As the leaves begin to fall and temperatures drop, traders have once again swapped sandy beaches for charts as we head into Autumn.
In recent weeks, markets have moved with a degree of uncertainty, as the Delta virus continues to rapidly spread.This has led to many speculating on which asset classes could be set for huge shifts in upcoming months. Below are the top 3 markets which some believe could provide traders with the most opportunities this fall.
Inflation rates are rising in both Europe, and the United States, with pressure firmly on the ECB and Federal Reserve to shift monetary policy measures to combat increasing consumer prices. Whilst the European Central Bank has begun slowing its asset purchasing program, the Fed has remained dovish, expecting inflation to simmer down as we head in 2022.
As such, EURUSD has mainly consolidated during the last 3-months, moving between a support of 1.1723 and a resistance of 1.1910. Volumes show that rates are neither overbought or oversold, with a reading of 50 on the 14-day RSI. This means that should there be any change in stance from either central bank, we could be primed for a breakout.
From the chart below, it seems this could be moving higher, with the 10-day EMA hovering above the 25, and 50-day moving averages. Which suggests there could be short-term bullish momentum, leading to the resistance level being broken, and rates targeting the 1.2180 level in the process.
There is no debating that the last 12-months have seen the world of Cryptocurrencies truly embraced by both new and old investors.
Accessibility to these markets have been simplified by exchanges such as CoinBase and Binance, whilst tweets from Elon Musk contributed to prices lifting off. These same tweets, as well as actions, led to prices dropping, in particular with Bitcoin, which is down by over $20,000 from its record high which was reached in Q1.
Although Etherum is also trading lower from its high of $4,178 recorded in May, it is only $600 away from this point, as of writing. This shows that there is finally a hint of divergence between these coins, which typically move in-sync.
Despite this, the chart below suggests that in upcoming months prices of ETHUSD may fall, which could be good news for short-term bears, but also longer term bulls looking to buy low. Prices are currently hovering below the key resistance level of $3,550, with moving averages positioned for a downward crossover.
Providing the analysis matures how we anticipate, ETHUSD could well be attempting to reach the support level of $1,950, where there will inevitably be a herd of bulls ready to snap up what could be the deal of the year.
After rallying to record levels during the peak of last year’s coronavirus outbreak, Gold prices have continued to remain close to multi-year highs, however this could be set to change.
Shortly after breaking its long-term resistance level of $1,671, which had been in place since 2012, XAUUSD reached an all-time high of $2,075 in August 2020. This run came as uncertainty surrounding COVID-19 gripped investors with fear, leading them to seek shelter in the safe haven asset.
However, as the virus-driven fear faded, investors gradually pulled away, moving back to stocks, leading to the S&P 500, NASDAQ amongst other indices to new highs. In the last 12 -months, Gold prices have consolidated between a support of $1,671 and a resistance level of $1,925, moving in tune with the global reaction to new variants of COVID.
Now as we head into the fall, most economies around the globe have fully reopened, with the UK, and United States ending their respective furlough, and unemployment schemes. The belief is that regardless of any further variants, we will not see any closures of businesses, or lockdowns, giving investors more optimism on recovery, rather than fear of contraction.
Looking at the chart below, XAUUSD is now trading at a floor of $1,757, with the momentum of the 10 and 25-week EMA’s lower, giving way to the idea that we could see further declines, should no drastic actions be taken by the world’s largest economies. If this is found to be true, $1,671 could be the next price target for Gold.
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