Greenback gives back recent gains over new stimulus bill
The US dollar index gave back a significant portion of its recent gains, as the Republicans and Democrats moved closer to agreeing on the terms of a new US coronavirus stimulus package. The greenback gave back a portion of its recent gains against the euro, Swiss franc, and antipodeans currencies as traders and investors feared the measure would cause rising inflation in the US economy. US stock markets also rose on the encouraging stimulus news, with the S&P 500 rallying back towards the 3,400 level. Markets failed to react to a largely chaotic US President debate this week, as no clear debate winner could be identified.
- The S&P 500 is only bullish while trading above the 3,330 level, key resistance is found at the 3,395 and 3,425 levels.
- The S&P 500 is only bearish while trading below the 3,330 level, key support is located at the 3,300 and 3,220 levels.
The BTCUSD pair suffered from market uncertainty this week, as the cryptocurrency recovered, and then eroded its gains on bearish news surrounding the crypto exchange BitMex. Bitcoin moved back towards the $11,000 resistance level, as on-chain data showed a strong uptick in the amount of new users Bitcoin. The BTCUSD pair then fell sharply, over the news that CFTC was charging a number of executives involved with the cryptocurrency exchange BitMex. Bitcoin continued to benefit from strong institution demand from Grayscale Investment and Microstrategy, as they continue to accumulate large amounts of the cryptocurrency for investors on price dips towards $10,000.
- The BTCUSD pair is only bearish while trading below the $10,550 level, key support is found at the $10,200 and $9,800 levels.
- The BTCUSD pair is only bullish while trading above the $10,550 level, buyers may test towards the $11,100 and $11,700 resistance levels.
The euro received a strong boost against the US dollar and the British pound this week, as the single currency looked to recover recent losses. The EURUSD recovered higher due to US dollar weakness, and improving EU data after the pair suffered its worst monthly loss of the year so far in September. The euro also made strong gains against the British pound, as Brexit negotiations and fears over a second COVID-19 lockdown in the UK supported the EURGBP pair. Eurozone PMI data for France, Germany, and Italy, showed that Manufacturing activity for all three core EU nations expanded during the month of September.
- The EURUSD pair is only bearish while trading below the 1.1690 level, key support is found at the 1.1610 and 1.1500 levels.
- The EURUSD pair is only bullish while trading above the 1.1690 level, buyers may test towards the 1.1780 and 1.1840 resistance levels.
Altcoins staged a notable rebound this week, as positive sentiment surrounding Bitcoin helped boost the short-term prospects for Etheruem and Litecoin. Ethereum continued its double-digit recovery, as the second-largest cryptocurrency firmed above the technically important $350.00 level. Traders and investors also remained optimistic about the launch of Ethereum 2.0. Litecoin, the twelfth-large cryptocurrency by market capitalization moved back above its trend defining 200-day moving average, after incurring its worst monthly percentage loss since March this year.
- The LTCUSD pair is only bearish while trading below the $46.00 level, key support is found at the $44.00 and $41.00 levels.
- If the LTCUSD pair trades above the $46 level, buyers may test towards the $51 and $54 resistance levels.