On Wednesday, the U.S. dollar index that measures the dollar’s strength against a basket of peer currencies surged 0.2% to 98.10. Traders are now looking for further developments in the United States after House Speaker Nancy Pelosi announced a formal impeachment probe into President Donald Trump.
The risk appetite rose after Trump’s trussed at Iran, along with oil-related geopolitical tensions in the Middle East, also sent yellow metal gold toward the $1,550 zone.
Economic Calendar – Stronger Dollar Plays
BTC/USD – Daily Analysis
What a day for the bitcoin, the leading crypto fell dramatically to trade at 8,537.5, losing around -1227.1 and -12.57% for the day.
Over the period of just 30 minutes, starting at 16:00 UTC on Sept 24, bitcoin prices fell beneath $8,000 — its weakest point since June 12 of this year.
Besides, $30 billion has been pulled out of the market across 24 hours as traders attempted to close their trades amid a frenzied sell-off.
On the 4-hour timeframe, the BTC/USD is now facing substantial resistance at 38.2% Fibo level of 8650 area. Sights are now steadily set on the 200-day moving average (MA) that would formally consider the inauguration of a fresh bear market should a firm close below $8,311 occur.
BTC/USD – Daily Technical Levels
Pivot Point 9,965.17
BTC/USD – Daily Forecast
The BTC/USD has violated and broken below the descending triangle pattern support of 9300 on the daily chart. It has placed a low of around 7761, while the support level stays at 7600 levels. For now, the bitcoin is likely to continue trading in a new trading range of 9300 – 7600.
Technically, the BTC/USD has completed 50% retracement at 8765, and bullish breakout of this level can lead BTC towards 9040 area. Below this, 8500 and 8320 remain the support for BTC/USD.
EUR/USD – German Business Climate Improves
The EUR/USD opened at 1.1022 and lost around -0.17% during the Asian session to trade at 1.0990. The pair was under pressure at the beginning of the new trading week due to weak economic data release about German & French PMI on Monday. However, today after the positive release about German Business Climate, the pair pulled back and started to move upward.
At 13:30 GMT, the German Business Climate came as 94.6 for the month of September greater than 94.3 of August’s improved the mood around Euro and created a bullish trend for pair.
At 19:00 GMT, the release of C.B. Consumer Confidence by U.S. based Conference Board Incorporation showed a figure of 125.1 in comparison of expected 134.1 weakened the U.S. Dollar hence, gave further strength to EUR/USD pair.
The pair was under pressure for past two consecutive days, but the economic data release related to EUR & USD on Tuesday came in favor of EUR/USD pair and created a robust bullish trend in the market.
EUR/USD is currently trading at $1.10036 after placing a high of $1.10198.
Despite all favorable economic data releases, Euro is still under pressure due to the presence of possibility for Germany to fall into recession and because of the emerging hopes for a substantial agreement between U.S. & China trade talks in the coming month.
EUR/USD – Daily Technical Levels
Pivot Point 1.1009
EUR/USD – Daily Forecast
On the hourly timeframe, the EUR/USD is testing bullish trendline at 1.1000 area, which is likely to push it upward. The bounce off above 1.1000 level can drive buying until 1.1020 and 1.1045. Conversely, the violation of 1.1000 support can bring sell-off until 1.0985 and 1.0970. Bullish bias seems stronger above 1.1000, and bears can dominate below the same level today.
GBP/USD – CBI Realized Sales Ahead
The GBP/USD opened with1.24294. On Tuesday, the Supreme Court of the United Kingdom ruled that the shut down of Parliament by the government was illegal. This news gave hope to the idea of British leaving the European Union; as a result, the British Pound rallied.
All of this was about the impending deadline of Brexit on Oct 31.
In August, Boris Johnson, the Prime Minister of United Kingdom, vowed that U.K. would leave European Union on Oct 31 with or without any deal settlement with E.U. However, many lawmakers were against no-deal Brexit and wanted to stop it at any cost.
Later, on Aug 28, Johnson announced the prorogation of Parliament to be executed until mid-October. Prorogation or discontinuing a session of Parliament is a power that can only be carried out by the Queen on the advice of prime minister.
On Sept 10, the Parliament was suspended on the basis that Johnson has advised the Queen about prorogation, so it was legal.
The rivals claimed that prime minister was trying to stop the opposition through such action. However, Johnson insisted that it was just an act of following standard procedures for a new leader.
However, the supreme court decided today that Boris Johnson acted illegally, and the shutdown of Parliament was unlawful. The market immediately reacted to a court decision on Tuesday, and the British Pound gained strength after the pressure of two consecutive days.
At 13:30 GMT, the data release about U.K. public sector net borrowing showed the amount of 5.8B which was expected as 6.5B, also gave strength to Sterling.
At 19:00 GMT, the release of C.B. Consumer Confidence by U.S. based Conference Board Incorporation showed a figure of 125.1 in comparison of expected 134.1 weakened the U.S. Dollar hence, gave further strength to GBP/USD pair. The pair is currently trading at 1.24781 after placing a high of 1.25026.
GBP/USD – Daily Technical Levels
Pivot Point 1.247
GBP/USD – Daily Forecast
The GBP/USD has tested 1.2500 area and now its heading towards 1.2470 support area. The bearish breakout of this level can extend it’s selling until 1.2446 today. It’s likely to be B to C level for the Cable. While C to D wave is expected to initiate from 1.2445 area to meet 1.2535 area.
All the best for today.