With no main catalysts forward in forex land, we’ll flip to crypto land as volatility and optimism continues to rise from the bitcoin futures ETF launch this week.
And for in the present day, we’ll be trying out ETH/USD after it quietly made a 3-month excessive; extra features forward for the bulls or are we set for a short-term pullback?
Earlier than shifting on, ICYMI, in the present day’s Each day U.S. Session Watchlist checked out a falling wedge pattern on USD/CAD, so be sure you examine that out to see if there may be nonetheless a possible play!
Intermarket Replace:
| Fairness Markets | Bond Yields | Commodities & Crypto |
|
DAX: 15515.83 +0.27% FTSE: 7217.53 +0.19% S&P 500: 4519.76 +0.74% NASDAQ: 15129.09 +0.71% |
US 10-YR: 1.638% +0.054 Bund 10-YR: -0.107% +0.007 UK 10-YR: 1.152% -0.016 JPN 10-YR: 0.089% +0.00 |
Oil: 82.88 +0.53% Gold: 1,770.10 +0.24% Bitcoin: $64,040.06 +4.42% Ether: $3,806.80 +1.60% Cardano: $2.10 -1.79% |
Contemporary Market Headlines and Financial Information:
U.S. shares rally on upbeat earnings information
Bitcoin rallies above $66Okay to succeed in new all-time highs
Fed Beige Ebook: Provide and labor shortages are slowing the U.S. financial system
Fed Quarles strongly recommends November taper; nonetheless believes inflation is “transitory”
U.S. readies plan to vaccinate children ages 5-11 towards COVID-19
U.S. mortgage charges surge to 6-month excessive at 3.23% in week ending Oct. 15 vs. 3.18% earlier week
UK well being minister says Covid instances might hit 100,000 a day in winter
Paul Tudor Jones says crypto is his most well-liked inflation hedge over gold proper now
Upcoming Potential Catalysts on the Economic Calendar
Australia Enterprise Confidence at 12:30 am GMT (Oct. 21)
New Zealand Credit score Card spending at 2:00 am GMT (Oct. 21)
U.Okay. Public Sector Internet Borrowing at 6:00 am GMT (Oct. 21)
France Enterprise Confidence at 6:45 am GMT (Oct. 21)
Italy Industrial Gross sales at 8:00 am GMT (Oct. 21)
U.Okay. CBI Industrial Tendencies at 10:00 am GMT (Oct. 21)
In case you’re not aware of the foreign exchange market’s principal buying and selling periods, take a look at our Forex Market Hours software.
What to Watch: ETH/USD
Whereas the world focuses on bitcoin’s transfer to new all time highs, ETH/USD quietly made a bullish transfer by itself to interrupt above the $4,000.00 deal with. Whereas it’s not fairly all-time highs (which isn’t too distant at round $4,380), it’s nonetheless a significant psychological barrier damaged, that would draw in additional consideration from crypto bulls and technical merchants.
Trying forward, there aren’t any catalysts seen that would derail this broad transfer that we’re seeing into the crypto house due to bitcoin, however we will’t rule out a pullback on ETH/USD both. With stochastic exhibiting overbought situations, it’s attainable that we may even see a dip within the upcoming session on the world’s second largest crypto asset on short-term revenue taking or technical sentiment.
If that’s the case, we’ll be on a lookout for a retest of the damaged minor resistance space (roughly between $3,900 – $3,950) and bullish reversal patterns there earlier than contemplating a possible lengthy place to play the present uptrend. And that is assuming broad crypto and world danger sentiment stays bullish.
In fact, if we do get a recent catalyst pointing to a flip in broad danger sentiment, then this may very well be the short-term prime on ETH/USD. With a each day average true range of round $200, a swift transfer decrease on revenue taking/de-leveraging may deliver the market to $3,700 -$3800 earlier than sellers start to expire of steam.
