The US Dollar is considered as the biggest rival of the Euro, and these currencies often see a negative correlation. Another reason behind the Euro’s strength last week was the weakness of the US Dollar.

Michel Barnier, the EU negotiator on Friday, said that UK has accepted that the Custom border cannot be erected as a solution to the backstop, and both sides were racing to reach a deal before EU Summit next week.

US Dollar showed weak performance last week after the release of minutes from the Fed’s previous meeting, which showed a surprising split in tone among officials. Fed in the last month cut its bank rate by quarter points. 

The minutes revealed that some officials were against the bank rate cut, and some wanted an aggressive rate-cut. The speculations that the Fed will be more dovish next month made US Dollar wear. Overall, the banks will be closed in observance of Thanksgiving Day today. 

Economic Calendar – Thanksgiving Day

 

 


BTC/USD – Daily Analysis

The Bitcoin traders were excited to see Bitcoin had suddenly dropped the $8,600 resistance to break over $8,800 in less than an hour. It was a huge move, and it would have established the point that bulls had obtained enough force to start a rally.

Since its very small pump to $8,700 on Friday, BTC dropped back to support at just over $8,300 and settled there for the span of the weekend. Very light trading activity had occurred until late Sunday trading in the New York trading session when the BTC/USD was pushed above $8,400 for a few hours.

BTC/USD – Daily Technical Levels

Support Resistance 

8133.86 8654.05

7951.34 8991.72

7431.15 9511.91

Pivot Point 8471.53

BTC/USD – Daily Forecast

Bitcoin is gaining support above 8,115 levels, with a resistance of 8,340 levels. On the hourly timeframe, bullish trendline supporting the BTC/USD above 8,115 level. Today, a bullish breakout of 8,340 resistance can lead the BTC/USD prices towards 8,500 level.

 


EUR/USD –  Resistance Become Support 

EUR/USD was closed at 1.10360 after placing a high of 1.10627 and low of 1.10008. The overall trend remained Bullish for EUR/USD pair prices on the ending day of the week.

Despite the concerns of the German Economy falling into recession this year, EUR/USD showed gain throughout last week and is moving towards further gains next week.

Euro gained from the fresh speculations that European Central Bank might be hesitant to avoid taking another dovish measure on Eurozone Monetary Policy due to split views among officials. The news stated that ECB President Mario Draghi ignored the advice in contradiction of the reintroduction of quantitative easing. This gave the thought that ECB was not as dovish as expected and made Euro stronger.

The US Dollar is considered as the biggest rival of the Euro, and these currencies often see a negative correlation. Another reason behind the Euro’s strength last week was the weakness of the US Dollar.

US Dollar showed weak performance last week after the release of minutes from the Fed’s previous meeting, which showed a surprising split in tone among officials. Fed in the last month, cut its bank rate by quarter points. The minutes revealed that some officials were against the bank rate cut, and some wanted an aggressive rate-cut. The speculations that the Fed will be more dovish next month made US Dollar wear.

The US-China trade talks also caused decreased demand for haven US Dollars when two parties agreed on a partial deal on the ending day of last week. The EUR/USD gained to a 3-week high place on Friday and showed a robust Bullish trend previous week.

EUR/USD – Daily Technical Levels

Support Resistance

1.0932 1.0988

1.0909 1.102

1.0854 1.1075

Pivot Point 1.0964

EUR/USD – Daily Forecast

The EUR/USD is forming higher’s high and higher’s low pattern on the hourly chart. With this, the trend seems bullish, and the bullish trendline is supporting the pair around 1.1020 today. Above this, the EUR/USD may continue with its bullish trend until 1.1050. Whereas, the violation of 1.1020 can lead the EUR/USD towards 1.0990 level.

 


GBP/USD – Sterling On Fire Amid Brexit Updates 

A day before, GBP/USD was closed at 1.26468 after placing a high of 1.27071 and a low of 1.24079. The overall trend remained Bullish for GBP/USD pair prices on the ending day of the week.

After Thursday’s meeting of UK President, Boris Johnson and Irish Premier, Leo Varadkar Sterling has jumped the most over two days since 2009. Both parties shared the same comments after the meeting that they could see a pathway to a deal before the deadline of Brexit.

On Friday, Johnson admitted that there was a way forward for Brexit to deal with the EU, but much work needs to be done. He also said that he could not give commentary on the running negotiations when asked about Northern Ireland staying under EU custom union.

But Michel Barnier, EU negotiator on Friday, said that UK has accepted that Custom border cannot be erected as a solution to the backstop, and both sides were racing to reach a deal before EU Summit next week.

This news caused a dramatic increase in the demand for Pound and created a robust Bullish trend for GBP/USD on the ending day of the week. Weaker US Dollar due to US-China trade talks added further in the upward direction of GBP/USD that day and made a sudden jump in prices after a decade.

GBP/USD – Daily Technical Levels

Support Resistance 

1.2469 1.2768

1.2289 1.2887

1.199 1.3185

Pivot Point 1.2588

GBP/USD – Daily Forecast

Two things about the GBP/USD. Firstly, the GBP/USD has violated the double top resistance level of 1.2535, and this level can keep it bullish above this level. On the upper side, the GBP/USD has the potential to go after 1.2760. Right now, the GBP/USD is holding above 38.2% Fibonacci retracement at 1.2590, and violation of this could drive further retracement in the Cable until 1.2527. So, 1.2585 is a crucial level to focus on today.

All the best for today. 

 

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