OctaFX | OctaFX Forex Broker
Open account Sign in
OctaFX | OctaFX Forex Broker
Sign in
Open account
Market Insights
Back
Nov 2, 2018

BRITISH POUND GAINS WHILE THE GREENBACK REVERSES COURSE

STERLING GAINS

The British pound performed its second largest one-day gain of the year against the US dollar this week, as news that the United Kingdom and European Union were close to agreeing on a Brexit deal over financial services. The GBPUSD pair had started the week under pressure towards the 1.2700 support level but quickly recovered back above the 1.3000 level on the news that London was close to a financial services deal with Brussels. Sterling also received a boost, as the Bank of England kept monetary policy unchanged but hinted that a interest rate hike may be announced sooner than previously expected.

  • The GBPUSD pair is bullish while trading above the 1.2852 level, further upside towards the 1.3080 and 1.3150 levels seem possible.

  • If the GBPUSD pair moves below the 1.2852 level, further downside towards the 1.2775 and 1.2700 levels seem possible.

CRYPTOCURRENCY MOVEMENT

The cryptocurrency market finally experienced directional movement this week, after spending weeks consolidating in tight range-bound trading conditions. Bitcoin, Ethereum and Litecoin all dipped lower earlier the week, as the broader cryptocurrency succumbed to technical selling pressure. Ethereum and Litecoin suffered the worst of selling, with both popular tokens declining over five per cent at one point. However, sellers failed to build on early week losses, prompting cryptocurrencies to recover back towards their previous trading ranges as the new month of November got underway.  

  • The BTCUSD pair is only bullish while trading above the $6,550 level, further upside towards the $6,730 and $6,800 levels seem possible.

  • If the BTCUSD pair trades below the $6,200 level, further losses towards the $6,050 and $5,800 support levels remains possible.

US DOLLAR REVERSAL

The US dollar index moved to a sixteen-month trading high this week above the 97.00 resistance level before sharply reversing course. The greenback surged across the board in early week trade after much better than expected Consumer Confidence and Private Sector employment data from the United States economy. The US dollar quickly gave back previous gains against a basket of top-tier currencies, following optimism over a potential trade deal between the United States and China and slightly weaker than expected Manufacturing PMI data from the American economy.

  • The USDJPY pair remains bearish while trading below the 112.87 level, further downside towards 112.20 and 111.60 levels seems possible.

  • If the USDJPY pair moves above the 112.87 level, further upside towards the 113.40 and 114.10 resistance levels remains possible.

AUSSIE PERFORMS

The Australian dollar rose sharply higher against the US dollar this week, following much better than expected domestic economic data and improved confidence in the global economy. The Australian dollar recorded its largest one-day gain against the US dollar since March 15th, 2017, as the Australian economy posted robust Trade Surplus figures and Producer Price Index data. The AUDUSD pair eventually soared above the 0.7200 level, after previously languishing just above the psychological 0.7000 level in early week trading.

  • The AUDUSD pair is bullish while trading above the 0.7180 level, further upside towards the 0.7280 and 0.7340 resistance levels remains possible.

  • If the AUDUSD pair trades below the 0.7180 level, a technical correction towards the 0.7150 and 0.7090 levels remains possible.

Start livechat