The EUR/USD is trading around 1.1765, advances from the lows seen earlier. The US is planning a new broadside against China as the tariffs are being implemented. ECB President Draghi speaks later.
The GBP/USD extends its gains after recapturing 1.3100 and is up 0.40%. UK Brexit Secretary Dominic Raab expressed optimism about getting a good Brexit deal. The US Dollar is losing some ground despite trade tensions.
The Federal Reserve will raise rates on September 26th. The probability is 100%. They have communicated it in a clear manner, as they did in the past.
US President Donald Trump announced new tariffs on China for $200 billion worth of goods. They will come into effect on September 24th. China has announced its retaliation plan. Previous duties were on only $50 billion of products, and the move impacts a significant chunk of global trade.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Support lines should be reworked prior to major new climbs
A new week begins with the Crypto market in red. The drop in prices is broad-based and nothing technically indicates that it is more than a normal process of consolidation.
Ethereum, the second largest coin by market value, is trading at $240 handle with a short-term downside bias. ETH has lost nearly 2% since the beginning of Monday; however, it is still marginally higher on a day-to-day basis.
XRP/USD broke below the lower line of the range limited by $0.60 on the upside and $0.5445 on the downside to trading at $0.5260 by press time.
Litecoin, the 7th largest digital asset with a market value of $3.44B, is changing hands at $58.90 with 4.2% loss on a day-to-day basis. The coin's average daily trading volumes are set at $259M, which is in line with the longer-term average.
A Fed's hike is priced in, hints on December's action will be critical
The EUR/USD pair advanced for a second consecutive week, hit its highest since mid-June at 1.1802 as the American dollar suffered all through the week, but entered sell-off mode Thursday, as resurgent risk-appetite played against the greenback, as the escalation of the trade war with tit-for-tat tariffs, was not as feared.
The GBP/USD is licking its wounds after UK PM May sent it lower on Friday and as reports of a snap election are a concern. Where can cable fall to?
The Technical Confluences Indicator shows that the GBP/USD is struggling around 1.3075 which is a dense congestion of levels including the Simple Moving Average 5-4h, the SMA 10-15m, the SMA 50-15m, the Bolinger Band 15m-Middle, and the BB 15m-Lower among others.
Looking down, the pair has some support around 1.3028 where we see the BB-4h, the SMA 100-4h, the BB one-day Middle, and more. However, this is a weak support line.
Stronger support awaits at 1.2988 which is the confluence of the SMA 50-one-day, the Pivot Point one-day Support 1, and the PP one-week Support 1.
On the upside, we see some resistance at 1.3110 which is the Fibonacci 23.6% one-day.