31 May 2022 Morning Session Analysis
Euro rallied ahead of spiking inflation risk in Europe.
The EURUSD extended it gains on Monday over the backdrop of soaring inflation risk in Eurozone. According to Reuters, preliminary data from Germany, the Eurozone’s largest economy, showed price increases ramped up a notch in May, as the impact of last year’s surge in gas prices fed through into broader parts of the economy, while rental prices also rose worryingly. Figures released by the five biggest German federal states showed consumer prices rose by between 0.9% and 1.1%, up from a nationwide average of 0.8% in April and defying expectations for a slight moderation to growth of around 0.5%. In order to combat the inflation, European central Bank (ECB) would likely to implement an aggressive rate hike in the upcoming meetings, which sparkling the appeal of the Euro. Besides, the weakening US Dollar had spurred further bullish momentum on the pair. The US 10-Years Treasury yields slide down to 2.743% on Friday, as a key inflation reading showed a slowing rise in prices. Federal Reserve would less likely to decide an aggressive rate hike as the inflation in US might reach its peak, which dialed down the market optimism toward US Dollar. As of writing, the EURUSD edged down by 0.02% to 1.0775.
In the commodities market, crude oil price appreciated by 0.32% to $117.56 per barrel as of writing following the EU leaders agreed to ban the export of Russian oil to the 27-nation bloc, according to Reuters on Monday. On the other hand, gold price depreciated by 0.06% to $1856.03 per troy ounce as of writing amid the market sentiment toward risk-appetite assets.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
18:00 EUR EU Leaders Summit
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Unemployment Change (May) | -13K | -16K | – |
| 17:00 | EUR – CPI (YoY) (May) | 7.40% | 7.70% | – |
| 20:30 | CAD – GDP (MoM) (Mar) | 1.10% | 0.50% | – |
| 22:00 | USD – CB Consumer Confidence (May) | 107.3 | 103.9 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior breakout below the previous support level. However, MACD which illustrated decreasing bearish momentum suggest the index to be traded higher as technical correction.
Resistance level: 101.75, 102.50
Support level: 100.95, 100.35
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 1.2710, 1.2790
Support level: 1.2615, 1.2535
EURUSD, H4: EURUSD was traded lower while currently testing the support level. MACD which illustrated decreasing bullish momentum suggest the pair to extend its losses if successfully breakout the support level.
Resistance level: 1.0850, 1.0925
Support level: 1.0770, 1.0685
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to be extend its gains.
Resistance level: 128.00, 129.05
Support level: 127.20, 126.25
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.7235, 0.7300
Support level: 0.7155, 0.7075
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level. However, MACD which illustrated decreasing bullish momentum suggest the pair to be traded lower as technical correction.
Resistance level: 0.6595, 0.6675
Support level: 0.6500, 0.6425
USDCAD, Daily: USDCAD was traded lower while currently testing the support level. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses if successfully breakout the support level.
Resistance level: 1.2765, 1.2875
Support level: 1.2635, 1.2520
USDCHF, H4: USDCHF was traded lower following prior breakout below the previous support level. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher as technical correction.
Resistance level: 0.9595, 0.9675
Support level: 0.9520, 0.9455
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains.
Resistance level: 119.00, 122.00
Support level: 115.95, 113.10
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses.
Resistance level: 1855.05, 1878.85
Support level: 1833.15, 1808.45