Kicking off this week's edition of Overbit.com's "Wednesday's Worldview," we're going to dive right into the forex markets, starting with arguably the world's most popular pair, the Pound Sterling and the US Dollar, and we'll discuss the macro trends happening with the GBP/USD pair and the DXY.
At this moment, FX Pairs are teetering between growth and implosion as COVID-19 still looms over, and the world's perception of the dollar's strength remains unclear. However, it seems GBP/USD is leaning towards the former as the British Pound printed fresh daily highs vs. the USD pair bouncing from 1.3000 to 1.3103. As of now, the pair is consolidating right below the resistance at 1.31. With the release of UK jobs data on Tuesday, it's possible these figures could provide the necessary catalyst. DXY did look quite promising early in the session Monday, but a mixed day on Wall Street has seemed to dampen the mood of a USD uptrend for the very near future.
Heading up next is the EUR/USD pair, where we see the beginnings of possible bearish momentum. After such a long and extensive uptrend, bulls seem weary near the 1.1740 level for the Euro. Unlike the Pound, EUR/USD appears much more susceptible to USD strength, which was exactly the case after US President Trump's newest executive orders, which provide a continuous fiscal stimulus for the recovering US economy. We do continue to see buyers on the tops, but if we see a break below 1.1740, it could signal further bearishness on the pair.
Continuing with an upbeat USD, we see the USD/JPY pair start to turn bullish on the demand for dollars. We finally saw a break above the 106.20 price zone, which is a very bullish sign as further support was several hundred pips lower. This 106.20 price zone was a four-day fresh highs in the past 4 days on Friday.
Now heading into BTC/USD & ETH/USD we continue to see Ethereum and Bitcoin at critical zones of both resistance and support, with BTC/USD bulls attempting to push Bitcoin above the overhead resistance of $12,100, we could see the start of an uptrend to $13,000 and maybe above the elusive $14,000 mark. If we see the bears take over, we could see a retest back to the $10,400 levels - it's a critical time for BTC in general, but the recent volume and overall interest indicates we could see the bulls take over quite easily.
Wrapping up with ETH/USD, we've seen Ethereum continue to trade above its previous breakout level of $366. This trading activity above the breakout level shows that bulls have no interest in liquidating their positions at this time, which could be a clear signal that ETH/USD is in a bull market, with the next targets in the upper $400s range ($480). To conclude, the trend looks bullish, but crypto is inherently volatile, so if we do see a fast bearish trend start to develop, we could see a sharp retracement to the $305 level. Still, no matter which side of the trade you're on, Overbit.com allows you to participate in the upcoming price action easily.
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