October got off to a rather strong start on the financial markets. The yield on the 10-year US Treasury bond rose to 4.63% and is at levels not seen since 2006. Investors are once again focusing on Fed plans and awaiting new data for analysis.
In the US, legislators managed to avoid a government shutdown. A bill providing funding until 17 November received support and was quickly signed by President Biden minutes before the deadline, bringing relief to investors. At the same time, longer-term interest rates are still expected to remain high.
The market is looking forward to a number of speeches from several Fed officials this week, including Fed Chair Powell, which we will hear at 5pm GMT+2 today. It is possible that we will get new clues about the Fed’s next steps. Among other events on the economic calendar, US labour market data – Wednesday’s (14:15) ADP report and Friday’s payrolls – will come to the fore. Particularly closely watched will be the US non-farm employment data, which will be released at 14:30 on Friday.
DAX40 – failed retest suggests declines?
An interesting situation has developed on the DAX40 chart. After nearly three months, a strong support level of 15450 has been overcome. The last two daily candles ending with long upper wicks may indicate a retest of this level, which has now become resistance. A failure to overcome this level from below could initiate further declines towards the demand zone, which is located around 15000p.
We can discuss this week’s events and their possible impact on the quotations of currencies and other financial instruments during the live session:
LIVE EDUCATION SESSIONS
This WEEK (02-05 October 2023 ) I am pleased to invite you to several online sessions. Below is the schedule of meetings:
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo