The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Gold Surged, Traders Await FOMC Minutes
What you need to know on Wednesday:
- The US service sector growth was slower than expected. The Services Managers' Index is 60.1, while the forecast was 63.4. It’s a negative factor for the US dollar.
- Oil prices had the largest decline since mid-March yesterday as OPEC+ members couldn’t make a compromise.
- Traders are awaiting the FOMC Meeting Minutes today at 21:00 GMT+3 (MetaTrader time) to get more hints on when the Fed may start tapering the emergency asset purchases, which will push the USD up.
- Gold has surged above the psychological mark of $1800 ahead of the Minutes from the Fed’s meeting.
EUR/USD is moving down. The breakout below the psychological mark of 1.1800 will press the pair down to the next round number of 1.1750. On the flip side, if the pair breaks above the resistance level of 1.1850, the way up to the 50-period moving average of 1.1875 will be open. Notice that the pair has failed to break above the 50-period moving average many times already, that’s why even if the pair approaches it, it will reverse down from it.
Gold has broken above $1800. The doors are open towards the 38.2% Fibonacci retracement level at $1815. If gold crosses this mark, it may jump to the key resistance zone of $1830-1833, which will be hard to cross as it’s a 50% Fibo level. Support levels are $1790.00 and $1775.
USD/JPY is moving inside the ascending channel. It has bounced off the lower trend line and now it’s getting closer to the 50-period moving average of 110.90. If it breaks it, it may jump to the high of June 5 at 111.15. Support levels are the lower trend line of 110.50 and the mid-June lows of 110.15.
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).