29 September 2021 Afternoon Session Analysis
Pound Sterling dipped lower amid fuel crisis.
The Pound Sterling was traded lower against US dollar and other currency pairs amid worries over supply bottlenecks. The deviation of EU workers due to Brexit restrictions in the UK has caused fuel crisis as the result of truck driver shortage. According to the news, limited deliveries of gasoline and diesel have led to a heavy panic buy, which resulted in closure of numerous petrol stations in the region. Moreover, the recent energy crisis that hit both Europe and China have resulted in electricity shortage in various cities. The production halts in factories could threaten global economic growth as well as supply chain. These have fueled up risk off sentiment hence reiterated the appeal of US dollar as safe haven. Meanwhile, the pair of GBP/USD received additional bearish momentum following prospects for an early monetary policy tightening by the Fed. The rallying US Treasury bond yields has resulted in the pullback of equity market as well as other major currencies. As of writing, the pair of GBP/USD slumped 0.02% to 1.3534.
In the commodities market, the crude oil price slumped 0.13% to $74.37 per barrel as of writing amid bearish oil inventory data. According to the American Petroleum Institute, the US API Weekly Crude Oil Stock data came in at the reading of 4.127M, worse than the forecasted reading of -2.333M. On the other hand, the gold price was down 0.06% to $1734.38 per troy ounces amid strengthening US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:45 GBP BoE Gov Bailey Speaks
23:45 USD Fed Chair Powell Speaks
23:45 EUR ECB President Lagarde Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 22:00 | USD – Pending Home Sales (MoM) (Aug) | -1.80% | 1.30% | – |
| 22:30 | CrudeOIL -Crude Oil Inventories | -3.481M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher while currently testing the resistance level 93.70. However, MACD which illustrate diminishing bullish momentum signal suggest the dollar to experience a technical correction towards the support level 93.10.
Resistance level: 93.70, 94.20
Support level: 93.10, 92.70
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level 1.3605. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to experience a technical correction in short term back towards the resistance level 1.3605.
Resistance level: 1.3605, 1.3745
Support level: 1.3460, 1.3300
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level 1.1705. However, MACD which illustrate diminishing bearish momentum signal with the starting formation of golden cross suggest the pair to be traded higher in short term back towards the level 1.1705.
Resistance level: 1.1705, 1.1800
Support level: 1.1625, 1.1545
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level 111.55. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower as a technical correction towards the support level 110.75.
Resistance level: 111.55, 112.15
Support level: 110.75, 110.20
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level 0.7235. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 0.7335.
Resistance level: 0.7335, 0.7415
Support level: 0.7235, 0.7150
NZDUSD, H4: NZDUSD was traded lower while currently testing near the support level 0.6920. However, MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher as a technical correction towards the resistance level 0.6990.
Resistance level: 0.6990, 0.7075
Support level: 0.6920, 0.6815
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level 1.2695. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 1.2585.
Resistance level: 1.2695, 1.2770
Support level: 1.2585, 1.2510
USDCHF, H4: USDCHF was traded higher while currently testing near the resistance level 0.9310. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level 0.9310.
Resistance level: 0.9310, 0.9375
Support level: 0.9240, 0.9185
CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level 74.65. MACD which illustrate bearish bias signal with the formation of death cross suggest the commodity to extend its retracement towards the support level 72.45.
Resistance level: 74.65, 77.00
Support level: 72.45, 70.45
GOLD, H4: Gold price was traded higher following recent rebound from its low level. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 1749.95.
Resistance level: 1749.95, 1785.80
Support level: 1716.85, 1679.60