The GBP/USD is trading above its upward trend line on a 30 minute time frame. The price has bounced from its support zone as predicted however, it seems like that it is going to visit this level once again. If the price forms any reversal pattern in this zone, then there could be a strong possibility that the upward trend could continue however, a break of this support could open the floor towards the next support zone.
The EUR/USD fell from its resistance zone on a 4 hour time frame as predicted. This resistance zone was given in our analysis on the 25th of October. The volatility of the price is high, as it has pierced the Bollinger band and it is trading away from its 20 day moving average. The pair is still trading above both of the upward trend lines (shown in purple), which confirm that the uptrend is still strong and any pull back could be an opportunity to join this trend.
Copper is trading mildly higher this morning with a gain of 0.07% as investors started to gauge in the results of the two days Fed meeting which will conclude tomorrow. It is a common methodology amid traders that they will not take excessive risk when a gun is pointed to their head- The Federal Reserve meeting; therefore we may continue to see no massive move for copper until we have a conclusion of this meeting.
Having said that, the economic docket is well lit today. The PPI, Core Retail Sale, Retail Sales and Core PPI are all due at 12:30 GMT. The forecast for the retail numbers for September is expected to come somewhat flat, which will be a decrease, as compared to August reading. But, in the light of what took place in Washington, we do not expect this data will ignite any kind of firework and a possibility of a downward revision for the next week’s retail number also stays on the cards.
Another positive record finish for the S&P 500 yesterday was recorded on Wall Street, but despite this, the US markets closed lower mostly with some mild losses, as investors started to gauge in the results of the two days Fed meeting which will conclude tomorrow. It is a common methodology amid traders that they will not take excessive risk when a gun is pointed to their head- The Federal Reserve meeting. Similar set mind is echoed this morning by investors during the European market session, which is driving the equity market lower.
Despite the fact that the DAX index has logged all time high and is up nearly 4.43% so far this month, but the index has faced an increase in the selling pressure soon it goes to 9000 level, which is now acting as a psychological level. One would ask if there is any room for a further upward move, given that we have already seen a strong performance of the index during this year. However, the German economy did face the reality check last week when the IFO number fell below the expectation level, and this raised some eyebrows that the recovery around the euro-phoria is still too green.