29 October 2021 Afternoon Session Analysis
Euro surged following ECB decision and data.
The Euro was traded higher against US dollar and other currency pairs over the backdrop of upbeat economic data and hawkish ECB. According to Destatis, Germany Unemployment Change data in October eased from the previous reading of -30K to -39K, weaker than the forecasted reading of -20K. The data suggested a recovery momentum of labor market in Eurozone which could lead to higher wage growth and consumer spending. On top of that, the pair also supported further from hawkish European Central Bank (ECB). Yesterday, European Central Bank (ECB) has announced its decision to maintain the interest rate at 0% as the policymakers argued that current inflation pressure is about to exist for a temporary period. President of the European Central Bank Christine Lagarde stated that the current spike in inflation pressure was mainly driven by higher energy prices, a global mismatch between recovering demand and supply, as well as end of the reduction in German sales taxes. ECB’s policymakers believed that these factors are expected to ease in next year while the inflation will fall below 2% target in the medium term. ECB also mentioned that its Pandemic Emergency Purchase Programme (PEPP) worth 1.85 trillion euro is scheduled to end in March of 2022. However, Lagarde also mention that the amount of monthly bond purchases will be reduced to a greater low level as a measure to streamline monetary policy before the program ends next year. As of writing, the pair of EUR/USD was up 0.23% to 1.1687.
In the commodities market, the crude oil price slumped 0.12% to $82.68 per barrel as of writing amid weaker oil demand outlook. According to report, Russia government intervened by requiring the natural gas producer, Gazprom to begin filing its storage facilities in order to monitor the supply of natural gas. The lower natural gas prices will result in lower demand of oil for gas-switching purpose. On the other hand, the gold price was up 0.01% to $1798.85 per troy ounces 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 |
| 16:00 | EUR – German GDP (QoQ) (Q3) | 1.60% | 2.20% | – |
| 17:00 | EUR – CPI (YoY) (Oct) | 3.40% | 3.70% | – |
| 20:30 | CAD – GDP (MoM) (Aug) | -0.10% | 0.70% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following recent breakout below the previous support level 93.40. MACD which illustrate bearish momentum signal suggest the dollar to extend its losses towards the support level 92.85.
Resistance level: 93.40, 93.85
Support level: 92.85, 92.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above previous resistance level 1.3880. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains towards the resistance level 1.3880.
Resistance level: 1.3880, 1.4005
Support level: 1.3755, 1.3650
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.1680. MACD which illustrate bullish momentum signal suggest the pair to extend its gains after it breaks above the resistance level 1.1680.
Resistance level: 1.1680, 1.1760
Support level: 1.1615, 1.1535
USDJPY, H4: USDJPY was traded lower while currently testing near the support level 113.20. MACD which illustrate diminishing bearish momentum signal suggest the pair to be traded higher towards the resistance level 114.60.
Resistance level: 114.60, 115.85
Support level: 113.20, 112.00
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance level 0.7565. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to experience a technical correction towards the support level 0.7485.
Resistance level: 0.7565, 0.7660
Support level: 0.7485, 0.7410
NZDUSD, H4: NZDUSD was traded flat in a sideway channel while currently testing near the support level 0.7155. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower after it breaks below the support level.
Resistance level: 0.7230, 0.7300
Support level: 0.7155, 0.7080
USDCAD, H4: USDCAD remain traded in a sideway channel. However, MACD which illustrate bearish momentum signal suggest the pair to be traded lower in short term towards the support level 1.2295.
Resistance level: 1.2410, 1.2500
Support level: 1.2295, 1.2200
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level 0.9140. MACD which illustrate bearish momentum signal suggest the pair to extend its losses towards the support level 0.9060.
Resistance level: 0.9140, 0.9215
Support level: 0.9060, 0.8990
CrudeOIL, H4: Crude oil price was traded higher following recent rebound from the support level 81.20. MACD which illustrate diminishing bearish momentum signal suggest the commodity to extend its rebound towards the resistance level 84.55.
Resistance level: 84.55, 88.40
Support level: 81.20, 79.10
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level 1810.20 MACD which illustrate bearish momentum signal suggest the commodity to extend its retracement towards the support level 1781.40.
Resistance level: 1810.20, 1831.50
Support level: 1781.40, 1748.55