XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!
Bullish optimism in the market continues
Did you expect your trading day to be as bullish as today? Indeed, the reports that the US and China trade talks are going “very well”, the news that China has agreed to buy agriculture goods and the US has canceled its planned tariffs boosted the risk-on sentiment in the market.
The final note which increased the market’s confidence comes from a tweet by the US president, where he commented that “something significant would happen”. He was talking about his meeting with Chinese Vice Premier later today.
How does the anticipated announcement affect the pairs?
· EUR/USD stuck above the 1.1 level and tested the 1.1059 level. If this level is broken, the next resistance will lie at 1.1068-1.1073. From the downside, pay attention to the support at 1.1038, 1.1028 and 1.1014. RSI is moving within the overbought zone, close to its border. If it leaves this zone, selling opportunity may appear.
· USD/JPY has broken the strong resistance at 108.46 and moved to the highest levels since August 1. The next resistance will lie at 108.65. After that, reaching the 108.9 level may be possible. In case of risk aversion, the pair will slide downwards and the fall to the 108.14 level may be possible. The next key level in the focus of bears will be placed at 107.84.
· As the risk sentiment improved, the price for the yellow metal weakened. Gold’s price tested the support at $1,475.8. If this level is broken, the next support will be placed at $1,464.1. In case of a reversal, the $1,487 level will be important for bulls. After it is broken, the resistance level will lie at $1,494.
Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
Mester (Fed) says the Fed will have to raise rates again this year. However, the US dollar index shows signs of a short-term decline. Read the full article and learn more!
Welcome to the first week of October! As usual, at the start of the week, we are looking for valuable insights that will bring us profits in trading. Let’s observe the main events.
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?