On Wednesday, the Greenback strengthened and traded around a seven-week high versus the yen, following the Federal Reserve slashes in the interest rates. The rate cut is done by a quarter of a percentage point, as anticipated, but gave an ambiguous viewpoint on future easing.
On the other hand, the U.S. greenback reached session top against the yen following the Fed rate cute, standing in seven of the previous eight sessions.
The U.S. Fed extended the nod to continuing global risks and “vulnerable” market investment and exports, therefore, the lowering interest rates by 25 basis points may help the U.S. economy getting a bit of stability.
On Thursday, we have monetary policy decisions due from the BOE, SNB, and BOJ. It’s going to be a busy day, so let’s get prepared for it.
Economic Calendar – BOE, BOJ and SNB Rate Deicsions
BTC/USD – Daily Analysis
Bitcoin is yet nearby the supply-demand junction area of $10,200 – $10,400. This region also includes the two major moving average lines: The 50-days and the 100-days. In the event of a bullish breakout of the triangle discussed previously and moving average ranges $10,500, we can assume the next critical point to be $10,800. Above this, we may see BTC going towards $11,000 resistance level.
Let’s say, if Bitcoin plans to violate the 11K level, the same level may work as a support, instead of resistance.
On the bearish side, a decline of $10,200 (the prevailing price range) will carry Bitcoin to retest $10,000. Farther beneath is $9,875 and $9610 ere the notable supporting trend-line at $9410.
The RSI is losing momentum, as it’s showing bullish and bearish trends without a clear indication about the market. However, it’s holding below the 50 bullish areas.
BTC/USD – Daily Technical Levels
Pivot Point 10238.87
BTC/USD – Daily Forecast
On Thursday, the BTC/USD continues to trade within the Symmetric Triangle Pattern, which is supporting it around 10,000 points along with resistance at 10,400. A bearish breakout can prompt sell-off unto 9910 area, and the bullish breakout is expected to promote BTC towards 10,500 and 10,700.
EUR/USD – 61.8% Fibo Level Extends Support
On Thursday, the single currency Euro is trading lower versus the U.S. Dollar as traders are pricing in the latest release of the U.S. Federal Reserve’s interest rate decision, monetary policy statement and interest rate cuts.
The Fed released the interest rates as assumed, lowering the federal funds rate by 25 basis points from 2.25% to 2% range. However, here the hawkish thing is that the two voting members voted for a no-change.
The Fed’s dot-plot exhibits that there are no additional interest rate cuts expected this year. Economic growth has undergone an inadequate upward review, although there remained no adjustments to inflation forecasts when related to June’s estimate.
Technically, the pair is holding just above a substantial support area of 1.1020, and closing of candles above this level are indicating chances of a bullish reversal. This level is extended by the 61.8% Fibonacci retracement, which is suggesting odds of a bullish reversal above 1.1020 area. Whereas, below this, the EUR/USD may fall towards 1.0990.
EUR/USD – Daily Technical Levels
Pivot Point 1.1026
EUR/USD – Daily Forecast
The EUR/USD is likely to stay bullish above 1.1020 area, having placed the stop loss around 1.1000 and take profit around 1.1040 and 1.1065.
GBP/USD – Weaker Inflation Weights
The GBP/USD is trading around 1.2465 zones, not far from yesterday’s opening price. Traders now seem to shift their focus on the Bank of England’s interest rate decision.
A day before, the British Pound trimmed lower after rising to a new six-week top on optimism for a last-minute Brexit agreement, while traders shifted their focus to the Bank of England conference which is due later today.
The GBP/USD dropped 0.2% in early European trade to $ 1.2476, but that resulted in a modest increase on Tuesday to $1.2528 on the back of confidence that Prime Minister Boris Johnson was attempting to achieve a Brexit deal with the European Union ere the Oct. 31 deadline.
The GBP/USD pair continues to trade the as ascending triangle pattern, which is supporting the GBP/USD above 1.2460, and the bearish breakout can lead its prices towards 1.2395 area.
The RSI has entered the bearish zone, suggesting odds of a bearish trend continuation. The 50 periods EMA is staying at 1.2440 area and may provide an extra layer of support to the GBP bulls.
GBP/USD – Daily Technical Levels
Pivot Point 1.2435
GBP/USD – Daily Forecast
I would be looking to stay bullish above 1.2435 support area to target 1.2500 and 1.2520 levels. While selling can be seen below 1.2430 regions today.
All the best for today.