The U.S. dollar fell during the previous session after New York Federal Reserve President John Williams said the economy looks “weaker than previously thought” and the central bank needs to stay flexible. His remarks were enough to drive sharp bearish moves in the dollar and bullish moves in the precious metal gold.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.5% to 98.415.
Today, the market will be focusing on the advance NFP figures and crude oil inventories from the United States to drive further trends in the market.
Economic Calendar – ADP NFP Figures Highlights
BTC/USD – Daily Forecast
On Thursday, the leading cryptocurrency Bitcoin (BTC) continues to trade sideways within a narrow trading range of 10,650 – 10,350. The pair continues to eye $11,000, with mostly registering minor gains on the day.
Bitcoin (BTC) price was testing support at $10,500 on Sept. 4 after its latest move upwards began to stabilize. After displaying an extraordinary price movement of violating 9890 on Wednesday, the Bitcoin is holding in a narrow range of 10,750 to 10,350.
Speaking about the technical side, the BTCUSD is likely to go after 11000 levels, but before this, we may experience a slight bearish retracement in Bitcoin, and that’s exactly what BTC is doing right now.
The RSI and Stochastics, both of the leading indicators have come our of the bullish zone; in fact, it’s entering the oversold zone now. Investors seem to have done doing profit takings; we may experience a continuation of a bullish trend now.
BTC/USD – Daily Technical Levels
Pivot Point 10588.23
BTC/USD – Daily Forecast
Recalling the previous forecast, the BTC/USD violated the resistance level of 10,450, and it was expected to reach below the next target level of 10,850. The target level is already met, and now BTC/USD can experience slight correction until 10,447 and 10,244. While the resistance remains the same around 10,850.
EUR/USD – Oversold Pair Recovers, What’s Next?
EUR/USD currency pair hit the short term bullish reversal ahead of German data scheduled for release at 06:00 GMT.
As of writing, The German data is due to release at 06:00 GMT is expected to present the Factory Orders dropped at a seasonally adjusted 1.3% year-on-year in July, following a 3.36% slide in June.
The headline IHS Markit and BME Germany Manufacturing PMI – a single-figure snapshot of the performance of the manufacturing economy – dropped to the 7th-year low of 43.2 during July, mainly due to the steepest decline in new export orders since 2009.
It should also be noted investors are buying risk due to new doubt on the possible United States and China trade war resolution and the declining possibility of a hard Brexit. Besides this, the unexpected bigger decline in the german Factory Orders is needed to put EUR under pressure.
The Shared Currency could increase towards the resistance at 1.1064, due if the Factory Orders deliver the figure according to forecast or blow past expectations.
The Factory orders released y the Deutsche Bundesbank is a hint that included shipments, inventories, and new orders.
EUR/USD – Daily Technical Levels
Pivot Point 1.0974
EUR/USD – Daily Forecast
As suggested earlier, the EUR/USD has completed bullish rally until 1.1020 and even soared higher to 1.1038. Now, the overbought currency pair is likely to face profit takings. We may see a slight retracement in EUR/USD until 23.6% retracement at 1.1011 and 38.2% retracement at 1.0995 before having further bullish waves. A bullish breakout of 1.1038 can lead pair towards 1.1065.
GBP/USD – Hopes for Brexit Delay Rally Sterling
The GBP/USD currency pair pullback to 1.2240 and hit the one-week high. The GBP/USD currency pair recently climbed due to the United Kingdom’s official voted to avoid the no-Brexit deal. While the members of the parliaments discussed many bills regarding no -Brexit deal and coming elections at the House of Commons.
On the other hand, markets also supported repeated uncertainty surrounding the United States and China trade due to representatives from both sides agree to meet in October. However, China’s media shows to doubt any breakout from the discussions.
At the Honk Kong front, Additionally, news reports that the Hong Kong leader has finally accepted to dismiss the bill that started to protests at home offered further support to the risk-on.
As well as, risk tone continues to positive with nearly 4-basis points (bps) of increases to 1.51% mark of the US ten-year Treasury yield by the press time.
GBP/USD – Daily Technical Levels
Pivot Point 1.2092
GBP/USD – Daily Forecast
GBP/USD is challenging the 1.2243 level as the market is trading above its main SMAs. If buyers overcome 1.2243, the market is set to move up towards 1.2274 and 1.2314 resistance levels, according to the Technical Confluences Indicator.
The GBP/USD pair is hanging just above the 1.2220 level, and the 4 hours chart shows a Doji pattern followed by a bullish reversal. We may see pair falling towards 1.2188, the 38.2% Fibo level. Let’s stay bearish below 1.2250 and bullish above the same to target 40 pips on both sides.