27 July 2021 Morning Session Analysis
Dollar slumped ahead of Fed’s meeting.
The Dollar Index which traded against a basket of six major currency pairs slumped ahead of FOMC meeting on Thursday, which indicating that market participants still concerned over the aggressive expansionary monetary policy from the Federal Reserve. Such aggressive monetary policy would likely to increase the money supply in the financial market, dragged down the appeal of the US Dollar. Though, as for now the overall sentiment from the Federal Reserve remained vague. Despite that the global economy are still in recovery mode, the risk of the spiking numbers of the Delta variant among less-vaccinated communities had continue to undermine the economic outlook. Analysts speculated that the Fed would continue to buy $120 billion in government bonds per months while holding its interest rate near zero. Nonetheless, investors would continue to scrutinize the updates with regards of future economic data as well as FOMC statement to gauge the likelihood movement for the US Dollar. As of writing, the Dollar Index depreciated by 0.30% to 92.63.
In the commodities market, the crude oil price surged 0.08% to $72.40 per barrel as of writing. The oil market extends its gains amid investors still optimism that the rapid Covid-19 vaccination program would likely to enhance the oil demand in future. On the other hand, the gold price surged 0.03% to $1797.50 per troy ounces as of writing amid weakening US Dollar.
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 |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Jun) | 0.30% | 0.80% | – |
| 22:00 | USD – CB Consumer Confidence (Jul) | 127.3 | 124.1 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level at 92.75. MACD which illustrated increasing bearish momentum suggest the index to extend its losses toward support level at 92.00.
Resistance level: 92.75, 93.25
Support level: 92.00, 91.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3740. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3900.
Resistance level: 1.3900, 1.3980
Support level: 1.3740, 1.3565
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1850. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1850, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 110.55. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 110.55, 110.95
Support level: 109.75, 109.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7320. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7410.
Resistance level: 0.7410, 0.7495
Support level: 0.7320, 0.7240
NZDUSD, Daily: NZDUSD was traded higher following prior rebound from the support level at 0.6915. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7120.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2535. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2670, 1.2770
Support level: 1.2535, 1.2440
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9135. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9230, 0.9305
Support level: 0.9135, 0.9035
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 72.25. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 72.30, 74.80
Support level: 69.85, 68.00
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1813.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1788.95.
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45