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.
Tesla reports earnings, Bitcoin rises
- Tesla reported better-than-expected earnings per share after the market closes and even boosted its profit by selling Bitcoin. However, revenue was slightly below the estimate. Let’s see what the market reaction will be. Keep an eye on Tesla as it may rise. The stock trading is available from 16:30 to 23:00 MT (GMT+3).
- Nearly ¾ companies in S&P 500 have published encouraging Q1 financial results, according to Bloomberg. Thus, it has jumped to fresh records. What will happen when such giants like Amazon, Facebook, and Apple report earnings this week? Big moves are awaited!
- Bitcoin rocketed by almost 10% on Monday, after five days of decline in a row, driven by the news that JPMorgan is planning to offer a managed Bitcoin fund.
- Oil prices rose due to OPEC’s positive outlook for a global recovery despite increasing COVID-19 cases in India, the world’s third-biggest oil importer. The OPEC+ will meet today.
EUR/USD has been moving inside the ascending channel in the short term, but in the long term, it is still inside the descending channel. If it manages to break its upper long-term trend line at 1.2130, the way up to the high of February 25 at 1.2175 will be open. On the flip side, if it breaks the 100-day moving average of 1.2050, it may fall to the key psychological mark of 1.2000.
USD/JPY tried to recover its recent losses, but the 50-period moving average and the upper trend line at 108.25 stopped it from further rising. Therefore, the reverse down is likely. If it falls, it may meet support levels at the psychological mark of 108.00 and the low of April 26 at 107.70. Resistance levels are April highs of 108.50 and 109.00.
GBP/USD is making efforts to break the 1.3900 resistance. If it manages to do so, it will open doors towards the high of April 19 at 1.4000. In the opposite scenario, the move below the low of April 23 at 1.3825 will drive the pair down to the low of April 9 at 1.3680.
Gold is rising inside the ascending channel. If it breaks the 100-day moving average of $1800, the way up to the high of February 23 at $1815 will be open. On the flip side, the move below the lower trend line of $1770 will press gold down to $1750.
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 US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).