What You Need to Know

Speculators estimate that the Japanese authorities plan to spend around 1 trillion yen to support the currency in a stealth move as USD/JPY at 150 is seen as an important psychological level to defend. On the other hand, the BoE will start its bond sales early next month as part of its QT monetary policy to fight inflation. Additionally, Biden’s administration plans to release 15 million barrels of oil from the US emergency oil reserves to ease the oil price. 

Look Out For

Current rate hike bets on 2nd November Fed interest rate decision: 

75bps (98.5%) VS 50bps (1.5%)

Market Overview

Economic Calendar

Market Movements

XAU/USD

• The precious metal has underperformed against risk-aware currencies amid more robust yields and hovering around $1650.
• Besides, the RSI ranges between 40 and 50, indicating the potential trigger’s unavailability.

Resistance: 1681

Support: 1640

BTC/USD

• BTC has been trading sideways between 18470 to 20380 since it plunged from 22800 last month. 
• Neither the MACD nor the RSI has any indication of a BTC direction coming up next. 

1st resistance : 20438

2nd resistance: 22467

Support : 18470

EUR/USD

• A positive market sentiment boosted the euro and pushed the price to a session high of nearly 0.9880. 
• The ZEW report was mixed but did not dampen the euro’s recovery. 

Resistance : 1.0000

Support : 0.9706

DJI30

• DJI closed with a gain of 1.12% last night along with other U.S. market indices due to a strong bank’s earning report amid rate hikes concern. 
• DJI has broken through its downtrend psychological resistance line at 30000 and the MACD has also crossed the zero line; this suggests the index might perform better in this earning season. 

Resistance: 31500

Support: 29090

GBP/USD

• The sterling continues to struggle as the market is concerned about the UK’s bond market. 
• From a technical view, the currency pair’s key resistance would be 1.1460. Suggest that if it breaks through the resistance, an uptrend for the pairs might happen. 

Resistance: 1.1460

Support: 1.0930

USD/JPY

• Yen has been a weaker party toward the USD ever since the FED implemented hawkish monetary policy; the Yen is even weaker after it broke its previous resistance and now support line at 144.9. 
• The market believes that the Japanese authorities will try to defend the Yen to trade above 150 against the USD; the MACD line at the same time has crossed the signal line on the above and the RSI is above 70 indicating an overbought signal. 

Resistance : 150.00

Support : 148.00

Crude oil

• Biden’s government will release more crude from the U.S. reserves to ease the oil price further to counter the OPEC+ oil production cuts act. 
• China, the world’s top oil importer, has also slowed in oil demand, which will stop the oil price from increasing anytime soon. 

Resistance: 89.6

Support: 77.4

ETH/USD

• Ethereum fell a bit as we continue to see that the market has little interest in the crypto markets.
• The pair’s trend remains narrow as markets are waiting for the Fed’s monetary policy. 

Resistance : 1400

Support: 1236