It looks like we’ve got a light calendar ahead in the forex space, so we’ll once again turn to the crypto space for short-term technical opportunities. This time it’s on MATIC/USD as the pair forms a textbook channel on the lower time frames.
Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a resistance retest in EUR/USD, 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: 15599.23 +0.36% FTSE: 7222.82 +0.25% S&P 500: 4566.48 +0.47% NASDAQ: 15226.71 +0.90% |
US 10-YR: 1.634% -0.021 Bund 10-YR: -0.116% -0.003 UK 10-YR: 1.14% -0.001 JPN 10-YR: 0.1% +0.006 |
Oil: 83.45 -0.37% Gold: 1,808.10 +0.66% Bitcoin: $62,742.50 +3.43% Ether: $4,195.29 +3.74% Cardano: $2.14 +0.99% |
Fresh Market Headlines and Economic Data:
U.S. equities reach record highs; WTI Crude reaches $85.41 per barrel before pulling back
The Chicago Fed National Activity Index fell to minus 0.13 in September from 0.05 in August
Texas Factory Production Eased in October to 18.3 from 24.2 in September — Dallas Fed
Bank of England’s Tenreyro says needs time to think about rate hike
German Ifo business climate index down from 98.8 to 97.7 vs. 98.2 forecast
German growth to slow sharply in final months of 2021, Bundesbank says
Mastercard says any bank or merchant on its vast network can soon offer crypto services
Moderna says covid shot for younger kids showed strong results
Elon Musk on his crypto portfolio: I only own bitcoin, ether and dogecoin
Upcoming Potential Catalysts on the Economic Calendar
South Korea GDP at 11:00 pm GMT
Japan Services PPI at 11:50 pm GMT
Japan Core CPI at 5:00 am GMT (Oct. 25)
UK CBI Realized Sales at 10:00 am GMT (Oct. 25)
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: MATIC/USD
With no major catalysts expected ahead, we’re checking out MATIC for potential technical setups, especially given that this tends to move a bit against the U.S. dollar on a regular basis.
On the one hour chart above of MATIC/USD, we can see the pair has been in a slow grind higher over the past week, actually forming a ascending channel starting from 1.4500 to current resistance area between 1.6500 – 1.7000. Right now, it looks like the bears may be holding the top of the channel once again, which could be a short-term opportunity for sellers to scalp a few points from these levels.
With a daily average true range of around 0.0012 (or 7%), a dip from current levels could bring the market to a range between 1.5100 – 1.5700, which lines up with the rising ‘lows’ pattern and area of previous resistance/support.
Barring any surprise news/events to spark big volatility in the markets, a retest around the rising ‘lows’ pattern could draw in both technical traders, as well as fundamental traders who are bullish on the layer-2 protocol token of the Polygon Network, which has been a attractive to crypto users looking for a solution to the high gas fees on the Ethereum network.
Of course, if volatility picks up and the market breaks below the rising channel on fresh negative news for MATIC, look for the market to potentially make a move to the previous swing lows around 1.4500, a reachable target within a session or two given the daily average true range.