Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
How to trade on July 7?
- The market sentiment deteriorated today amid increasing new virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen. Stocks and riskier currencies are loosening.
- The US PMI came yesterday better than expected. It turned out 57.1, while the forecast was 50.0. It marked the industry expansion and gave an additional stimulus to the US dollar.
- The reserve bank of Australia made a rate statement. Officials left everything unchanged. According to them, the worst is over, but the outlook is uncertain and the recovery will be bumpy. The Board will not increase the cash rate until Australia reaches full employment and the target rate of inflation. They have stopped asset purchases, but they will resume them, if needed.
- The German industrial production came worse than analysts anticipated and weighed on the Euro. It rose only by 7.8% while the forecast was 11.0%.
After the RBA statement, the Australian dollar reversed from the resistance at 0.6990 and slumped. It will meet the next support at 0.6935. If it breaks it down, it may fall deeper to the 50-day moving average at 0.6910. Resistance levels are at 0.6990 and 0.7015.
Let’s move on to gold. It caught the overall risk-off mood and gained on it. XAU/USD has just crossed the strong resistance at $1 780. It basically means it may reach soon $1 800 – the level that analysts widely expect. Support levels will be at $1 770 and $1 760.
EUR/USD has just bounced back from the strong resistance at 1.330, that it has touched already once. Thus, it has formed a double top pattern, which is an extremely bearish signal. It will meet soon the support at 1.1300. If it manages to cross it, it will open doors towards the next support at the low of July 2 at 1.1265.
Finally, let’s have a look what’s happening with the S&P 500. It has been trading in a range between 3 000 and 3 225 for over a month. However, this range is narrowing, and we could easily draw a triangle. The stock index may fall to the support at 3 110 today. If it breaks it down, it may fall even deeper to the 200-day moving average at 3 025 and continue its zig-zag movement.
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
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).