Bitcoin value recovers alongside the broader cryptocurrency market
The broader cryptocurrency started to recover higher this week, with many of the leading digital assets posting impressive double-digit gains. Bitcoin recovered above its 200-day moving average for the first time in over two weeks, as cryptocurrency sentiment dramatically improved. The BTCUSD pair moved higher despite the SEC ruling against another Bitcoin Exchange Traded Fund due to security concerns. Ethereum recovered towards the $200.00 level after the second-largest cryptocurrency broke through the $180.00 resistance barrier. Litecoin posted marginal trading gains this week, as traders remained cautious towards the fifth-largest cryptocurrency by market capitalization.
- The BTCUSD pair is only bullish while trading above the $8,600 level, key resistance is found at the $9,300 and $10,00 levels.
- The BTCUSD pair is only bearish while trading below the $8,600 level, key support is located at the $7,700 and $7,100 levels.
The FOMC Meeting Minutes showed that the US central bank becoming more optimistic towards the US economy than market participants had expected. The Meeting Minutes from the September FOMC policy meeting showed that the US central remained positive towards the future of the US economy. The FOMC Minutes noted that the main risk to the US economy could come from overseas and that the overall US economy should continue to expand in the fourth quarter. The US dollar showed only a muted reaction to the news and eventually lost ground to the euro, British pound, Japanese yen, and antipodean currencies.
- The USDJPY pair is only bearish while trading below the 106.90 level, key support is found at the 106.50 and 105.50 levels.
- If the USDJPY pair trades above the 106.90 level, buyers may test towards the 107.90 and 108.45 resistance levels.
The British pound and UK equity markets suffered another volatile week as Brexit headlines continued to hit the wires. Sterling slumped towards the 1.2200 level, while the FTSE100 ended its recent winning streak over an early week set-back in Brexit negotiations. The British pound later recovered, as significant progress was reportedly made on the Northern Ireland backstop issue. PM Johnson could face a battle avoiding another Brexit extension if a Brexit deal is not struck before October 31st, which would see the United Kingdom’s departure date from the European Union pushed forward again.
- The GBPUSD pair is only bearish while trading below the 1.2275 level, key support is found at the 1.2250 and 1.2200 levels.
- If the GBPUSD pair trades above the 1.2275 level, buyers may test towards the 1.2480 and 1.2550 resistance levels.
The euro currency received a boost against the US dollar this week after the ECB monetary policy meeting accounts showed indecision towards QE. The meeting minutes of the September meeting showed that several members were opposed to the recent decision to bring back QE. The single currency moved to a fresh monthly trading high on the news, as traders and investors now expect the central bank may be more cautious towards increasing monthly asset purchases. The euro currency traded above the 1.1000 level against the US dollar for the first time in over a month.
- The EURUSD pair is only bullish while trading above the 1.0950 level, key resistance is found at the 1.1070 and 1.1110 levels.
- If the EURUSD pair trades below the 1.0950 level, key support is located at the 1.0920 and 1.0880 levels.