28 January 2021 Afternoon Session Analysis
Euro plunged following rate cut speculation.
During late Asian session, the euro which traded against the greenback and other currency pairs have fell due to expectation that ECB could cut interest rate soon. According to a member of the European Central Bank Klaas Knot, he stated that the ECB will monitor the exchange rate of the euro which is still in an uptrend. Knot also points out that the ECB could reduce its interest rates to levels below zero to curb rising euro rates and increase support for their economy. Besides that, he also mentions that the ECB has reason to loosen further monetary policy to curb the recession as a result of the coronavirus pandemic so that inflation targets can be achieved. Following his statement that fuelled rate cut speculation, investors selling off the euro. At the same time, delayed delivery of vaccine and short supply are also continuing to exert pressure for the pair. At the time of writing, EUR/USD slips 0.15% to 1.2088.
In the commodities market, crude oil price remains pressured and slips 0.11% to $52.53 per barrel as of writing following concerns over worsening coronavirus virus. Recent statistics show that the number of coronavirus cases worldwide reached 100 million yesterday. In China, the latest data has shown an increase of 75 coronavirus cases yesterday, the highest rate since January 11th. Investors fear that rising cases of coronavirus in China will prompt the central government to tighten movement control orders that could affect economic activity as well as demand for crude oil. On the other hand, gold price slips 0.38% to $1837.01 a troy ounce at the time of writing following dollar strength.
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 |
| 21:30 | USD – GDP(QoQ)(Q4) | 33.4% | 4.0% | – |
| 21:30 | USD – Initial Jobless Claims | 900K | 875K | – |
| 23:00 | USD – New Home Sales (Dec) | 841K | 865K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was higher following prior breakout above the previous resistance level at 90.50. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 90.90.
Resistance level: 90.90, 91.35
Support level: 90.50, 90.00
GBPUSD, H1: GBPUSD was traded lower while currently testing the support level at 1.3665. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3725, 1.3795
Support level: 1.3665, 1.3625
EURUSD, H4: EURUSD was traded lower while currently near the support level at 1.2065. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 1.2065.
Resistance level: 1.2180, 1.2215
Support level: 1.2140, 1.2075
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 104.35. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 104.55.
Resistance level: 104.55, 104.85
Support level: 104.15, 103.85
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.7615. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7670, 0.7735
Support level: 0.7615, 0.7565
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the previous support level at 0.7165. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7110.
Resistance level: 0.7165, 0.7235
Support level: 0.7110, 0.7015
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.2830. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2830, 1.2895
Support level: 1.2780, 1.2690
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.8845. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.8920.
Resistance level: 0.8920, 0.8980
Support level: 0.8845, 0.8800
CrudeOIL, H4: Crude oil price was traded within a range while currently near the support level at 51.75. MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower after it successfully breakout below the support level.
Resistance level: 53.75, 55.80
Support level: 51.75, 50.00
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1868.55. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1824.50.
Resistance level: 1868.55, 1911.35
Support level: 1824.50, 1779.20