Market Review
On Wednesday, the Federal Reserve published the Beige Book, indicating that economic activity in the United States continues to expand. However, businesses are increasingly pessimistic about the economic outlook. During the reporting period, prices rose moderately, with a forecast for prices to continue growing moderately in the near term. The U.S. dollar index rebounded for the second consecutive trading day, buoyed by rising U.S. Treasury yields, surpassing the 105 threshold and closing at 105.14. The rise in U.S. Treasury yields negatively affected market risk appetite, leading to downturns in gold, silver, oil, and non-U.S. currencies, all of which closed lower for the day.
Focus for Today
U.S. Dollar Index: The market broke through the 105.1 level, establishing a short-term double bottom pattern. Attention is on the closing situation in this area. A stabilization and rebound from this retracement can continue bullish bets toward the 105.5 resistance area. A direct drop below 105 will see continued fluctuations within the 104-105 range, with a short-term focus on the tug of war between bulls and bears in this area.
Euro to U.S. Dollar: The market broke below the 1.08 level yesterday. Short-term attention is on the battle between bulls and bears at this threshold. If the market remains below 1.08, the bearish trend will continue, and previous short positions should be maintained. A return above 1.081 will resume wide-range fluctuations.
British Pound to U.S. Dollar: The price reached the 1.27 mark, following the overall rhythm of the euro. Closing below 1.268 will continue the downward trend; caution is advised before aggressively shorting below this threshold. The resistance at 1.28 remains unchanged, with support in the event of a breakdown at around 1.26.
U.S. Dollar to Japanese Yen: Prices reached the resistance area of around 157.5. Short-term focus is on the 157.5-158 area's performance. Caution is advised against aggressively following an upward trend without an effective breakthrough, with a short-term focus on the risk of pullbacks. The immediate support is at around 156.5, with caution against shorting if not broken.
Australian Dollar to U.S. Dollar: The price faced resistance and fell from the 0.667 level, with short-term attention on the 0.66 threshold. If not effectively broken below, some fluctuation is expected. Support is at 0.656, with potential for a rebound to 0.664 to continue short positions.
U.S. Dollar to Canadian Dollar: Short-term market reached the resistance area. Caution is advised against pursuing bullish positions before an effective breakthrough of the 1.373-1.375 resistance area. Aggressive traders may short against this resistance for potential continuation of fluctuations. For a conservative approach, wait for a breakthrough upwards or further decline before entering bullish positions.
Crude Oil: Prices faced resistance and fell back from the 80.5 level, with 80.5-81.5 as a valid resistance zone. Short-term attention is on opportunities for a second rebound, where failing to exceed the previous high can continue short positions. The downward target is the previous 76-77 support area.
Gold: After rebounding to the 2360-2370 area, it turned downwards. The short-term market focus is on the 2330 support level. If this level is broken, the bearish trend will continue. Support is at the 2300 level, and if the 2325-2330 area is broken, consider a short rebound targeting the 2300 level.
S&P Index: Prices broke below 5255, initiating a short-term correction. Support is eyed at the 5200 level, with short-term attention on the rebound situation in the 5270-5290 resistance area. Failing to rebound further can result in a decline, providing an opportunity for short positions on a pullback.
Bitcoin: Prices continue to fluctuate within a range, with short-term focus on the 66000 support area for potential short-term bullish bets. The resistance remains in the 70500-72000 range, with short-term trading strategies focusing on buying low and selling high.
