administration (EIA), US Crude Oil Inventories came in at 2.377M, missing the market forecast at -0.728M. The gold price slumped 0.20% to $1815.55 per troy ounces as of writing following the Federal Reserve unleashed their hawkish tone.
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 |
| 21:30 | USD – Core Durable Goods Orders (MoM) (Dec) | 0.80% | 0.40% | – |
| 21:30 | USD – GDP (QoQ) (Q4) | 2.30% | 5.40% | – |
| 21:30 | USD – Initial Jobless Claims | 286K | 255K | – |
| 23:00 | USD – Pending Home Sales (MoM) (Dec) | -2.20% | 0.30% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 96.80. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 96.80, 97.50
Support level: 95.95, 94.55
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3450. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3340.
Resistance level: 1.3450, 1.3595
Support level: 1.3340, 1.3210
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.1200. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1380, 1.1530
Support level: 1.1200, 1.1105
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 114.95. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 114.95, 116.25
Support level: 113.65, 112.85
AUDUSD, H1: AUDUSD was traded lower following prior breakout below the previous support level at 0.7090. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7090, 0.7125
Support level: 0.7040, 0.7000
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6570. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6710, 0.6865
Support level: 0.6570, 0.6405
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.2625. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.2825.
Resistance level: 1.2825, 1.2950
Support level: 1.2625, 1.2475
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9270. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level
Resistance level: 0.9270, 0.9345
Support level: 0.9170, 0.9095
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 86.40. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 88.60, 91.25
Support level: 86.40, 83.15
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1811.35. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1828.00, 1841.35
Support level: 1811.35, 1786.30