A day before on Monday, the U.S. dollar dropped ahead of an expected Federal Reserve rate cut later this week, whereas the Brexit delay improved boosting the Sterling.
The U.S. dollar index, which gauges the dollar’s health versus a basket of six leading currencies, was depressed by 0.1% to 97.558. On Wednesday, the U.S. Fed is anticipated to lower rates for the third time this year. Still, traders are waiting for remarks at a central bank press conference to obtain more info if the policymakers proceed to loosen monetary policy.
Today, investor’s focus stays on the U.S. Consumer Confidence figure, which may help traders capture some price action in the U.S. dollar pairs.
Economic Calendar – C.B. Consumer Confidence Eyed!
BTC/USD – Daily Analysis
The leading cryptocurrency Bitcoin gained support on Monday as it soared to a one-month high over the weekend following China’s president comments. Mr. Xi Jinping stated the world’s second-biggest economy should expedite the growth of blockchain technology.
During the previous week, there was a dramatic rally in bitcoin over the $7,500 and $8,000 resistances versus the Greenback. The BTC even climbed over the $9,500 and $10,000 levels ere taking a bearish retracement.
Later, the price corrected below the $9,500 support and the $9,000 pivot place. Nevertheless, the drop was contained beneath $9,000, and the rate persisted well over the 100 hourly simple moving average.
BTC/USD – Daily Technical Levels
Key Trading Level: 9,481.46
BTC/USD – Daily Forecast
The BTC/USD has formed a fresh low of around $8,896, while bitcoin began a steady increase. It has violated the $9,000 and $9,200 resistance points. Furthermore, there was a violation of the 50% Fib retracement mark of the downward correction from the $10,578 high to $8,896 low.
Recalling our previous update, the BTC/USD has formed a Doji or Spinning Top pattern beneath 10,000-mark that can trigger a bearish retracement until 8,900 (already achieved) and 8,600.
For now, the BTC/USD is trading at 9,470 area, having an immediate resistance at 9,800, and the bullish breakout of this level can extend buying until 10,350, and 10,750 remain strong resistance.
EUR/USD – 1.1100 Stays In Eyes
A day before, the single currency Euro soared a little during the early hours of Monday but proceeded to see much resistance just above. The 1.11 level is presently offering a bit of hurdle possibility, and if that’s going to be the case, forex traders are likely to look for selling trades in the Euro again.
The dollar traded slightly soft due to the probability of the third rate cut by the U.S. Federal Reserve this month. Besides the downward movement of the EUR/USD, the likelihood of a slowdown hitting the German Economy is yet likey, adding bearish pressure to the single currency Euro.
On Monday, the German Import Prices, Money Supply, and Private Loans performed positively. German Import Prices declined by 2.5% in September 2019 versus the same month of the previous year.
As published by the Federal Statistical Office (Destatis), in August 2019 and July 2019, the annual percent change was -2.7% and -2.1%, sequentially. Whereas, the index surged by 0.6% from August 2019 to September 2019.
EUR/USD – Daily Technical Levels
Key Trading Level: 1.1096
EUR/USD – Daily Forecast
The technical view of the EUR/USD hasn’t improved much from yesterday. The EUR/USD bounced off after testing the support level of 1.1065, which was extended by the bullish trendline.
The 50 periods EMA which was extending support to the EUR/USD, is extending resistance 1.1100 area, and closing below this level can trigger further selling in the EUR/USD today. On the lower side, support remains at 1.1065, and over 1.1100, the primary resistance is likely to be found around 1.1145.
GBP/USD – Sideways Range In Play
The GBP/USD surged 0.3% to 1.2858 while EUR/USD was up 0.1% to 1.1091. The contract is likely to carry a quicker departure if a withdrawal deal is consented to by the U.K. earlier.
The U.K. Parliament was set to schedule to vote later on Monday on whether or not to keep a general election ere Christmas to try to confirm the withdrawal deal accepted by the EU with Prime Minister Boris Johnson.
The British Pound could trade lower versus the US Dollar within the subsequent trading session. A potential downside spot is the 1.2760 level. Additionally, I perceive that some volatility could happen in the market on the back of the UK Parliament Brexit Vote, which later got rejected.
Administrators in the U.K. have denied the government’s offer to hold a general election on December 12. Following the laws, two-thirds of Parliament (434 MPs) were required to support the motion for it to qualify. But the numbers dropped short as opponent lawmakers refused the opportunity to take on Prime Minister Boris Johnson at the ballot box.
GBP/USD – Daily Technical Levels
Key Trading Level: 1.2851
GBP/USD – Daily Forecast
Just like the EUR/USD, the GBP/USD also hasn’t traded much as investors felt hesitant to open trades in the wake of the UK Parliamentary vote. Today, 1.2832 continues to remain the fundamental trading level as under this, the GBP/USD pair can extend to trade lower till 1.2750. On the flip view, the bullish violation of 1.2835 can drive the GBP/USD towards 1.2920.
All the best for today.