What You Need to Know

World market sentiment revived after the U.K. reversed the policy of its unfunded tax cuts. In Asia, the Japanese Finance Minister said the authorities would respond to the excessive currency moves by speculators as the Yen fell to a 32-year low against the USD.

At the same time, U.S. stocks surged nearly 600 points on Monday. Meanwhile, foreign banks are accumulating cash reserves at the Federal Reserve, likely reflecting concerns that a dollar funding crunch could be imminent as the U.S. central bank reduces its balance sheet and global economies face recession risks.

Look Out For

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

75bps (96.5%) VS 50bps (3.5%)

Market Overview

Prices as of 05:40 EET

Economic Calendar

Market Movements

XAU/USD

• Hawkish Fed policy to curb inflation as the gold price is relatively weak against the USD as the XAU now falls below its downtrend resistance line. 
• The situation is slightly better off after the UK government reversed its tax cuts policy, which could potentially improve investor sentiment. China also has signs of loosening its Covid Zero strategy that might excite the market sentiment. 

Resistance: 1661.4

Support: 1643.4

BTC/USD

• Bitcoin price is rising but remains in a sideways pattern around $19500.
• Market eyes are on more upsides, but Bitcoin bulls need to show extended strength this week to raise the chance of a bullish at Q4. 

Resistance : 20461

Support : 19491

EUR/USD

• The euro is better off as the market gains some confidence after the UK government announced dropping most tax-related measures and tapped on the weaker USD strength. 
• The euro has once again bounced above 0.9800 and the MACD line has also crossed above the zero line. 

Resistance : 0.992

Support : 0.9576

DJI30

• DJI gained nearly 600 points on Monday as earnings season kicked into high gear.  
• From a technical view, the Dow reached a 50-day SMA line, and it might have the chance to approach 100-days SMA line if it continues its uptrend. 

Resistance : 30445

Support: 28679

GBP/USD

• GBP has soared about 2% against the USD as the UK Chancellor has relinquished most of the tax cuts policy. 
• If the Pound Sterling can break through the resistance line at 1.144 and stay above 1.15, that would be a pivot point for GBP but more catalyst is required for it to happen. 

Resistance 1.144

Support 1.1065

USD/JPY

• USD/JPY has hit 149 at one time, the highest since 1990, and now is trading at 148.88 at the press time.  
• Market fears of BoJ intervention caused the price holding to a flat trend. 
• From a technical view, the pair rally pushes RSI into the overbought zone around 74 to 80.

Resistance : 150.00

Support : 148.00

Crude oil

• Oil prices fluctuated as investors weighed signs of tightening crude supply against concerns over an economic slowdown.
• From a technical view, RSI almost reached the oversold zone, ranging around 34 to 35. Investors are suggested to keep an eye on it. 

Resistance: 93.80

Support: 81.27

ETHUSD

• ETH has been forming a slight bullish trend for the past 2 trading days and that would be a pivot point if ETH can break through the consolidation channel between 1376.5 to 1246.4. 
• In general, the crypto market will remain bearish or sideways as the global market is still struggling to revive. 

2nd Resistance : 1500

1st resistance: 1376.5

1st support: 1246.4

2nd support: 1035.6