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 October 28
- EUR/USD has been making confident steps towards the 1.1106 level on the 4-hour chart. If bears take over the market, the may pull the pair below the 1.1090 level. This scenario will increase the chances of a retest of the 1.1072 support level from October 25. In this case, the downward movement, which is confirmed by Parabolic SAR, may be resumed.
- The news that Brexit would be delayed until January 31, 2020 did not stop the consolidation of GBP/USD on the H4. The upper border of the range is placed at 1.2860. After that, further upside momentum may be limited by the 1.2876 level (50-period SMA). On the chart, you can see that this level lies close to the upper border of the short-term descending channel. As far as buyers overcome this border, the retest of tops from October 24th at 2.2927 seems likely. Bears will be eyeing the support at the lower border of the consolidation range (1.2807). The next key level for them will be placed at 1.2785.
- The gold is also trading sideways between the $1,506 and $1,503 levels. The breakout to the upside may lead bulls to move towards the $1,509 boundary. On the contrary, the consolidation period may be over with bears crossing the $1,503 level. In this case, the chances of reaching $1,500 are high.
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?