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.
Market updates on August 28
- The governor of the Reserve bank of New Zealand made some remarks on keeping the NZD weaker. As a result, NZD/USD inched lower to the 0.6334. The pair has been trading at the lowest level since 2015. If this level is broken, the next support will lie below the lower border of the descending channel at 0.6297. If the pair recovers, the first resistance level will lie at 0.6366. After the break of this level, the resistance at 0.6391 will be in focus.
- Brexit news continues to move the pound. Reportedly, the Queen will be asked to prorogue parliament. She is expected to make a speech on that matter on October 14. That means the opposition parties will have a little time to organize. GBP/USD plunged below the 1.2211 level on the news. The next support levels will lie at 1.2171 and 1.2147. From the upside, pay attention to the 1.2293 level, which will be broken in case of a reversal.
- After the slide towards the $1,532 level, the price of gold managed to restore its positions. It is currently moving towards the resistance at $1,544. If this level is broken, the retest of $1,555 will be possible. If the risk-on sentiment increases, the price will slide downwards to the support at $1,532. After the breakout, the price will fall as far as the $1,525 level will be reached.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
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?