The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Daily News: the USD has plunged
- On Monday, the US dollar index plunged from 96.40 to 95.70. Up to now, the index has been continuing to suffer. It has already tested below the psychological level at 95.50. No important economic data will be released today. As a result, risks that the US dollar index stays at low levels are high. The support is at 95.50. The resistance is at 96.
The great fall was caused by several comments on the monetary policy. The first one was from the Federal Reserve member Mr. Bostic. He said he anticipates just one more rate hike this year (when the market expects two).
Mr. Trump invested in the fall of the USD saying that he is against the tightening policy of the Fed.
- Other currencies significantly rose after the plunge of the USD.
- The euro managed to recover as well. Yesterday EUR/USD rebounded from the pivot point at 1.1395. Up to now, the pair has tested resistances at 1.1490 and 1.1540. No important economic data will be released today. Therefore, odds of the break above 1.1540 are low. However, if the USD is weak, the pair has chances to stick above 1.1490.
- The British pound keeps moving up. GBP/USD has tested above the resistance at 1.2828. If the pair is able to close above this level, the further rise is anticipated. If the USD recovers, there are risks of the bearish trading. The support is at 1.2744.
- The USD/JPY pair has tested the support at 110. However, the support was strong as 38.2 Fibo level, 100-day and 200-day MAs lie there. As a result, the pair rebounded. Up to now, it has been moving up. The resistance is at 110.45 (50-day MA).
- The New Zealand dollar has significantly recovered as well. The pair opened at 0.6616 and has tested above the resistance at 0.67. The market anticipates a surplus in retail sales data tomorrow. As a result, the pair has chances to stay strong. If the USD recovers, the pair will turn around. The support is at 0.6635.
That’s all for today! Follow market news with FBS!
On Wednesday, China posted shockingly weaker surge in retail sales as well as industrial output for April, thus increasing pressure on the Chinese cabinet to roll out more stimulus because the trade conflict with America escalates…
In April, American import prices surged less than anticipated in April due to the fact that jumps in the cost of food and petroleum were tamed by the largest tumble in the price of capital goods for a decade, dropping a hint at the fact that inflation…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.