27 October 2022 Afternoon Session Analysis
Euro surged upon aggressive rate hike expectations.
The EUR/USD, which traded by majority of investors rose significantly on yesterday amid the rate hike expectation from European Central Bank (ECB). According to Reuters, the ECB was anticipated to hike its interest rate by today in order to stabilize the sky-high inflationary risk, which 75 basis point rate increase would likely to be implemented in the meeting tonight. Fearing that spiking price is becoming worse, the ECB has raised its rates at the fastest pace on record as well as the rate hike path could take it well into next year or beyond. Besides, ECB also hinted that the process of tightening monetary policy is not yet done, and the size of subsequent moves still on the table. Such hawkish stance had sparked the appeal of Euro. As of now, investors would highly eye on the announcement of ECB interest rate decision to gauge the likelihood movement of Euro. On the other hand, the EUR/USD pairing extended its gains over the depreciation of US Dollar, which led by diminishing expectation of aggressive rate hike from Fed. As of writing, EUR/USD edged down by 0.06% to 1.0071.
In the commodities market, the crude oil price appreciated by 0.27% to $88.17 per barrel as of writing as record-high US crude exports suggested that global oil demand remained robust despite recent economic headwinds. In addition, the gold price eased by 0.01% to $1664.74 per troy ounce as of writing following the value of US Dollar heightened.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:15 EUR ECB Monetary Policy Statement
20:45 EUR ECB Press Conference
22:15 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:15 | EUR – Deposit Facility Rate (Oct) | 0.75% | 1.50% | – |
| 20:15 | EUR – ECB Marginal Lending Facility | 1.50% | – | – |
| 20:15 | EUR – ECB Interest Rate Decision (Oct) | 1.25% | 2.00% | – |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Sep) | 0.3% | 0.2% | – |
| 20:30 | USD – GDP (QoQ) (Q3) | -0.6% | 2.4% | – |
| 20:30 | USD – Initial Jobless Claims | 214K | 220K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the index to be traded higher as technical correction.
Resistance level: 109.95, 111.55
Support level: 108.45, 107.05
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.1635, 1.1835
Support level: 1.1370, 1.1165
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.0095, 1.0245
Support level: 0.9990, 0.9905
USDJPY, Daily: USDJPY was traded lower while currently testing the support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses if successfully breakout the support level.
Resistance level: 147.65, 150.25
Support level: 144.80, 142.20
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.6590, 0.6705
Support level: 0.6470, 0.6370
NZDUSD, H4: NZDUSD was traded higher following prior breakout the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains.
Resistance level: 0.5920, 0.6015
Support level: 0.5805, 0.5725
USDCAD, Daily: USDCAD was traded lower following prior breakout below the previous support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses.
Resistance level: 1.3635, 1.3820
Support level: 1.3455, 1.3320
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 0.9860, 0.9930
Support level: 0.9785, 0.9685
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the commodity to be traded lower as technical correction.
Resistance level: 89.00, 92.50
Support level: 86.05, 82.45
GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level. MACD which illustrated decreasing bearish momentum suggest the commodity to extend its gains.
Resistance level: 1678.70, 1693.20
Support level: 1663.15, 1648.45