28 September 2021 Afternoon Session Analysis
Euro plunged following dovish stance from ECB.
The Euro which traded against the dollar and other currency pairs remains pressured and fell following recent dovish signals from the ECB. According to latest development, ECB President Christine Lagarde commented yesterday that the level of inflation in the EU has exceeded the previously set target of 2%. However, Lagarde stressed that the inflation rate will decline back from its high level after crude oil prices have stabilize again and supply chain problems are resolved by next year. The view given by Lagarde are more towards dovish stance as the ECB is likely to continue its policy easing after the bond -buying program is reduced starting early next year. Internal sources stated that the ECB is considering introducing a stricter bond buying program where each country will have a quota and it does not include Greece due to its weak credit standing. At the time of writing, EUR/USD fell 0.05% to 1.1692.
In the commodities market, crude oil price extends gains and soars 0.56% to $75.81 per barrel as of writing following rising demand prospect and tight supply. As the world continue to recover from the pandemic, global oil demand is expected to reach pre-pandemic levels by early next year, although spare refining capacity may weigh on the outlook, according to producers and traders in an industry conference. Goldman Sachs also raised by $10 its year-end forecast for Brent crude to $90 per barrel. On the other hand, gold price rose 0.05% to $1750.92 a troy ounce at the time of writing amid dollar retreat.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:00 EUR ECB President Lagarde Speaks
22:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – CB Consumer Confidence (Sep) | 113.8 | 114.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following recent rebound from the support level 93.10. MACD which illustrate bullish momentum signals suggest the dollar to extend its gains towards the resistance level 93.70.
Resistance level: 93.70, 94.20
Support level: 93.10, 92.70
GBPUSD, H4: GBPUSD was traded higher following recent rebound from its low level. MACD which illustrate bullish bias signal suggest the pair to extend its gains towards the resistance level 1.3765.
Resistance level: 1.3765, 1.3875
Support level: 1.3605, 1.3460
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1705. MACD which illustrate bearish momentum signal suggest the pair to extend its losses after it breaks below the previous support level 1.1705.
Resistance level: 1.1705, 1.1800
Support level: 1.1625, 1.1545
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level 110.75. MACD which illustrate bullish momentum signal suggest the pair to extend its gains towards the resistance level 111.55.
Resistance level: 111.55, 112.15
Support level: 110.75, 110.20
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level 0.7235. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 0.7335.
Resistance level: 0.7335, 0.7415
Support level: 0.7235, 0.7150
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the support level 0.6990. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its rebound towards the resistance level 0.7075.
Resistance level: 0.7075, 0.7145
Support level: 0.6990, 0.6920
USDCAD, H4: USDCAD was traded lower while currently testing near the support level 1.2585. MACD which illustrate persistent bearish momentum signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 1.2685, 1.2770
Support level: 1.2585, 1.2510
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level 0.9240. MACD which illustrate bullish momentum signal suggest the pair to extend its rebound towards the resistance level 0.9310.
Resistance level: 0.9310, 0.9375
Support level: 0.9240, 0.9185
CrudeOIL, H4: Crude oil price was traded higher following recent breakout above the previous resistance level 74.30. MACD which illustrate persistent bullish momentum signal suggest the commodity to extend its gains towards the resistance level 77.00.
Resistance level: 77.00, 78.75
Support level: 74.30, 72.45
GOLD, H4: Gold price was traded flat while currently testing the support level 1749.95. However, MACD which illustrate bullish bias signal with the formation of golden cross suggest the commodity to be traded higher towards the resistance level 1785.80.
Resistance level: 1785.80, 1806.85
Support level: 1753.05, 1725.50