Justin Trudeau was on track to get a second session as Canada’s prime minister in an election viewed as a vote on the Liberal leader and his four-year-old government following a string of scandals.

After the closing of voting polls, Canadian broadcasters announced a Liberal minority government, which implies Trudeau will operate with other parties to rule.

The notable progress of Brexit and the US-China trade deal has decreased uncertainty from the market and supported Euro against the US Dollar last week. The pair showed remarkable growth in the previous week, but it moved in a downward trend at the beginning day of this week.

Economic Calendar – Canadian Elections, Justin Trudeau Wins!

 

 


BTC/USD – Daily Analysis

Bitcoin has soared over the $8,000 price mark during the Asian session despite showing symptoms of recovery in previous hours. The world’s biggest cryptocurrency place an intraday low of $7,950, before making its way to its current trading price of around $8,216. BTC is recording a surge of 3.73% in the past 24 hours.

A couple of days ago, the 18th million BTC was mined, devising the world with just 3 million specimens to mine, which was sufficient cause for crypto-skeptic Peter Schiff to allege that Bitcoin’s fate “looks horrible” and that it is merely a subject of time for the most common cryptocurrency to undergo a “rapid drop down to $4,000 or lower!”

BTC/USD – Daily Technical Levels

Support    Resistance 

7,822.83     8,079.36

7,694.36     8,207.42

7,437.83     8,463.95

Pivot Point 7,950.89

BTC/USD – Daily Forecast

The BTCUSD hasn’t changed much from yesterday. The pair were facing solid resistance at 8120 levels, which have now been violated. For now, the same level is working as support. We may see continuation pf a bullish trend above this level. 

On the upper side, the resistance can be seen at 8400. The RSI and MACD are holding in the buy zone, suggesting chances of further buying in the BTCUSD.


EUR/USD –  Resistance Become Support 

The EUR/USD closed at 1.11487 after placing a high of 1.11793 and low of 1.11387. Overall the trend remained Bearish that day.

In recent weeks the Eurozone and German economic data have indicated a slowdown in economic growth and increased the possibility of Germany to fall into recession. But Euro has managed to keep up its demand in the market due to global news.

The notable progress of Brexit and the US-China trade deal has decreased uncertainty from the market and supported Euro against the US Dollar last week. The pair showed remarkable growth in the previous week, but it moved in a downward trend at the beginning day of this week.

On Monday, EUR/USD showed upward movement in the beginning session due to stable macroeconomic release from Europe. The German PPI Producer Price Index for September showed growth to 0.1% in comparison to the drop in August to -0.5%.

This report decreased the possibility of a German recession and gave strength to the Euro. EUR/USD had dropped again on Monday when traders digested this report and continue to sell this pair in response to hopes for further rate cuts from Federal Reserve on 31 October.

The US Federal Reserve meeting is due at the end of October, and traders think due to a slowdown in economic growth, the fed would cut its rates by 25 basis points that day. Investors will be looking towards it for the next move.

EUR/USD – Daily Technical Levels

Support Resistance 

1.1133     1.1174

1.1116      1.1197

1.1075     1.1238

Pivot Point 1.1156

EUR/USD – Daily Forecast

The EUR/USD has closed a sort of Doji pattern right after forming a bullish engulfing candle on the daily timeframe. It’s suggesting weakness in the bullish bias among traders as the robust buying sentiment now seems to convert into neutral bias. Technically, the EUR/USD has strong support at 1.1140, along with resistance at 1.1175.

 


GBP/USD – Sterling On Fire Amid Brexit Updates 

The GBP/USD was closed at 1.29577 after placing a high of 1.30120 and a low of 1.28744. The overall movement was Bullish but remained up and down throughout the day.

The British pound has been overbought, and more purchase seems to be difficult on a new week. So, GBP/USD fell in the beginning day of the new week session; however, any news from the UK or EU can make the uncertain movements.

Sterling was also under pressure on Monday after the rejection of re-vote on the latest Brexit deal of PM Boris Johnson by the speaker of the House. The Brexit deal was defeated on Saturday after the majority of votes came in favor of the amendment for extension of Brexit by the UK Parliament.

PM Boris Johnson is now frustrated by the continuous decline of the UK Parliament over his latest Brexit deal. He wants UK to leave the EU on the said deadline of 31st October and wants to avoid extension, so he has decided to bring out the request for another vote on his proposed deal by UK Parliament on Tuesday again.

The Speaker of House has said that it is unnecessary to re-vote on the same issue in one parliament session. EU is waiting to see any progress in the UK Parliament to further decide about extension permission.

GBP/USD surged but with a limited extent on Monday after four consecutive days of strong Bullish movement and maintained its upward trend for 5th day.

GBP/USD – Daily Technical Levels

Support Resistance 

1.2897      1.3021

1.283         1.3079

1.2705       1.3204

Pivot Point 1.2955

GBP/USD – Daily Forecast

Sterling continues to surge as the bullish channel continues to extend support at 1.2950, along with an immediate resistance at 1.3012. Most of the market focuses on the Brexit Parliamentary Vote, which is due later in the day. In case the Brexit deal fails to capture enough votes, we may see the selling trend in Sterling or vice versa. Sterling may go after the 1.3065 area in case of a bullish breakout of 1.3012.

All the best for today. 

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