29 July 2021 Morning Session Analysis
Dollar slumped amid dovish stance.
The Dollar Index which traded against a basket of six major currency pairs slumped following the Federal Reserve unleashed their dovish stance toward the economic progression in United States. According to FOMC statement, the Federal Reserve claimed that they will continue to maintain its aggressive monetary policy while using its full range of tools to support the U.S. economy. Despite the rapid progress on Covid-19 progression and strong policy support, some indicators of economic activity and employment have shown some improvement, though its have not fully recovered yet. Meanwhile, the higher inflation in United States was mainly due to transitory factors. The Fed decided to maintain their federal fund rate at 0 to 1/4 % and maintain its bond buying program until substantial further progress has been made toward its maximum employment and price stability goals. As of writing, the Dollar Index depreciated by 0.06% to 92.25.
In the commodities market, the crude oil price surged 0.08% to $72.55 per barrel as of writing. The oil market surged over the backdrop of upbeat inventory data. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories came in at -4.089M, better than the market forecast at -2.928M. On the other hand, the gold price surged 0.16% to $1810.00 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 |
| 15:55 | EUR – German Unemployment Change (Jul) | -38K | -25K | – |
| 20:30 | USD – GDP (QoQ) (Q2) | 6.40% | 8.60% | – |
| 20:30 | USD – Initial Jobless Claims | 419K | – | – |
| 22:00 | USD – Pending Home Sales (MoM) (Jun) | 8.00% | 0.50% | – |
Technical Analysis
DOLLAR_INDX, Daily: 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 while currently testing the resistance level at 1.3900. However, MACD which diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3900, 1.3980
Support level: 1.3830, 1.3740
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1850. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1850, 1.1955
Support level: 1.1725, 1.1635
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.70. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.55, 110.95
Support level: 109.70, 109.05
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7120. 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 lower while currently testing the support level at 0.6915. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7120, 0.7305
Support level: 0.6915, 0.6770
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2535. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2440.
Resistance level: 1.2535, 1.2670
Support level: 1.2440, 1.2275
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9135. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9035.
Resistance level: 0.9135, 0.9230
Support level: 0.9035, 0.8940
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 72.25. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 72.25, 74.80
Support level: 69.85, 68.00
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1813.05. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1813.05
Resistance level: 1813.05, 1832.25
Support level: 1788.95, 1773.45