Daily review for October 07, 2021
Gold remains in sideways trend as traders await the outcome of the possible U.S. Senate vote on the debt ceiling proposal presented by the Republicans and Democrats.
Eurostoxx 50 is in a bullish trend, in anticipation of a possible solution to the energy crisis in Europe. Nord Stream 2 is back on the table.
Cryptos keep rallying. Bitcoin reached USD$55,000. Bulls’ target is to consolidate the price above this level, with support at USD$50,000.
Treasury Secretary Janet Yellen continues to criticize Jerome Powell’s strategy as Fed President. The main focus is on the debt ceiling and the inflationary impact it could have on the global economy.
| GOLD -0.12% |
| Possible agreement at the table between Republicans and Democrats on the debt ceiling. Today, senators could vote on whether or not to approve the proposal. Investors returned to equities supporting the announcement, which caused stock indices to turn positive. Traders are still keeping their radar on the NFP. At the moment gold is down 0.12% and is trading at USD$1,759 per Troy ounce. While the congressional resolution is being worked out, Treasury Secretary Janet Yellen continues to criticize Jerome Powell’s strategy. |
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| Support 1: 1,758.95 Support 2: 1,757.25 Support 3: 1,756.40 Resistance 1: 1,761.50 Resistance 2: 1,762.35 Resistance 3: 1,764.05 Pivot Point: 1,759.80 |
| Gold price is above the 200-day moving average. It is currently between resistance 1 and the pivot point. If long positions increase, gold could look for USD$1,772. To do so, it would have to overcome the double top at USD$1,763. Trading range between USD$1,756 and USD$1,764. RSI neutral. |
| EUROSTOXX 50 +1.14% |
| The index that brings together the top 50 companies by market capitalization in Europe, is currently up 1.14% and is trading at 4,042 points. Today we will have the statements of the German BUBA (German central bank), and we will know the minutes of the ECB on monetary policy. On the other hand, the energy crisis and the significant increase in the price of electricity in Europe have prompted leaders to analyze various solutions. For his part, Russian President Vladimir Putin has put the supply of natural gas from Russia via Nord stream 2 on the table. |
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| Support 1: 4,038 Support 2: 4,034 Support 3: 4,029 Resistance 1: 4,047 Resistance 2: 4,052 Resistance 3: 4,056 Pivot Point: 4,043 |
| The price is still below the 200-day moving average, however, it is attacking the pivot point and resistance 1. Bulls next target is 4,096. Expected trading range between 4,029 and 4,056. Pivot point at 4,043. RSI neutral. |
| BITCOIN +6.39% |
| The crypto rally continues. Bitcoin is currently up 6.39% and is trading at USD$54,637. Several factors have influenced the price rise. Among them, the SEC’s announcement that it does not intend to restrict crypto trading. This has encouraged companies and institutional investors to buy cryptos. The next target now for the Bulls is USD$56,000, with support at USD$50,000. |
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| Support 1: 54,834.6 Support 2: 54,584.9 Support 3: 54,396.9 Resistance 1: 55,272.4 Resistance 2: 55,460.5 Resistance 3: 55,710.2 Pivot Point: 55,022.7 |
| The price is still above the 200-day moving average, which is a technical signal that shows that Bitcoin is still in an uptrend. The price is currently at resistance 1. Expected trading range between USD$54,396 and USD$55,710. Pivot point at USD$55,022. RSI leaving the overbought zone. |
| DOW JONES +0.36% |
| On the news of a possible agreement at the table between Republicans and Democrats, stock indexes changed their trend. Traders returned to bullish positions in equities. The Dow Jones closed with a rise of 0.30%. Today, the index is up 0.36% and is trading at 34,416. Inflation is another major concern for economists. Among them Treasury Secretary Janet Yellen, who has criticized the monetary policy measures taken by current Fed Chairman Jeorme Powell. If the debt ceiling moves and more debt is generated, the inflationary level would tend to rise, so the Fed’s measures are key to keep inflation under control. |
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| Support 1: 34,512.5 Support 2: 34,492.5 Support 3: 34,463.5 Resistance 1: 34,561.5 Resistance 2: 34,590.5 Resistance 3: 34,610.5 Pivot Point: 34,541.5 |
| The price is above the 200-day moving average. It is currently at resistance 1. Double top in that area, so the volume of longs should be greater than shorts, for the price to reach the level of 34,717. Pivot point at 34,541. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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