In this week's edition of Overbit's Wednesday Worldview, we jump right into the European markets and, more specifically, the EUR/USD forex pair. The first impression regarding the Euro is that the bullish momentum that propelled it the past few months has all but disappeared. EUR/USD continues to slowly advance upward against the weak greenback, with the pair currently sitting at 1.1867. However, this advance has none of the impulsive waves of the previous months-long trend. Despite making higher highs, EUR/USD seems to be losing steam as it approaches the yearly high of 1.915. With a scarce economic calendar ahead for both the US and the EU, as well as the growing risk-aversion in the international community, traders and investors should keep a close eye on the Euro as it grinds towards its yearly high.

Moving onto the British Pound, we can see that GBP/USD continues to consolidate after setting a local high at 1.31858 earlier this month. In an earlier edition of this publication, you may remember that Britain had been officially declared to be in a recession. Despite this grim news, GBP/USD has managed to hold the critical 1.30 level as support and even seems to be forming a bullish consolidation pattern above it. The idea that a currency would not fall off the cliff with an economy in such bad shape may be alarming to traders, but it speaks volumes to the current economic situation. The US dollar continues to make its bearish descent, propping up any forex pairs traded against it. On top of that, August is typically one of the worst months for traders and investors. Don't expect any big moves, just yet, considering this context, but we would not be surprised to see EUR/USD to break out of this bullish pennant in the coming weeks.

We close out this edition of "Wednesday Worldview" by taking a look at the cryptocurrency markets. After weeks of anticipation and consolidation, BTC/USD has finally broken through the $12,000 range on August 17, 2020. At the time of writing, Bitcoin currently sits around the $12,400 range, which is a significant rise above the monthly close in June in the $9,000 range. The continued trend for BTC/USD is clearly UP. Many traders and analysts continue to see the $14,000 range as a significant hurdle to clear for Bitcoin to break previous all-time highs, which was approximately $20,000. Now to conclude with a counter view point as well, there are Bitcoin wallets sending large chunks of BTC (5,000+) to exchanges, which could be could be a sign that bulls might be looking to start taking profit at these levels , but currently at time of writing price for Bitcoin looks to be consolidating.

Put merely; ETH/USD continues to look fantastic. In our newsletter the other week, we discussed that ETH/USD looked poised for a breakout above $400. Ethereum slingshotted right past this resistance and currently sits at $433 at the time of writing.

In addition to the rise in ETH/USD price, the cost of the Ethereum’s Network’s Gas Fee (Transaction Fee) continues to rise. Typically, an increase in Gas Fees signals an increase in the amount of transactions, token usage (ERC-20s), and interest across the network - all bullish. High Gas Fees also cause the network to be “clogged” with slower and more expensive transactions, but the trend continues to look macro-bullish for both Bitcoin and Ethereum, and we should continue to see these two "lead the way" in the global cryptocurrency markets.

In contrast, some of the profits taken from these two "BlueChips" will continue to flow down to the smaller Mid-Tier cryptocurrencies, which are inherently more volatile, more risky, and at times, more rewarding. At Overbit.com, we cover a wide range of assets that encompass this risk and reward, and we continue to grow our selection of trading tools, and options, for both professional and retail traders alike. Happy Trading.

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