The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Trade ideas ahead of Fed
The market optimism waned ahead of the Fed meeting: stock indices dropped, gold and the USD rose.
Investors await comments from the Fed about inflation risks and increasing Treasury yields. The central bank should update its outlook for rates and the economy. This meeting may set new traction for the US dollar and stocks.
Gold is climbing up to close the second week in green. The yellow metal is driven up by prospects for higher inflation.
Oil prices dropped on concerns over weak demand from Europe. The Euro Area slowed down the vaccination campaign because of the possible side effects of AstraZeneca’s vaccine.
EUR/USD is getting closer to the 50-period moving average of 1.1915. The move above it will clear the way up to the upper trend line of 1.1935. On the flip side, the move down the intraday low of 1.1890 will press the pair down to the next support of 1.1870.
GBP/USD is at the resistance of 1.3900. if it manages to break it, the doors to the 38.2% Fibonacci retracement level of 1.3950 will be open. On the flip side, the move below the support of 1.3850 will drive the pound down to the key psychological mark of 1.3800.
USD/JPY hit the 200-week moving average of 109.50. The RSI indicator went slightly above the 70.00 level, indicating the price is too high. Thus, the pullback down is going to happen soon. If it drops below the closing price of the last week at 108.35, it may dip to the 100-week moving average of 107.20.
Gold is moving in an ascending channel. If it breaks through the 100-period moving average of $1740, it may rise to the next resistance of $1750. In the opposite scenario, the way down the recent lows of $1725 will drive gold to the 50-period moving average of $1712.
Follow the Fed statement at 20:00 MT time, big swings are awaited!
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.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
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).