Daily Review for October 01, 2021
The last quarter of the year begins. Equities market continues in negative territory. Bond yields remain mixed, and traders start buying gold and cryptos.
Gold is looking for USD$1,780 per Troy ounce. Stock indices closed September with significant declines, so investors are holding metals in their portfolios. Possible rebound of the indexes.
Bitcoin seeks USD$44,000. Today, USD$700 million in Bitcoin options expire. If buying outpaces selling, the price could reach USD$50,000 over the weekend.
ECB assesses EURUSD level. Central banks will continue today monetary policy talks. A clearer response is expected from the US Congress on the US debt ceiling.
| DOW JONES -0.52% |
| Q4 kicks off. The market continues with bearish movements. In the U.S. Congress, the temporary funding bill was approved. In this way, the country has liquidity until December 3, when Republicans and Democrats must again structure a payment plan on the maturity of the country’s debt. Yesterday, the index closed with a drop of 546 points. The Dow Jones is currently down 0.52% and is trading at 33,668. |
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| Support 1: 33,641.3 Support 2: 33,619.1 Support 3: 33,603.3 Resistance 1: 33,679.3 Resistance 2: 33,695.1 Resistance 3: 33,717.3 Pivot Point: 33,657.1 |
| The price is below support 1. The index has dropped towards the 33,500 zone. At this point, it has an important double bottom, so it could generate a rebound towards the pivot point area and then towards resistance 1. Trading range between 33,603 and 33,717. Pivot point at 33,657. RSI in oversold zone. |
| GOLD -0.30% |
| Gold prices showed an interesting rebound yesterday, in the wake of the congressional decision on the US debt ceiling. At the moment, the price is down 0.30% and is trading at USD$1,751 per Troy ounce. The metal could continue to attract the attention of traders, who do not see a clear strategy from the U.S. government. Equities remain in negative territory. Treasury yields are also moving lower. Agricultural commodities are up, while industrial and energy commodities are down. |
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| Support 1: 1,751.95 Support 2: 1,750.00 Support 3: 1,748.60 Resistance 1: 1,755.30 Resistance 2: 1,756.70 Resistance 3: 1,758.65 Pivot Point: 1,753.35 |
| The price bounced off the USD$1,721 support level. The upward movement reached USD$1,763. At the moment, the price is retreating, but could present a sideways movement while a trend is defined in the market. Pivot point at USD$1,753. RSI neutral. |
| BITCOIN +0.75% |
| The crypto market starts the month with bullish movements. Bitcoin is up 0.75% and is trading at USD$43,816. Today we will have the expiration of USD$700 million in Bitcoin options. The Bulls are looking to move up the support level, to keep it above USD$42,000 in the event of a downside event. On the other hand, Jerome Powell as Fed Chairman announced that he has no intention to restrict Bitcoin or the cryptocurrency market. This is a positive factor in the market, as it provides more security for investors. |
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| Support 1: 43,504.9 Support 2: 43,381.2 Support 3: 43,292.2 Resistance 1: 43,717.6 Resistance 2: 43,806.6 Resistance 3: 43,930.3 Pivot Point: 43,593.9 |
| The price is in the zone of resistance 1 and the Bulls are starting to attack the USD$44,640 zone. If they manage to overcome this zone, the price could look for the USD$50,000 area during the weekend. However, options could push the price down towards USD$41,000 if the selling outweighs the buying volume. Pivot point at USD$43,593. |
| EURUSD -0.02% |
| The Fed and the ECB will continue to make monetary policy statements today. Traders are looking forward to the manufacturing PMI in Germany, and in the UK, as well as the Euro Zone inflation data, which is expected to come in at 3.3% YoY. In the US, we will have ISM manufacturing PMI data, where 59.6 is expected to indicate economic expansion. At the moment, the EURUSD is down 0.02% and is trading at 1.1578. The ECB may try to take care of the currency level up to the 1.1500 support. If it reaches this level, long positions in the Euro could increase significantly, mainly due to the Banking sector. |
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| Support 1: 1.1574 Support 2: 1.1571 Support 3: 1.1568 Resistance 1: 1.1580 Resistance 2: 1.1583 Resistance 3: 1.1585 Pivot Point: 1.1577 |
| The price is below the 200-day moving average. At this moment the currency is at the pivot point, where a change of trend could occur. Expected trading range between 1.1568 and 1.1585. Pivot point at 1.1577. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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