Market Wrap: Bitcoin Nears $100K, Gold and Crude Oil Stay Bullish
- Bitcoin hits record highs above $98K; bias remains to buy dips
- Gold clears 50DMA, bolstering the case for upside
- Crude Oil upside momentum builds after bullish engulfing candle
- ASX 200: Buy-on-dips preferred as futures approach record highs
- EUR/USD breaks support at 1.0517; bears eye deeper downside toward 1.0200
Welcome to Friday! TGIF!
Market wrap
An overnight session where commodity currencies and cyclical index futures outperformed, although there was some love for long duration assets with gold and bitcoin continuing to grind higher. Bond markets were muted reflecting the quiet calendar scattered with second-tier releases. It’s likely to remain that way into Thanksgiving next week.
Looking ahead, Japanese inflation figures for October will be in focus in Asia, although it’s unlikely to move USD/JPY without a meaningful surprise, while flash PMI reports for November are likely to receive plenty of attention at the start of the European session.
Here are the markets that caught my eye.
Bitcoin
Source: Trading View
Bitcoin is closing in on $100,000, with spot and futures markets hitting fresh record highs above $98,000 on Thursday. Technically, it remains in an uptrend, supported by bullish RSI (14) and MACD signals. Rising futures volumes bolster the case for further gains despite RSI's overbought status—a condition that hasn’t deterred the cryptocurrency from delivering strong gains in the past.
For now, buying dips is the preferred strategy, as long as the uptrend from early November holds.
Gold
Source: TradingView
Gold delivered another solid session Thursday, breaking above its 50-day moving average—a bullish development that strengthens the case for further gains. RSI (14) is trending up, and MACD is on the verge of confirming the bullish signal.
The 50DMA now acts as a potential level for building long positions, allowing for entry above with a stop beneath for protection. On the upside, August’s former uptrend support around $2700 could present resistance, followed by $2710 and therecord highs. If a reversal occurs, $2643.50 is the first downside target.
Crude Oil
Source: Trading View
Crude continues to build on the bullish momentum from this week’s engulfing candle, with Thursday’s session clearing minor resistance at $69.75 before stalling at the 50-day moving average. RSI (14) and MACD both point to further upside, though lighter volumes is a slight concern.
For bulls, buying ahead of $69.74 with a stop beneath provides a setup targeting $72.65—where prices previously stalled. Waiting for a clear break of the 50DMA before committing is another option for tighter risk management.
ASX 200 SPI Futures
Source: Trading View
ASX 200 SPI futures remain a buy-on-dips play, with price, RSI (14), and MACD all trending higher. Overnight, the bounce from 8310 suggests a morning star pattern may form if these levels hold through Friday.
With record highs just 60 points away, pullbacks toward 8310 offer an appealing entry point for longs, allowing for stops to be placed below for protection.
EUR/USD
Source: Trading View
EUR/USD remains frustrating for bulls, consistently failing to hold potential bottoms. Wednesday’s evening star pattern combined with geopolitical risks to break support at 1.0517, pushing the pair to fresh 2024 lows.
The bearish trend remains intact, and selling rallies remains the preferred play. Below 1.0448, support is sparse until 1.0222, making big figures likely targets for shorts.
-- Written by David Scutt
Follow David on Twitter @scutty
How to trade with City Index
You can trade with City Index by following these four easy steps:
-
Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the market you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.
ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.
City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.
The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.
The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.
The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.
StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
© City Index 2024