Daily Market Report - Wed, Oct 12, 2022

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Bitcoin, the world's largest and most popular cryptocurrency remain under pressure and struggling to find upside momentum amid lingering concerns over the aggressive central bank tightening to bring inflation back under control. $BTCUSD has been moving in a tight range between $20,500 and $18,200 since September 15, 2022. The market is likely to encounter a price breakout if it continues to fluctuate in a tight range. However, as of this writing, the crypto pair slightly recovered from the weekly lows.

Moving ahead, Bitcoin traders and investors should closely monitor the economic releases this week, U.S. Federal Reserve minutes and key US inflation data for clues on the pace of future interest rate hikes.

From a short-term technical perspective, the 18,800 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 18,000-support zone. On the upper side, in case the pair manages to settle above 19,700, it will head towards the next resistance level at 20,500.

EQUITIES

Wall Street ended mixed on Tuesday and global stocks opened flat on Wednesday as investors are keeping a close watch on the global central bank's actions as they try to assess the impact of aggressive rate hikes on global growth.

On the earnings front, the beverage giant PepsiCo (NASDAQ: PEP) is scheduled to announce Q3 results on Wednesday before the market open.

OIL

Crude oil prices struggling to find the upside momentum due to the strong US dollar and the world’s largest oil importer China’s Covid-19 outbreak threatens demand. Moving ahead, oil traders should closely monitor the release of the OPEC monthly report, which is set to be released later today.

CURRENCIES

In the currency market, The New Zealand dollar posted modest gains, while the Australian dollar ranges remain relatively narrow as it sticks around near unchanged levels since the trading session in Asia. Meanwhile, the US dollar remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious.

GOLD

The safe-haven metal dropped to as low as $1660 on Tuesday but recovered since then. Moving ahead, the next two days are littered with key U.S. economic figures and any market disappointment over the outcome of them could potentially support the gold.

Economic Outlook

On the data front, UK Gross Domestic Product dropped to -0.3% MoM in August versus 0.0% expected and 0.2% prior whereas the Industrial Production and Manufacturing Production also slumped into the negative territory during the stated month.

Moving ahead today, the important events to watch:

US – PPI: GMT - 12.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 621 million people have been confirmed infected and more than 6.51 million have died. The United States has confirmed over 96 million cases and has had more than 1.06 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD:
The currency pair needs to stay above 0.9680; otherwise. 0.9600 may be visible soon. On the upper side, 0.9780 is the key resistance zones to watch, if the pair breaks and close above this area then the next resistance area to watch is around 0.9830/50.



The important levels to watch for today: Support- 0.9700 and 0.9680 Resistance- 0.9750 and 0.9780.

GOLD: For today, 1660 is the immediate support level. If the pair breaks below 1660, the slump will quickly extend toward the 1650/45 mark. On the flip side, the bullish breakout of 1685 is likely to push the metal into a new trading zone, which may offer further buying opportunities until 1695 and 1700.



The important levels to watch for today: Support- 1660 and 1648 Resistance- 1682 and 1690.

Quote of the day - Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same. Yvan Byeaje.
 
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