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 September 30
- During the Asian trading session, ANZ business confidence for New Zealand fell to the lowest levels since 2008. As a result, NZD/USD tested the lows below the 0.6254 level. If the 0.6254 level is broken, the next support will lie at 0.6235. Bulls will be looking for a short-term recovery towards the 0.6276 level. RSI will be especially helpful in this situation, as its line is moving close to the oversold zone. In case of a breakout of the 0.6276 resistance level, the next key level will be placed at 0.6297, close to the 50-period SMA.
- The cable has been trading above the 200-period SMA on H4, as the GBP traders anticipate the Brexit updates. In case of the news about the extension of the Brexit deadline, bulls may break the 1.2329 level and push GBP/USD higher towards the 1.2363 level. If the pair weakens, we may see the slide below the 1.2281 level. The next support will be placed at 1.2233.
- Gold has retested the lows of September 13 at $1,485. If it continues to weaken, it may provoke a further fall towards the $1,479.4 level. From the upside, pay attention to the resistance lines at $1,494 and $1,500. RSI has entered the oversold zone. If it leaves this zone, it may provide a buying opportunity.
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?