The Dollar Index gained 0.1% on the day to 97.98. Federal Reserve Bank of Chicago President Charles Evans said, “the economy is in a good place now,” after the central bank’s third rate cut this year.
Revived believes the world’s two biggest markets were taking measures towards settling their 16-month trade war have driven global stocks near to record highs and Wall Street to an all-time peak.
That risk-on sentiment is keeping the greenback supported. The dollar index seems to place its initial monthly loss since June. However, it is still bullish around 2% year-to-date.
Forex traders have bought into the confidence and cut their bullish positions on the U.S. dollar, which is why we see a slightly bearish trend in the U.S. dollar lately.
Economic Calendar – Eurozone’s Data Ahead
BTC/USD – Daily Analysis
The BTC/USD hasn’t changed much since yesterday as it continues to trade with in the same technical ranges. The BTC/USD has crossed above 23.6% Fibonacci resistance area of 9,345 level. Closing of candles above this level is suggesting a new trading range, which is likely to keep the BTC/USD in between 9,340 – 9,545 trading range.
The Bitcoin price (BTC) finished the week around $9,207, under 3.66%. Despite surprisingly weak volatility during the weekend, the bulls assisted in holding Bitcoin price over $9,000. At the moment, the BTC/USD continues to consolidate above $9,000 mark.
The BTC/USD has crossed above 23.6% Fibonacci resistance area of 9,345 level. Bullish bias seems strong today, and the BTC/USD may go after 9,700 on the violation of 9,500 resistance today.
BTC/USD – Daily Technical Levels
Key Trading Level: 9,359.35
BTC/USD – Daily Forecast
The BTC/USD continues to follow the same technical levels. But on the hourly chart, the BTC/USD has formed a symmetric triangle pattern, which is extending short term resistance at 9375 along with support at 9250. Symmetric triangle patterns don’t signal the direction of a potential breakout, which means the BTC/USD can breakout on either side.
The closing of candles above 9,375 may lead to BTC/USD prices toward 9,435 and 9,520. Conversely, the violation of 9,250 levels can lead the BTC/USD prices towards 9,130.
EUR/USD – Bullish Retracement Expected
The euro slipped 0.1% to $1.1070. Official data showed that the eurozone retail sales grew 0.1% on month in September (flat expected), while German factory orders increased 1.3% (+0.1% expected).
The German data is scheduled to release at 07:00 GMT and anticipated to show the Industrial Production dropped by 0.4% month-on-month in September. The final figure is expected to release at -2.9% against -4% during the Agust.
Germanys manufacturing slowdown had increased during September with the IHS Markit Purchasing Managers Index reached 41.7 during September to mark the weakest figures since 2009.
EUR/USD – Daily Technical Levels
Pivot Point 1.114
EUR/USD – Daily Forecast
The EUR/USD bounced off above 1.1065 level but couldn’t make it to 1.1100 resistance level and reversed from the way. At the moment, traders may keep an eye on 1.1065 to stay bullish above and bearish below this level. On the upper side, resistance stays at 1.1101, while bearish breakout of 1.1065 can extend sell-off until 1.1025 level.
GBP/USD – BOE Interest Rate Decision Ahead
The British pound fell 0.2% to $1.2855. The Bank of England is anticipated to keep its benchmark rate unchanged at 0.75% later today. It’s a significant day for the Sterling pairs as the Bank of England is scheduled to release Monetary Policy decisions later in the European session. Overall, the BOE isn’t expected to change their interest rates from 0.75%, as it’s peers FED and ECB did during the previous months, but the Sterling is facing bearish pressure over sentiments.
The United Kingdom is dispensing interest in the coming election, which is scheduled to happen in December month poll where the United Kingdom Prime Minister Boris Johnson is well strong against the opposition Labour party leader and seems not hesitate while using the harsh words against the opposition.
For now, the markets will keep their eyes on the Bank of England’s monetary policy decision and the quarterly Inflation Report for fresh hints. Whereas the broad decided to no change in the current monetary policy for now. The traders will mainly be interested in Governer Carney Speech for more details.
After the news release and when the BOE leaves the interest rate unchanged at 0.75%, we may see bullish bias in the GBP related pairs.
GBP/USD – Daily Technical Levels
Key Trading Level: 1.2885
GBP/USD – Daily Forecast
Technically, the GBP/USD continues to consolidate within a narrow trading range of 1.2810 – 1.2970. The 50 periods EMA rest and bearish engulfing candle on the 4-hour chart are likely to extend bearish trend in the GBP/USD. On the lower side, the GBP/USD may find immediate support at 1.2810, and violation of this level can extend selling until 1.2555.
All the best for today.