Weekly Market recap 6: volatility may take off very soon
I believe the first breakout impulse of a new trend in the major assets can start during the next week.
DXY broke out the long-term trendline and held above, closing at the border of the current sideways channel at 94.00 (even a little above it). If on Monday DXY closes confidently above 94.00, I'll be surely bullish on USD and JPY as that may signal the beginning of the new wave of risk aversion sentiment. If instead DXY forms a rejection candle signal, the reversal back into the range is likely.
The major asset classes came to significant price levels
1)Brent broke the important support at 39.00, confirming the short-term uptrend (started at the end of April) reversal according to the trend structure.
2)Although S&P500 hasn't broken September low yet, it's consolidating under MA(100), that adds to my bearish bias on stocks.
3)Gold is also testing its major support level.
Possible scenarios
Whatever asset you look at, the full-body candle in either direction will tell us a lot at this point. We either enter into a volatile trending market (in case of DXY being above 94.00) or a possible short-term trend of medium volatility in the opposite direction.
The market may be pricing in the upcoming United States Presidential election on November 3. The election result can be a catalyst for a new trend across the board.
DXY broke out the long-term trendline and held above, closing at the border of the current sideways channel at 94.00 (even a little above it). If on Monday DXY closes confidently above 94.00, I'll be surely bullish on USD and JPY as that may signal the beginning of the new wave of risk aversion sentiment. If instead DXY forms a rejection candle signal, the reversal back into the range is likely.
The major asset classes came to significant price levels
1)Brent broke the important support at 39.00, confirming the short-term uptrend (started at the end of April) reversal according to the trend structure.
2)Although S&P500 hasn't broken September low yet, it's consolidating under MA(100), that adds to my bearish bias on stocks.
3)Gold is also testing its major support level.
Possible scenarios
Whatever asset you look at, the full-body candle in either direction will tell us a lot at this point. We either enter into a volatile trending market (in case of DXY being above 94.00) or a possible short-term trend of medium volatility in the opposite direction.
The market may be pricing in the upcoming United States Presidential election on November 3. The election result can be a catalyst for a new trend across the board.
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