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 June 20
Key events ahead:
The BOE monetary policy summary – 14:00 MT time
- Yesterday, the Fed Chair Jerome Powell hinted the possibility of a rate cut as early as next month. His impatient tone pushed the EUR/USD pair higher. On H4, bulls successfully broke the 50-period SMA. At the moment the EUR is testing the resistance at 1.1294. The next resistance lies at 1.1316. If this level is broken, the next level in focus for bulls will be placed close to the descending trendline at 1.1344. From the downside, we need to pay attention to the support at 1.1257. As soon as it's broken, the next support will lie at 1.1234 (100-period SMA). After that, bears will target the zone between 1.1224 and 1.1213.
- USD/JPY fell on the dovish Fed, too. On H4, the pair found the support at 107.64. If the USD continues to weaken, the next support will lie at 107.29. On the flipside, we need to pay attention to the resistance levels at 108.3 and 108.64.
- GBP/USD has been supported ahead of the BOE monetary policy summary. At the moment, it is trading near the resistance at 1.2710 on the H4. The next resistance levels lie at 1.2749 and 1.2780. If the GBP is supported today by the comment of Mark Carney, the next key level will lie at 1.2837. Bears need to keep an eye on the support levels at 1.2651 (100-period SMA), 1.2612 and 1.2557.
- The Australian dollar has been rising on the hawkish comments by the RBA governor. Right now, the aussie is rising towards the resistance at 0.6931 (100-period SMA). If this level is broken, the next resistance will be placed between 0.6958 and 0.6966. Bears need to pull AUD/USD below 0.6913-0.6905 to confirm their strength. In that case, the next key level for them will lie at 0.6873.
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?