Indices fall on valuations, AI, NFP – Trading USD/CAD, Crude [Video]

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCAD, WTI Crude Oil, Gold, XAU/USD, Silver, XAG/USD, Bitcoin, BTC/USD, the DAX40, the S&P500, and on the NASDAQ.

Everything went against investors’ confidence yesterday, and we saw a big sell-off.

And it wasn’t just the Indices, either.

Let’s look at the US Indices first.

We are seeing a perfect storm of uncertainty about company valuations and fears of an AI bubble, higher US inflation, a bad NFP and unemployment rate, combined with the fact that the US shutdown means that we have to completely skip the October jobs report.

So, if we see confidence returning soon, we could see a lot of dip-buying, but let’s look at the technicals.

On the NASDAQ daily chart, we see the stochastic oscillator oversold but the MACD is thinking about being bearish.

Zooming out to the 4-hour chart, we see the current downtrend and a very oversold stochastic oscillator.

If you are a fan of MACD, you may want to wait until the signal line passes out of the histogram before looking at a long on the NASDAQ or any of the indices.

We could look at every index around the globe and we could see the same thing.

Price action on the DAX has broken out of its range and has returned to levels from April with similar technicals.

But please be aware that the chaos in the current US administration cannot be ignored.

Watch for volatility!

Speaking of which, Bitcoin has fallen to April prices as well, with the current level of $85,600.

Again, many fundamental factors have affected this sell-off, so be careful if you are looking at a long crypto position.

Last time we spotted possible double tops on gold and silver, and we see price action falling on both towards support.

Let’s keep an eye on these.

As we have mentioned many times, the downtrend in WTI crude oil and Brent continues, and we see support at $57 on WTI.

This has negatively impacted CAD, but we will look at possible reversals on CAD pairs like USDCAD next week.