EUR/USD=> The pair holds over parity
BTC/USD =>The cryptocurrency falls towards 18k
Oil=> The commodity falls below $90
EUR/USD pauses as midterm results awaited
EUR/USD is holding steady after three days of gains as attention remains on the midterm elections. The USD has fallen over recent sessions as investors price in a gridlocked Washington as Republicans look to take over the House of Representatives, which means that the Democrats spending measures will struggle to make it through Congress. This could create a less inflationary environment, meaning potentially fewer hikes from the Fed and a weaker USD. Today the US economic calendar is quiet. Instead, attention will turn to Thursday’s inflation data. The Eurozone economic calendar is also quiet. This week’s data has supported the euro with a rebound in retail sales and German industrial production.
Where might the EUR/USD price head to?
EUR/USD has risen above the 20 & 50 sma, and its falling trendline resistance dating back to February. This, combined with the RSI over 50, could keep buyers hopeful of further upside. Buyers will look for a rise over 1.0090, the October high, to bring 1.0200, the September high, into focus. Support could be seen at 0.9865, the 20 & 50 sma, and the falling trendline support. Below here, 0.9750, the November low, could come into focus.
BTC/USD falls as FTX collapse rattles the market
BTC/USD continues to fall and hit a year-to-date low of 17114 in the previous session; ETH/USD and other cryptocurrencies have seen heightened volatility and a deep selloff as investors weigh up the latest Binance-FTX developments. Binance CEO Zhao announced that his firm has agreed in principle to acquire FTX after a very public feud between the two CEOs of the company. The announcement came amid concerns over the health of FTX and saw investors with Bitcoin withdraw holdings creating a liquidity crunch. A potential bailout in the world’s second-largest exchange FTX has rattled the market. It comes following the collapse of Celsius and Voyager Digital in suspending withdrawals in a severe liquidity crunch.
Oil extends declines
Oil prices are falling for a third straight session. Oil prices have come under pressure this week as COVID cases in China have risen to a six-month high. Fears are growing that China could impose tougher COVID restrictions, hurting the demand outlook. There is still little clarity over whether China could be looking to exit its zero-COVID strategy. Optimism that zero-COVID could be a policy of the past sent oil prices 5% higher last week, although Beijing has denied that this is happening. Oil inventory data is also adding pressure to the price. API inventory data showed that stockpiles rose by 5.6 million barrels more than the 1.4 million expected. EIA inventory data is due today. Still, losses are being limited as OPEC+ cuts output this month and the European ban on Russian oil looms.
Support can be found at 85.75 (50 sma) and 81.50 (October low)
Resistance for the pair can be seen at 90.00 (round number) and 93.45 (October high).