Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
Main market movements on September 22
The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns. Forecast for the increased volatility around the US presidential election deteriorated investor’s mood as well. Therefore, safe-haven currencies such as the USD and the JPY got a boost, while riskier assets are dipping. The USD is also on the rise due to the uncertainty over the US fiscal stimulus. Moreover, US-China tensions are escalating as Beijing is not going to allow Oracle to buy TikTok’s US assets.
Long story short, all the issues point that today the risk-off sentiment will prevail. However, the situation may change with the statement of Fed’s chairman Jerome Powell. According to Monday’s speech, the economy is strengthening, but the way to the full recovery will be long. He emphasized that while many economic indicators were upbeat, employment and economic activity have been still at low levels, and it won’t get better without additional government support measures.
Let’s look at the charts. EUR/USD has just broken down the support of 1.1755 and moving further down. The next support is at the key psychological mark of 1.1700. This level should constrain the pair from dipping as it has failed to break it for almost 2 months. However, if it manages to cross it, it may fall to the next round number at 1.1650. Resistance levels are 1.1800 and 1.1880.
S&P 500 has reached levels unseen since July 30. If it manages to break through the key support of 3 250, it may fall deeper to the next support of 3 200. The move above yesterday’s high of 3 320 will drive the stock index higher to 3 370.
Gold has bounced off the significant support of $1 900. However, if it breaks it down, it will fall to the next support of $1 880. Resistance levels are $1 940 and $1 960.
Finally, let’s discuss one representative of riskier assets: the Australian dollar. It has just gone through the significant support of 0.7200. Therefore, it’s likely to keep falling until it reaches late August lows at 0.7150. The move below will drive the aussie to 0.7115. Resistance levels are 0.7270 and 0.7335.
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).