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Central banks easing: the race to the bottom has officially commenced

Fed to lead the easing spree in the fourth quarter of 2024A conservative approach is priced in for ECB and BoESNB, BoC and RBNZ to ease further; RBA could follow suitBoJ could surprise with another rate hike by year-end More rate cuts on the way in the fourth quarter of 2024Another round of central banks’ meetings has been completed with the Fed stealing the show by announcing the start of its easing cycle.
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Technical Analysis – Silver on the verge of a major bullish trend reversal

Silver bulls roar back; make efforts to resume long-term uptrend above 32.49Price hovers near overbought zone; trend signals remain encouraging above 31.50Silver made a comeback on Thursday after a temporary pause, with scope to challenge May’s eleven-year high of 32.49, which it didn’t reach in July.The rebound near the broken resistance line at 30.60 indicated a bullish trend reversal recently, and although the RSI and stochastic oscillator are near overbought levels, they haven’t peaked
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Midweek Technical Look – USDJPY, GBPUSD, Gold

Gold follows bullish pattern; looks for fresh buying above 2,650  GBPUSD comes under pressure after 2½-year high; downside pressure may persistUSDJPY makes progress but is not out of the woods
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Technical Analysis – USDJPY flirts with short-term diagonal line

USDJPY tries to surpass the 23.6% FibonacciMACD and RSI gain momentumUSDJPY is challenging the 23.6% Fibonacci retracement level of the down leg from 161.94 to 139.56 at 144.80, as well as the very short-term downtrend line, creating a bullish correction from the 14-month low of 139.56.The technical oscillators are currently mirroring the market's latest upside movement.
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Daily Comment – Dollar bounces back as stocks lifted from more Chinese stimulus

US dollar rebounds ahead of Powell and other Fed speakersUS futures also turn positive as Asian rally continues on China optimismSNB cuts rates by 25 bps as expected as ECB mulls October cutDovish Fed bets can’t keep the dollar downThe US dollar is holding firm on Thursday after bouncing back strongly on Wednesday to recoup some of its post-Fed losses.
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Quick Brief – Oil bears take the driver’s seat

Oil tumbles as Saudi Arabia prepares to drop $100 price targetPBoC measures fail to provide supportMarket ignores US inventories and tensions in the Middle EastOil prices fell around 2.5% on Thursday due to easing concerns about supply disruptions in Libya after factions signed an official accord on appointing a central bank governor, thereby ending the dispute regarding their central bank and oil revenue.The tumble accelerated today after the Financial Times reported that Saudi Arabia is ready
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Technical Analysis – WTI crude oil plunges in descending tendency

WTI dives 7% from 73.30200-day SMA moves horizontallyMACD and stochastics confirm bearish outlookWTI crude oil prices have lost more than 7% over the last couple of days after the pullback from the 73.30 resistance level. The commodity is also declining beneath the 20-day simple moving average (SMA) with the next support coming from the 17-month lo
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Copper futures jump above 4.50 but yet to reach 50% FibonacciSigns of overbought market might limit further gains in short termCopper futures (HGCOP) have climbed to more than two-month highs, reaching 4.5495 earlier today. But the price has now reversed lower amid overbought conditions in the momentum indicators. The RSI is about to cross into the overbought 70 region, but the stochastics have already entered it.The pullback comes as the industrial metal approaches the 50% Fibonacci retracement
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Technical Analysis - USDCAD tumbles and hits support near 1.3425

USDCAD falls sharply, accelerating prevailing retreatBoth the RSI and the MACD detect bearish momentumA break below 1.3425 could extend the fall towards 1.3350For the outlook to brighten, a rebound above 1.3645 may be neededUSDCAD fell sharply on Tuesday, extending the retreat that started on Thursday after the pair hit resistance at 1.3645, slightly above the lower bound of the sideways range that contained most of the price action between April and August.Yesterday’s tumble was paused today
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Technical Analysis – GBPUSD retreats from 2½-year high

GBPUSD may create bearish correction in short-termStochastic and RSI turn downGBPUSD is ticking lower after it posted a fresh two-and-a-half-year high of 1.3428 during today’s session.According to technical oscillators, the stochastic is creating a bearish crossover between its %K and %D lines in the overbought region, while the RSI is falling from the 70 level.
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Technical Analysis – GBPAUD correction might have legs

GBPAUD in the red again todayBoth BoE and RBA have refrained from cutting ratesMomentum indicators are inconclusive at this stage GBPAUD is trading slightly lower today, within the busy 1.9440-1.9521 area, and close to the recent peak of 1.9699. GBPAUD has managed to break below both the July 10, 2024 trendline and the 50-day simple moving average (SMA), but a stronger correction is needed to validate this move.
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Technical Analysis – Another record for the US 500 index

US 500 stock index hits another all-time highTechnical signals mixed; more buying awaited above 5,750 The US 500 stock index restarted its positive trend on Tuesday, inching up to a record high of 5,736 after keeping its foot on the rising almost one-year-old constraining line at 5,674.Mixed technical signals are observed, with the RSI slightly below its 70 overbought level and the stochastic oscillator returning to the overbought region with a positive slope, indicating the possibility of add
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S&P 500 hits another record on Fed put but tech stocks look shaky – Stock Markets

S&P 500 and Dow Jones close at new peaks but Nasdaq stuttersFed rate cut boosts risk appetite, China stimulus further lifts sentimentBut tech stocks are mixed as AI rally cools, earnings doubts creep inThe bulls return from summer hiatusAfter a prolonged period of unusual calm in the markets, volatility was back with a vengeance during the summer and autumn got off to an equally bumpy start.
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Gold prices may post bearish correctionMomentum oscillators lose steamGold prices are losing their strong positive momentum after flying to the 2,670.50 record high in the preceding couple of sessions. Moreover, the technical oscillators look overstretched. The MACD is easing above its trigger and zero lines, while the RSI is pointing down from the 70 level.If the commodity ticks lower may move towards the 20-period simple moving average (SMA) at 2,630 ahead of the 2,622 support level.
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Technical Analysis – NZDUSD puts life back to short-term uptrend

NZDUSD marks new higher high for 2024Positive momentum might soften; eyes on 0.6368NZDUSD stretched its exciting rally to a new nine-month high of 0.6354 on Wednesday before experiencing mild losses.The pair surpassed August’s bar with a bang, shifting the spotlight to the December 2023 peak of 0.6368. Given the strengthening overbought signals coming from the RSI and the stochastic oscillator, the rally could soon calm down.A decisive close above 0.6368 could stage a new bull wave towards th
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Daily Comment – Equities are on autopilot but cannot help the dollar

Increased expectations for another 50bps Fed cutDollar continues to suffer but euro’s strength is perplexingPositive impact of China’s measures gradually fadesGold and oil diverge despite Middle East developmentsIs the Fed preparing for another 50bps cut? The markets seem to have settled down after last week’s big events with equities rallying, the US dollar underperforming and gold climbing regardless of the newsflow.
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Bitcoin’s Fed rally slows down, stalls below $64,700 – Crypto News

Bitcoin rallies on speculation of another 50bps cut by the Fed But slows down after policymakers favor a smaller reductionHarris leading the US election polls is also reason for caution Focus remains on US data, PCE inflation on FridayFed rally loses steam ahead of PCE dataBitcoin rallied nearly 5% on Thursday, the day after the Fed decided to cut interest rates by 50bps and to signal that another 50 are on the cards for the remainder of 2024. At the press conference following the decision, Fed
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Technical Analysis – EURUSD retests 1.1200 critical level

Will EURUSD break the double bottom to the upside?Strong support at 1.1100Stochastic and RSI look quite positiveEURUSD is continuing the upside rally near the 13-month high of 1.1200, remaining well above the 20-day simple moving average (SMA). A successful break to the upside of the double top pattern could confirm the upside tendency.Technically,
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EURJPY trades within 159.30-161.20 range200-day SMA looks strong resistanceMACD and RSI point upEURJPY is hovering within the 23.6% Fibonacci retracement level of the down leg 175.37-145.40 and the 161.20 resistance over the last couple of days. Noteworthy that the market overcame the short-term descending trend line, adding some optimism of more bullish moves.According to momentum oscillators, the RSI is sloping marginally up near the neutral threshold of 50, while the MACD is extending its mov
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Technical Analysis – EURUSD still trades above 1.1100

·       EURUSD remains beneath the double top pattern·       Technical oscillator lose momentumEURUSD is still developing above the 1.1100 round number and the 20-day simple moving average (SMA) in the short-term view. The double top around 1.1180-1.1200 seems to be a tough resistance obstacle for the bulls.A potential rally above the aforementioned zone may drive the market until the July 2023 resistance of 1.1275. More aggressive increases could send the bulls towards the Februar
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