BTCUSD BULLISH MOMENTUM TO 60,000 CONTINUES

The price of crude oil jumped sharply on Monday as investors remained optimistic about the rising demand and tight supplies. The price of WTI crude jumped to $81 while Brent hit a multi-year high of more than $84.25. This rally means that oil prices have jumped by more than 120% from October last year. Notably, oil prices have outpaced those of other industrial commodities like copper and zinc. Industrial metals have declined because of the lingering fear of the slowdown of the Chinese economy. Oil, on the other hand, has jumped because OPEC continues to pump fewer barrels at a time when demand is surging.

US stock futures declined slightly as investors continued to price in risks of stagflation in the country. This is after data showed that the labour market remains under pressure as employers added just 194k jobs in September. Inflation data scheduled for Wednesday will likely show that prices kept rising in September as energy costs soared. Stocks also turned lower as investors waited for important company earnings scheduled for later this week. Some of the top companies that will publish their results are Blackrock, Delta Airlines, and JP Morgan.

The economic calendar did not have any major events today. Therefore, investors focused on some of the biggest corporate movers. SouthWest shares declined by more than 1.25% in premarket trading after the company cancelled thousands of trips during the weekend. The company blamed the weather and the FAA for the cancellations. Still, experts believe that the company is facing significant capacity issues since other airlines did not make such cancellations. Other top movers were Emerson Electric and Aspen Technologies. The two companies agreed to merge some of Emerson’s software products with Aspen in an $11 billion deal.

USDJPY

The USDJPY rallied sharply as the US dollar rebounded. The pair rose to a high of 113, which was the highest level in months. The price managed to move above the important resistance level at 112, which was the highest level on September 20. The pair is above the short and long-term moving averages and is also along the upper side of the Bollinger Bands. The MACD and the Relative Strength Index (RSI) have kept rising. Therefore, while the pair will likely keep rising, a small pullback can’t be ruled out.

EURUSD

The EURUSD pair declined slightly today because of the stronger dollar. The pair declined to a low of 1.1551, which was slightly below the short and longer-term moving averages. It is also forming a bearish flag pattern, which is usually a sign that the price will break out lower. The price is also between the two lines of the Envelopes indicator. Therefore, the pair will likely break out lower ahead of the upcoming US inflation data.

BTCUSD

The BTCUSD price rallied as demand for Bitcoin continued rising. The pair rose to more than $56,000, which was the highest it has been since May this year. Along the way, it moved above the important level at 55,000. It has also formed a bullish flag pattern and is above the 25-day and 50-day moving averages. Therefore, the pair will likely keep rising as bulls target the next key level at 60,000.