Daily Market News by Xtreamforex

[xtreamforex]

Bitcoin – Bears Look to Bring Bitcoin Back Down to Earth
Bitcoin hits reverse in the early part of the day, a hold on to $6,700 levels needed to avoid a pullback to test sub-$6,600 support levels.
Bitcoin slipped by 0.5% on Saturday, partially reversing Friday’s 4.2% rally, to end the day at $6,728.1, the day’s fall leaving Bitcoin with a 3.51% gain for the current week.
A bullish start to the day saw Bitcoin strike an intraday high $6,840.9, coming within range of the first major resistance level at $6,880 and more significantly, breaking out from the 23.6% FIB Retracement Level of $6,757, before hitting reverse.
The reversal saw Bitcoin slide through the early morning to a morning low $6,638.8 before recovering through the afternoon to test selling pressure at the 23.6% FIB Retracement Level of $6,757, with an afternoon high $6,763.7.
A flash crash saw Bitcoin fall through the day’s first major support level at $6,563.3 to an intraday low $6,502.2, with Bitcoin finding the support to move back through to $6,700 levels, but unable to break back through the 23.6% FIB Retracement Level that has become a new line in the sand for the Bitcoin bulls.
While there was plenty of red across the broader market on Saturday, Ripple’s XRP continued to find support, eating into Bitcoin’s dominance, which slipped further through the day, sitting at 51.7% at the time of writing, the cryptomarket’s market cap holding relatively steady at $223.97bn.
Bitcoin may hold on to the number 1 spot by market cap, but the week’s moves could see Ripple’s XRP move into 2nd place, Ethereum’s market cap just 1.6bn larger than Ripple’s XRP.
On the news wires, it was a relatively quiet day, providing little incentive for investors to support a second consecutive rally for Bitcoin and the broader market, investors now looking ahead to the anticipated rollout of rules and regs that should ultimately culminate in an inflow of much needed institutional money through various products including Bitcoin ETFs, one of which is pending an SEC decision and is expected to be approved by March of next year, if not sooner.
The only question is how far Bitcoin will slide upon the introduction of rules and regs, the uncertainty the main reason behind Bitcoin’s failure to begin reversing the extended bearish trend formed back at early May’s swing hi $9,999.
At the time of writing, Bitcoin was down 0.11% to $6,715.4, with Bitcoin pulling back from a start of a day morning high $6,735.2 to a morning low $6,690 before recovering $6,700 levels.

 

[xtreamforex]

AUD/USD Forex Technical Analysis – Facing Series of Retracement Zone Resistance Levels
Based on last week’s price action and the close at .7288, the direction of the AUD/USD this week is likely to be determined by trader reaction to the short-term 50% level at .7284.
The Australian Dollar settled higher last week in what was essentially a follow-through move fueled by the closing price reversal bottom from the week-ending September 14. The rally looks impressive on the daily chart, but on the weekly chart, it is basically a retracement of a short-term range.
Typically, the reversal chart pattern triggers a 2 to 3 week counter-trend rally. The rally is usually 50% to 61.8% of the current range. The Forex pair already hit this objective so the counter-trend rally may be over. If not, it’s going to be a grind because of additional retracement levels overhead.
For the week, the AUD/USD finished at .7288, up 0.0133 or +1.86%.
Weekly Swing Chart Technical Analysis
The main trend is down according to the weekly swing chart. However, momentum shifted to the upside following a closing price reversal bottom and the subsequent confirmation of the chart pattern last week.
A trade through .7085 will negate the reversal chart pattern and signal a resumption of the downtrend. The main trend will change to up on a trade through .7484.
The short-term range is .7484 to .7085. Its retracement zone at .7285 to .7332 is the first upside target. This zone was tested last week.
The intermediate range is .7677 to .7085. Its retracement zone at .7381 to .7451 is the next potential upside target.

 

[xtreamforex]

AUD/USD Forex Technical Analysis – Short-Term Downside Target Zone .7194 to .7169
Based on yesterday’s price action and the close at .7251, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the Fibonacci level at .7257.
The Australian Dollar finished lower on Monday with the selling driven by renewed concerns over an escalation of the trade dispute between the United States and China. Position-squaring ahead of the widely expected U.S. Federal Reserve interest rate hike on Wednesday also contributed to the downside pressure. As far as the Fed is concerned, investors may be more interested in what the central bank has to say about the pace of future rate hikes.
The AUD/USD settled at .7251, down 0.0037 or -0.51%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top on Friday and the subsequent confirmation on Monday. A trade through .7304 will negate the closing price reversal top and signal a resumption of the uptrend.
The minor trend is also up. Yesterday’s price action turned .7304 into a new minor top.
Both the minor and main trends turn to down on a trade through .7142.
The main range is .7363 to .7085. Its retracement zone is .7224 to .7257. This zone is currently being tested. It is controlling the near-term direction of the AUD/USD.
The short-term range is .7085 to .7304. Its retracement zone at .7194 to .7169 is the next downside target.
Daily Swing Chart Technical Forecast
Based on yesterday’s price action and the close at .7251, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the Fibonacci level at .7257.
A sustained move under .7257 will signal the presence of sellers. If the selling pressure increases then look for a move into the 50% level at .7224. We could see a technical bounce on the first test of this level.
If .7224 fails as support then look for a potential acceleration to the downside with the next target zone .7194 to .7169. Since the main trend is up, buyers are likely to show up on the initial test of this zone.
A sustained move over .7257 will signal the presence of buyers. This could lead to an intraday short-covering rally. The uptrend resumes on a move through .7304

 

[xtreamforex]

Crypto Payments Are Here to Stay: WCDC Makes It Possible
The current challenges affecting cryptocurrencies have limited their use in a lot of potential areas. World Credit Diamond Coin (WCDC) is a cutting-edge project that seeks to eliminate this problem.
The transition of money has been exciting, looking back. From grains to precious metals to paper, money has been all this and more. Remember the times when a bank card was a luxury, something that only the rich could possess? Today, everybody has plenty of them. And we are now witnessing the times of digital money on blockchain technology.
The evolution of money is ongoing with the introduction of cryptocurrencies. Are cryptocurrencies for everyone? Are they the future of money as we know it?
Cryptocurrencies set to transform global finance
In the last decade, cryptocurrencies have been one of the most innovative technologies to be developed. Their inherent features aim to eliminate many shortcomings of fiat money. One of them is centralization, where few institutions control the production and distribution of money. Centralized control also affects cross-border money transfers as many intermediaries are involved. As a result, global transactions take days, or even weeks, to be completed.
Cryptocurrencies use blockchain technology to improve transparency, something that is dearly missing in fiat currencies. This is because unlike banks that act as intermediaries in fiat transactions, there are no third parties involved when cryptocurrencies are transferred from one point to another. Crypto transactions are validated by a network consensus and the information recorded on a shared ledger. The ledger can be accessed by anyone, thereby, improving transparency.
Lastly, cryptocurrencies have introduced a level of security not previously experienced with settlements involving fiat. Theft and fraud is a significant problem affecting traditional money. Cryptocurrencies are secure since they utilize cryptography to mask all the transactions. Therefore, even when implemented on a big scale, the threat of having to deal with fraud cases is essentially eliminated.

 

[xtreamforex]

The USD in Focus, with Economic Data and Trump in the Spotlight
Trade will continue to be the area of focus as Trump and Japan’s Prime Minister Abe meet to discuss trade terms. Any negative comments likely to raise tensions further.
Earlier in the Day:
There were no material stats released through the Asian session this morning, leaving the markets to consider the overnight FED rate hike and FOMC projections, Trump’s press conference and this morning’s RBNZ policy decision.
For the Kiwi Dollar, the RBNZ held rates at 1.75% as had been expected, while talk of improving labour market conditions provided a brief spike, a Kiwi Dollar rally tempered by the RBNZ’s concerns over the possible impact of the ongoing trade war between the U.S and China on the New Zealand economy.
In spite of better than expected growth in the 2nd quarter, the RBNZ noted that downside risks remained, with inflation continuing to fall short of the 2% mid-point of the RBNZ’s target supporting the need for status quo on policy. The RBNZ stated that accommodative policy would be maintained, with the next move unclear as the outlook for the global economy becomes clouded.
The Kiwi Dollar moved from $0.66562 to $0.66733 on the decision and release of the rate statement and monetary policy statement that preceded the RBNZ Governor press conference.
Through the RBNZ press conference, RBNZ Governor Orr reiterated key points from the policy statement, citing consumer price inflation sitting at below the 2% mid-point and caution over the outlook for domestic growth, the governor noting international trade policy tensions that could impact global growth.
On the bright side, reference to sliding business confidence was removed following September business confidence figures released on Wednesday, with the RBNZ Governor also seeing domestic consumption and government spending supportive of the economy near-term.
The Kiwi Dollar moved from $0.66622 to $0.66619 through the RBNZ press conference, before easing to $0.6656 at the time of writing, down 0.11% for the session.
Elsewhere, the Japanese Yen was up 0.03% at ¥112.70 against the U.S Dollar, geo-political risk supporting the Yen following the latest FED rate hike, as the markets look towards the Trump – Abe meeting on trade. For the Aussie Dollar, it was another positive start to the day, the Aussie Dollar up 0.03% at $0.7260 at the time of writing, recovering from losses earlier in the session.
In the equity markets, there was plenty of red, with the Nikkei down 0.33%, an uptick in the Yen and concerns over the Trump – Abe sit down weighing. Trade war jitters also pressured the CSI300 and Hang Seng, the pair down 0.39% and 0.44% respectively at the time of writing, while the ASX200 was down just 0.12%

 

[xtreamforex]

Gold Price Prediction – Prices Drop as The Dollar Rallies
Gold prices tumbled on Thursday, as traders buoyed the dollar following Wednesday’s decision by the Federal Reserve to increase interest rates. What was clear from the Fed decision is that looking forward the Fed will continue to raise rates until 2020. When rates hit 3.375%, the Fed believes they will have hit neutrality. As the yield differential moved in favor of the greenback, the dollar rose weighing on the yellow metal. Since gold is priced in dollars, a strong dollar makes gold less attractive in other currencies. US pending home sales disappointed as supplies rose but not where demand is available.
Technical Analysis
Gold prices dropped on Thursday hitting a fresh monthly low, as the dollar gained traction. Target support on the yellow metal is seen near the August lows at 1,160. Resistance is seen near the 10-day moving average at 1,198. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
The Fed Tightens Rates and Will Continue to Raise in 2019, and 2020
The FOMC tightened rates by 25-basis points and the majority of Fed officials see rates rising again in 2018. The Fed removed the term accommodative from their statement, but in a press conference Chair Powell said that rates still remain accommodative. The Fed provided projections for 2021, which shows no additional increases in the Fed funds rates. The Fed altered its growth forecasts increasing their growth figures 3.1% from 2.8% for 2018. The Fed raised its 2019 growth forecasts to 2.5% from 2.4%. The Fed kept its growth forecast for 2020 at 2%.

 

[xtreamforex]

EUR/USD Daily Price Forecast – EUR/USD Likely to be Bullish
The pair has been trying to find a bottom and if and when it manages to do that, we should see the dollar weakening.
Over the last few weeks, we have been seeing the rise and rise of the US dollar and the seeds of this rise had been sown during the first half of the year. For those who are closely associated with the markets, they would have seen this coming for the past few months and they would be glad that it is upon them as of this point. But the fall in the value of the EURUSD has not been very strong or hasnt been unidirectional at any point of time over the last few months.
EURUSD Strong Fundamentally and Technically
Rather than a quick fall, what we are seeing is a slow drip downwards and it has to be said that the Euro has managed the situation quite well as it continues to trade above the 1.10 region and continues to punch above its weight. The pair seems to be forming a base around the 1.15 to 1.16 region and on the daily chart, we can see that the pair is trying to form a large head and shoulders formation with the head being in the region that the prices were on August 15. This shows that there is a scope for the bullish momentum to build as we head into the last part of the year as long as the shoulders continue to hold in this formation.
On the fundamental side, things are pretty much clear for the USD in the days ahead and we believe that most of that has already been priced into the markets. The US has already shown its hand as far as the trade wars are concerned and also, we have seen that the Fed has been hiking rates in the same way that the market has been expecting it to do so. So it is clear that the markets are looking for something more from the Fed and the US and that can only lead to disappointment. So, we believe that the tide will turn in due course of time and that will provide an opportunity for the bulls to make a comeback with respect to the fundamentals as well.

 

[xtreamforex]

Gold Price Prediction – Prices Trade Sideways as the Dollar Rallies
Gold prices moved lower and continued to trade sideways in a tight range. This comes at the dollar broke out against the yen and moved higher against the euro. The dollar gained traction despite a slightly softer than expected ISM manufacturing report. Softer than expected EU PMI data and weak German retail sales weighed on the Euro. A weaker than expected Tankan survey was the catalyst that weighed on the yen.
Technical Analysis
Gold prices continued to consolidate and has been trading sideways for approximately 4-weeks. Support on the yellow metal is seen near an upward sloping trend line that comes in near 1,181. Resistance is seen near the 10-day moving average at 1,196. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the red with a declining trajectory which points to consolidation.
Data was Solid
Manufacturing data was solid, as the ISM manufacturing reported for September shows a contraction that was in line with expectations. The The Institute for Supply Management (ISM) reported that its national factory activity index declined by 1.5 points to a reading of 59.8 in September 61.3 in August. The August reading was the highest in 14-years. The index for new order fell to 61.8 from 65.1 in the prior month but still remains well above the 50, expansion contraction level. Employment rose to 58.8 which was the highest reading since February.

 

[xtreamforex]

Bitcoin – Bulls Fail to Deliver as the Bears Eye $6,300
Bitcoin kicks off the day in the red, with sub-$6,400 levels on the cards should a move back through to $6,500 levels not materialize by late morning.
Bitcoin fell by 1.2% on Tuesday, following Monday’s 0.34% decline, to end the day at $6,522.9, with the day’s decline marking it a 4th day in the red out of the last 5.
A positive start to the day saw Bitcoin come within reach of the first major resistance level at $6,673, with an intraday high $6,644.7 before succumbing to pressure from a broader market reversal that saw Bitcoin slide through the morning and early afternoon to an intraday low $6,467.9.
Falling through the day’s first major support level at $6,513 to come within range of the second major support level at $6,426.5, Bitcoin managed to bounce back to an afternoon high $6,589.2 before being hit by a late in the day pullback to leave Bitcoin with its heaviest lost since 25th September’s 2.15% slide.
In spite of the day’s reversal, Bitcoin’s dominance picked up to 51.9%, with some of the crypto majors seeing more material losses through the day, leading to the cryptomarket cap falling back to $218.08bn.
News of market manipulation by the WSJ would not have done Bitcoin and the broader market any favours, investors well aware that the SEC’s main concern over approving Bitcoin ETFs revolves around price manipulation.
Other negative news through the day included reports of New Zealand passing new laws that allows customs to gain access to traveller passwords for electronic devices or impose a fine. While the news is less related to traveller’s investment holdings and more to do with data storage, the wires took this as a potential threat to the privacy enjoyed by cryptocurrency investors.
Of greater concern will be the continued reports of price manipulation, which may pin back the hopes of Bitcoin ETF approvals near-term, the SEC’s position on Bitcoin ETFs considered a key driver for Bitcoin and the broader market, alongside sentiment towards the regulatory landscape.
At the time of writing, Bitcoin was down 1.17% to $6,451.1, Tuesday’s late reversal continuing into the early hours of this morning. Bitcoin has fallen from a start of a day high $6,545.1 to a morning low $6,424.6, sliding through the first major support level at $6,445.63 before finding support.
For the day ahead, a move back through to $6,500 levels would signal a possible afternoon rebound, with Bitcoin needing to move through the morning high $6,545.1 to bring $6,600 levels and the day’s first major resistance level at $6,622.43 into play, though we can expect Bitcoin to face plenty of resistance on any run at $6,600 levels later in the day.

 

[xtreamforex]

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 04/10/18
It’s a positive start to the day, with the cryptos looking to recover recent losses, the news wires needing to remain friendly for the gains to hold.
Bitcoin Cash Looks for a Rebound
Bitcoin Cash slid by 2.86% on Wednesday, following on from Tuesday’s 0.38% fall, to end the day at $517, Bitcoin Cash seeing red for a 5th day in 6.
A particularly bearish start to the day saw Bitcoin Cash slide from an early morning intraday high $534 to a late morning intraday low $507, Bitcoin Cash falling through the first major support level at $517.2 to come within range of the second major support level at $503.1 before recovering to $520 levels.
It was another bearish end to the day, with Bitcoin unable to hold on to $520 levels by the day’s end.
At the time of writing, Bitcoin Cash was up 3.04% to $532.7, a bullish start to the day seeing Bitcoin Cash move from a morning low $516.1 to a morning high $532.8, breaking through the first major resistance level at $531.67.
For the day ahead, holding on to $530 levels through the morning would support a run at $540 levels later in the day, though we can expect plenty of resistance at $540 that will likely see Bitcoin Cash fall short of the day’s second major resistance level at $546.33.
Failure to hold on to $530 levels through the morning could see Bitcoin Cash pull back to sub-$520 levels, with any fall through the morning low $516.1 likely to see Bitcoin Cash test the day’s first major support level at $504.67 before any recovery.

 

[xtreamforex]

Aussie Record Trade Surplus Does Little to Slow the Greenback
The Dollar’s on a tear, only the Japanese Yen managing to hold on in the early hours, with a record trade surplus out of Australia doing little for the AUD.
Earlier in the Day:
Economic data released through the Asian session this morning was limited to trade August figures out of Australia
For the Aussie Dollar, Australia’s trade surplus jumped from a revised A$1.548bn to A$1.604bn in August according to the ABS.

• Imports were flat for the month, while exports rose by 1%, month-on-month.
• The increase in exports was attributed to a 13% (A$229m) rise in the export of non-monetary gold and a 3% (A$134m) rise in the export of rural goods that were partially offset by a 1% (A$222m) fall in the export of non-rural goods.
• On the import front, the import of capital goods rose by 9% (A$569m), which was offset by a 41% (A$289m) slide in the import of non-monetary gold and a 2% (A$264m) fall in the import of intermediate and other merchandise goods.

The Aussie Dollar moved from $0.70945 to $0.70994 upon release of the figures, before easing to $0.7093 at the time of writing, down 0.14% for the session, the jump in U.S Treasury yields offsetting any material upside from this morning’s stats.
Elsewhere, the Japanese Yen, was up by 0.17% to ¥114.33 against the U.S Dollar at the time of writing, the Yen finding some support to partially recover from the overnight slide that came off the back of yet more impressive stats out of the U.S. For the Kiwi Dollar, a jump in U.S Treasury yields weighed, the Kiwi down 0.29% to $0.6495 at the time of writing.
In the equity markets, the Nikkei was in the red, reversing early gains, down 0.22% at the time of writing, the index finding little support from the Yen’s slide to ¥114 levels against the Dollar and the overnight gains in the U.S equity markets, while the ASX200 also in positive territory, up 0.66% at the time of writing. For the Hang Seng, the slide continued early, the Hang Seng down 1.06%, with investors having nowhere to hide early on, trade war jitters continuing to weigh.

 

[xtreamforex]

Dollar Rally Wavers Just after EURUSD’s Break and Before NFPs
Talking Points:

• The charge in US Treasury yields has spilled over to other countries, but this run should raise eyebrows amid an equity retreat
• Risk aversion showed up in earnest during the Thursday’s US session, earning a key S&P 500 break and heavy EEM, HYG drops
• Whether you prize volatility or are looking to avoid it, USDCAD will be the focal point of both countries’ NFPs and trade data.

THE FIRST SIGNS OF SYSTEMIC RISK AVERSION
While benchmarks US equity indices have lingered at record highs the past few weeks, the confidence these levels alone would inspire was undercut by a clear lack of progress in the projection of a sustainable bull trend. Through Thursday’s session, we saw the conviction that the S&P 500 and Dow would act as the guiding light of other wayward risk-oriented assets rupture. While all of the major US indices were under significant pressure, the most technically-engaging move was from the S&P 500. The speculative-favorite broke a rising trend channel support and very nearly called an end to a period of quiet calm that has supported the casual divergence between the country’s equities and most other speculative asset types. Though its intraday spill was hefty, the measure managed a late-in-the-day bounce that prevented the market from registering a 1 percent or greater loss on the day. That notches the tally slightly to 71 consecutive trading days for which the benchmark has not suffered a moderate loss in a single session – an uncommon distinction over the past decade of bull trend. What this index and US equities do next will carry heavy weight with the broader financial system. This segment of the market has managed to defy the strain experienced by virtually ever other speculative pacesetter I monitor. As I’ve said before, the S&P 500 and its close peers are the best measure of risk trends due precisely to their discrepancy. If sentiment is so corrosive that even *these* milestones are dropping, it sets the stage for a possible full-scale withdrawal.

 

[xtreamforex]

GBP Up, AUD/USD Price May Fall with Stocks. Brazil Election Eyed
ASIA PACIFIC MARKET OPEN – GBP/USD, BREXIT, BRAZIL ELECTION, AUD/USD, NIKKEI 225

• British Pound prices soared amidst Brexit latest as USD gains took a breather for now
• Emerging markets, local stocks eye outcome of first round of Brazil’s presidential vote
• AUD/USD may fall with stocks in APAC trade while pro-risk Japanese Yen appreciates.

On Friday, the British Pound extended pronounced gains against its major counterparts for a second day in a row. Initially, Sterling was buoyed by reports that a Brexit deal is ‘very close’ amidst an offer from the EU for a free-trade deal. The details of the proposal will be presented by EU Chief Negotiator Michael Barnier this Wednesday.
Additional GBP’s gain could be attributed to a pullback in the US Dollar on a rather mixed jobs report as unemployment fell but total hires missed expectations. Adding more downside pressure to the US Dollar, relatively speaking, was a somewhat solid jobs report out of Canada. The country added 63.3k employees in September which was the most this year so far and since December 2017.
The Canadian Dollar popped on these statistics but gains were somewhat restrained in the aftermath. While the nation surprised markets with total job increases, hourly earnings for permanent employees only ‘clocked in’ at 2.2% y/y. This was the weakest pace of growth in one year exactly. Sentiment-linked currency were generally under pressure Friday, and for that matter the majority of last week.
The S&P 500 dropped as much as 0.97% over the course of the past five days, marking its worst performance in a month. Developing nations fared even worse. The MSCI Emerging Markets ETF dropped a whopping 4.84%, marking its worst decline since early February. Simultaneously, US government bond yields soared to multiyear highs, reflecting prospects of tightening global credit conditions.

 

[xtreamforex]

A Top Down Technical Look at Dollar, Euro, Yen and the Majors
TALKING POINTS:

• Evaluating the general strength or weakness of individual currencies can open up more opportunities than specific pairs
• A technical approximation of currency focus is to look at equally-weighted indices for major currencies for technical health
• We look at concentrated charts of Dollar, Euro, Pound, Yen, Loonie, Aussie, Kiwi and Franc-specific charts.

FEED A TRADER A SINGLE TRADE VERSUS ESTABLISHING MULTIPLE OPPORTUNITIES
Doing a ‘top down analysis’ on an asset or market usually pertains to a global-macro overview on the fundamental side or is a technical trader’s equivalent by reviewing very high time frame (weekly, monthly) charts. However, there is more that can be drawn from the charts than just the reference to periods which are far broader than the vast majority of most traders’ tolerance. In the FX market, another approach to garnering an overview of what we are dealing with is to look at individual measures of specific currencies. Most of us comb the currency market by evaluating charts of individual exchange rates (such as the EURUSD, GBPUSD or USDJPY). That can happen across opportunities if we are diligent in our rotations, but it can be difficult to keep track in the absence of daily updates. A broader evaluation that can identify trades that we perhaps didn’t even consider is to keep track of the standings for individual currencies. If we knew for example that one of the core currencies was generally on the rise, we could then more efficiently run through its crosses to identify ideal pairings. If we consequently paired the strong currency to a particular weak one, it can establish appeal for a pair before the particulars are in place – preventing us from overlooking and forgetting an opportunity simply because the time isn’t right and technicals not perfectly aligned. So, how can we get this general appreciation of the individual currencies? We can evaluate all of its liquid crosses. Unless you can recall the chart structures from memory and aggregate them into a cohesive picture extemporaneously, it is better to utilize an rely on charts themselves. An equally-weighted index is one of my preferred means of such analysis.

 

[xtreamforex]

USD/JPY Fundamental Daily Forecast – Bullish Traders Need Higher PPI to Justify Recent Price Surge
Today’s U.S. Producer Price Index (PPI) report is expected to move the USD/JPY. It is expected to show a monthly increase of 0.2%, up from the previously reported -0.1%. Core PPI is also expected to show a rise of 0.2%, also up from -0.1%.
The Dollar/Yen continues to trade sideways for a third session on Wednesday as U.S. Treasury yields dipped from yesterday’s multi-year highs, and on dampened appetite for risk. Domestic data is influencing the price action. Additionally, investors are keeping an eye on today’s U.S. economic reports as well as Thursday’s U.S. Treasury’s currency report.
At 0356 GMT, the USD/JPY is trading 113.025, up 0.066 or +0.06%.
On Tuesday, U.S. government debt investors continued to ride the wave fueled by last week’s hawkish comments from U.S. Federal Reserve Chairman Jerome Powell.
Traders returned from Monday’s Columbus Day holiday by driving the yield on the benchmark 10-year Treasury note above 3.25 percent in early trading, returning to its highest level since 2011. The yield on the 30-year Treasury bond rose above 3.43 percent, its highest level since 2014. The 10-year finished the session at 3.21 percent and the 30-year at 3.375.
U.S. equity indexes finished mostly lower on Tuesday after posting a volatile two-sided session. Investors were mostly worried about rapidly rising interest rates ahead of the start of third quarter earnings season. Investor uncertainty helped the major indexes swing between positive and negative territory several times throughout the session.
In economic news, it was another light day on Tuesday with the NFIB Small Business Index coming in at 107.9, below the 108.9 forecast. The IBD/TIPP Economic Optimism reading was 57.8, well above the 54.6 estimate.

 

[xtreamforex]

AUD/USD Extends Bullish Series Ahead RBA Financial Stability Review
AUSTRALIAN DOLLAR TALKING POINTS
AUD/USD is little changed despite the below-forecast print for the U.S. Producer Price Index (PPI), but recent price action raises the risk for larger rebound in the exchange rate as aussie-dollar extends the bullish sequence from earlier this week.
AUD/USD EXTENDS BULLISH SERIES AHEAD RBA FINANCIAL STABILITY REVIEW
Fresh developments coming out of the U.S. economy may do little to alter the near-term outlook for AUD/USD as updates to the Consumer Price Index (CPI) are anticipated to show the headline reading for inflation slipping to 2.4% from 2.7% per annum in August, and another batch of lackluster data prints may fuel a larger rebound in aussie-dollar as it limits the Federal Reserve’s scope to extend the hiking-cycle.
Keep in mind, the Federal Open Market Committee (FOMC) appears to be on a preset course in 2018 as Chairman Jerome Powell & Co. are widely anticipated to deliver another 25bp rate-hike at the next quarterly meeting in December, and Fed officials may continue to prepare U.S. households and businesses for higher borrowing-costs as the central bank achieves its dual mandate for monetary policy.
However, the narrowing threat for above-target price growth may force the FOMC to soften its hawkish forward-guidance for monetary policy as ‘both overall inflation and inflation for items other than food and energy remain near 2 percent,’ and Fed officials may continue to project a longer-run neutral rate of 2.75% to 3.00% especially as the shift in U.S. trade policy clouds the economic outlook.
With that said, the recent rebound in AUD/USD may gather pace over the coming days, but the broader outlook remains mired by the Reserve Bank of Australia’s (RBA) wait-and-see approach for monetary policy as the central bank remains reluctant to lift the official cash rate (OCR) off of the record-low.

 

[xtreamforex]

Gold Price Forecast – Gold markets take off to the upside
Gold markets broke higher during the trading session on Thursday, reaching towards the $1215 level, an area that has been very important more than once. Overall, the market looks as if the buyers are pressing the issue, but the $1215 level has been very important in the past, so I think we have a significant fight on our hands above.
Gold markets rallied significantly during the trading session on Thursday, as precious metals in general got a bit of a boost. Pay attention to the US dollar, because we get significant weakness in the greenback, that should push the Gold markets higher. If we break above that level, the market probably goes to the $1220 level, perhaps even the $1225 level.
Alternately, if we break down from here I think the $1205 level would offer significant support, and most certainly the $1200 level will be. Pay attention to the EUR/USD pair, it gives you a general idea of what is happening with the greenback, which of course has a major influence on gold. I think this is been more of a risk safety type trade, which we have seen in the past more than once. Overall though, I think that the market is a bit overextended, so it’s likely that a pullback would be necessary. However, if we can break out above the $1215 level, it could signal that fresh monies coming into the marketplace, and it could make a relatively impulsive move just waiting to happen. I like Gold longer-term, but quite frankly the US dollar has been so strong for some time, so I don’t think it’s going to be the easiest move to the upside, so certainly you need to use a bit of caution as you could be entering the trade a bit late here.

 

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Technical Overview of Bitcoin by XtreamForex

BTC traded a bit lower against USD and closed at 3653.36.

Bitcoin breaks key levels again after breaching $4k.Long term bottom is not in place yet.

According to the Analysis, The BTC/USD pair is expected to find support at 3589.71, and a fall through could take it to the next support level of 3526.05. The pair is expected to find its first resistance at 3708.30, and a rise through could take it to the next resistance level of 3763.23. Previous Day range was 118.59 and Current Day Range is 37.66.

Bitcoin, the king of Cryptocurrencies, has broken down of some key levels after breaking below $4,000 and is now at the risk of breaching $3,000 too as long term bottom is not yet in place for the largest crypto.

BTC/USD trading flat on day at $3,633 and in less than one percent range for the day - typical low volume and even lower volatility weekend trading that is. Earlier this week, Bitcoin and all the other major coins saw massive sell-off all over again, resulting in BTC breaking $4,000 again and as a result also broke some key levels on the short term (180-minute) as well as long term (daily) chart.

 

[xtreamforex]

Technical Overview of EUR/USD, AUD/USD and NZD/USD Currency Pairs

EUR USD
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The EUR traded higher against the USD and closed at 1.1468.

EUR/USD slipped back below the pivot at 1.1468 on Friday, falling from a high of 1.1540 to a low of 1.1451, consolidating between there and 1.1480 in a sideways drift in the main.

ECB President Speech reflects the official position of the European Central Bank, therefore every speech is carefully examined by the market participants and analysts. If the ECB President's speech suggests any conclusions on the monetary policy or a clear assessment of the economic and financial situation of the euro zone, the speech influences the EU currency.

If the speech suggests the tightening of the monetary policy, it is seen as positive for the euro.

According to the Analysis, The pair is expected to find support at 1.14519, and a fall through could take it to the next support level of 1.14360. The pair is expected to find its first resistance at 1.14825, and a rise through could take it to the next resistance level of 1.14972.

Previous Day range was 30.6 and Current Day Range is 24.4.

AUD USD
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The AUD traded higher against the USD and closed at 0.7194.

The AUD/USD bounce gained further traction last hour, with the bulls testing highs into the 0.7220 level following fresh monetary and fiscal stimulus measures announced by China. The spot is on its way to test the monthly tops at 0.7236.

Federal Open Market Committee (FOMC) Member Speech may contain indications on the possible future changes in the Fed's monetary policy. Committee members participate in interest rate voting, determine appropriate monetary policy measures and assess the risks to long-run goals of price stability and sustainable economic growth.

The pair is expected to find support at 0.71737, and a fall through could take it to the next support level of 0.71537. The pair is expected to find its first resistance at 0.72158, and a rise through could take it to the next resistance level of 0.72379.

AUD USD previous Day range was 42.1 and Current Day Range is 31.5.

NZD USD
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The NZD traded higher against USD and closed at 0.6821.

Electronic Card Retail Sales m/m reflect a percentage change in electronic card transactions over the reported month compared to the previous one. The indicator can be used in the estimation of consumer spendings and economic activity.

The indicator values are seasonally adjusted and can be revised on a monthly basis, while monthly movements can fluctuate.
According to the analysis, NZD/USD pair is expected to find support at 0.68006, and a fall through could take it to the next support level of 0.67803. The pair is expected to find its first resistance at 0.68367, and a rise through could take it to the next resistance level of 0.68525.

NZD/USD previous day range was 36.1 and current day range is 34.2.

 

[xtreamforex]

Technical Overview of GBP/USD, USD/JPY and USD/CHF Currency Pairs

GBP USD
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The GBP traded lower against the USD and closed at 1.2858.
The GBP/USD pair is struggling to cross the 9-month-long falling trendline for the third day straight, having charted a big doji candle at that diagonal line yesterday.

Bank of England Governor Speech is given by the head of the BOE's Monetary Policy Committee and has the greatest influence over sterling's value among all members of the Committee. The BoE Governor's public engagements suggest clues regarding the change in the exchange rate and future monetary policy of the Bank of England.

According to the Analysis, The pair is expected to find support at 1.27176, and a fall through could take it to the next support level of 1.25770. The pair is expected to find its first resistance at 1.29563, and a rise through could take it to the next resistance level of 1.30544.
Previous Day range was 238.7 and Current Day Range is 47.1.

USD JPY
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The USD traded lower against the JPY and closed at 108.631.
USD/JPY is on the retreat, having faced multiple rejections near 108.75 in the last 24 hours.

Risk-reset is likely on shaky grounds. China stimulus pledge could be overshadowed by the global growth slowdown.
BOJ Governor Speech is an event having the greatest impact on JPY among all public statements made by the Japanese regulator. The Governor's rhetoric reflects the official position of the Bank of Japan.

If some hints at tightening the monetary policy by the Bank of Japan are detected in the Governor speech, it may affect JPY positively.
The pair is expected to find support at 108.253, and a fall through could take it to the next support level of 107.875. The pair is expected to find its first resistance at 108.884, and a rise through could take it to the next resistance level of 109.137.
USD JPY previous Day range was 6310 and Current Day Range is 3350.

USD CHF
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The USD traded higher against CHF and closed at 0.9876.

With major European currencies remaining under strong selling pressure on Tuesday, the greenback attracted investors' attention and the US Dollar Index recovered all of the losses it recorded last week and broke above 96 to refresh its highest level since January 4 at 96.23.
Retail Sales m/m reflect a change in the US retail sails in the reported month compared to the previous one. The indicator is calculated based on statistics received from 5,000 retail stores of different types and sizes, and the data are then extrapolated to the whole country.

The indicator is used for estimating inflation. Its growth may have a positive effect on dollar quotes.

According to the analysis, pair is expected to find support at 0.98208, and a fall through could take it to the next support level of 0.97656. The pair is expected to find its first resistance at 0.99124, and a rise through could take it to the next resistance level of 0.99488.

USD/CHF previous day range was 91.6 and current day range is 8.1.