Bitcoin Is Stuck Near $46,000 After Sell-Off

Bitcoin Tries To Rebound After Major Sell-Off

Bitcoin is currently trading near the $46,000 level after the recent sell-off while other cryptocurrencies have also stabilized after recent volatility. Ethereum is currently trying to settle below $3,500 while Dogecoin is testing the support level at $0.2520.

Bitcoin found itself under strong pressure after it became legal tender in El Salvador. It looks that it was a typical “sell the news” event, amplified by traders’ protective stop orders which fell like dominoes.

It should be noted that Bitcoin failed to gain upside momentum right after the major sell-off, and it looks that the size of this sell-off had a negative impact on traders’ mood. However, crypto markets are known for their volatility, and Bitcoin should have good chances to move back to recent highs in case it manages to stabilize near current levels.

Technical Analysis

bitcoin september 9 2021

Bitcoin received support near the 50 EMA at $45,200 and is trying to settle back above $46,000. RSI has moved away from the overbought territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

If Bitcoin manages to settle above $46,000, it will get to the test of the next resistance level near $47,000. A move above this level will open the way to the test of the resistance at the 20 EMA at $48,000.

In case Bitcoin settles above the 20 EMA, it will move towards the psychologically important $50,000 level. A successful test of this level will open the way to the test of the next resistance at $51,500.

On the support side, Bitcoin needs to get back below $46,000 to have a chance to develop downside momentum in the near term. The next support level is located at the 50 EMA at $45,200. A move below the 50 EMA will push Bitcoin towards the support at $44,000. In case Bitcoin declines below this level, it will head towards the support which is located near the recent lows at $42,600.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Euro Moves Higher Ahead Of ECB Interest Rate Decision

Euro Gains Some Ground Against U.S. Dollar

EUR/USD is currently trying to settle above the 50 EMA near 1.1825 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is stuck between the support at the 20 EMA at 92.60 and the resistance at 92.80. If the U.S. Dollar Index gets above the resistance at 92.80, it will gain additional upside momentum and head towards the next resistance level at 93.10 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the ECB Interest Rate Decision and the subsequent commentary. The key question is whether ECB is worried about inflation. If ECB is less dovish than expected, euro may get additional support.

In the U.S., traders will focus on the latest job market data. Initial Jobless Claims are projected to decline from 340,000 to 335,000 while Continuing Jobless Claims are expected to decrease from 2.75 million to 2.74 million.

Technical Analysis

eur usd september 9 2021

EUR/USD did not manage to settle below the support at the 20 EMA at 1.1815 and is trying to get above the 50 EMA near 1.1825. In case this attempt is successful, it will get to the test of the resistance level at 1.1830.

A move above the resistance at 1.1830 will push EUR/USD towards the next resistance at 1.1860. If EUR/USD gets above this level, it will head towards the resistance at 1.1880. In case EUR/USD manages to settle above 1.1880, it will head towards the next resistance at 1.1900.

On the support side, EUR/USD needs to settle below the 20 EMA at 1.1815 to have a chance to develop downside momentum in the near term. The next support level for EUR/USD is located at 1.1800.

A successful test of the support at 1.1800 will open the way to the test of the support at 1.1775. In case EUR/USD declines below this level, it will move towards the next support level which is located at 1.1750.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – U.S. Dollar Tries To Gain Some Ground Against British Pound

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD continues its attempts to settle below the support at 1.3780 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance level at 92.80 and pulled back towards the support at the 20 EMA at 92.60. In case the U.S. Dollar Index declines below this level, it will move towards the next support at the 50 EMA at 92.45 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the UK today so foreign exchange market traders will focus on the economic data from U.S.

Analysts expect that Initial Jobless Claims report will show that 335,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 2.75 million to 2.74 million.

Traders will also keep an eye on the European Central Bank which will release its Interest Rate Decision today. While ECB does not directly influence GBP/USD dynamics, its commentary will have an impact on the whole forex market.

Technical Analysis

gbp usd september 9 2021

GBP/USD declined below the support level at 1.3780 but did not manage to develop additional downside momentum. In case GBP/USD gets back above 1.3780, it will head towards the next resistance level at 1.3800.

A successful test of the resistance at 1.3800 will open the way to the test of the next resistance at the 50 EMA at 1.3810. If GBP/USD settles above this level, it will head towards the resistance at 1.3835.

On the support side, GBP/USD needs to stay below 1.3780 to have a chance to develop downside momentum in the near term. The next support level for GBP/USD is located at 1.3745.

If GBP/USD declines below 1.3745, it will move towards the next support at 1.3710. A successful test of this level will open the way to the test of the support at 1.3690.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Retreats After BoC Interest Rate Decision

U.S. Dollar Gains Ground Against Canadian Dollar

USD/CAD made an attempt to settle above 1.2760 but lost momentum and declined below 1.2700 while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the 20 EMA at 92.60 and made an attempt to settle above the next resistance at 92.80 but failed to develop sufficient upside momentum. In case the U.S. Dollar Index settles above 92.80, it will move towards the resistance at 93.10 which will be bullish for USD/CAD.

Today, foreign exchange market traders focused on the Bank of Canada Interest Rate Decision. The Bank left the interest rate unchanged at 0.25% and maintained its current pace of asset purchases at CAD $2 billion per week.

The Bank noted that Canada’s GDP declined by 1% in the second quarter which was weaker than expected.  The Bank added that recovery required extraordinary monetary policy support. The comments were dovish and put pressure on the Canadian dollar.

Meanwhile, WTI oil moved back above the $69 level which was bullish for commodity-related currencies, but traders ignored the developments in commodity markets as they focused on BoC Interest Rate Decision and the subsequent commentary.

Technical Analysis

usd cad september 8 2021

USD to CAD has recently declined below the support level at 1.2685 and is moving towards the next support at 1.2650.

In case USD to CAD settles back below 1.2650, it will head towards the support at 1.2625. A successful test of this level will open the way to the test of the support at the 20 EMA near 1.2610.

On the upside, USD to CAD needs to get back above 1.2685 to have a chance to develop upside momentum in the near term. The next resistance level for USD to CAD is located at 1.2710.

If USD to CAD manages to settle above 1.2710, it will head towards the resistance at 1.2730. A successful test of this level will open the way to the test of the resistance at the recent highs at 1.2760.

For a look at all of today’s economic events, check out our economic calendar.

Why Coinbase Stock Is Down By 4% Today

Coinbase Stock Declines As SEC Says That It May Sue The Company Over Coinbase Lend

Coinbase stock found itself under pressure after the company stated that it received a letter from SEC regarding its Coinbase Lend program. The Lend program will allow customers to earn interest on select assets on Coinbase.

According to Coinbase blog, the company received a Wells notice which means that SEC intends to sue Coinbase in court. Coinbase stated that it was proactively engaging with SEC about Lend for almost six months. SEC believes that Lend involves a security, while Coinbase believes that this claim is without merit.

As a result of these developments, Lend will no be launched until at least October. Not surprisingly, Coinbase stock declined on the news as investors typically get nervous when SEC wants to sue a company.

What’s Next For Coinbase Stock?

Coinbase shares have already been under pressure due to the recent sell-off in crypto markets, and news from SEC served as an additional bearish catalyst for the stock.

However, it should be noted that market’s reaction was relatively calm. Coinbase is a volatile stock and big moves are normal for the company’s shares.

At this point, it is not clear whether we’ll see other developments in the Lend story in the upcoming weeks as the product has not been launched yet, and Coinbase will likely use the time to enter into additional discussions with SEC in an attempt to clarify the regulator’s position.

Meanwhile, the stock will remain in the hands of market sentiment towards crypto-related assets. In case the current sell-off in crypto markets gets stronger, crypto-related assets will find themselves under more pressure which will be bearish for Coinbase stock.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Remains Under Pressure

Silver Moves Lower As U.S. Dollar Stays Strong

Silver is currently trying to settle below the support at $24.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the 20 EMA at 92.60 and is moving towards the next resistance level which is located at 92.80. In case the U.S. Dollar Index settles above this level, it will head towards the next resistance at 93.10 which will be bearish for silver and gold price today.

Meanwhile, gold made an attempt to get back above the $1800 level but lost momentum and pulled back. The nearest support level for gold is located at $1775. If gold manages to settle below this level, it will gain additional downside momentum and head towards the next support at $1750 which will be bearish for silver and other precious metals.

Gold/silver ratio managed to settle back above the 74 level and is trying to get to the test of the 20 EMA at 74.60. If gold/silver ratio settles above the 20 EMA, it will move towards the 75 level which will put pressure on silver.

Technical Analysis

silver september 8 2021

Silver settled below the support at $24.20 and is trying to settle below the next support level at $24.00. If silver manages to settle below this level, it will head towards the next support at $23.80.

A move below $23.80 will push silver towards the support level at $23.50. In case silver declines below the support at $23.50, it will continue its downside move and head towards the next support at $23.20.

On the upside, the previous support level at $24.20 will serve as the first resistance level for silver. In case silver manages to settle back above this level, it will gain upside momentum and head towards the next resistance at $24.50. A successful test of the resistance at $24.50 will open the way to the test of the resistance level which is located at the 50 EMA at $24.70.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Pull Back As Traders Continue To Take Profits Near All-Time Highs

Yesterday’s Pullback Is Set To Continue At The Start Of Today’s Trading Session

S&P 500 futures are losing some ground in premarket trading as traders continue to take profits near all-time high levels.

Yesterday, the yield of 10-year Treasuries made an attempt to settle above August highs at 1.38% but failed to develop sufficient upside momentum and pulled back. Today, the yield of 10-year Treasuries managed to get below 1.35% as traders bought U.S. government bonds after yesterday’s sell-off.

The recent moves in the U.S. government bond market show that traders are a bit nervous as they try to guess whether the Fed is ready to announce the reduction of its asset purchase program.

In this environment, trading may remain choppy while traders wait for the new data on the job market which will be released tomorrow.

WTI Oil Rebounds As Traders Shrug Off Worries About Asian Demand

WTI oil has recently managed to get back above the $69 level as traders ignored worries about Saudi Arabia’s decision to cut prices for Asian customers and focused on demand recovery elsewhere.

Today, oil traders will have a chance to take a look at API Crude Oil Stock Change report which is expected to show that crude inventories declined by 3.83 million barrels. In case the report exceeds analyst expectations, WTI oil may get more support and get to the test of the psychologically important $70 level which will be bullish for oil-related stocks.

U.S. Dollar Stays Strong

U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has recently managed to settle above the 50 EMA near 92.40 and is testing the next resistance level at the 20 EMA at 92.60.

Interestingly, this move did not put pressure on gold which has recently managed to get back to the $1800 level. This move may provide some support to gold mining stocks although it remains to be seen whether traders will be ready to bet on this segment after gold’s recent move below the key support at $1800.

For a look at all of today’s economic events, check out our economic calendar.

Dogecoin Remains Under Pressure After Yesterday’s Collapse

Dogecoin Retreats Amid Broad Sell-Off In Crypto Markets

Dogecoin is currently trying to settle below $0.24 while Bitcoin is trying to get below the 50 EMA at $45,100.

Yesterday, crypto markets found themselves under huge pressure after Bitcoin moved back below the $50,000 level. Bitcoin became legal tender in El Salvador, but the country’s citizens had technical problems after the launch which may have served as a trigger for the sell-off.

Today, Bitcoin remains under pressure, although it has not reached yesterday’s lows near $43,000. This is a bearish sign for Dogecoin and other cryptocurrencies. Ethereum is currently trying to settle below the support level at $3,300, while XRP is testing the support at the 50 EMA at $1.05.

Technical Analysis

dogecoin september 8 2021

Dogecoin managed to get below the support level at $0.2450 and made an attempt to settle below the next support at $0.24. RSI remains in the moderate territory despite the strong sell-off, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Dogecoin manages to get below the support at $0.24, it will head towards the next support at $0.2350. A move below this level will open the way to the test of the support at $0.23.

On the upside, Dogecoin needs to get back above $0.2450 to have a chance to develop upside momentum in the near term. A move above this level will push Dogecoin towards the resistance level at $0.2520. In case Dogecoin climbs back above this level, it will head towards the resistance at $0.2570.

It should be noted that the market remains in a panic mode, and Dogecoin may easily ignore technical levels. The trading volume has increased materially compared to previous trading sessions so Dogecoin will likely remain volatile. In this light, traders should be prepared for fast moves and focus on the momentum as support and resistance levels may be easily breached.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Support At 1.1830 Stays Strong

Euro Tries To Gain Ground Against U.S. Dollar

EUR/USD received support at 1.1830 and is trying to gain upside momentum while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at the 20 EMA at 92.60 but failed to develop sufficient upside momentum. In case the U.S. Dollar Index gets above this level, it will move towards 92.80 which will be bearish for EUR/USD.

Yesterday, EU released Euro Area ZEW Economic Sentiment Index report which indicated that economic stentiment declined from 42.7 in August to 31.1 in September compared to analyst forecast of 30.

The third estimate of the second-quarter Euro Area GDP Growth Rate report exceeded analyst expectations as Euro Area GDP increased by 2.2% quarter-over-quarter compared to analyst consensus which called for growth of 2%.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will likely stay in a waiting mode. On Thursday, traders will focus on ECB Interest Rate Decision and the subsequent commentary which may have a significant impact on EUR/USD dynamics.

Technical Analysis

eur usd september 8 2021

EUR/USD failed to settle below the support level at 1.1830 and is trying to move closer to the nearest resistance level at 1.1860.

In case EUR/USD manages to settle above the resistance at 1.1860, it will move towards the next resistance level at 1.1880. A successful test of this level will open the way to the test of the resistance which is located at the recent highs at 1.1900.

On the support side, EUR/USD needs to settle below the support level at 1.1830 to have a chance to develop downside momentum in the near term. The 50 EMA is located in the nearby so EUR/USD may get strong support near this level. A move below the 50 EMA will push EUR/USD towards the 20 EMA near 1.1815. If EUR/USD declines below this level, it will head towards the support at 1.1800.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Remains Weak Against U.S. Dollar

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is moving towards the support level at 1.3745 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the 50 EMA at 92.40 and is testing the next resistance at the 20 EMA at 92.60. In case this test is successful, the U.S. Dollar Index will head towards the next resistance level at 92.80 which will be bearish for GBP/USD.

Today, foreign exchange market traders will have a chance to take a look at JOLT’s job openings report from the U.S., although it remains to be seen whether this report will have any impact on currency dynamics.

Meanwhile, traders will monitor the developments in U.S. government bond markets. Yesterday, the yield of 10-year Treasuries made an attempt to settle above August highs near 1.38% but failed to develop sufficient upside momentum and pulled back. A move above this level will push the yield of 10-year Treasuries towards 1.42% which should provide more support to the American currency.

Technical Analysis

gbp usd september 8 2021

GBP/USD managed to get below the support level at 1.3780 and is moving towards the next support level which is located at 1.3745. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If GBP/USD declines below the support at 1.3745, it will head towards the next support level at 1.3710. A successful test of this level will open the way to the test of the support at 1.3690. If GBP/USD manages to settle below the support at 1.3690, it will continue its downside move and head towards the support at 1.3665.

On the upside, the previous support level at 1.3780 will serve as the first resistance level for GBP/USD. A move above this level will push GBP/USD towards the resistance at 1.3800, although it can also face resistance at the 20 EMA near 1.3790. If GBP/USD gets back above 1.3800, it will get to the test of the 50 EMA near 1.3810.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Is Under Significant Pressure

U.S. Dollar Moves Higher Against Canadian Dollar

USD/CAD is currently trying to settle back above the resistance at 1.2625 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the resistance at the 50 EMA at 92.40 and made an attempt to settle above 92.50. In case the U.S. Dollar Index manages to settle above 92.50, it will get to the test of the resistance at the 20 EMA at 92.60 which will be bullish for USD/CAD.

There are no important economic reports scheduled to be released in the U.S. and Canada today. Tomorrow, traders will focus on the Bank of Canada Interest Rate Decision and commentary which may have a material impact on USD/CAD dynamics.

Traders will also continue to monitor the developments in U.S. government bond markets. The yield of 10-year Treasuries has recently made an attempt to settle above August highs near 1.38% but failed to develop sufficient upside momentum and pulled back. A move above 1.38% will open the way to the test of the next resistance at 1.42% which will be bullish for the U.S. dollar.

Technical Analysis

usd cad september 7 2021

USD to CAD managed to get above the 20 EMA at 1.2600 and is testing the next resistance level at 1.2625. In case USD to CAD settles back above this level, it will move towards the next resistance level which is located at 1.2650.

A successful test of the resistance at 1.2650 will push USD to CAD towards the next resistance level at 1.2685. If USD to CAD gets above this level, it will continue its upside move and head towards the resistance at 1.2710.

On the support side, the nearest support level for USD to CAD is located at the 20 EMA. A move below the 20 EMA will lead to the test of the support at 1.2590. In case USD to CAD settles back below this level, it will head towards the next support at the 50 EMA at 1.2560.

For a look at all of today’s economic events, check out our economic calendar.

Why Novavax Stock Is Up By 7% Today

Novavax Stock Rallies On Positive News From Japan

Shares of Novavax gained strong upside momentum and moved to multi-month highs after Takeda Pharmaceutical stated that Japan agreed to buy 150 million doses of COVID-19 vaccine which will be produced using Novavax technology. The vaccine will be produced in Japan.

In my previous article on Novavax, I noted that the market has quickly managed to shrug off concerns about the company’s problems in the U.S. and focused on its potential in the international market.

At that point, it looked that good news may come from India as the country was reportedly considering an approval of Novavax vaccine without emergency use authorization in the U.S. However, it turned out that Japan became a big market for Novavax, and analysts will have to re-evaluate their forecasts.

What’s Next For Novavax Stock?

Analyst estimates for Novavax have moved lower in recent weeks. Currently, analysts expect that the company will report a loss of $10.29 per share in 2021. In 2022, Novavax is projected to report a profit of $32.3 per share so the stock is trading at just 8 forward P/E.

This is cheap, but the company has experienced various problems and delays which explains the cheap valuation in comparison with peers.

That said, it’s important to note that Novavax stock remained a part of a “vaccine trade” together with more successful companies like Moderna and BioNTech despite the company’s problems.

Recent market action indicates that traders remain ready to buy vaccine stocks. For example, Moderna stock was not harmed by the problems in Japan where the company had to recall three batches of its coronavirus vaccine after they were contaminated with stainless steel.

In this bullish market environment, Novavax stock has a good chance to gain additional upside momentum unless there is another material delay in the U.S.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Silver Retreats As Treasury Yields Rise

Silver Is Under Pressure

Silver has recently made an attempt to settle below the support level at $24.20 while the U.S. dollar moved higher against a broad basket of currencies.

The U.S. Dollar Index is currently testing the resistance level which is located at the 50 EMA at 92.40. In case silver manages to settle above this level, it will move towards the next resistance at the 20 EMA at 92.60 which will be bearish for silver and gold price today.

Meanwhile, gold managed to get to the test of the important support level at $1800. If gold settles below this level, it will head towards the next support at $1775 which will be bearish for silver.

Gold/silver ratio has recently tried to settle above the 20 EMA at 74.65 but lost momentum and declined towards the 74 level. In case gold/silver ratio gets to another test of the resistance at the 20 EMA, silver will find itself under more pressure.

It should be noted that the yield of 10-year Treasuries is currently trying to settle above August highs near 1.38% which is bearish for precious metals. In case Treasury yields gain additional upside momentum, silver will move lower.

Technical Analysis

silver september 7 2021

Silver is currently trying to get below the support level which is located near the 20 EMA at $24.20. In case this attempt is successful, silver will move towards the next support at $24.00.

A move below the support level at $24.00 will open the way to the test of the support at $23.80. If silver manages to settle below $23.80, it will head towards the support at $23.50.

On the upside, the previous support level at $24.50 will serve as the first resistance level for silver. A successful test of the resistance at $24.50 will push silver towards the next resistance at the 50 EMA at $24.70. In case silver manages to settle above the 50 EMA at $24.70, it will continue its upside move and head towards the next resistance level at $25.00.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Mixed As Traders Wait For New Catalysts

Stocks Stay Close To Record Highs

S&P 500 futures are mostly flat in premarket trading as traders wait for new catalysts after the long weekend.

There are no important economic reports scheduled to be released today in the U.S., and traders will have to wait until Thursday for the release of employment reports. Initial Jobless Claims are expected to decline to 336,000 while Continuing Jobless Claims are projected to decrease to 2.74 million.

Meanwhile, the yield of 10-year Treasuries has moved closer to the recent highs at 1.375%, and it looks that bond traders are a bit nervous ahead of the Fed Interest Rate Decision which will be announced on September 22. In case the yield of 10-year Treasuries settles above 1.38%, it will likely gain upside momentum which may put some pressure on the stock market.

WTI Oil Moves Lower As Saudi Arabia Cuts Prices For Asian Customers

WTI oil is currently trying to settle below the $68 level as traders react to Saudi Arabia’s decision to cut prices for Asian customers in October. Interestingly, prices for U.S. and European customers remained at previous levels.

This move shows that Saudi Arabia is worried about the strength of demand in Asia. The region has been dealing with the spread of the Delta variant of coronavirus for some time, and it looks that Saudi Arabia anticipates lower demand due to virus-related problems.

Not surprisingly, Saudi Arabia’s decision put material pressure on the oil market, although it remains to be seen whether WTI oil will be able to gain additional downside momentum below the important support level at $67.50.

Higher Yields Put Pressure On Precious Metals

Gold and silver declined today as Treasury yields moved higher while the U.S. dollar gained ground against a broad basket of currencies.

The beginning of today’s trading session is set to be challenging for gold mining stocks and silver mining stocks. In case gold manages to get to the test of the psychologically important $1800 level, these stocks will find themselves under additional pressure.

For a look at all of today’s economic events, check out our economic calendar.

Shiba Inu Retreats Amid Broad Weakness In Crypto Markets

Shiba Inu Is Under Pressure

Shiba Inu is currently trying to settle below the support level at $0.000007 while Bitcoin is moving lower. The world’s leading cryptocurrency has managed to settle above the resistance at $51,500 and made an attempt to settle above the next resistance level at $53,000. This attempt yielded no results and Bitcoin pulled back, which triggered a pullback in many cryptocurrencies.

Ethereum failed to settle above the psychologically important $4,000 level and moved below $3,900. Dogecoin is currently trying to settle below $0.30 while XRP is testing the support at $1.35.

Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has recently moved away from lows near 41%. It should be noted that the recent decline of Bitcoin Dominance provided no material support to Shiba Inu as traders focused on major altcoins.

Technical Analysis

shiba inu september 7 2021

Shiba Inu settled below the support at $0.00000745 and got to the test of the next support level at $0.000007. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case Shiba Inu declines below the support level at $0.000007, it will move towards the next support at $0.0000067. A successful test of this level will push Shiba Inu towards the support which is located at the recent lows at $0.0000065. If Shiba Inu settles below this support level, it will head towards the next support at $0.0000063.

On the upside, the nearest resistance level for Shiba Inu is located at $0.00000745. A move above this level will push Shiba Inu towards the resistance near the recent highs at $0.0000077. In case Shiba Inu gets above this level, it will head towards the next resistance level at $0.000008. A successful test of this level will provide Shiba Inu with an opportunity to get to the test of the next resistance at $0.0000085.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Resistance At 1.1880 Stays Strong

Euro Is Mostly Flat Against U.S. Dollar

EUR/USD failed to settle above the resistance at 1.1880 and pulled back while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to get to the test of the nearest resistance level at 92.30. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at the 50 EMA at 92.40 which will be bearish for EUR/USD.

Today, foreign exchange market traders will focus on the economic data from EU. Analysts expect that Euro Area ZEW Economic Sentiment Index declined from 42.7 in August to 30 in September due to the negative impact of the spread of the Delta variant of coronavirus.

The third estimate of the second-quarter Euro Area GDP Growth Rate report is expected to show that Euro Area GDP increased by 2% quarter-over-quarter. The final reading of the second-quarter Euro Area Employment Change report is projected to indicate that employment increased by 0.5% quarter-over-quarter.

Most likely, traders will focus on ZEW Economic Sentiment Index as it will provide timely information on the state of the European economy.

Technical Analysis

eur usd september 7 2021

EUR/USD has recently made another attempt to settle above the resistance at 1.1880 but failed to develop sufficient upside momentum and pulled back. The nearest support level for EUR/USD is located at 1.1860.

In case EUR/USD declines below 1.1860, it will head towards the next support which is located near the 50 EMA at 1.1830. A move below the 50 EMA will open the way to the test of the 20 EMA near 1.1815. If EUR/USD gets below this level, it will head towards the next support at 1.1800.

On the upside, a move above 1.1880 will push EUR/USD towards the resistance at 1.1900. In case EUR/USD settles above this level, it will head towards the next resistance at 1.1925. A successful test of this level will open the way to the test of the resistance at 1.1945.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Is Under Some Pressure Against U.S. Dollar

U.S. Dollar Gains Ground Against British Pound

GBP/USD is currently trying to settle back below the support at 1.3835 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above 92.15 and is moving towards the resistance at 92.30. A move above this level will open the way to the test of the significant resistance level at the 50 EMA at 92.40 which will be bearish for GBP/USD.

UK has recently released Halifax House Price Index report for August which indicated that house prices increased by 0.7% month-over-month compared to analyst consensus which called for growth of 1.1%. On a year-over-year basis, house prices grew by 7.1%.

Foreign exchange market traders will also keep an eye on the developments in U.S. government bond markets. The yield of 10-year Treasuries has recently managed to settle above the 50 EMA at 1.33% and is moving towards recent highs at 1.375%. In case the yield of 10-year Treasuries gets to the test of this level, U.S. dollar may get more support.

Technical Analysis

gbp usd september 7 2021

GBP/USD managed to get below the support level at 1.3835 and is moving towards the next support which is located at the 50 EMA at 1.3815. In case GBP/USD settles below the 50 EMA, it will gain additional downside momentum and move towards the support level which is located near the 20 EMA at 1.3800.

A successful test of the support at the 20 EMA will open the way to the test of the next support at 1.3780. If GBP/USD declines below this level, it will head towards the support at 1.3745.

On the upside, a move above 1.3835 will push GBP/USD towards the resistance level which has recently emerged at 1.3860. If GBP/USD gets above this level, it will head towards the resistance at 1.3880. A successful test of this level will open the way to the test of the resistance at 1.3900.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 Looks Ready To Move Higher As Traders Stay Bullish

Traders Ignore Valuation Concerns And Continue To Buy Stocks

S&P 500 finished the previous week near all-time high levels as traders remained optimistic despite worries about the potential reduction of Fed’s asset purchase program.

The stock market remains driven by available liquidity, as well as FOMO (fear of missing out) and TINA (there is no alternative). Meanwhile, the yield of 10-year Treasuries remains stuck near 1.30% which is bullish for stocks. The U.S. Dollar Index has pulled back from recent highs which is also bullish for the stock market, but it should be noted that fluctuations of the American currency had little impact on U.S. stock market in 2021.

Some analysts speculated that S&P 500 will find itself under pressure after the end of the earnings season as stocks would lack catalysts to move higher. In addition, September has been (on average) the worst month for S&P 500 in the last thirty years. However, the stock market started the month with a test of new highs which indicated that traders remained bullish despite problems like the spread of the Delta variant of coronavirus or the potential reduction of Fed’s asset purchase program.

As is often the case in the stock market, there is no pullback when too many people are waiting for such a pullback. The last chance to “buy stocks at a discount” was in mid-August, and this pullback was quickly bought. The two other pullbacks which happened during this summer were very quickly bought as well. This indicates that there are many traders on sidelines who use any pullback to buy stocks. When many traders want to buy and few traders want to sell, a correction cannot occur.

Obviously, many stocks are generously valued by the market. Tesla is trading at more then 105 forward P/E , and it remains well below yearly highs! Netflix is valued at more than 45 forward P/E after the recent rally.

The risks for high-flying growth stocks have been recently highlighted by Zoom which issued disappointing guidance for the third quarter and lost about 17% of market capitalization in just one trading session. However, even Zoom shares have found some support in recent trading sessions as traders rushed to buy the stock after the major pullback despite the fact that it is valued at more than 60 forward P/E while analyst estimates have started to move lower.

In this liquidity-driven market, the Fed is one of the main players. So far, the Fed was successful in managing market’s expectations. Fed Chair Jerome Powell remained very dovish and calmed markets on rare ocassions of small panic.

Powell has a more challenging task in front of him as the Fed will have to cut its asset purchase program in the upcoming months. Even if the Fed decides that it’s too early to announce tapering at its meeting on September 22, it will still have to reduce support to markets at the beginning of the next year to avoid pushing inflation above reasonable levels.

It should be noted that traders may stay bullish and bet on dovish comments from Powell up until the time he finally says that it is time to reduce the asset purchase program. In this light, the market may experience several months of calm, bullish trading in case the Fed keeps the current support intact at its next meeting.

The current bullish trend is strong, and traders have been “trained” to buy pullbacks. A change of trend demands strong catalysts, and there are no such catalysts at this point. The situation may change in case inflation gets out of control, Fed has to reduce its asset purchase program at a very fast pace while Delta variant forces new lockdowns, but this negative scenario is not the base case for the market right now.

Technical Analysis

sp 500 september 6 2021

Let’s take a look at the weekly chart. S&P 500 is moving higher in a rather tight upside channel, and any attempt to settle below the low end of this channel is quickly bought.

RSI is in the overbought territory and the risks of a pullback are increasing. However, RSI has been in the overbought territory for several weeks and nothing serious happened as pullbacks have been quickly bought.

sp 500 september 6 2021 daily

On the daily chart RSI remains in the moderate territory which is good for the continuation of the current upside trend. Pullbacks are more visible on the daily chart, but it is obvious that they were not big at all as the bullish trend remained strong.

This is the type of the market when being bearish and trying to short tops leads to poor results. At one point, the bears will be right, but they can lose a lot of money trying to find the true top. Put simply, the trend remains bullish until proven otherwise. The Fed may break the trend by reducing support too quickly, but it has been very supportive in previous months and will likely remain very cautious when it finally begins to reduce its asset purchase program.

For a look at all of today’s economic events, check out our economic calendar.

Oil Stays Strong Despite Risks Posed By The Virus

Oil’s Rebound Continues As Crude Inventories Decline

WTI oil has recently made several attempts to settle above the $70 level but failed to gain additional upside momentum and pulled back. However, WTI oil remains close to this psychologically important level and has a good chance to get back to yearly highs in the remaining months of this year.

It is already clear that coronavirus-related concerns have failed to put big pressure on oil as many traders were ready to buy any significant pullback. As a result, WTI oil has quickly rebounded from the $62 level to the $70 level.

While the situation with coronavirus remains a big concern for oil traders, recent data suggests that the number of new daily cases in the world has started to decline. Importantly, the number of daily deaths has began to decline as well. Watching this grim data may be more important to the analysis of potential coronavirus-related restrictions around the world as governments will likely focus on critical cases and deaths rather than on total caseload as vaccination progresses.

Meanwhile, recent inventory reports indicated that crude inventories continued to decline. According to the latest EIA Weekly Petroleum Status Report, U.S. commercial crude inventories declined by 7.2 million barrels from the previous week. U.S. domestic oil production increased from 11.4 million barrels per day (bpd) to 11.5 million bpd but it will take a hit in the upcoming reports due to the negative impact of Hurricane Ida.

OPEC+ has recently decided to stick to its plan to raise oil production by 0.4 million bpd per month as the organization believed that demand recovery was strong despite challenges presented by the spread of the Delta variant of coronavirus.

In fact, OPEC+ increased its demand growth outlook for 2022 to 4.2 million bpd. The economic rebound continues at a robust pace thanks to the strong support from the world’s central banks and governments, and demand for oil looks strong as well.

The key question for the oil market is whether the world will have to deal with another wave of the virus at the beginning of the flu season in the Northern Hemisphere. More coronavirus-related restrictions may put pressure on demand growth, but  governments’ desire for new lockdowns appears limited except for countries like Australia and New Zealand, which are located in the Southern Hemisphere.

In case developed countries manage to get through the beginning of the flu season without new restrictions, oil demand will continue to grow while crude inventories will remain under pressure. In this bullish scenario, WTI oil will have a good chance to test yearly highs near the $77 level.

Technical Analysis

wti oil september 6 2021 weekly

Let’s start with the weekly chart. WTI oil failed to get to the test of the 50 EMA as it received strong support near the $62 level. The rebound was very strong, and WTI oil has quickly managed to get back above the 20 EMA which is located at $67.60.

Currently, WTI oil is stuck between the support at the 20 EMA and the resistance at the psychologically important $70 level. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case WTI oil manages to get back above the $70 level, it will head towards the next resistance at the $74 level. A move above this level will open the way to the test of the resistance which is located at yearly highs at the $77 level.

On the support side, a move below the 20 EMA will push WTI oil towards the recent lows near the $62 level. Oil ignored technical levels during the recent moves in the $62 – $67 range, but it remains to be seen whether it will be able to gain strong downside momentum and quickly get to the test of the recent lows near $61.75 as the oil market looks ready to buy strong pullbacks.

wti oil september 6 2021 daily

As usual, more levels can be found on the daily chart. However, it should be noted that the road to yearly highs still looks rather easy in case oil manages to settle above the resistance at the $70.

Most likely, the market will attract more speculative traders once oil settles above $70, and oil may quickly get to the test of the next resistance at $72.50. A move above this level will push oil towards the above-mentioned resistance at $74.

On the support side, a move below $67.60 will open the way to the test of the support level at $66. In case oil declines below this level, it will head towards the next support at $64. If oil manages to settle below the support at $64, it will move towards the support at the recent lows at $61.75.

For a look at all of today’s economic events, check out our economic calendar.

U.S. Dollar At Crossroads Ahead Of Fed Interest Rate Decision On September 22

Traders Wait For Fed’s Key Meeting

The dynamics of the U.S. dollar will be in focus in the upcoming weeks as traders try to guess when the Fed will announce the reduction of its asset purchase program which will have a significant impact on many markets.

Back at the beginning of this year, many analysts were bearish on the U.S. dollar. They believed that huge support from the Fed together with stimulus from the U.S. government would push the American currency towards multi-year lows.

However, the reality was different, and the U.S. dollar gained ground against a broad basket of currencies this year. There are several reasons for this move.

First, coronavirus pandemic was not stopped, which provided more support to safe-haven assets like U.S. dollar.

Second, other currencies have also experienced problems. Euro suffered from low inflation and low interest rates in the eurozone. Pound failed to gain upside momentum as UK had problems with containing the pandemic despite a successful mass vaccination program. Australian dollar fell victim of strict lockdowns.

In recent weeks, the focus shifted to the potential reduction of Fed’s asset purchase program. Hawkish comments from several Fed officials pushed the U.S. dollar to yearly highs, but dovish words from Fed Chair Jerome Powell and disappointing job market data (ADP Employment Change and Non Farm Payrolls reports missed analyst estimates) put material pressure on the American currency.

In the upcoming weeks, the market will remain focused on the outlook for Fed’s policy. Recent job market data provides Fed with an opportunity to delay tapering for a few months in order to take a closer look at the dynamics of the labor market. In addition, coronavirus remains a significant issue.

However, the Fed must also keep an eye on inflation. The most recent inflation report indicated that inflation rate was 5.4% year-over-year in July, in line with June numbers. Some analysts have started to speculate that inflation has peaked while Powell reiterated his view that inflation was temporary. However, prices may continue to move up due to various challenges in the global supply chain (like the chip shortage) and labor shortages in some industries.

Foreign exchange market traders will have a chance to take a look at inflation data for August on September 14, while the Fed will announce its Interest Rate Decision on September 22. Thus, the Fed will have the latest inflation data on hand when it will be choosing whether to start tapering or wait for a few months.

A potential rapid reduction of Fed’s asset purchase program may provide additional support to U.S. dollar. While Fed officials have different views on whether Fed should begin tapering in the upcoming months, it looks that everyone agrees that tapering should be done in a fast manner.

Judging by the recent market action, some traders are willing to bet that Fed will start to reduce its asset purchase program soon despite Powell’s dovish comments and disappointing job market reports.

Technical Analysis

us dollar index september 6 2021

The weekly chart for the U.S. Dollar Index shows that it has recently made an attempt to settle above the marjor resistance level near 93.40 but lost momentum and pulled back towards the 20 EMA near 92.10.

The U.S. Dollar Index has also received support near the 20 EMA on the weekly chart during the previous pullback, so it’s an important moment for U.S. dollar bulls. In case the U.S. Dollar Index fails to settle below the 20 EMA, it will have a good chance to get to another test of the resistance near 93.40.

A move above this level will open the way to the test of the next material resistance level at 94.30. There are no significant levels between 93.40 and 94.30 on the weekly chart, and this move may be fast.

On the support side, a move below the 20 EMA on the weekly chart will push the U.S. Dollar Index towards the next support at 91.50.

us dollar index daily september 6 2021

Switching to the daily chart, we can see that there are many resistance levels between 92.10 and 93.40, so the road towards recent highs will not be easy. In the near term, the U.S. Dollar Index needs to settle back above the 50 EMA at 92.40 and then deal with the next resistance level which is located at the 20 EMA at 92.60.

On the support side, the nearest support level is located at 91.90. A move below this support level will push the U.S. Dollar Index towards the support at 91.50. It remains to be seen whether the U.S. Dollar Index will be able to find more support levels between 91.50 and 91.90, and it looks that it will have a good chance to gain downside momentum in case it manages to settle below 91.90.

For a look at all of today’s economic events, check out our economic calendar.