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Daily Market Analysis

Market Focus

Energy, financial and industrials shares led U.S. stocks lower as the pullback centered in the technology sector widened while investors remained on edge over the threat of inflation.

The tech-heavy Nasdaq 100 erased a loss of almost 2% to finish little changed as some dip buyers emerged. The benchmark S&P 500 dropped for a second day after setting a record high on Friday. Treasury yields edged up and the dollar traded near the lowest levels of this year.

Debate rages over whether the expected jump in price pressures will be enduring enough to force the Federal Reserve into tightening policy sooner than current guidance suggests. Fed Governor Lael Brainard said policy makers must show continued patience as distortions in the post-pandemic boom sort themselves out while the economy is still far from the central bank’s objectives.

Among the biggest pandemic winners, tech stocks whose valuations often depend on earnings prospects far into the future are now at the center of the inflation debate. That was epitomized in Cathie Wood’s Ark Innovation ETF, which has tumbled about 15% so far this year after surging almost 150% in 2020.

Main Pairs Movement:

The dollar erased losses as the stocks fell for a second day. Still, the greenback remained lower against most of its Group-of-10 peers as investors focused on inflation concerns with a report due Wednesday that may show a quickening in price increases in April. The pound extended gains for a third session.

The rise in yields also helped the greenback; U.S. 10-year Treasury yields rose through the 50-DMA level to 1.6289, the highest since May 3. Broad-based gamma demand is appearing ahead of U.S. consumer inflation data Wednesday with traders positioning for a price surge and dollar weakness. The surge in prices of commodities in recent days is also intensifying the debate about inflation and the timing of tapering in central-bank accommodation.

A spike in futures turnover helped drive day’s high; month-end hedging near 1.2150 keeps pair supported; offers anticipated near 1.2200, according to traders. EUR also seeing demand gamma ahead of U.S. CPI data. USD/JPY slid 0.2% to 108.64, Pair seems finds support ahead of 108.34, the May 7 March 10 lows.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber has experienced a struggle to continued gains in earlier momentum that once propel to last day high before retreating to current stage, trading at 1.2147 with 0.15% higher as of writing. From report, “The ground for the euro area recovery is getting firmer and firmer” European Central Bank council member said. For technical aspect, RSI indicator shows 58.7 figures, which suggest a slightly-bullish movement expectation. On average price view, 15-long SMA indicator turn flatter move and 60-long SMA turned upside slope in day market.

We foresee market it pretty optimistic for gain traction in further movement if it can hold above 1.2105 level . On down way, the first immediately support level is eye on 1.2105 level, 1.207 and 1.2 following. On up way, we see 1.215 level will be the first tackle resistance as market tamp down which formed by price cluster area.

Resistance: 1.215, 1.22

Support: 1.2105, 1.207, 1.2

GBPUSD (4 Hour Chart)

Sterling is trading higher by 0.17%, trading at 1.4141 as of writing, extended it recently strong movement to the upper stack on relief over the Scottish election results, improved economic forecasts, and lockdown easing estimations. For RSI side, indicator has remained over bought sentiment with 74 figure while market retreat under 1.4155 level. On the other hands, 15 and 60-long SMAs indicator are accelerating it upward slope.

In the day market, sterling slightly move when investor are awaiting of GDP data ahead. At the meantime, chairman of BoE will speak after data release. Therefore, we expect market will impacted by aforemention event with roller coaster move. Nevertheless, we remain the optimistic for upward traction as it seemingly heading to 1.42 level which close to last highest spot after it break through a month-long bottom patter where neckline is on 1.4 level. Since, we see first immediately defend barrier is on 1.4 and 1.396 following.

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

USDCAD (Daily Chart)

Loonie continues to move slightly downside way around 1.21 level which is struggling to aim direction in recently, trading at lower position at 1.2098 as of writing. Meantime, WTI crude oil traveling at higher step with nearly 0.8% in the day, copper also getting higher with 1.7% gains intraday which breach all time peak in history. For RSI side, indicator bounced back from over sought territory to 30 threholds. For moving average side, 15 and 60-long SMAs indicator are remaining it descending movement.

We see price momentum seemingly gird around 1.21 level after it touched down in day market. Moreover, price is forming a cluster area while low bound setting at 1.2079 where we believe is a short-term first support line.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.2079

Economic Data

Daily Market Analysis

Market Focus

Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.

The tech-heavy Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Tesla and Apple were among the biggest decliners. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average briefly topped 35,000 for the first time. The benchmark S&P 500 fell from an all-time high. Treasury yields edged higher as traders brace for a busy week of auctions.

Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.

The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policy makers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.

Main Pairs Movement:

The dollar pared losses as equities weakened and some commodities fell. The British pound jumped to its highest since late February against the greenback after the Scottish National Party’s election showing pushed back risk of an imminent vote on independence.

Currency price action may be influenced by cross-border bond issuance including Canada announcing its first U.S. Dollar bond sale since pandemic and as China Railway Construction eyes debut euro bond.

GBP/USD rose as much as 1.2% to 1.4158, the highest since Feb. 25. Pound was also buoyed by corporate and option buying and interest from macro accounts to reestablish long sterling positions.

Commodity-linked currencies from Australia, Canada and New Zealand pared intraday gains. AUD/USD was little changed after earlier advancing by as much as 0.6 to the highest since late February; AUD saw interest in 2-month 0.8025 call options. NZD/USD rose as much as 0.1% to 0.7272. USD/CAD slid by 0.3% to 1.21, the lowest since September 2017.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber once touched topped of the day at 1.2171 level before trims intraday gains, holding negative territory while close to the end of the day, trading below 1.215 level at 1.213 as of writing. At the same time, greenback remains the weakest currency across the boarded-FX market. For technical aspect, RSI indicator shows 58 figures, which alleviate recent over bought sentiment that push down to smooth threholds. On average price view, 15-long SMA accelerating it ascending slope and 60-long SMA turned it slope to teeny-tiny upside in day market.

We foresee market it pretty optimistic for gain traction market seems to buiding upward momentum despite euro dollar correction it bull movement. On down way, the first immediately support level is eye on 1.2105 level, 1.207 and 1.2 following. On up way, we see 1.215 level will be the first tackle resistance as market tamp down which formed by price cluster area.

Resistance: 1.215, 1.22

Support: 1.2105, 1.207, 1.2

GBPUSD (4 Hour Chart)

Sterling has raised overall among the top performance on Monday, following last week’s elections. After touching its highest level since Feb at 1.415 around in early Amerian session, the pair holding a slightly move phase, trading at 1.4122 with 1% rising. For RSI side, indicator has breached to 78 figures which show market is experiencing a torrid sentiment. On the other hands, 15 and 60-long SMAs indicator are accelerating it upward slope.

In the near-term, the sterling is likely to eye on this week’s U.K. data releases and BoE governor speaking after good news of main party pushing for independence in Scotland failed to win. At current stage, we believed pound could challenge for higher stack to toward last peak at 1.42 around as market is piling into long position. However, BoE Govornor will speaking at tommorrow for prospect the eco outlook that could drive wrong-foot flucutation. For bull favour, the first immediately support is tracking psychologically spot on 1.4 level.

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

USDCAD (Daily Chart)

Loonie had another downside tractions which step down 1.21 level as greenback remains poor movement and broadly stronger commodities prices in the day market, trading day to day low at 1.2092 as of writing. Meantime, WTI crude oil traveling at bear step with slightly move in the day but industry material are edged higher stage as expectation of price inflation seems on the trajectory. For RSI side, indicator shows 22 figures which suggest an over sought sentiment, moreover, it consecutive for days long. For moving average side, 15 and 60-long SMAs indicator are remaining it descending movement.

We see price momentum seemingly gird around 1.21 level after it touched down in day market. Therefore, we expect market will eye on downside correction movement as it fell down to current stage.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

Economic Data

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Daily Market Analysis

Market Focus

Stocks climbed to a record after surprisingly weak jobs data eased fears about higher inflation and a cutback in stimulus. The dollar slumped, while Treasuries were little changed.

All major groups in the S&P 500 rose, with energy, real-estate and industrial shares leading the charge. Earlier in the day, technology led equity gains as softer economic data drove investors into the perceived safety of pandemic darlings – mega caps flush with cash and stay-at-home stocks. A gauge of giant growth companies such as Apple Inc. and Amazon.com Inc. pared most of its advance.

The long-awaited employment data rattled markets, with payrolls up only 266,000 in April, trailing the projected 1 million surges. For several analysts, the figures may give a boost to President Joe Biden’s $6 trillion economic agenda and another reason for the Federal Reserve to keep its accommodative stance. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while retaining her expectation of a return to full employment next year.

Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television he has “zero sympathy” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.

“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.

Main Pairs Movement:

A gauge of the dollar slumped to a 10-week low after U.S. job growth missed all estimates and as stocks rose on easing inflation concerns. The euro advanced to the highest in more than two months amid short-covering.

Dollar Spot Index slid as much as 0.665%, the most since December, after data showed the U.S. unemployment rate edged up to 6.1% and payrolls increased by just 266,000 after a downwardly revised 770,000 March increase, well short of projections. The dollar also came under pressure as offshore yuan posts its biggest advance in four months.

The euro climbs as much as 0.8% to $1.2165 amid short-covering and after ECB governing council member Martins Kazaks said that a June decision to slow down bond-buying is possible if the economy doesn’t deteriorate. EUR/USD implieds are higher across the curve with 1-year climbing to as high as 6.4350, highest level since March 24.

On the week, commodity currencies led gains against the dollar, as prices of raw materials continued to soar. GBP/USD gained as much as 0.8% to 1.4, falling just short of the 1.4009 level last seen on April 20. USD/JPY was down 0.4% to 108.71 after earlier sliding as much as 0.7% to 108.34, the lowest since April 27.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber extended it yesterday upward momentum to approached 2-month high on 1.216 level after U.S. unveiled an extremely disappointed NFP data that miss 1 million job gain versus 266 K actually, trading at 1.2164 as of writing. For technical aspect, RSI indicator shows 76 figures, suggesting a over bought sentiment at least for short term. On average price view, 15-long SMA accelerating it ascending slope and 60-long SMA turned it slope to teeny-tiny upside in day market.

We foresee market it pretty optimistic for gain traction as it edged higher than last peak. Meanwile, market seems try toward to next psychological level at 1.22. Therefore, we expect the first immediately downside support level will be the peak of last time at 1.2151 and 1.2106 following.

Resistance: 1.22

Support: 1.207, 1.2105, 1.215

XAUUSD (4 Hour Chart)

Gold consecutive it bull movement once breached to 3 months peak at 1843 and had a correction for it gain traction after market digest the poor US NFP data, trading at 1832. Meantime, U.S. 10 years Treasuries yield have fallen to 1.5% stage which is testing the neckline of 2-month-long double top pattern. For RSI side, indicator shows 73 figures which show market is experiencing a torrid sentiment. On the other hands, 15 and 60-long SMAs indicator are accelerating it upward slope.

At current stage, it seems market pricing for bullish trade while gold market without any cap pressure. However, we verdict that soared up rapidly in short term market could motivate take profit momentum. Therefore, for bull favour, first immediately downside support at 1812.8 and pyschological level at 1800 will be follow. On up way, we expect there has another take profit level on 1850.

Resistance: 1850  

Support: 1812.8, 1800, 1760

USDCAD (Daily Chart)

Loonie had a fluctuate movement in the day market and toward to another day to day low level, trading at 1.2137 as of writing, while market reacted mix for upsetting US job data and Canada’s unemployment rate also miss the 7.8% expecation that figure show 8.1% of actual. Meantime, WTI crude turn negative territory to positive area after U.S. session and copper was edging up to record-setting level. For RSI side, indicator shows 22 figures which shows market is on an over bought sentiment in recently. For moving average side, 15 and 60-long SMAs indicator are remaining it descending movement.

Overall, we foresee market will continue it downside movement as bearish momentum is still on favor traction. On slid way, we expect sell position will incent strong take profit on psychological level at 1.21.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

Economic Data

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Daily Market Risk

Market Focus

Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries, with investors awaiting Friday’s jobs report. The dollar retreated.

The S&P 500 closed near session highs, while the Dow Jones Industrial Average rose to a record. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation. In late trading, Beyond Meat Inc. slumped as the maker of plant-based protein products reported disappointing sales, and Peloton Interactive Inc. whipsawed as investors assessed its results.

Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor-market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity in the first quarter as the pace of output exceeded a pickup in hours worked. Economists predict the upcoming employment report will show the U.S. added about 1 million jobs in April.

Main Pairs Movement:

The greenback weakened versus most Group-of-10 currency peers as U.S. 10-year yields remained steady ahead of data Friday forecast to show employment growth in America soared. The Canadian dollar climbed to the highest since 2017 as metals helped to boost an index of commodities to a fresh 2015 high. Ten-year U.S. yields little changed at ~1.56%; NFP forecast for gain of 1m.

USD/CAD -0.7% to 1.2184; touched 1.2181, lowest since Sep. 18, 2017; higher gold, silver helped to buoy loonie. Options in loonie remain active amid call interest. Overnight volatility in USD/CAD hit ~9.77%, highest since early January on a closing basis, ahead of the nation’s employment data, also scheduled for Friday, that is expected to show loss of about 150k jobs in the month.

GBP/USD down 0.1% to 1.3891; BOE slowed its emergency bond-buying and signaled it’s on course to end that crisis support later this year. EUR/USD +0.5% to 1.2060; poised for the first gain in three sessions; shared currency supported by cross-related buying and interest in short-dated euro calls.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber retreated yesterday loomy amid fueled by macroeconomic data from the E.U and U.S. which boosted risk sentiment, helped euor dollat to advance, currently trading at 1.206 that wipe out yesterday fail. For futher eco-data driven, euro holding a bull expectation to an extension ahead of NFP. For technical aspect, RSI indicator shows 58 figures, suggesting a bullish momentum at least for short term. On average price view, 15-long SMA turned ascending slope and 60-long SMA turned it slope to teeny-tiny upside in day market.

We foresee market will continue whipsaw or choppy in a range between first support and resistance or even continue day gain traction further. On up way, if position breakthrough 1.207 level, we eye on next couple resistance of upside. Of course, the first immediately is on 1.199-1.2 around and 1.192 following.

Resistance: 1.207, 1.2105, 1.215

Support: 1.199, 1.19

XAUUSD (4 Hour Chart)

Gold rallied to 2-month-long peak as seems bearish momentum had a correction to test short position. Gold once ramp of to daily high at 1816 level then slightly resume position to nearly market close, trading at 1814.7. For RSI side, indicator shows 72.5 figures which suggest over bought sentiment base on 4 hour interval. On the other hands, 15 and 60-long SMAs indicator are shifting it sluggish movement to acending momentum.

At current stage, it seems market pricing for bullish trade while gold market without any cap pressure. However, we verdict that soared up rapidly in short term market could motivate take profit momentum. Therefore, for bull favour, first immediately downside support at 1812.8 and pyschological level at 1800 will be follow.

Support: 1812.8, 1800, 1760

USDCAD (Daily Chart)

Loonie gain a downside victory intraday as it sucessively extended bearish momentum in recently amid spectacular economic data trigger the risk-on mode to commodities-linked currencies, trading at 1.2158 which record-setting low in nearly 3 year. Meanwhile, an exceptional decrease in U.S. oil inventories didn’t pump up the price which holding beneath 65 level where comfort at 64.88 as of writing. However, pan-indistrial metal is constantly in gain traction. For RSI side, indicator shows 16 figures which represent market is on an over bought sentiment.

Overall, we foresee market will continue it downside movement as bearish momentum is still on favor traction. On slid way, we expect sell position will incent strong take profit on psychological level at 1.21.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

Economic Data

Daily Market Analysis

Market Focus

Stocks almost wiped out their gains as technology shares turned lower, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.

The S&P 500 notched an advance of less than 0.1% while the Nasdaq 100 ended in the red. The Dow Jones Industrial Average rose to a fresh record. Moderna and Johnson & Johnson retreated, while Pfizer finished little changed on news the U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots. Peloton tumbled after recalling its treadmill products. Copper and lumber rallied, adding to inflation worries.

As the world’s largest economy rebounds, an intense debate has emerged over whether actual price pressures are set to materialize. The five-year breakeven rate — a proxy for the annual inflation rate bond traders expect over the span — jumped to the highest since 2008. Despite the increase in commodity prices and supply shortages, several Fed officials said Wednesday that inflation is unlikely to get out of control.

Main Pairs Movement:

The New Zealand and Australian dollars outperformed Group-of-10 currency peers Wednesday as copper surged and a key gauge of commodities rose to the highest since 2015. The dollar was steady, while volatility in the pound hit the highest since March ahead of a Bank of England policy decision due Thursday.

Among G-10 peers, Kiwi led with gains of 0.9%; the Aussie and loonie rounded out the top three, with the latter jumping to the highest since 2018 before paring gains as oil dropped; the Norwegian krone lagged all. Rising commodities are contributing to more bullish sentiment on inflation, with the 5-year breakeven rate hitting the highest since 2008.

GBP/USD rises 0.2% to 1.3908; pared gains after rising as much as 0.3%. One-week volatility in the pound rose to 8.32 vols, highest since late March; Scottish independence vote also fueling higher vols. Elsewhere, gold was struggling in the day and set it below 1790 level, spiral in an accommodative choppy scope between 1764.5 to 1795.

Technical Analysis:

EURUSD (4 hour Chart)

Euro dollar remains on lost traction to close the consecutive 2 day in negative, trading at 1.2003 around. The pair once dropped to its lowest level in more than two weeks at 1.1986 in the European session and seems found a support at 1.19~1.2 level. All of all, recently, the U.S. market continues to drive euro fiber movements while Europe lack of significant news catalyst. For technical aspect, RSI indicator shows 40 figures, suggesting a bearish momentum at least for short term. On average price view, 15-long SMA is maintaining a negative slope and 60-long SMA turned it slope to teeny-tiny downside intraday market.

We foresee market will continue whipsaw or choppy in a range between first support and resistance as it tamp down from 1.213 which was a top pattern in recently. On slid side, we see 1.199 to 1.2 has a strong support level which form by multi-month-long price cluster area where also a neckline for last bottom pattern. If market extend it downside traction, next support will eyes on 1.19-1.192 around.

Resistance: 1.2105, 1.213, 1.22

Support: 1.199, 1.19

USDJPY (4 Hour Chart)

Japan yen fell toward to psychological level at 109 stage after it fail to keep upward momentum above 109.45 that left the door open to a retreat when materialized amid a decline across the board of U.S. dollar. During the American session, it printed a fresh daily low at 109.13. As of writing, it trading at 109.198. For RSI side, indicator shows 52 figures which suggest neutral market sentiment. On the other hands, 15 and 60-long SMAs indicator are retaining it ascending movement notwithstanding 15-long one seems to lose accelerating traction.

We expect 109 still be a powerful support level as yen has successfully denfended in recent days. If yen could consecutive stand above first support level, we believe it could been deemed as a bull movement ahead. For upward favour, 109 level is immediately need to be defend naturally and 108.37 following. Its worth nothing that there has a downside resistance form above current stage as the yellow line. If yen could breakthrough the downside resistance, we see bullish momentum is upcoming.

Resistance: 110.412

Support: 109, 108.37, 107.936

USDCAD (Daily Chart)

Loonie resumed it downward traction and dropped below 1.2265 level which once slipped to a three-year-low at 1.225 level, trading at 1.22679 as of writing. The slide in loonie took place while broad-base U.S. dollar decline, amid risk appetite and lower U.S. yields following mixed U.S. data. For RSI side, indicator shows 34 figures which suggest a bearish momentum ahead for short term. On averaging price perspective, 15-long SMA indicator turn it slope to downward movement while 60-long SMA indicator remaining it descending slope.

Sum up above, we expect market will sourround in consolidation between 1.2269 to 1.238 as market seems misdirection with blurred price momentum. Albeit, if market doesn’t stand above the first resistance at 1.238 level, we believe it remain bearish momentum for long term.

Resistance: 1.238, 1.246, 1.2491

Support: 1.225

Economic Data

Daily Market Analysis

Market Focus

Volatility gripped financial markets as a rout in some of the largest tech companies dragged down stocks. The dollar rose.

Mega cap such Apple Inc., Tesla Inc. and Amazon.com Inc. sent the Nasdaq 100 slumping, while the S&P 500 pared losses amid gains in commodity, financial and industrial shares. Treasury Secretary Janet Yellen rattled markets with a comment economist regarded as self-evident — that rates will likely rise as government spending ramps up and the economy responds with faster growth. Later in the day, Yellen said she wasn’t predicting or recommending rate hikes.

The debate on whether government spending could boost inflation comes at a time when stock valuations are hovering near the highest levels in two decades. Hedge funds have been bailing from equities at a pace not seen since the financial crisis, while shares have struggled to gain traction despite blowout corporate earnings.

Earlier Tuesday, a sharp drop in equity futures left traders scrambling for an explanation. Some of them speculated on military tensions between China and Taiwan, Singapore’s tougher coronavirus restrictions and Ferrari NV’s decision to postpone financial targets.

Investors also monitored the latest economic readings, with the U.S. trade deficit widening to a new record in March. Meanwhile, a senior White House economic aid demurred on the question of whether President Joe Biden will nominate Fed Chair Jerome Powell for a second four-year term, saying the decision on selecting the next central bank chief will come after a thorough “process.”

Treasury Secretary Janet Yellen said spending may spur modest rate hikes

Main Pairs Movement:

The U.S. dollar extended gains to the highest in two weeks and outperformed all of its Group-of-10 currency peers as Treasury Secretary Janet Yellen said interest rates may have to rise “somewhat” to prevent the economy from overheating. Stocks slipped amid a risk-off bias in the broader markets, while the New Zealand and Australian dollars led losses among counterparts.

EUR/USD -0.4% to 1.2017; euro crossed below $1.20 for the first time since April 22. Shared currency weighed down by EUR/JPY and option-related selling; one-month risk reversals least bullish in nearly a month and nearing par.

AUD/USD -0.8% to 0.7702; fell as much as 1.13%, the most since March 23. Fell below the 100-DMA of 0.7707. NZD/USD -0.9% to 0.7138; dropped as much as 1.2% to 0.7116, the lowest since April 14.

USD/JPY +0.2% to 109.27; earlier rose as much as 0.4%. USD/JPY 3-month implied vol touched a session high of 6.0725% after Yellen’s comments on rates.

Technical Analysis:

EURUSD (4 hour Chart)

Euro fiber once slipped below 1.2 for the first time in nearly two week notwithstanding the pair recovery a portion of daily weakness near market close, it still held negative 0.3%; trading at 1.2016 as of writing. What drive the pair losses amid DXY index gained traction in day market with it fueled by safe-haven demand in risk-aversion sentiment. For RSI side, indicator shows 39 figures, suggesting a room for bearish momentum at least for short term interval. On average price view, 15-long SMA is maintaining a negative slope and 60-long SMA turned it slope to flatter movement intraday market.

Overall, we foresee market will continue whipsaw or choppy in a range between first support and resistance as it tamp down from 1.213 which is a top pattern at current stage. On slid side, we see 1.199 to 1.2 has a strong support level which form by multi-month-long price cluster area where also a neckline for last bottom pattern. If market extend it downside traction, next support will eyes on 1.19-1.192 around

Resistance: 1.2105, 1.213, 1.22

Support: 1.199, 1.19

USDJPY (4 Hour Chart)

Japan yen have found a support as U.S. share market risk-on mode been trigger that ratch up by risk hedging demand, yen trading at 109.296 as of writing, while market inched up to recent high on 109.6 level. Market participants also await important U.S. macro data on Wednesday. For RSI side, indicator shows 56 figures, which suggest a slightly-bullish market sentiment. On the other hands, 15 and 60-long SMAs indicator are retaining it ascending movement notwithstanding seems to lose accelerating traction.

Overall, we expect 109 still be a powerful support level as yen has successfully denfended intraday. If yen could consecutive stand above first support level, we believe it could been deemed as a bull movement ahead. For upward favour, 109 level is immediately need to be defend naturally and 108.37 following

Resistance: 110.412

Support: 109, 108.37, 107.936

USDCAD (Daily Chart)

Loonie had breakthrough 1.23 level, in which was led by broad-base USD strength, and reached its highest level in nearly a week at 1.235. As of writing, the pair was drop down to 1.23 nearby. Meanwhile, WIT crude oil try to tested last peak at 66-67 level, edged up 2.55% in the day and close at 66.11. For RSI side, indicator correction from neutral area to 45.9 figure which suggest a bearish momentum ahead for short term. On averaging price perspective, 15-long SMA indicator turn it slope to upward movement while 60-long SMA indicator remaining descending slope.

Sum up above, we expect market will sourround in consolidation between 1.2269 to 1.238 as market seems misdirection with blurred price momentum. Albeit, if market doesn’t stand above the first resistance at 1.238 level, we believe it remain bearish momentum for long term.

Resistance: 1.238, 1.246, 1.2491

Economic Data