Understanding Today's News

Market Overview

The Federal Reserve's unexpected rate cut has sparked debate and concern among analysts and investors. While the Fed cited progress in inflation reduction as the reason for the cut, many are questioning the underlying health of the U.S. economy.

There are growing concerns about a potential market bubble, with high stock prices and asset valuations. Additionally, the Fed's decision has raised speculation about political motivations, as some believe it may be an attempt to boost the economy and support the Biden administration.

Investors are likely to remain cautious and monitor developments closely, as the market's muted reaction to the rate cut suggests that they are not fully convinced of the Fed's assessment of the economy.

Market Analysis

GOLD - GOLD has consolidated on the previous high point at 2586.289. We see no clear market movement but anticipate further response to the bullish side of the market. We wait for further price points and movements to confirm our analysis. In the other pairings, you will see a pattern of prices filling up the wick. The GOLD is one of the few that has not done so yet. The wick buy is a potential trade.

SILVER - SILVER has gained considerably, filling up the wick of the candle high. We see potential for the market to continue rising if 30.668 continues to support market structure.

DXY - The dollar has fallen and is currently being tested on an S&D structure. We see potential for the market to continue dropping and find further weakness for the dollar. With that in mind, we wait to see further potential selling and a break below said structure to fill up the wick.

GBPUSD - The Pound has made new highs for the quarter, and is looking to continue buying higher. With that in mind, we view the potential for the pound to rise higher in the coming days. New structure is being made and will be drawn on the charts soon for next week’s trading.

AUDUSD - The Aussie dollar is currently on 0.67985 and is looking to continue buying higher beyond said price level. We anticipate further buying as markets broke above said structure with good reactions toward its low.

NZDUSD - Similar to the Aussie dollar, the Kiwi is respecting structure and is looking positively into the buy. We wait for further market confirmation and wait for more trading to occur to confirm our positioning in the market.

EURUSD - The Euro is currently rising to fill its wick. Almost did so previously, but returned to structure at 1.11386. While there is potential for the market to fail in breaking this high, there is a higher chance that this market will continue higher as the dollar shows more potential on the selling side.

USDJPY - The Yen is currently being rejected by major structures, with chances for the yen to continue dropping. However, strength of the Yen remains questionable as the next rate hike expectation stretches to December. There is potential that the Yen will remain consolidated for the weeks to come. We remain measuring how wide the consolidation would be toward December.

USDCHF - There is still a long walk toward the wick fill, but similar to the Yen, there is potential for the Franc to remain stagnant between 0.85541 and 0.84086. We wait to see how the markets will continue to develop from this point onward.

USDCAD - The Loonie gains strength as Oil prices remain on the positive side. We see potential selling as price succeeds in filling up the wick left behind by market volume. However, we continue to wait for more confirmation for the sell to continue.