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With no major catalysts ahead in currency land, we’ll turn to crypto land as volatility and optimism continues to rise from the bitcoin futures ETF release this week.

And for today, we’ll be checking out ETH/USD after it quietly made a 3-month high; more gains ahead for the bulls or are we set for a short-term pullback?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a falling wedge pattern on USD/CAD, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto
DAX: 15515.83 +0.27%
FTSE: 7217.53 +0.19%
S&P 500: 4519.76 +0.74%
NASDAQ: 15129.09 +0.71%
US 10-YR: 1.638% +0.054
Bund 10-YR: -0.107% +0.007
UK 10-YR: 1.152% -0.016
JPN 10-YR: 0.089% +0.00
Oil: 82.88 +0.53%
Gold: 1,770.10 +0.24%
Bitcoin: $64,040.06 +4.42%
Ether: $3,806.80 +1.60%
Cardano: $2.10 -1.79%

Fresh Market Headlines and Economic Data:

U.S. stocks rally on upbeat earnings news

Bitcoin rallies above $66K to reach new all-time highs

Fed Beige Book: Supply and labor shortages are slowing the U.S. economy

Fed Quarles strongly recommends November taper; still believes inflation is “transitory”

U.S. readies plan to vaccinate kids ages 5-11 against COVID-19

U.S. mortgage rates surge to 6-month high at 3.23% in week ending Oct. 15 vs. 3.18% previous week

UK health minister says Covid cases may hit 100,000 a day in winter

Paul Tudor Jones says crypto is his preferred inflation hedge over gold right now

Upcoming Potential Catalysts on the Economic Calendar

Australia Business Confidence at 12:30 am GMT (Oct. 21)
New Zealand Credit Card spending at 2:00 am GMT (Oct. 21)
U.K. Public Sector Net Borrowing at 6:00 am GMT (Oct. 21)
France Business Confidence at 6:45 am GMT (Oct. 21)
Italy Industrial Sales at 8:00 am GMT (Oct. 21)
U.K. CBI Industrial Trends at 10:00 am GMT (Oct. 21)

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: ETH/USD

ETH/USD 1-Hour Crypto Chart
ETH/USD 1-Hour Crypto Chart

While the world focuses on bitcoin’s move to new all time highs, ETH/USD quietly made a bullish move on its own to break above the $4,000.00 handle. While it’s not quite all-time highs (which isn’t too far away at around $4,380), it’s still a major psychological barrier broken, that could draw in more attention from crypto bulls and technical traders.

Looking ahead, there aren’t any catalysts seen that could derail this broad move that we’re seeing into the crypto space because of bitcoin, but we can’t rule out a pullback on ETH/USD either. With stochastic showing overbought conditions, it’s possible that we may see a dip in the upcoming session on the world’s second largest crypto asset on short-term profit taking or technical sentiment.

If that’s the case, we’ll be on a lookout for a retest of the broken minor resistance area (roughly between $3,900 – $3,950) and bullish reversal patterns there before considering a potential long position to play the current uptrend. And this is assuming broad crypto and global risk sentiment remains bullish.

Of course, if we do get a fresh catalyst pointing to a flip in broad risk sentiment, then this could be the short-term top on ETH/USD.  With a daily average true range of around $200, a swift move lower on profit taking/de-leveraging could bring the market to $3,700 -$3800 before sellers begin to run out of steam.