In today's release, we’ll cover the following topics:
As the second wave of coronavirus spreads across the planet, interest in cryptocurrencies is increasing. To be fair, I note a significant increase in infrastructure in the cryptocurrency market. For example, the cryptocurrency processing service BitPay launched a mass payment service in cryptocurrency for businesses, while one of the largest payment companies PayPal launched the purchase and sale of bitcoin for users from the United States.
All this, as well as the fact that BTC continues to serve as a protective asset, contributes to the rapid growth of the main cryptocurrency. So, even during the Asian trading session, bitcoin came close to the $16,500 mark. Let me remind you that in early October, bitcoin could be bought for $10,500. Accordingly, the growth was more than 60% in less than two months.
Shifting to the European trading session, I note the comments of the ECB representative, who hinted that the main interest rate will remain unchanged. Accordingly, we cannot expect a significant weakening of the EUR. But at the same time, there is still no reason for active purchases of the European currency, especially given the fact that a number of European countries have significantly tightened the conditions of quarantine measures.
The EUR/USD currency pair is still holding at 1.1800, indicating that the market is clearly uncertain. After all, a return of quotes above 1.1840 will confirm the pair's readiness to continue growing, while a decline in the pair to the level of 1.1790 may provoke a more powerful wave of sales. As a result, there is a risk of a significant increase in trading volatility.
A surge in trading activity may occur during the US session. Given that the saturation of the news background will be moderate, all the attention of investors and traders will focus on political battles. The general recognition of Joe Biden as the winner of the US presidential election may provide additional support to stock indices and as a result weaken the USD.
I will conclude today's review with an analysis of the GBP/USD sell deal with a volume of 1 lot. After a false breakout of the technical resistance level of 1.3300, the pair's quotes returned to the level of 1.3270 from where a short position was opened. The trader placed a Take Profit order at the next support level of 1.3120. The profit on this transaction was $1,500.
Closely monitor the news background and be prepared for all the surprises of the market.
Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.
Please feel free to contact out Support in order to get further assistance.