The U.S. Dollar has recorded an uptick in activity these past weeks, but that hasn’t accurately translated into a significant productive course from the benchmark currency. The greenback plunged on the back of a stable euro, though optimism for a thaw in Sino-U.S. trade war helped equity markets, limiting bullion’s gains.
On Monday, the economic calendar is a bit light as investors are expecting just manufacturing figures from China during the Asian session. Rest of the day is likely to “price in” the rate cut sentiments from the Federal Reserve, which is due on September 19, Thursday.
Economic Calendar – China’s Industrial Production In Action
BTC/USD – Daily Analysis
It’s been a whole week now; the BTC/USD traded in narrow ranges of 10500 – 10200. Bitcoin is trading at its current price of $10,350, and it’s trying to push up against its next resistance level of $10,400.
Bitcoin closed the week around 10292, right in the middle of upper and lower levels — the leading indicators such as RSI (Relative Strength Index) is holding into the selling zone, below 50 levels. This suggests the bearish bias among traders. However, the 50 periods EMA is indicating support around 10259.
BTC/USD – Daily Technical Levels
Pivot Point 10,120.08
BTC/USD – Daily Forecast
Last week, everyone was concentrating on the European Central Bank’s rate decision, perhaps that’s the reason we didn’t see much movement in the Cryptocurrencies. The BTC/USD is now trading in the Symmetric Triangle Pattern, which is supporting the leading cryptocurrency at the 10,000 level along with resistance at 10,400 level.
EUR/USD – Buy the Rumors, Sell the Fact
Last week, the European Central Bank declared a further stimulus package to underpin the slowing economy. For this reason, the ECB cut the interest rates and also allowed 20B worth of bond-buying program to help boost eurozone growth.
Many of you might be wondering, what caused a bullish reversal in the EUR/USD? Well, the ECB meeting result was broadly in line with our earlier forecasts. We forecasted two changes:
The f.irst variation was in the Asset buying program and Deposit Rate Cut. Therefore, investors started selling the single currency Euro on sentiments.
However, as per the actual outcome, the volume of EUR 20bn was on the weak side. The ECB also did not address the ending limits of this stimulus plan, which can be a burden on the Euro in the coming days.
This week, we may see EUR/USD trading on a bullish side as investors are now focusing on the dovish FOMC sentiments, which is due later this week.
On Friday, the single currency Euro took a sharp bullish reversal to close the week at 1.1074 area. Let’s look at the technical side of the market below.
EUR/USD – Daily Technical Levels
Pivot Point 1.1046
EUR/USD – Daily Forecast
Technically, the EUR/USD is trading right above the resistance become support level of around 1.1074. The RSI is holding in the overbought zone, suggesting the odds of bearish reversal. But the Doji candle above 1.1060 is supporting the direct currency Euro. Above 1.1070 level, the EUR/USD can drive the bullish trend in EUR/USD until 1.1125 and 1.1150 area.
GBP/USD – Bullish Breakout, Trade Talk Optimism Plays!
On Friday, the GBP/USD currency pair has surged for another week, ending Friday 1.2449, its highest since last July. The Sterling jumped on revived concerns the UK may get a way to transform the Irish backstop.
During the previous week, EU’s prime negotiator Michel Barnier stated that there’s no reason for resuming regular negotiations. Confidence was underpinned by a drooled story implying that the EU is ready to allow another delay on Brexit to bypass a no-deal.
Additionally, the latest developments indicate that UK PM Boris Johnson is preparing to obtain a settlement with the European Union. This appends to signs that the government is running away from a hard-Brexit.
In the meantime, Johnson is set to refuse any deadline delay. Beginning this week, the UK will publish the September Rightmove House Price Index, nothing that can seriously change Sterling’s trend.
GBP/USD – Daily Technical Levels
Pivot Point 1.2414
GBP/USD – Daily Forecast
As you can see in the chart above, the GBP/USD has already violated the sideways channel, which was keeping Sterling steady below 1.2380. The immediate resistance is likely to be around 1.2520 and 1.2560. While support can be seen around 1.2380. The RSI is massively overbought, so we may see GBP/USD going towards 1.2450 area before continuing bullish trends.
All the best for today.