Main Market Trends on September 23

Latest news

• It has finally happened! Fed Chair Powell claimed the US central bank can start tapering already this November and complete the process by mid-2022. As a result, EUR/USD dropped by 227 points as the USD strengthened. Today, EUR/USD has already recovered those losses.
• The US Food and Drug Administration is going to authorize a third dose of the Pfizer-BioNTech Covid-19 vaccine for people over 65. It can push the stocks of Pfizer and BioNTech up. Remember that the US stock market opens at 16:30 GMT+3.
• The market remains cautious because of the financial problems of China’s Evergrande. It is close to collapse with more than $300 billion in liabilities, leaving 1.5 million buyers waiting for finished homes.
• The calendar is full of economic events today. Canada’s retail sales, PMI reports from the EU, UK, and USA. Besides, the Bank of England holds a meeting today at 14:00 GMT+3. It will be a busy day!

Tech outlook

XBR/USD (Brent oil) has sharply rocketed to the highs unseen since the middle of June! The move above the psychological level of $76.00 will push the crude oil to the high of June 5 at $77.00. Support levels are the low of September 20 at $73.00 and the intersection of the 50- and 100-day moving averages of $71.50.

There are really interesting movements in the GBP/USD chart. The pair has failed to break through the support level of 1.3600 three times and has reversed up again. It may reach the resistance level of 1.3700. The breakout above this level will open the doors to the next round number of 1.3750. Support levels are 1.3600 and 1.3500. Follow the Bank of England's meeting today and keep an eye on GBP/USD!

The Canadian dollar has gained from the rising oil prices. As a result, USD/CAD has reversed down from the strong resistance level of 1.2850. It’s likely to reach the 50-day moving average of 1.2600. The lower line of the channel can stop the pair from falling further.

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FBS Analyst Team

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