#Wheat broke round support level 700.00
• Likely to fall to support level 664.50
Wheat continues to fall after recently breaking the round support level 700.00, which is the lower boundary of the narrow sideways price range the price has been trading in from the end of August.
The breakout of the support level 700.00 accelerated the active short-term ABC correction 2.
Wheat can be expected to fall further toward the next support level 664.50 (low of wave (v) from July and the target for the completion of the active wave 4).
• Likely to fall to support level 664.50
Wheat continues to fall after recently breaking the round support level 700.00, which is the lower boundary of the narrow sideways price range the price has been trading in from the end of August.
The breakout of the support level 700.00 accelerated the active short-term ABC correction 2.
Wheat can be expected to fall further toward the next support level 664.50 (low of wave (v) from July and the target for the completion of the active wave 4).
#NZDUSD reversed from support level 0.7085
• Likely to test resistance level 0.7170
NZDUSD recently reversed up from the key support level 0.7085 (former key resistance level which has been reversing the price from the end of June).
The upward reversal from the support level 0.7085 stopped the earlier short-term downward ABC correction 2.
NZDUSD can be expected to rise further toward the next resistance level 0.7170 (top of the previous sharp upward impulse wave 1).
• Likely to test resistance level 0.7170
NZDUSD recently reversed up from the key support level 0.7085 (former key resistance level which has been reversing the price from the end of June).
The upward reversal from the support level 0.7085 stopped the earlier short-term downward ABC correction 2.
NZDUSD can be expected to rise further toward the next resistance level 0.7170 (top of the previous sharp upward impulse wave 1).
Demand for risk assets in financial markets continues to shrink with two significant drivers.
The US S&P500 came under pressure during the New York session on Friday, with pressure intensifying towards the close of trading, reflecting the wariness of professional managers. The index is again a couple of steps away from its 50-day moving average.
The index has fallen to this line around the middle of each month since May, and each time it finds support on dips there.
However, it is dangerous to rely on correlations in the markets as they break too frequently. It is worth paying attention to the performance of the American stocks near the 50-day average and not deciding for a short-term move before it tests these levels.
Consolidation under 4430 could launch a deeper correction towards the 200 SMA at 4100. A pullback from 4430 would focus on returning to the historical highs above 4550 within just a week or two.
The US S&P500 came under pressure during the New York session on Friday, with pressure intensifying towards the close of trading, reflecting the wariness of professional managers. The index is again a couple of steps away from its 50-day moving average.
The index has fallen to this line around the middle of each month since May, and each time it finds support on dips there.
However, it is dangerous to rely on correlations in the markets as they break too frequently. It is worth paying attention to the performance of the American stocks near the 50-day average and not deciding for a short-term move before it tests these levels.
Consolidation under 4430 could launch a deeper correction towards the 200 SMA at 4100. A pullback from 4430 would focus on returning to the historical highs above 4550 within just a week or two.
Two of the world's largest economies are in sync with pressure on their fintech giants.
Access to user data and the growth of ecosystems have effectively created new monopolists that have lately been profiting lavishly from this information themselves and preventing others from doing so.
In 2007, the phrase "too big to fail" became widespread as the government bailed out big banks and manufacturing companies. Now we are witnessing a U-turn, with governments intent on raising taxes on corporations and limiting their monopoly in certain sectors or crushing companies that have become frighteningly large for even the US and Chinese governments, the world's two largest economies by a wide margin.
China presses Alibaba to spin off its financial arm, Ant Group, into a separate company with state ownership. Restrictions on the use of user data and the need to share it with the government deprive fintech of an essential competitive advantage, causing a reassessment of the sector.
Access to user data and the growth of ecosystems have effectively created new monopolists that have lately been profiting lavishly from this information themselves and preventing others from doing so.
In 2007, the phrase "too big to fail" became widespread as the government bailed out big banks and manufacturing companies. Now we are witnessing a U-turn, with governments intent on raising taxes on corporations and limiting their monopoly in certain sectors or crushing companies that have become frighteningly large for even the US and Chinese governments, the world's two largest economies by a wide margin.
China presses Alibaba to spin off its financial arm, Ant Group, into a separate company with state ownership. Restrictions on the use of user data and the need to share it with the government deprive fintech of an essential competitive advantage, causing a reassessment of the sector.
At the same time, fintech is also under pressure in the US. On Friday, Apple lost a lawsuit with Epic Games and must now allow companies to use payment services to bypass those approved on the Appstore.
This will result in a loss of billions of dollars a year in revenue. Investors fear that this could be the start of a big wave of pressure on fintech, which has concentrated control first over user data, then over financial flows, and has already started profiting from this information.
Like Alibaba for China and Apple and Google for the US, those companies may just be too big to be.
This will result in a loss of billions of dollars a year in revenue. Investors fear that this could be the start of a big wave of pressure on fintech, which has concentrated control first over user data, then over financial flows, and has already started profiting from this information.
Like Alibaba for China and Apple and Google for the US, those companies may just be too big to be.
#CHFJPY reversed from support zone
• Likely to rise to resistance level 120.00
CHFJPY currency pair recently reversed up from the support zone lying between the key support level 119.25 (which has been reversing the price from the start of May), 50% Fibonacci correction of the upward impulse from March and the lower daily Bollinger Band.
The upward reversal from the support zone stopped the previous medium-term ABC correction (2).
CHFJPY can be expected to rise further toward the next resistance level 120.00 (top of the previous minor correction (ii) from the start of September).
• Likely to rise to resistance level 120.00
CHFJPY currency pair recently reversed up from the support zone lying between the key support level 119.25 (which has been reversing the price from the start of May), 50% Fibonacci correction of the upward impulse from March and the lower daily Bollinger Band.
The upward reversal from the support zone stopped the previous medium-term ABC correction (2).
CHFJPY can be expected to rise further toward the next resistance level 120.00 (top of the previous minor correction (ii) from the start of September).
#Gold reversed from support zone
• Likely to rise to resistance level 1820.00
Gold recently reversed up from the support zone lying between the support level 1780.00 (which has been reversing the price from the middle of August), 38.2% Fibonacci correction of the upward wave (D) from last month and the lower daily Bollinger Band.
The upward reversal from the support zone started the active short-term correction B.
Gold can be expected to rise further toward the next resistance level 1820.00 (target price for the completion of the active wave B).
• Likely to rise to resistance level 1820.00
Gold recently reversed up from the support zone lying between the support level 1780.00 (which has been reversing the price from the middle of August), 38.2% Fibonacci correction of the upward wave (D) from last month and the lower daily Bollinger Band.
The upward reversal from the support zone started the active short-term correction B.
Gold can be expected to rise further toward the next resistance level 1820.00 (target price for the completion of the active wave B).
US CPI is in the spotlight today. Investors expect a slowdown in the year-over-year growth rate from the current 5.4% (it’s a high of the last 30 years).
The wait-and-see attitude of the markets probably reduced the degree of pressure on the US stock prices, where indices managed to turn higher intraday and close in the green zone after four sessions of decline.
Inflation data can add to market volatility by triggering a reassessment of Fed policy expectations, affecting currencies, equities, and gold prices.
The PPI data showed a decline in the monthly price growth rate, but was enough to push the annual inflation rate further upwards.
Furthermore, the overall price growth rate remains distinctly above the Fed's target, exceeds the average inflation rate of the last 20 years (2.2% for PPI and 2.1% for CPI) and removes the anchor of inflation expectations.
The wait-and-see attitude of the markets probably reduced the degree of pressure on the US stock prices, where indices managed to turn higher intraday and close in the green zone after four sessions of decline.
Inflation data can add to market volatility by triggering a reassessment of Fed policy expectations, affecting currencies, equities, and gold prices.
The PPI data showed a decline in the monthly price growth rate, but was enough to push the annual inflation rate further upwards.
Furthermore, the overall price growth rate remains distinctly above the Fed's target, exceeds the average inflation rate of the last 20 years (2.2% for PPI and 2.1% for CPI) and removes the anchor of inflation expectations.
Higher inflation figures would raise again a question of accelerating the withdrawal of stimulus. If data is firmly above forecasts it will revive speculation that the Fed is supposed to announce the start of a QE rollback as soon as the next week. These expectations have fallen sharply after the disappointingly weak labour market figures at the beginning of the month. Several other indicators also demonstrated a loss of economic growth momentum.
High inflation figures have the potential to bring back correction sentiment in equity markets after a brief pause. Annual inflation above 5.5% might be a strong reason for the S&P500 to break support at its 50-day moving average (now at 4430), sending the index to test the August lows at 4353 and even trigger a deeper correction towards 4100.
High inflation figures have the potential to bring back correction sentiment in equity markets after a brief pause. Annual inflation above 5.5% might be a strong reason for the S&P500 to break support at its 50-day moving average (now at 4430), sending the index to test the August lows at 4353 and even trigger a deeper correction towards 4100.
Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels, a major round level of $1800 and under the 200 and 50-day moving averages. The first of these averages have been in place for the last two and a half months.
Gold stocks have continued to fall in recent days, losing 3-4% over the last month, although gold prices have been little changed over the same time, reflecting disbelief in the sector's prospects.
Meanwhile, uncertainty over the Fed's future moves and inflation is now relatively high. The closest similar period in history was in 2011-2012 when gold prices fluctuated between $1530 and 1800. Now a similar sideways movement is in the range of $1690-1900.
The inability to steadily overcome $1800 in previous weeks and weak interest in gold stocks suggest that in the coming days, we will see a move towards the lower boundary of the range to the area of $1690.
Gold stocks have continued to fall in recent days, losing 3-4% over the last month, although gold prices have been little changed over the same time, reflecting disbelief in the sector's prospects.
Meanwhile, uncertainty over the Fed's future moves and inflation is now relatively high. The closest similar period in history was in 2011-2012 when gold prices fluctuated between $1530 and 1800. Now a similar sideways movement is in the range of $1690-1900.
The inability to steadily overcome $1800 in previous weeks and weak interest in gold stocks suggest that in the coming days, we will see a move towards the lower boundary of the range to the area of $1690.
US Natural Gas from current levels ($5.3) is attractive for...
Anonymous Poll
68%
...buying
32%
...selling
US Consumer inflation started to slow, as can be seen in the latest official data. The consumer price index added 0.3% m/m during August.
Growth to the same month a year earlier slowed to 5.3% for the overall index and to 4.0% for the core.
The data in this series came out weaker than expected for the first time in 11 months, triggering an impulsive market reaction.
A faster-than-expected slowdown in inflation should ease the pressure on the Fed with a tightening of monetary policy. However, it is too early to dismiss fears of rising prices and claim that the Fed was right to point out the transitory nature of inflation.
Still, it should not be overlooked that the rate of price increases remains one of the highest in 30 years and continues its month-to-month increase. The jump in oil and gas prices in recent days promises to keep some of the pressure on consumer prices.
Growth to the same month a year earlier slowed to 5.3% for the overall index and to 4.0% for the core.
The data in this series came out weaker than expected for the first time in 11 months, triggering an impulsive market reaction.
A faster-than-expected slowdown in inflation should ease the pressure on the Fed with a tightening of monetary policy. However, it is too early to dismiss fears of rising prices and claim that the Fed was right to point out the transitory nature of inflation.
Still, it should not be overlooked that the rate of price increases remains one of the highest in 30 years and continues its month-to-month increase. The jump in oil and gas prices in recent days promises to keep some of the pressure on consumer prices.
What does this CPI report mean for the markets? The Dollar index retreated to one week low on Fed measures repricing and stocks got short-term support after the recent dip.
Gold has recouped its intraday losses, climbing close to $1800 on a weaker USD. It is now worth watching closely to see if Gold manages to consolidate above that level, which would clear the way for further gains to the two-month highs area around $1830.
Gold has recouped its intraday losses, climbing close to $1800 on a weaker USD. It is now worth watching closely to see if Gold manages to consolidate above that level, which would clear the way for further gains to the two-month highs area around $1830.
🔜DAX30 Index expansion
A significant expansion is coming to the German DAX, the biggest reform in the index’s history. This change is effective from Monday the 20th of September. As a result, you will notice the name of the index on our platforms change from Germany30 to Germany40, and the future contract ticker will be #GER40.
In addition to 30 companies already included in the DAX, the following constituents will be added, extending the popular index to 40:
✅Airbus SE
✅Zalando SE
✅Siemens Healthineers AG
✅Symrise AG
✅HelloFresh SE
✅Sartorius AG Vz
✅Porsche Automobil Holding
✅Brenntag SE
✅Puma SE
✅Qiagen N.V.
👉Register https://bit.ly/3n8rYtz & Trade #Dax CFDs responsibly with FxPro.com
A significant expansion is coming to the German DAX, the biggest reform in the index’s history. This change is effective from Monday the 20th of September. As a result, you will notice the name of the index on our platforms change from Germany30 to Germany40, and the future contract ticker will be #GER40.
In addition to 30 companies already included in the DAX, the following constituents will be added, extending the popular index to 40:
✅Airbus SE
✅Zalando SE
✅Siemens Healthineers AG
✅Symrise AG
✅HelloFresh SE
✅Sartorius AG Vz
✅Porsche Automobil Holding
✅Brenntag SE
✅Puma SE
✅Qiagen N.V.
👉Register https://bit.ly/3n8rYtz & Trade #Dax CFDs responsibly with FxPro.com
#Copper reversed from resistance zone
• Likely to fall to support level 422.00
Copper recently reversed down from the resistance area located between the resistance level 442.00 (which has been reversing the price from August), upper daily Bollinger Band and 50% Fibonacci correction of the downward impulse from May.
The downward reversal from the resistance zone created the daily Japanese candlesticks reversal pattern Dark Cloud Cover.
Copper can be expected to fall further toward the next support level 422.00 (low of the previous minor ABC correction 2 from the start of September).
• Likely to fall to support level 422.00
Copper recently reversed down from the resistance area located between the resistance level 442.00 (which has been reversing the price from August), upper daily Bollinger Band and 50% Fibonacci correction of the downward impulse from May.
The downward reversal from the resistance zone created the daily Japanese candlesticks reversal pattern Dark Cloud Cover.
Copper can be expected to fall further toward the next support level 422.00 (low of the previous minor ABC correction 2 from the start of September).
#AUDCAD reversed from resistance zone
• Likely to fall to support level 0.9250
AUDCAD currency pair recently reversed down from the resistance zone lying between the pivotal resistance level 0.93724 (which has been reversing the price from the start of June), upper daily Bollinger Band and the resistance trendline of the daily down channel from May.
The downward reversal from the resistance zone stopped the previous short-term ABC correction (iii).
Given the prevailing downtrend, AUDCAD can be expected to fall further toward the next support level 0.9250 (former strong support from June and July).
• Likely to fall to support level 0.9250
AUDCAD currency pair recently reversed down from the resistance zone lying between the pivotal resistance level 0.93724 (which has been reversing the price from the start of June), upper daily Bollinger Band and the resistance trendline of the daily down channel from May.
The downward reversal from the resistance zone stopped the previous short-term ABC correction (iii).
Given the prevailing downtrend, AUDCAD can be expected to fall further toward the next support level 0.9250 (former strong support from June and July).