30 July 2021 Morning Session Analysis
Greenback slumps further as data disappoints.
Greenback extended its losses against other major currencies following the release of bearish economic data from yesterday. For the second quarter, Gross Domestic Product (GDP rose only 6.5%, significantly lower than forecast of 8.5%. The lower-than-expected reading came in over the backdrop of low government spending, which depreciated by 5% although budget deficit in the US is on the rise. The data has cemented Federal Reserve’s call to maintain loose monetary policy for longer period to achieve sustainable economic recovery due to lingering coronavirus risks in the market. Following the release of GDP, investors dialed down their expectation for an interest rate hike by end of the year. According to Fed Rate Monitor Tool, market expectation for an interest rate hike depreciated from 10.0% to 6.7% for the month of December. As of writing, the dollar index extended its losses by 0.02% to 91.89 during Asian trading session.
In the commodities market, crude oil price was down 0.09% to $73.06 per barrel. Oil price began to experience technical correction from its higher levels after extending its gains since early of the week. Otherwise, gold price was up 0.09% to $1,890.19 a troy ounce over the backdrop of weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:00 | EUR – German GDP (QoQ) (Q2) | – | 2.0% | -1.8% |
| 17:00 | EUR – CPI (YoY) (Jul) | – | 2.0% | 1.9% |
| 20:30 | CAD – GDP (MoM) (May) | – | -0.3% | -0.3% |
Technical Analysis
DOLLAR_INDX, H4: Dollar index extended its losses after closing below 92.30. MACD which illustrate bearish signal suggests the index to extend losses after closing below 91.80.
Resistance level: 92.05, 92.30
Support level: 91.80, 91.60
GBPUSD, H4: GBPUSD was traded higher following prior closure above 1.3885. MACD which illustrate bullish signal suggests the pair to extend its gains after closing above 1.3990.
Resistance level: 1.3990, 1.4105
Support level: 1.3885, 1.3800
EURUSD, H4: EURUSD was traded higher following prior breakout from 1.1870. MACD which illustrated bullish momentum suggest the pair to extend its gains in short-term.
Resistance level: 1.1915, 1.1955
Support level: 1.1870, 1.1840
USDJPY, H4: USDJPY was traded lower following prior breakout from 109.75. MACD which illustrated bearish momentum suggests the pair to be traded lower after closing below 109.40.
Resistance level: 109.75, 110.15
Support level: 109.40, 109.05
AUDUSD, H4: AUDUSD was traded higher following a rebound from lower levels. MACD which shows bullish momentum suggests the pair to extend its gains after breaking the resistance level.
Resistance level: 0.7400, 0.7450
Support level: 0.7335, 0.7300
NZDUSD, H4: NZDUSD was traded higher following prior rebound from the lower levels. MACD which illustrate bullish momentum suggests the pair to extend its gains in short-term.
Resistance level: 0.7035, 0.7085
Support level: 0.7000, 0.6965
USDCAD, H4: USDCAD was traded lower following prior breakout from the support level of 1.2540. MACD which illustrated bearish momentum suggest the pair to extend its losses after closing below the support level.
Resistance level: 1.2490, 1.2540
Support level: 1.2440, 1.2405
USDCHF, H4: USDCHF was traded lower following prior breakout from 0.9065. MACD which illustrate bearish momentum suggests the pair to be traded lower in short-term.
Resistance level: 0.9065, 0.9105
Support level: 0.9030, 0.9010
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the higher level. MACD which shows diminished bullish momentum suggests its price to be traded lower in short-term.
Resistance level: 73.50, 74.40
Support level: 72.40, 71.00
GOLD_, H1: Gold price was traded lower following prior retracement from the higher level. MACD which illustrate bearish momentum suggests its price to be traded lower in short-term.
Resistance level: 1831.00, 1835.00
Support level: 1825.10, 1920.30