Daily Market Analysis

 

Latest Economic and Fundamental Insights

 

• The dollar index held above 106 on Friday as investors continued to assess the Federal Reserve’s monetary policy expectations in light of recent comments from Fed Chairman Jerome Powell.
• Gold hit a three-month high as demand rose amid the conflict in the Middle East. Gold is up 2.4% so far this week.
• Fed’s Logan: The Fed has “some time” to see data before making a decision on the next rate hike.
• Silver is set for a second consecutive weekly gain.
• Oil is on track for a second weekly gain amid concerns about the spread of infection in Gaza. Brent crude is trading at $93.25 and West Texas Intermediate crude at $89.44.
• The Bitcoin price continued to rise, reaching the level of $29,000.

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Smart technical reports

 

 

How they work

A likely scenario for the day is proposed, and the probability of this scenario being achieved, according to technical analysis, could be between 60% and 75%. If the first scenario fails, the probability of the second scenario being achieved will be between 60% and 75%.

The first scenario fails when the price reaches the alternative scenario condition level, the alternative scenario is then immediately activated, and the first scenario prediction gets cancelled.

These reports are not considered a substitute for the trader’s decision, but rather they are a tool to assist the follower in making their own decisions, as a reference based on classical technical analysis.

 

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GOLD

 

General trend: bullish

Time interval: 30 minutes

Current price: $1,978.48 

First scenario: Buy gold on the break when steady by closing the candle above the levels of $1,982.85, targeting a price of $1,987.90 and then $1,994.85.
Alternative scenario: Sell gold on the break of $1,974.61, targeting a price of $1,968.17 and then $1,960.92.

Comment: Trading above the supports and averages suggests an uptrend.

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CRUDE OIL

 

 

General trend: bullish

Time interval: 30 minutes

Current price: $89.05 per barrel

First scenario: Buy oil on the break when steady by closing the candle above the levels of $89.45, targeting a price of $90.00 and then $90.50
Alternative scenario: Sell oil on the break of $88.83, targeting a price of $88.25 and then $87.73.

Comment: Trading above the supports and averages suggests an uptrend.

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EURUSD

 

General trend: bullish

Time interval: 30 minutes

Current price: $1.05760

First scenario: Sell EURUSD on the break of $1.05651, targeting a price of $1.05491 and then $1.05300.
Alternative scenario: Buy EURUSD on the break when steady by closing the candle above the levels of $1.05881, targeting a price of $1.06068 and then $1.06278.

Comment: Trading above the supports and averages suggests an uptrend.

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GBPUSD

 

General trend: bearish

Time interval: 30 minutes

Current price: $1.21310

First scenario: Sell GBPUSD on the break of $1.21150, targeting a price of $1.20952 and then $1.20728.
Alternative scenario: Buy GBPUSD on the break when steady by closing the candle above the levels of $1.21486, targeting a price of $1.21771 and then $1.21993.

Comment: Trading below resistances and averages suggests a downtrend.

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NAS100

 

General trend: bearish

Time interval: 30 minutes

Current price: $14,843

First scenario: Sell Nasdaq on the break of $14,800, targeting a price of $14,746 and then $14,674.
Alternative scenario: Buy Nasdaq on the break when steady by closing the candle above the levels of $14,881, targeting a price of $14,942 and then $15,005.

Comment: Trading below resistances and averages suggests a downtrend.

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Economic Calendar

(Times are in GMT+3)

 

• Europe: Producer Price Index (PPI) at 9:00
• United Kingdom: Retail Sales (Monthly and Annual) at 9:00
• Canada: Retail Sales (Monthly and Annual) at 15:30

 

Fundamental Analysis

 

• The dollar index held above 106 on Friday as investors continued to assess the Federal Reserve’s monetary policy expectations in light of recent comments from Fed Chairman Jerome Powell.
• Powell said that inflation remains too high and is likely to require slower economic growth, adding that the current monetary settings are not yet too tight.
• However, markets expected the central bank to keep interest rates unchanged at its November meeting.
• The latest data also showed that initial jobless claims came in below expectations last week, while existing home sales, retail sales, industrial production, housing starts, and building permits all surprised to the upside in September.
• On the other hand, the dollar lagged behind increases in Treasury yields, with the benchmark 10-year U.S. Treasury yield briefly reaching 5% for the first time since 2007.
• Gold prices rose to their highest level in three months on Friday and are on track for a second consecutive weekly gain, with demand boosted by the conflict in the Middle East and expectations that the Federal Reserve’s interest rate hikes are nearing an end.
• Israeli Defense Minister Benny Gantz told troops massed on the Gaza border on Thursday that they would soon see the Palestinian enclave “from the inside,” in an indication that a long-anticipated ground invasion to wipe out Hamas may be imminent.
• “There are concerns that this (war between Israel and Hamas) could escalate into something like a broader regional crisis, and perhaps a long-term conflict… so we’re seeing investors flocking to safe havens,” said Kyle Rodda, a financial markets analyst at Capital.
• Gold, which is often used as a safe haven of value during times of political and financial uncertainty, rose 2.4% this week.
• Oil prices continued to rise on Friday and are on track for weekly gains, amid growing concerns that the conflict between Israel and Gaza could spread to the Middle East and disrupt supplies from one of the world’s largest producing regions.