Investors are waiting for an update on the US debt ceiling plans. Fed Chair Powell is speaking this week and investors will be keen for a signal on how the policy will react to this issue while balancing high-interest rates.
The US stock markets ended lower due to concerns about the debt ceiling and monetary policy. Investors are preparing for a possible default on US debt. Eurozone, UK, and
China’s economic data coming out this week will offer insights into the global economic outlook.
China’s economic recovery is still to gain momentum and with Industrial Production data out on Tuesday, we may get some insight into the strength of their economy.
Bitcoin broke out of the trend over the weekend and we are now seeing some bullish momentum beginning to take shape.
RSI is bearish as it sets lower highs in the past couple of weeks of trading on the 4-hour chart.
Traders can expect price action to reject this resistance at $27,400 and slide back down toward $25,400.
Tesla
Tesla closed lower last Friday at $168 and we can see the 2 support and resistance ranges here.
Investors are beginning to worry about the debt ceiling and may begin to take profits amidst the uncertainty. If bearish price action persists, we may see the price fall to $146.
Gold
Gold has fallen below the 50-EMA on the 4-hour chart but is still trading above the 200-EMA which signals a period of consolidation.
Price action fell to $2000 toward the end of Friday’s session but has rebounded upward. RSI is still within trend and price action seems to be following the bullish trend in the meantime.
This week will see some comments from Fed officials and we may get some clarity on the debt ceiling.
Euro
EUR/USD is trading bearish after breaking below the lower support trend line which comes after the Dollar closed the week with some upward gains.
Price action has crossed the 200-EMA on the 4-hour chart which is an indication of weakness in the pair. RSI is oversold so we may see a retracement upward at the start of the week.
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