Bitcoin seems to reverse up from the local dips. Are there enough reasons to buy it now?
What drives the market on August 10?
The market has started the week with a mixed sentiment. The US dollar is holding its gains, while the S&P 500 is edging higher.
- On the one hand, the ongoing disputes between Democrats and Republicans add uncertainty to the market. They can’t reach an agreement over the fiscal stimulus package. The delay of announcing may weigh on the US economy. Another reason, which may deteriorate the overall sentiment, is US-China trade talks, which are scheduled for this week. If countries don’t make a deal, safe-havens will be boosted.
- On the other hand, the NFP report pleasantly surprised investors. It came out better than expected. Non-farm payrolls rose by 1.76 million, while the forecast was 1.53 million. Average hourly earnings and unemployment rate beat all estimates too.
Let’s look at the EUR/USD chart. If it crosses the key psychological mark at 1.1800, it may climb up to the 61.8% Fibonacci level at 1.1820. Otherwise, if it falls below the support at 1.1750, which it has touched several times, it may drop even deeper to 1.1700.
The S&P 500 is approaching the all-time high at 3 390. It has been rising for 9 consecutive days. Watch out support levels at the lows of the beginning of this year at 3 325 and 3 270.
Gold is trading near the $2 030 level. The move above $2 050 will push the yellow metal to the record high at $2 075. On the flip side, if the price drops below $2 025, it may fall even deeper to the key psychological mark at $2 000.
Finally, let’s look at the USD/JPY. The pair is edging higher on the positive NFP data. If the price jumps above 106.00, it will open doors towards the high of August 3 at 106.30. Support levels are at 105.70 and 105.40.
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
The greatest sale of Bitcoin continues! It has approached the psychological mark of $30,000. The traders’ focus remains on Thursday’s report on US inflation.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?