29/09/2022 Daily Reports
EUR/USD
The shared currency began trading nearby the day’s lows, just below the 0.9600 figure, and dived towards a fresh two-decade low at around 0.9535 before rallying sharply towards the daily high at 0.9751 before settling around 0.9730, bearish in the daily chart.
The energy crisis keeps the Eurozone under pressure. On Tuesday, news that the Nord Stream pipelines 1 and 2 showed leaks sent energy prices higher. Some countries’ officials said it could be sabotage, and even Danish PM Frederiksen said it was “hard to imagine that these are coincidences.” German officials expressed concern that a “targeted attack” had caused a sudden pressure loss.
Earlier, the EU’s economic calendar featured the GfK Consumer confidence, which tumbled to -42.5 heading into October, from a -36.8 September reading, well below analysts’ estimates. According to the GfK institute, improvement in consumer morale is closely tied to lowering inflation.
The EUR/USD pair is trading near the 0.9730, up for the day with the bearish stance in daily chart. The pair still stabilized below 20 and 50 SMA, indicates bearish strength. Meanwhile, 20 SMA continued accelerating south and developing below longer ones, suggests bears not exhausted yet. On upside, the immediate resistance is 0.9750, break above this level will extend the advance to 0.9840.
Technical readings in the daily chart support the bearish stances. The RSI indicators hovering below the midlines and stabilized around 38, shows bearish strength. The Momentum indicator stabilized below the midline, indicating downward potentials. On downside, the immediate support is 0.9600 and below this level will open the gate to 0.9535.
Open A Demo
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
GBP/USD
- The GBP/USD recovered some ground as the North American session progressed, switching to positive territory, the pair is trading at 1.0880, above its opening price amidst a volatile trading session, after hitting a daily high/low of 1.0916/1.0539 as concerns over the UK economy increased.
- The Bank of England entered the bond market on Wednesday to calm the markets, committing to buy GBP 65 Billion of long-dated gilts following the new Primer Minister Liz Truss’s “mini-budget” release, plagued with substantial tax cuts, aimed to stimulate the economy. At the same time, the BoE postponed the beginning of the Quantitative Tightening program for the end of October.
- Elsewhere, the International Monetary Fund (IMF) expressed that the new UK government plan would likely increase inequality in the UK and could undermine the current monetary policy. Due to large inflationary readings, the IMF expressed that “we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy.”
- The GBP/USD offers bearish stance in daily chart, it maintains the downward slope and now is stabilized below all main SMAs, indicating bearish strength. Meanwhile, the 20 SMA continued accelerating south and developing far below longer ones, suggesting bears not exhausted yet. On upside, The immediate resistance is 1.0930 with a break above it exposing to 1.1100.
- Technical readings in the daily chart support the bearish stances. RSI indicator stabilized around 28, while the Momentum indicator stabilized below the midline, suggesting downward potentials. On downside, the immediate support is 1.0730, unable to defend this level will resume the decline to 1.0530.
Open A Live Account
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
XAU/USD
- Gold rebounds swiftly from its lowest level since April 2020 touched earlier this Wednesday and turns positive for the second successive day. The momentum lifts the XAU/USD to a fresh weekly high, around the $1,662 region during the North American session, still bearish in the daily chart.
- The UK gilt yields retreat sharply after the Bank of England said it would buy bonds at whatever scale is necessary to restore orderly market conditions. The spillover effect triggers a steep decline in the US Treasury bond yields, which forces the US dollar to surrender its early gains to a new two-decade high. This turns out to be a key factor that prompts aggressive intraday short-covering around the dollar-denominated gold.
- The upside potential, however, seems limited amid the prospects for a more aggressive policy tightening by global central banks, including the Federal Reserve. Investors seem convinced that the US central bank will continue to hike interest rates at a faster pace to combat stubbornly high inflation. This could act as a tailwind for the US bond yields and favours the USD bulls, which, in turn, should cap gains for the non-yielding gold.
- Gold price stabilized around 1659, up for the day and bearish in the daily chart. The gold price still stabilized below all main SMAs, suggesting bearish strength. Meanwhile, the 20 SMA continued accelerating south and developing below longer ones, indicating bears not exhausted yet. On upside, the immediate resistance is 1663, break above this level will open the gate to extend the advance to 1685 area.
- From a technical perspective, the RSI indicator hold below the midline and stabilized around 41, suggesting bearish strength. The Momentum indicator struggled below the midline, suggests bearish potentials. On downside, the immediate support is 1640, below this area may resume the decline to 1615.
CDO TRADER
CDO TRADER, our cutting-edge trading platform, follows the technology from the forefront with new features added continuously. Moreover, CDO TRADER is now available for Android and iOS! So it allows you to trade on the go!
USD/JPY
- The USD/JPY pair extends its consolidative price move and remains confined in the 143.90-145.00 broader trading range through the US session on Wednesday, still bullish in the daily chart.
- The Bank of Japan July policy meeting minutes released on Wednesday revealed an agreement among policymakers about the need to scrutinize how the yen’s recent sharp depreciation could impact inflation. This comes on the back of direct intervention by authorities to stem the rapid fall in the domestic currency and offers some support to the Japanese yen, which, in turn, acts as a headwind for the USD/JPY pair.
- The Fed’s hawkish outlook, meanwhile, lifts the US dollar to a fresh two-decade high. Adding to this, a further rise in the US Treasury bond yields contributes to the strong bid tone around the greenback and limits the downside for the USD/JPY pair. The fundamental backdrop supports prospects for additional near-term gains, though failure to make it through the 145.00 psychological mark warrants caution.
- The USD/JPY pair stabilized around 144.15, down for the day and bullish in the daily chart. The price still maintains the upward slope and stabilized above all main SMAs, suggests bullish strength. Meanwhile, 20 SMA continued accelerating north and developing above longer ones, indicating bulls not exhausted in the long term. On upside, overcome 145.00 may encourage bulls to challenge 146.00, break above that level will open the gate to 147.00.
- Technical indicators suggest the bullish strength. RSI stabilized around 61, while the Momentum indicator continued developing above the midline, suggests upward potentials. On downside, the immediate support is 143.00, break below this level will open the gate to 140.30 area.
MetaTrader 4
MT4 has user friendly interface that is providing simplicity and efficiency. The traders can perform trading strategies for different products like Forex and CFD. MetaTrader 4 has over 50 built-in indicators, also it’s the tool that predicts trends and defines the appropriate entry and exit points.
DJI
- DJI made a quick rebound after tumbled to intraday low 28885 area. It climbed to intraday high 29880, recovered nearly 1000 pips and ended Wednesday around 29760, bullish in the hourly chart. It stabilized above 20 and 50 SMA, suggests bullish strength. Meanwhile, the 20 SMA started turning north and heading towards longer ones, suggesting bulls not exhausted yet. On upside, overcome 29900 may encourage bulls to challenge 30050, break above this level will open the gate to 30240.
- Technical indicators suggest the bullish strength, developing above the midline. RSI stabilized around 67, while the Momentum indicator stabilized in positive territory, suggests upward potentials. On downside, the immediate support is 29420, break below this level will open the gate for more decline to 29240 area.
Brent
Brent made a quick rebound after hit intraday low 84.26 area, It climbed to 89.48 high and ended Wednesday nearby, bullish in the hourly chart. The price stabilized above 20 and 50 SMAs, suggests bullish strength in short term. Meanwhile, the 20 SMA continued accelerating north and developing above longer ones, indicating bulls not exhausted yet. On upside, overcome 89.80 may encourage bulls to challenge 91.00, break above this level will open the gate to 92.60.
Technical indicators suggest the bullish movement, hovering above the midline. RSI stabilized around 72, while the Momentum indicator continued developing above the midline, suggests upward potentials. On downside, the immediate support is 87.70, break below this level will open the gate for more decline to 85.50 area.
Contact Us
Please, fill the form to get an assistance.
