Dear Client,

Due to the end of U.S. Daylight Saving Time, the trading hours for the following products will change on November 7, 2021.

At the same day, the Server time will also change from GMT+3 to GMT+2.

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

Friendly reminders:
1. Some trading products will not be available for trading on November 7, 2021 due to DST adjustment.

2. You can check the specifications on MT4/MT5 if you want to know the trading hours of products.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

Wall Street stocks rose slightly on Monday, continuing the recent record gains of major stock indexes. The S&P 500 Index rose 0.2%, the Dow Jones Industrial Average rose 0.3%, and the Nasdaq Index rose 0.6%. The gains pushed the three indexes above the all-time highs set on Friday. As U.S. crude oil prices rose 0.6%, more than 65% of the S&P 500 stocks rose, and energy companies led the gains, with a year-to-date increase of more than 75%. Exxon Mobil rose 1.8%. Companies that rely on consumers to directly consume goods and services constitute a large part of the index’s earnings. Tesla rose 8.5% and Starbucks rose 3.5%.

More than half of the companies in the benchmark S&P 500 index have already announced their results. Analysts expect that by the time the report is completed, overall profits will increase by 36%. Another 167 companies in the index will report their performance this week. Investors will also pay attention to another Fed policy meeting, which is considering how to end the special support measures for the economy. The central bank will issue its latest statement on Wednesday. Besides, Investors will also get another update on the job market when the Bureau of Labor Statistics releases its report for October on Friday.

Main Pairs Movement:

Compared to the last trading of October, most currency pairs got some respite on Monday. The benchmark 10-year U.S. Treasury bond yield is trading sideways at around 1.5%, but investors are still concerned about the flattening yield curve.

The EUR/USD faced heavy bearish pressure last Friday and erased all gains after the European Central Bank (ECB) meeting on Thursday. On Monday, the currency pair finally found support near the 2021 low of 1.1524 in early October, and rebounded by about 0.58%, breaking through the 1.16000 level.

The cable traded around 1.3660, the lowest level since mid-October, and was pressured by the renewed concerns about Brexit and the overall strength of the U.S. dollar.

Technical Analysis:

EURUSD (4- Hour Chart)

The pair EUR/USD advanced on Monday, ending its slide that happened last Friday. The pair was trading lower in early Asian session and dropped to a daily low under 1.155 area. But the bearish momentum didn’t persist as the pair rebounded back above 1.157 level during European session. The recent strength witnessed in EUR/USD is manly due to weaker US dollar across the board, as the risk-on market sentiment put some pressure around the safe-haven US dollar and assisted the EUR/USD pair to move higher.

For technical aspect, RSI indicator 44 figures as of writing, suggesting tepid bear movement ahead. But for the MACD indicator, the negative histogram starts to diminish which indicates a possible upward trend for the pair. If we take a look at the Bollinger Bands, the price rises from the lower band after touching it, so the price might move up toward the moving average, which means that the bullish momentum is likely to persist. In conclusion, we think market will be bullish as long as the 1.1546 support holds. The pair is now heading to test the 1.1624 resistance line.

Resistance: 1.1624, 1.1669, 1.1692

Support: 1.1546, 1.1524

AUDUSD (4- Hour Chart)

The pair AUD/USD advanced on Monday, attracting some dip-buying and trading around daily tops at the time of writing. The pair was trading lower in early Asian session, but then started to see some buying and climbed toward 0.752 area. The US dollar struggled to preserve its modest intraday gains and pulled back below 94.00 level, which underpinned the riskier aussie and assisted the AUD/USD pair to find support. AUD/USD was last seen trading at 0.7533, posting a 0.21% gain for the day. Market focus now shifts to RBA’s interest rate decision, which is scheduled to release on Tuesday.

For technical aspect, RSI indicator 56 figures as of writing, suggesting tepid bull movement ahead. As for the MACD indicator, the negative histogram starts to diminish which indicates a possible upward trend for the pair. Looking at the Bollinger Bands, price is rising from the lower band and crossing above the moving average, as a result, the upper band becomes the profit target. In conclusion, we think market will be bullish as the pair is heading to test the 0.7556 resistance, a break above that level will open the door for additional near-term profits.

Resistance: 0.7556, 0.7618

Support: 0.7454, 0.7379, 0.7227

USDCAD (4- Hour Chart)

The pair USD/CAD declined on Monday as investors looked past Friday’s downbeat Canadian GDP print for August. The pair was trading higher during Asian session, but failed to preserve its bullish momentum. USD/CAD was surrounded by selling pressure and dropped to a daily low in American session. The higher oil prices continue to support the pair with expectations that OPEC+ will slowly increase oil production. On top of that, a more hawkish Bank of Canada pulled forward its expected timeline for interest rate hikes, acting as a tailwind for the domestic currency.

For technical aspect, RSI indicator 44 figures as of writing, suggesting tepid bear movement ahead. As for the MACD indicator, the negative histogram starts to diminish which indicates a possible upward trend for the pair. As for the Bollinger Bands, price dropped below the moving average and moved toward the lower band, which indicates a bear market. In conclusion, we think market will be bearish as long as the 1.2432 resistance line holds.

Resistance: 1.2432, 1.2499, 1.2648

Support: 1.2288, 1.2013

Economic Data

Market Focus

Stocks ended at records on Friday as investors digested disappointing earnings results from Apple (AAPL) and Amazon (AMZN) that came during an otherwise solid quarterly reporting season from many major companies. The S&P 500 set record intraday and closing highs. The index posted monthly gain of over 6.5% in October, or its best single-month advance since November 2020. The consumer discretionary, energy and information technology sectors outperformed during the month. The Nasdaq also eked out a fresh record level, even as a couple of heavily weighted technology giants saw shares dip.

Apple had seemingly avoided the chip shortage for months, but the company’s fortunes have now changed. On Apple Inc.’s quarterly earnings call Thursday, CEO Tim Cook was quick to tell investors and analysts that the company’s product shortages aren’t the result of a “fundamental error that we’ve made” and that its supply chain strategy didn’t create the current troubles.

Instead, he laid the blame on suppliers. While Apple designs its products in-house and relies on contract manufacturers like Foxconn Technology Group to assemble its devices, it’s dependent on hundreds of global suppliers to provide it with the parts and chips that make up an iPhone, iPad, Apple Watch or other device. If only one chip or part is in tight supply, Apple can’t build and ship that device. There lies the problem—not Apple’s scrutinized manufacturers in China, Cook seemed to imply.

It’s not surprising to see Cook defend Apple’s supply chain strategy. After all, he was the one who helped forge the partnership with Foxconn and build its supply chain empire two decades ago. If it were not for the current problems, Apple would have reported a record $90 billion for its fiscal fourth quarter. And instead of missing analyst expectations for total sales—as well as falling short in revenue from the iPhone, Mac and accessories—it probably would have had a clean sweep of beating Wall Street forecasts.

Main Pairs Movement:

The US dollar appreciated hugely on Friday as the market positions for the Fed’s meetings next week and amid higher US Treasury yield. The dollar index surged 0.83% at the end of the week, and the greenback beat all of its major rivals. The US Core Personal Consumption Expenditures accelerated 3.6% YoY in September, reaffirming the theory that the Fed will be forced to accelerate its monetary normalization plans, which, less than one week ahead of November’s meeting, has boosted demand for the USD.

The shared currency erased all of its gains against its rivals as the GDP figures appeared disappointing. The cable closed the day in the red, dropping 0.76% throughout the day. Commodity-linked currencies are also lost significantly against the greenback as well. And so does the USD/JPY pair.

Gold slid to $1783/ounce amid the broader dollar strength. Crude oil prices closed mixed, with WTI posted a modest gain to $83.28, and Brent dropped over 1% to $83.62 after Iran’s return to Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Iran and some major countries, becomes possible.

Technical Analysis:

USDJPY (4- Hour Chart)

USDJPY gains positive traction after the release of the US PCE Price Index, trading at 114.0215. The US dollar revives as a strong pick up in the US treasury yields, boosting the demand for the greenback. From the technical perspective, USDJPY remains supportive on Friday after the pair trades above the midline of Bollinger Band. However, from a bigger outlook, the pair still maintains its bid tone as the October’s trend is still in the descending mood. Thus, it will be prudent to wait for a strong breakthrough. The pair will need to break above 114.699, the next resistance, in order to reverse its current trend. The RSI indicator has not reached the overbought territory, giving rooms for the pair to extend further north.

Resistance: 114.699

Support: 113.38, 112.57, 111.91

EURUSD (4- Hour Chart)

After the release of US inflation data, EURUSD push lower toward 1.1580 as the time of writing. From the technical perspective, EURUSD lost its upside momentum after attempting to contest the resistance at 1.1685 on Thursday. It can be viewed as a technical correction as the RSI indicator on the 4- hour chart is edging lower after reaching above 70, the overbought territory. The outlook of the currency pair turns bearish as it trades below the Simple Moving Averages. At the same time, bears are supported by the negative MACD. To the downside, the pair is expected to head toward the next immediate support level at 1.1524.

Resistance: 1.1624, 1.1685, 1.1735

Support: 1.1524

GBPUSD (4- Hour Chart)

GBPUSD is on the backfoot, trading below 1.3700, as the US dollar rebounds in the American trading session. From the technical aspect, the outlook of the currency pair remains downside as it falls within the lower bounce of Bollinger band and below the Simple Moving Averages. The RSI indicator returns below 50, suggesting that buyers remain hesitant when it comes to a steady advance. At the moment, the pair is heading to the next immediate support level at 1.3673; downside momentum continues to exist as the RSI has not yet reached the oversold territory, providing rooms for further southern move.

Resistance: 1.3735, 1.3835

Support: 1.3673, 1.3623, 1.3573

Economic Data

Market Focus

U.S. equity markets bounced back strongly on Thursday as upbeat economic data and stellar corporate earnings results boosted market sentiment. The S&P 500 gained 1% to close at another record high of 4596.42. The Nasdaq gained 1.4% to close at 15448.12, and the Dow gained 0.7% to close at 35730.48. Since earnings season began, 82% of the companies that make up the S&P 500 has been able to report earnings that beat analyst estimates.

The U.S. GDP grew by 2% ,quarter over quarter, marking the weakest quarter of growth since mid-2020. A surge in COVID cases and the supply chain crunch both hindered the growth over the past quarter. On the other hand, initial jobless claims figure hit a fresh pandemic low at 281,000.

The 10 year treasury yield increased slightly to settle at 1.578% and the 30 year treasury yield increased slightly as well to settle at 1.979%.

Facebook’s CEO, Mark Zuckerberg, has announced that, beginning on December 1^st, Facebook will be rebranded as Meta Platforms Inc and will be switching the ticker FB to MVRS. The new parent company will be devoted to creating a more immersive experience of the world wide web by combining virtual reality and building a virtual world where all media sources can be combined and utilized.

Main Pairs Movement:

The Greenback declined sharply at the onset of Q3 GDP data release. The U.S. recorded a 2% growth in GBP, quarter over quarter, weaker than analyst estimates. Despite record low jobless claim figures, the Dollar continued to dive as the DXY hit the intraday low of around $93.

The Japanese Yen weakened as BoJ’s Haruhike Kuroda reiterates the central bank’s dovish monetary policy, despite inflation rising to a 13 year high in the month of September. The Euro traded higher against the Greenback, mainly due to the Dollar’s weakness as the ECB left monetary policy unchanged. The Sterling traded lower against the Dollar as well due to across the board Dollar weakness.

Technical Analysis:

USDJPY (4- Hour Chart)

USDJPY hangs near two week lows, trading around 113.41 as the time of writing. After Bank of Japan’s Haruhiko Kuroda’s comment on the outlook of Japan’s GDP and inflation, the currency pair witnesses some selling pressure. From the technical perspective, USDJPY remains depressed, hovering near the lower bound of Bollinger band and trading in the descending trend. However, the immediate support level at 113.38 would be a possible turning point as the RSI indicator has nearly reached the oversold territory, currently at 36.6 mark, giving the pair rooms to rebound; at the same time, the MACD is nearly flat, indicating a possible direction change from sell to buy.

Resistance: 114.70

Support: 113.38, 112.57, 111.91

EURUSD (4- Hour Chart)

EURUSD trades monthly highs above 1.1680 as the US dollar sell- off picks up steam. The US dollar loses strength, having a hard time finding demand after ECB’s cautious tone on European inflation outlook. From the technical aspect, the 4- hour chart outlook for EURUSD provides a mildly bullish stance since mid- October. Today’s bullish move has breached the monthly highs, providing some supports to bulls. At the same time, the pair has recovered above its 20 Simple Moving Average, indicating a neutral- to- bullish trend. At the moment, the pair is heading to its next immediate resistance at 1.1697, where would be an obstacle to overcome as the RSI has nearly reached the overbought condition and the currency pair has traded above the upper band of Bolliger band. If EURUSD can successfully breached the resistance level, then it will head toward the next level at 1.175; on the contrary, if the pair fails to penetrate the level, it will possibly consolidate for an adjustment.

Resistance: 1.1697, 1.1750, 1.1180

Support: 1.1631, 1.1524

GBPUSD (4- Hour Chart)

GBPUSD extends, trading around 1.3800 region, as the US dollar loses traction after the disappointing Q3 GDP data. From the technical perspective, despite the recent recovery, the currency pair remains downside, trading in the descending trend. However, the pair still has potential to move further north as the RSI is only in the 59 level, having plenty of rooms to extend further. The short- term bulls are supported as the pair has traded above the 20 Simple Moving Average as the time of writing. To the upside, if the pair can break the next immediate resistance at 1.3801, then the bullish momentum would have a chance to bring the pair further toward 1.3835.

Resistance: 1.3801, 1.3835

Support: 1.3735, 1.3673, 1.3623

Economic Data

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

The broad U.S. equity markets retreated on Wednesday’s trading. Indices fell from their previous record closes. The S&P 500 lost 0.51% to close at 4551.68, the Dow lost 0.74% to close at 35490.69, and the Nasdaq traded sideways to close at 15235.84.

Wednesday’s market retreat was led by the energy sector as oil prices saw its largest single day decline in more than two months. The WTI December future dropped 0.56% as the U.S. reported a larger than expected rise in oil inventory; on the other hand, the Brent Crude December future dropped 0.45%, as well.

The U.S. 10 year treasury yield dropped to 1.54%, while the 30 year treasury yield settled at 1.948%.

Apple Inc, Amazon Inc, and Samsung are due to report their quarterly earnings on the 28^th.

The bank of Canada announced major changed to the quantitative easing measures. The BoC announced the end its bond buying program and an accelerated time table for rate hikes as the Bank expresses its fear of continued inflation amid supply chain disruptions.

Main Pairs Movement:

The Greenback depreciated slightly against other currencies as the Dollar Index closed 0.11% lower. Speculators will now turn their attention to the key economic data, the ECB monetary policy decision and the U.S. initial jobless claim report, which are due on the 28^th.

The Yen continued to decline against the Dollar, but the BoJ is due to provide monetary policy updates, on the 28^th, which will provide price actions for the pair. The Aussie dollar continued its second straight day of gains against the Euro as global energy continues to rise and upbeat inflation figures from the Australian central bank. The BoC’s firm hawkish stance, as it announced the end to quantitative easing, fueled the Loonie to gain 0.24% against the Dollar.

Technical Analysis:

USDJPY (Daily Chart)

The USD/JPY pair underwent a sudden selling pressure on Wednesday amid the dollar’s weakness, as the US treasury yields plummeted during the day. The pair dived below the 114.00 threshold since the start of the European session, and bottomed at 113.39, the lowest level of the week. However, after the decision of the Bank of Canada to end its QE program released, the US bond yields surged and triggered a spike in USD/JPY to 113.83.

After the prolonged risk-on mood, the concerns about the central banks’ contraction moves have finally been bubbling up across the market. The rally of the equities slows down, and even in some regions their equity prices start to fall, benefiting the save-haven Japanese Yen. However, as long as the Bank of Japan remain silent about its monetary policy on Thursday’s meetings, the depreciation of the yen should proceed, as the Fed’s taper is on the schedule, which will keep lifting the value of the USD in the short future.

On the technical front, the daily MACD histogram turned slightly negative on Wednesday, and the RSI indicator still lingers below the overbought territory, suggesting the upward tractions are still under pressure. The 114.00 threshold again comes to our eyes, and the key resistance level for further uptrend at 114.30 is the next barricade to pass. If breached, then a fresh yearly high could be anticipated.

Resistance: 114.00, 114.30, 114.70

Support: 113.15, 111.32, 109.37

EURAUD (Daily Chart)

The EUR/AUD pair declined for a third consecutive day on Wednesday amid the flat EUR and the strong AUD, and now hovers around the key support level 1.5420, where the lows last seen in May sit.

The market mood got cautious on Wednesday. Mineral prices closed mixed, trimming the strength of the commodity-linked AUD. The investors are looking for direction with all eyes on the ECB’s monetary policy decision, though it is expected to maintain its bond-purchasing plan unchanged and the interest rate near zero despite the persistently high inflation, to avoid tensions in some peripheral markets.

On the technical aspect, the MACD histogram remains in the bearish territory, suggesting the selling stream of the cross may proceed. However, the RSI indicator dived deeper into the oversold region, the growing pressure for sellers may trigger a short-term correction in the very near term, especially if ECB pops up some surprise during the upcoming meetings. On the downside, the May’s low 1.5420 would be a strong support against the bears, followed by 1.5250, the yearly low.

Resistance: 1.5616, 1.5776, 1.5910

Support: 1.5420, 1.5250

USDCAD (Daily Chart)

The USD/CAD slumps for the first time in the week, down 0.25%, trading at 1.2360 during the late New York session at the time of writing. Earlier 30-minutes into the Wall Street opening, the Bank of Canada released its monetary policy decisions announcing the ending of its QE program, which was well expected to be a reduction instead of a halt.

Before the announcement, the pair climbed above the 114.00 threshold and settled around the 1.2430 level, but soon plummeted over 130 pips after the release of the report, marking a daily low at 1.2300. However, the pair was soon back to its upward trajectory, posting a 60 pip recovery at the moment.

On the technical front, the daily MACD histogram is almost going to form a golden cross, while the RSI indicator is still under the bearish levels, though improving. The price actions are still hovering around the 61.8% Fibonacci. Looking forward, the US GDP reports is going to release within hours. The pair may regains 114.00 with a boost by the upbeat news of the US.

Resistance: 1.2478, 1.2727, 1.2949

Support: 1.2229, 1.2007

Economic Data

Market Focus

The broad U.S. equity market enjoyed another session of gains fueled by healthy corporate earnings. The S&P 500 and the DJIA notched another record close—the S&P 500 gained 0.18% to close at 4574.79, while the DJIA gained 0.04% to close at 35756.88; on the other hand, the tech heavy Nasdaq gained 0.06% to close at 15235.71. The combination of healthy corporate earnings and rising consumer confidence provides a much needed boost to market sentiments.

Facebook, however, reported earnings that missed analyst estimates. Facebook attributes this quarter’s poor performance to Apple’s revised privacy rules, which have hindered Facebook’s advertisement revenue. Facebook’s share price slid 3.9% after Tuesday’s trading session. Meanwhile, Google reported its highest sales growth in more than a decade and nearly doublings its profit in Q3. Google has attributed strong profit growth to an accounting change that has reduced Google’s depreciation figure thus helping its bottom line.

Coca-Cola, McDonald’s Corp. and Boeing Co. will headline earnings release for 27^th.

The U.S. 10 year treasury yield trended lower to 1.618%. The VIX trended slighly higher to 15.98.

Main Pairs Movement:

U.S. consumer confidence rose for the month of October after three straight months of decline. U.S. September new home sales figures also beat analyst estimates and rose for the month of September. The combination of two surprisingly positive economic data has buoyed the Greenback as the Dollar index gained 0.15%.

The Japanese Yen continues to decline against the dollar as market sentiments continue to improve. The Japanese Central Bank’s dovish stance provides no support to the Yen as the Fed continues to turn hawkish. The Euro fared worse against the Aussie dollar as global commodity prices continue to favor the Australian economy. The loonie declined against the dollar as the Greenback gained steam from better than expected economic data.

Technical Analysis:

USDJPY (Daily Chart)

The USD/JPY pair maintains a moderate bullish momentum on Tuesday, extending its rebound from the 113.40 low hit last Friday. The pair has breached the 114.00 threshold, with the current risk-on mood weighing on the safe-haven JPY, before capped by resistance at 114.30 area.

The Japanese yen has opened the week on a soft tone on the back of a moderate appetite for risk with quarterly earnings reports triggering advances in the world’s major equity markets. Moreover, investors in general don’t hold out much hope on the Bank of Japan’s meetings on Thursday, as their monetary policy policies have long been unchanged. This may further add negative pressure on the yen, especially when it’s compared to the Fed’s hawkish statements.

On the technical front, the daily MACD histogram seesaws around the neutral zone, and the RSI indicator lingers right below the overbought territory, suggesting the upward tractions have encountered some pressures. The key resistance level for further uptrend is at 114.30. If breached, then a fresh yearly high could be anticipated.

Resistance: 114.30, 114.70

Support: 113.02, 111.24, 109.32

EURAUD (Daily Chart)

The EUR/AUD cross extended its Monday’s loss on Tuesday, and now traded just one step ahead of the key support level 1.5420, where the lows last seen in May sit. After plummeting in the early Asian session, EUR/AUD consolidated drastically within a modest range between 1.5430 to 1.5495. The pair once bounced off the intraday high at 1.5493, but soon failed to find buyers and dipped to the lower price levels amid the American hours.

The market mood remained positive on Tuesday, but leaving some cautious sentiments at the end of the Wall Street trades. Euro posted red against its Australian peers due to the commodities’ price hike. Attentions now shifted to the Australian inflation figures due hours later, and looming ECB meeting on Thursday is also well-anticipated.

On the technical aspect, the MACD histogram remains in the bearish territory, suggesting the selling stream of the cross may proceed. However, the RSI indicator has crossed over the oversold region, indicating a short-term correction may occur before the pair continues its downtrend. On the downside, the May’s low 1.5420 would be a strong support against the bears, followed by 1.5250, the yearly low.

Resistance: 1.5616, 1.5776, 1.5910

Support: 1.5420, 1.5250

USDCAD (Daily Chart)

Loonie consolidated within the familiar levels on Tuesday, despite the strong demand of the greenback. The pair slid to the daily low at around 1.2350 in the early European hours, but soon bounced back to the 1.2390 level during the American session. Nonetheless, Loonie seems stuck on the levels below the 1.2400 threshold, seeking more catalysts to break through.

The strong US dollar across the board has kept on being the major driver for the rally of Loonie. However, the rising commodity prices are gradually boosting the CAD’s demand and thus weighing on the pair. Looking ahead, Bank of Canada’s rate meetings and the US GDP report are on the table. Investors seem reluctant to place significant bets ahead of the crucial releases.

On the technical front, the daily MACD histogram is almost going to form a golden cross at the moment. The price actions are still hovering around the 61.8% Fibonacci. As above mentioned, some catalysts may be required to break through this awkward situation.

Resistance: 1.2478, 1.2727, 1.2949

Support: 1.2229, 1.2007

Economic Data

Dear Clients,

VT Markets is devoted to offering a favorable trading environment to our clients. After a punctilious assessment, from Nov. 1st, 2021, clients will be only available for long positions on certain products.

The short positions will no longer be accessible for clients on these products. After the modification, clients still can decide to keep or close the exsisting short positions of these products. For further details, please refer to the table below.

Effective time: 00:00 on Nov. 1st, 2021 (GMT+3)

Notes： The figures above are only for reference. The actual execution data should be subject to the numbers on MT4/MT5.

Friendly reminders:

Trading shares CFDs products in VT Markets will be charged for commision fee. Please refer the following statements for further information:

1. 6 commisssion per trade for US shares CFDs products
https://www.vtmarkets.com/trading/markets/us-cfd-shares/

2. 0.25% contract value of the HK shares CFDs products (at least 50 HKD)
https://www.vtmarkets.com/trading/markets/us-cfd-shares/

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

US markets started this week with outperformance as major tech companies’ earnings on deck. The Dow Jones Industrial Averages closed at record highs while the Nasdaq rose 0.9% on Monday. The S&P 500 also traded at record highs, boosted by a 12% surge in Tesla’s share as it hit $1 trillion market capitalization for the first time.

The electric carmaker, Tesla, hit a $1 trillion market cap on Monday after Hertz decided to buy 100,000 vehicles. After the news of the deal, it brought up the price of Tesla to $1,045, a new record high.

China has the political momentum to get a ball rolling on property. Last weekend, the Chinese state Council was authorized to conduct a test in unspecified regions for five years. The purpose of the test attempts to limit speculation in China’s property market. Since real estate and related sectors account for at least 25% GDP, tapped taxes will significantly bring major revenues to Chinese government.

Main Pairs Movement:

Gold price advanced above $1,800 on Monday despite risk- on market sentiment. Demand for gold was underpinned as the market was cautious ahead of the inflation issue. Gold price will eye on several economic releases later this week.

EURUSD traded in a tight range as the markets took a high alert ahead of the ECB meeting this week. At the end of the day, EURUSD traded at 1.16065, 0.33% lower.

USDJPY remained strong near 113.70 despite slightly weaker US 10- year yield, trading lower at 1.63%, which undermined the demand for the US dollar. USDJPY traded slightly higher as Janet Yellen commented on inflation and Fed’s tapering schedule.

Technical Analysis:

USDJPY (Daily Chart)

The USD/JPY pair posts some demand at the start of the week and seems to have stalled its recent corrective pullback from multi-year tops for now. The pair held on to its modest intraday gains, around the 113.65-75 region through the mid-European session, albeit once jumped to the daily high ay 113.92 at the Wall Street opening, it soon fell back to the tight range that it previously settled.

With a light economic calendar, the revived risk-on mood weighed on the safe-haven Japanese yen and may be seen as the major factor that underpinned the rally of the USD/JPY pair. Bulls need to wait until Thursday’s US GDP reports for further clues to support the US dollar demand and assisted the pair to defend the lower end of a short-term ascending channel.

On the technical front, the daily MACD histogram is still at the bullish side, plus the RSI indicator has just dropped below the overbought territory, leaving rooms for the pair to the upside. The first resistance for the pair may appear at 113.75, followed by the yearly peak 114.70.

Resistance: 113.75, 114.70

Support: 112.90, 111.13, 109.28

EURAUD (Daily Chart)

The EUR/AUD cross plummeted on the first day of the week, losing most of its gains from last Thursday and Friday’s rally, and now trading at 1.5495, where the season lows sit. The pair began its downward ride in the early European session, recovered some loss during the American opening, but then continue its negative trajectory afterward.

The cross’s weakness may derive from the AUD’s appreciation amid the broader positive market mood. Investors now shift their focus toward the Australian inflation figures due on Wednesday, and looming ECB meeting on Thursday is also well-anticipated.

On the technical aspect, the MACD histogram remains in the bearish territory, suggesting the selling stream of the cross may proceed. However, the RSI indicator shows 30.22 at the moment, just one step ahead of the oversold region, indicating a short-term correction may occur before the cross takes a nosedive. On the downside, the May’s low 1.5420 would be a strong support against the bears, followed by 1.5250, the yearly low.

Resistance: 1.5616, 1.5776, 1.5910

Support: 1.5420, 1.5250

USDCAD (Daily Chart)

Loonie continued its gains on Friday amid the broader greenback strength. The pair made its first attempt to breakthrough the 1.2400 threshold, but failed as the risk-on market mood limited the strength of the safe-haven USD. However, as the Fed’s taper schedule looms, a breach of that level may just be a matter of course.

The strong US dollar across the board has kept on being the major driver for the rise of the Loonie pair. Powell’s hawkish comment is still fueling greenback’s demand despite the elevating prices of the commodities. Looking ahead, Bank of Canada’s rate meetings and the US GDP report are on the table. Investors seem reluctant to place significant bets ahead of the crucial releases.

On the technical front, the daily MACD histogram is almost going to form a golden cross at the moment. The price actions are still hovering around the 61.8% Fibonacci. As above mentioned, some catalysts may be required to breakthrough this awkward situation.

Resistance: 1.2478, 1.2727, 1.2949

Support: 1.2229, 1.2007

Economic Data

Dear Clients,

Please note change of the following products when Europe will enter Standard time that begins in October 30th, 2021.

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact [email protected].