Gold Under Pressure, Bitcoin Consolidates Around $9,400

Asian equity indices ended mixed today as traders increased their bets the Fed will cut interest rates by 25 bps at its meeting tomorrow to protect the economy from slowing growth and the effects of the trade tensions. The market is pricing a 94.5% chance of a 25 bps interest rate cut to a 1.50%-1.75% range from the current 1.75%-2%.

On the Brexit front, the European Union agreed to UK’s request for a Brexit deadline extension but set no new departure date. Nikkei 225 ended 0.47% higher at 22,974. The Hang Seng index is 0.39% lower at 26,786. The Shanghai Composite is 0.87% lower at 2,954. The ASX 200 in Australia is 0.07% higher at 6,745.

European indices started the day mixed, DAX trading 0.15% lower at 12,923, CAC40 is 0.01 per cent lower at 5,730, while the FTSE MIB in Milan is 0.04 per cent lower at 22,686. In London, FTSE 100 is trading 0.51% lower at 7,22. 

bitcoin consolidates
XAUUSD Daily Chart

In commodities markets, WTI crude oil trades 1.22 per cent lower at $55.13 as global growth worries weigh on crude. Brent oil is trading 1.06% lower at $60.60 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,486, as the short term momentum turns negative after the price trades below the 50-day moving average. On the upside, strong resistance stands at 1,555.13, the yearly high, while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin consolidates around 9,400. Its momentum is bullish, and the cryptocurrency trades higher today at 9,425, hitting the daily low at 9,130 and the daily high at 9,553. Bitcoin short term momentum is bullish now as the cryptocurrency trades above the 50 and 200-day moving averages. Immediate support for BTC stands now at $7,364 recent low, while next support stands at 7,300 round figure. On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades higher at 187,13 with capitalisation now to 20.34 billion, and on the upside, the immediate resistance stands at 200, the recent high, while the support stands at 136 the low from May 6th. LTCUSD trades higher at 59.714. The crypto market cap capitalization now stands at $251.72 billion.

On the Lookout: Japan Tokyo Consumer Price Index (YoY) came in at 0.4% below expectations of  0.5% in October. 

The central bank of China set the Yuan rate (USDCNY) at 7.0617 versus yesterday settlement at 7.0762.  

Trading Perspective: In forex markets, USD index trades 0.12 per cent higher at 97.86, the AUDUSD trades 0.11 per cent higher at 0.6846, while NZDUSD trades 0.11% higher at 0.6342.

GBPUSD trades 0.09% higher at 1.2867 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 5,700 contracts, volume decreased by around 5.500 contracts.

EURUSD trades 0.16% lower at 1.1081 as the pair’s momentum is bullish. Immediate resistance for the common currency stands at 1.1162 recent high. On the downside, immediate support stands at 1.1073 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest increased by 1.600 contracts, the volume decreased by around 18.400 futures contracts.

bitcoin consolidates
EURUSD Daily Chart

USDJPY is trading 0.03% lower at 108.90 having hit the daily low at 108.82 and the daily high at 109.06. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 109.06 recent high.

In Yen futures markets, open interest increased by 5,500 contracts, and volume decreased by around 453 futures contracts.

USDCAD is trading 0.06% higher at 1.3063 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450, the high from 31st May.