During the previous session, the U.S. dollar went dramatically bullish, putting gold and other rival currencies on to their knees. The greenback gained extensive support on Thursday as traders welcomed the U.S. President Donald Trump’s indications of progress toward a trade agreement with China.
Moreover, President Trump also doubted the possibility of an impeachment inquiry, making much progress in the short term.
Consequently, the greenback posted its sharpest intraday gain in three months during the late New York sessions. However, it’s trading sideways in Asian trade session today.
Economic Calendar – ECB, BOE & U.S. GDP In Focus!
BTC/USD – Daily Analysis
A day before, the Bitcoin price made a sharp bearish move, sinking almost 16% from the daily open at $9,691 to a fresh low at $8,164. In the meantime, the BTC/USD price violated reliable support at $9,090 and broke out of a long-held trading range of 10,250 – 9,810.
Let us recall, one of the major reasons behind such a massive fall in Bitcoin is that the traders pulled out around $30 billion from the market.
Well, what’s next?
On the 4-hour chart, you can see the Bitcoin is now facing sturdy resistance at 38.2% Fibonacci trading level of 8656
The intraday Relative Strength Index (RSI) is trading at 44, still holding in the bearish zone, suggesting odds of the further bearish trend in the BTC/USD.
The BTC/USD is now maintaining a new trading range of 8656 – 8200. Whereas, the bearish breakout of 8200 can extend bearish rally until 7975.
BTC/USD – Daily Technical Levels
Pivot Point 9,965.17
BTC/USD – Daily Forecast
The Bitcoin hasn’t changed much after it’s recent drop to 7761 area. Lately, the BTC/USD has tried to retrace back upward, but the 50% Fibonacci at 8767 area is keeping BTC under pressure. On the lower side, the BTC/USD may continue to gain support at 8240 area. While the bearish breakout could extend sell-off until 7800 zones.
EUR/USD – German Business Climate Improves
A day before, the EUR/USD opened at 1.10192 and is currently trading at 1.09456 after placing a low of 1.09373. It is showing a strong bearish trend today.
Due to lack of data release from Europe Side, the movement of EUR/USD was decided by U.S. Dollar this day. US Dollar was in high demand today against Euro and other currencies because of its High Yield on 10-yr & 5-yr Bonds.
The political disturbance in Washington due to President Trump’s Impeachment by white house speaker, Nancy, was in highlights early this day, but after the call summary release, the U.S. Dollar demand further raised. At the same time, the statement by Trump about a deal between the U.S. and China for ending trade disputes soon released and heightened the upward trend of USD.
All news in favor of U.S. Dollar on Wednesday along with high yields made the EUR/USD to move downward actively.
At 19:00 GMT, the release about U.S. New Homes sales showed a sharp increase by 713K which were expecting as 652K made U.S. Dollar even more robust and EUR/USD weaker, causing its movement further down.
On Thursday 26th September at 18:30 GMT, the ECB President Mario Draghi will speak which will affect the prices of EUR/USD.
EUR/USD – Daily Technical Levels
Pivot Point 1.1032
EUR/USD – Daily Forecast
The major currency pair EUR/USD has formed a triple bottom pattern on the daily timeframe, which is extending its support around 1.093. The pair is expected to surge to complete 38.2% retracement at 1.0960, and above this level, it can also go after 1.0990.
GBP/USD – CBI Realized Sales Ahead
The GBP/USD pair opened at 1.24922 and is currently moving at 1.23562 after placing a low of 1.23474.
After the failed attempt to suspend the parliament by the U.K. President, Boris Johnson, he was given with an almighty task to get the Brexit deal approved before 19 October, a deadline which was set by lawmakers.
The supreme court ruled the act to suspend parliament as an unlawful act. Judges said that with the Brexit deadline 31st October ahead, it was wrong to delay the parliament and stop the M.P.s from carrying out their duties. Boris Johnson disagreed with the ruling by supreme court but said that he respected it.
Johnson, who faced the calls to resign, will probably have to ask the European Union for another delay in 2019. That seems unavoidable because with the deadline coming in a few weeks it would be difficult to work out the Irish Border issue that soon. Boris is likely to call for general elections once again in the speech of parliament today.
At 13:30 GMT, the High Street lending of U.K. showed that it was low in September as 42.6K from previous month’s 43.3K made the sterling slightly weak today. However, the release of CBI Realized sales at 15:00 GMT, as -16 came greater than last month’s -49 gave little strength to Pound. So, the economic data release had a muted effect on GBP/USD prices this day.
Like all other currencies, GBP also faced the pressure of the U.S. Dollar, and the pair GBP/USD moved according to the stronger currency. The pair moved under pressure and fell to 1.23474 the lowest point in the past eight trading days due to strong USD.
U.S. Dollar was in high demand on Wednesday due to increased yields, political disturbance in Washington from U.S. President impeachment and the comment by Trump on making a deal sooner to end the trade war between U.S. & China.
GBP/USD – Daily Technical Levels
Pivot Point 1.2482
GBP/USD – Daily Forecast
The GBP/USD is also dipped 1.2340 level on stronger U.S. dollar. For now, the Cable has formed a tweezers bottom pattern on the 4-hour chart, which may drive a bit of bullish trend in the Cable. With that being said, the immediate bullish targets can be 1.2398, marking a 38.2% Fibonacci level. A bullish retracement is expected today. However, the violation of 1.2340 can lead the GBP/USD to 1.2285.
All the best for today.