After several days of calm and stagnant market conditions, yesterday we witnessed significant movements in the financial markets. The dollar index experienced a decline from its fair price level and moved away from it. Given that markets are often influenced by the pricing of the dollar, we observed momentum in indices, oil, gold, and currency pairs.
In this report, we will examine the price movements from the previous day and discuss potential scenarios for the final day of the financial markets.
Economic Events:
Today, we have speeches and press conferences from Federal Reserve officials Kashkari, Bowman, Goolsbee, and Bar. These four individuals represent different stances within the Federal Reserve, with Kashkari likely representing the center, Bowman leaning hawkish, and Goolsbee and Bar potentially aligning with the hawks.
We anticipate a mixed behavior in the dollar index today. However, the market is currently pricing in the possibility of the first rate cut in December. Consequently, the dollar may enter a counter-trend phase.
Source : Dailyfx
Gold (XAUUSD):
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Every investor and trader must remain entirely flexible. In recent weeks, we witnessed a sharp downward trend in gold prices. However, this narrative completely changed in the previous report, as the positive movement in gold practically indicated a shift in momentum and the strength of buyers. This change in stance and scenario in the financial markets, especially for swing traders, is crucial.
Currently, the specified range of $2375 has acted exactly as expected, and the price has rejected from it for now.
S&P500:
Finally, the S&P 500 managed to break through the significant resistance level that was the previous fair price range and surpass it. For the S&P 500, there is no longer a resistance range standing in its way, and the possibility of reaching its all-time high (ATH) is entirely plausible.
Foreign Exchange Market (FOREX):
Yesterday, the dollar index gained downward momentum and deviated from the fair price. Currently, it is in a downtrend phase, and we need to see if there will be a change in direction amid this movement or not.
Bitcoin (BTC):
Bitcoin also managed to rebound from the deep correction it experienced in the previous wave and return to the fair price range. Currently, it is in an upward phase.
The Point of Control (POC) for Bitcoin is at $64,000. In case this level is breached, it could potentially form a significant upward wave.
US Crude Oil WTI :
Compared to yesterday, oil has moved slightly higher, but there is an expectation of a price decline until it retests the Point of Control (POC), which seems probable.
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