Market Update by Solidecn.com

[Solid ECN]

Market Update: Anticipation Before Fed Announcement

As the financial community awaits the Federal Reserve's upcoming decision on interest rates, a sense of anticipation builds. The general consensus is that there won't be a change to the current rates. Investors are keenly waiting to hear from Fed Chair Jerome Powell for hints about future monetary policies. Meanwhile, there's buzz around Advanced Micro Devices (AMD) as it reveals long-term sales goals for its AI-focused processors.


Federal Reserve's Decision in Focus

The Federal Reserve in Washington is poised to announce its latest stance on interest rates. It's predicted that the rates will remain between 5.25% and 5.50%. The market's attention will pivot to the Fed's statement and Powell's press conference for any forward-looking statements. The Fed is balancing efforts to manage inflation without stalling the economy. There's curiosity about how long the heightened rates will persist, especially with recent surges in Treasury yields affecting the stock market. Analysts are suggesting the Fed might pause to evaluate the effectiveness of its current policies in curbing inflation.


Market Movements Before the Fed's Update

Stock futures indicate a slight dip as traders anticipate the Fed's announcement. Key stock indices like the Dow, S&P 500, and Nasdaq showed downward movements in early trading. This follows a slight rally that capped off a turbulent October, which saw declines across major stock indices.


Spotlight on AMD's Revenue Forecast

AMD's shares saw mixed reactions after-hours due to its revenue forecast for the upcoming quarter and its first sales projection for the MI300 chip. While the forecast was below expectations, there's optimism about its potential in the AI market. This news comes alongside earnings announcements from other major players in the tech and consumer goods sectors.


China's Manufacturing Downturn

In China, manufacturing activity has seen a downturn, according to the latest Caixin data. This contraction reflects weaker domestic and international demand, with a continued decrease in export orders due to challenging economic conditions in key markets.


Oil Prices on the Rise Amidst Fed Expectations

In the commodities market, oil prices have marginally increased. Traders are exercising caution as they await the Fed's decision. There's also attention on geopolitical tensions that could impact oil supply and prices.

[Solid ECN]

Crude Oil

Crude oil is currently showing a bearish trend, consistently trading within a bearish channel. The Relative Strength Index (RSI) is attempting to cross the crucial 50 mark, a movement that could indicate potential market shifts. However, it's not a guaranteed sign of a bullish reversal.





The oil price is testing a significant resistance at $83.2. The result of this test could offer insights into future price trends. A break above this resistance might suggest a shift in market sentiment, while failure to do so could reinforce the bearish trend.

The oil market remains bearish as long as the price stays within this channel, indicating that sellers currently have the upper hand. If the bearish momentum persists, the oil price might drop to $80. However, this is a prediction and actual market movements can vary. (source)

[Solid ECN]

Gold

Gold is currently undergoing a test of its support level at $1,970. Interestingly, it's trading below the pivot point in the market. The Relative Strength Index (RSI) is showing signs of divergence, indicating a potential correction in the price of gold. This correction could possibly extend to a level of $1,934.

[Solid ECN]

MetaMask and Blockaid Unite Against Phishing

MetaMask has partnered with Blockaid to unveil a feature designed to enhance the safety of its users against phishing attacks.


Proactive Defense with New Security Feature

Starting from today, MetaMask's desktop users can enhance their security by opting into an experimental feature that includes the Privacy Preserving Offline Module (PPOM). This module, crafted by MetaMask, functions as an offline safeguard, meticulously checking transactions and signatures before they're executed, without exposing sensitive information to any external servers.

Bárbara Schorchit, a senior figure at MetaMask, highlights the integration of Blockaid's dApp scanning technology as a pivotal element in this new security layer. This technology is capable of emulating user interactions with dApps to identify any potential malicious intent.


Gradual Rollout and Privacy Assurance

Initially, users who enable this feature will receive alerts for potentially harmful transactions. MetaMask is set to expand this feature to its mobile users come November and aims for a full integration for all users by early 2024. This careful rollout strategy is to ensure the accuracy of the feature, avoiding misidentification of safe transactions as threats.

Schorchit reassures users that privacy is a priority; the PPOM negates the need to share transaction details externally, keeping the validation process confined to the user's device.


The Persistent Threat of Phishing in Crypto

Phishing scams continue to be a prevalent danger in the crypto world. Blockaid's data suggests that a concerning percentage of dApps could be harmful, and many potential crypto adopters are deterred by the prevalence of scams.


Reports indicate a surge in crypto-related hacks and the staggering losses incurred in recent times. Bitrace's findings point to fake wallet applications as a significant risk, with their authentic appearance deceiving users into compromising their assets.


This collaboration between MetaMask and Blockaid represents a proactive step towards mitigating these risks and safeguarding the crypto community. (source)

[Solid ECN]

GBPJPY

The GBPJPY pair has broken through the bearish channel on the daily chart and is currently trading above the pivot point of 182.9. The Relative Strength Index (RSI) indicator is hovering above the 50 level, suggesting that the bulls have regained control.





Looking closer at the GBPJPY 4-hour chart, we can see that the bulls are facing a barrier at 183.7. If the GBPJPY price can break this level, it will clear the path towards R2.





However, if the price fails to breach this resistance, it could result in the GBPJPY price returning to the bearish channel depicted on the daily chart. (source)

[Solid ECN]

GBPUSD

Let's delve into a more detailed technical analysis of the GBPUSD currency pair, which is currently navigating through a bearish channel. In the latest trading session, there has been a notable shift in momentum as the bulls have successfully pushed the closing price above the pivotal 1.216 mark.



The Relative Strength Index (RSI), a key momentum indicator, is sustaining above the 50 threshold, which traditionally indicates a shift from a bearish to a more neutral or bullish sentiment among traders. This is an encouraging sign for buyers, as the RSI above 50 often precedes upward price movements.

Given the current position of the RSI, coupled with the bullish closure above the pivot point, there is a heightened probability that the GBPUSD pair may continue its ascent towards the upper boundary of the bearish channel. The next key level to watch is the R1 resistance at 1.225. If the price action can maintain its upward trajectory and reach this resistance level, it could signal a potential reversal of the current bearish trend or at least a significant retracement. (source)

[Solid ECN]

USD/JPY Market Sentiment: Bullish Post-BoJ, Eyes on Fed

Tuesday's trading session saw the USD/JPY currency pair surge, reclaiming territory above the pivotal 150.00 mark. This upswing effectively diminishes the losses witnessed in the preceding two days. The yen displayed a broad weakening, a direct response to the Bank of Japan's reaffirmation of its ultra-easy monetary policy aimed at bolstering the domestic economy. In a notable policy adjustment, the BoJ subtly altered its stance on yield curve control, now referencing the 1% cap on the 10-year Japanese government bond yield as a guiding figure rather than a strict limit.


Inflation Projections and Economic Data Weigh on Yen

The BoJ's upward revision of inflation forecasts for the fiscal years 2024 and 2025 hints at a gradual setup for exiting its loose monetary policy. However, this adjustment has not been enough to rally support for the yen, especially against a backdrop of disappointing Japanese industrial and retail data for September.


US Dollar Demand and Fed Expectations Fuel Rally

On the other side of the pair, the US dollar is finding robust support, spurred by the market's belief in the Federal Reserve's commitment to its tight monetary policy, including the possibility of further rate hikes in 2023. Remarks from Fed Chair Jerome Powell about persistently high inflation and the potential for additional rate increases have kept US bond yields near the 5.0% mark, underpinning the dollar's strength.


Caution Ahead of FOMC Meeting

Despite the bullish momentum, there's caution in the air as speculation about potential Japanese intervention to curb yen depreciation persists. Traders are also adopting a wait-and-see approach in anticipation of the Federal Open Market Committee's (FOMC) meeting. The Fed's decision, due on Wednesday, is expected to hold steady, but any signals on future rate adjustments will be pivotal for the currency pair.


Bullish Indicators and Resistance Challenges

From a technical standpoint, the USD/JPY's resilience below the 200-period Simple Moving Average on the 4-hour chart has set a bullish tone. Daily chart oscillators are gaining positive momentum, suggesting room for further upside. However, traders should watch for resistance near the daily highs around 150.35-150.40, with the year-to-date peak and the 151.00 mark as key levels to breach for continued ascent.


Support Levels to Monitor on Pullbacks

Conversely, a retreat below 150.00 could find solid ground near the 100-period SMA on the 4-hour chart at approximately 149.60-149.55. A decisive drop below this could open the path to 149.00 and potentially challenge the bullish outlook. Should selling pressure intensify, the pair may test the monthly low around 147.30-147.25, recorded on October 3, which would tilt the market sentiment towards the bears.

[Solid ECN]

EURAUD

The EURAUD pair is currently navigating within a daily bullish channel and is testing the monthly pivot point at 1.6555. If the bulls maintain their position above this pivot point and within the bullish channel, it’s plausible that the EURAUD could ascend to the mid-line of the bullish channel, which is near the R2 support level at 1.712.





However, if the bears manage to close below the pivot point, it would invalidate the bullish scenario. It’s important to note that a closure below the pivot point does not necessarily signal a trend reversal. The support level is at 1.621, and a breach of this level would be required to indicate a trend reversal.

[Solid ECN]

EURGBP

The EURGBP pair has broken the bearish trendline on the daily chart, indicating a bullish bias. The 4H chart shows it trading above the Ichimoku cloud and weekly pivot, suggesting potential gains.




However, a close below S1 support (0.869) would negate this bullish scenario. (source)

[Solid ECN]

EURJPY Technical Analysis
​
EURJPY is testing the Ichimoku cloud, a key resistance. Our analysis suggests a bullish market, with a strategy to go long. Currently, it’s trading in a bearish channel below the 158.6 pivot. A close above the pivot will confirm bullishness.



If it remains below the pivot, the short-term target is S1 support.

Read the full article here.