Bitcoin’s Resilience: Staying Above $29,000 Amidst NFP Disappointment!

In this week’s market recap, we dive deep into the forces driving the prices of gold, crude oil, bitcoin, and major currency pairs. The price of gold surged above $1,940, propelled by a lackluster US July jobs report, while crude oil continued its six-week rally due to tightening global supplies. Bitcoin held steady above $29,000 despite disappointing US NFP data, but regulatory uncertainties kept its recovery in check. Moreover, currency pairs like EURGBP and USDZAR reacted to crucial economic data releases, shaping their respective trends. As we move forward, understanding these influences will be crucial in navigating the dynamic financial landscape. Stay informed with our comprehensive market analysis for informed decision-making.

5 Key Events to Watch Out

German CPI (MoM) (Jul) U.K.

WHEN: 09 AUG 2023

WHAT IT INFLUENCES: GBP and its subsequent pairs

What’s Happening: The Consumer Price Index (CPI) measures the change in the prices of goods and services from the perspective of the consumer. As Germany has the largest output of any country in the eurozone, the European Central Bank pays very close attention to this figure in its role of maintaining price stability.

A reading that is stronger than the forecast is generally supportive (bullish) for the EUR, while a weaker-than-forecast reading is generally negative (bearish) for the EUR.

Core CPI (MoM) (Jul), U.S.

WHEN: 10 AUG 2023

WHAT IT INFLUENCES: USD and its subsequent pairs

What’s Happening: The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The Central bank pays very close attention to this figure in its role of maintaining price stability. Because the Fed believes that core inflation is a better gauge of underlying price pressures, it is more closely watched than overall inflation which tends to be more volatile.

A reading that is stronger than forecast is generally supportive (bullish) for the USD, while a weaker than forecast reading is generally negative (bearish) for the USD.

NAB Business Confidence (Jul), AUD

WHEN: 08 AUG 2023

WHAT IT INFLUENCES: AUD and its subsequent pairs

What’s Happening: The National Australia Bank (NAB) Business Confidence Index rates the current level of business conditions in Australia. Changes in business sentiment can be an early signal of future economic activity such as spending, hiring, and investment. The index is based on data collected from a survey of around 350 companies. A level above zero indicates improving conditions; below indicates worsening conditions.

A reading that is stronger than forecast is generally supportive (bullish) for the AUD, while a weaker than forecast reading is generally negative (bearish) for the AUD.

Household Spending (MoM) (Jun), JPY

WHEN: 08 AUG 2023

WHAT IT INFLUENCES: JPY and its subsequent pairs

What’s Happening: Household Spending measures the change in consumer spending on an inflation-adjusted basis.

A reading that is stronger than forecast is generally supportive (bullish) for the JPY, while a weaker than forecast reading is generally negative (bearish) for the JPY.

Building Permits (MoM) (Jun), CAD

WHEN: 09 AUG 2023

WHAT IT INFLUENCES: CAD and its subsequent pairs

What’s Happening: Building Permits reports the change in the number of new building permits issued by the government relative to the prior month. Building permits are an important leading indicator of housing starts.

A reading that is stronger than the forecast is generally supportive (bullish) for the CAD, while a weaker-than-forecast reading is generally negative (bearish) for the CAD.

Equities in the Coming Week

1. ELI LILLY AND COMPANY (LLY) is to announce its Quarterly Results on 08 AUGUST 2023, EPS is estimated at 1.98 per share while revenue is estimated at 7.583B.
2. ALIBABA GROUP HOLDINGS LTD. (BABA) is to announce its Quarterly Results on 10 AUGUST 2023, EPS is estimated at 2.01 per share while revenue is estimated at 30.935B.
3. WALT DISNEY COMPANY (DIS) is to announce its Quarterly Results on 09 AUGUST 2023, EPS is estimated at 0.98 per share while revenue is estimated at 22.489B.
4. ZOETIC INC. (ZTS) is to announce its Quarterly Results on 08 AUGUST 2023, EPS is estimated at 1.31 per share while revenue is estimated at 2.156B.
5. BROOKFIELD CORPORATION (BN) to announce its Quarterly Results on 10 AUGUST 2023, EPS is estimated at 0.67 per share while revenue is estimated at 1.137B.

Top Commodities in the Coming Week

Gold

Gold Sees Downside in Coming Days as MACD Signals Negative Crossover

Gold, a precious metal, is currently trading in a down channel, signaling a potential downside in the coming days. The Relative Strength Index (RSI) is at 47.32, placing it in the neutral zone. Moreover, the Moving Average Convergence Divergence (MACD) is in a negative zone, with the MACD line crossing below the signal line, further indicating a bearish sentiment. Despite this, the Bollinger Bands are close, suggesting reduced volatility in the market.

On the daily chart, gold’s price is below the 100-day moving average but still above the 200-day moving average. This situation could mean that the 200-day moving average might act as a support zone if the price continues to fall.

Key Levels to Watch:

• Support: $1928.91
• Resistance: $1945.90

Trade Suggestion:

• Entry: $1914.75
• Take Profit: $1884.54
• Stop Loss: $1939.29

Silver

Silver Faces Downside Amid Neutral RSI and Bearish MACD Crossover

Silver, another precious metal, is currently trading in a down channel, indicating a potential downside in the near future. The Relative Strength Index (RSI) is at 44.43, placing it in the neutral zone. Additionally, the Moving Average Convergence Divergence (MACD) is in a bearish crossover, signaling a potential downturn. The wide Bollinger Bands suggest high market volatility.

While the 50-day and 200-day moving averages are sloping upward, providing a bullish signal, the 100-day moving average is currently sideways, indicating a consolidation phase.

Key Levels to Watch:

• Support: $23.18 per ounce
• Resistance: $23.92 per ounce

Trade Suggestion:

• Entry: $22.74
• Take Profit: $21.86
• Stop Loss: $23.46

Brent Crude Oil

Brent Crude Oil Poised for Upside with Bullish RSI and MACD

Brent Crude Oil, a benchmark for oil prices, is currently trading in an up channel, suggesting an upside in the coming days. The Relative Strength Index (RSI) is at 67.52, indicating bullish sentiment. The Moving Average Convergence Divergence (MACD) is in a positive crossover, further reinforcing the bullish signal. Wide Bollinger Bands point to high market volatility.

The 50-day and 200-day moving averages are both sloping upward, supporting the bullish trend. Additionally, the 100-day moving average is also upward, signifying an uptrend phase.

Key Levels to Watch:

• Support: $85.00
• Resistance: $87.23

Trade Suggestion:

• Entry: $87.84
• Take Profit: $92.04
• Stop Loss: $84.88

Top Crypto in the Coming Week

BTCUSD

BTCUSD Faces Downside with Bearish RSI and MACD Crossover

BTCUSD, the pairing of Bitcoin with the US dollar, is currently trading in a down channel, signaling a potential downside ahead. The Relative Strength Index (RSI) is at 39.9, indicating a bearish sentiment. Additionally, the Moving Average Convergence Divergence (MACD) is in a bearish crossover, suggesting further bearishness. The close Bollinger Bands suggest reduced volatility in the market.

The 50-day and 200-day moving averages are sloping downward, supporting the bearish trend, while the 100-day moving average is sideways, indicating consolidation.

Key Levels to Watch:

• Support: $28873.20
• Resistance: $29585.78

Trade Suggestion:

• Entry: $28616.66
• Take Profit: $27818.56
• Stop Loss: $29300.75

Litecoin

Litecoin Faces Downside with Bearish RSI and Wide Bollinger Bands

Litecoin, a popular cryptocurrency, is currently trading in a down channel, signaling a potential downside in the near term. The Relative Strength Index (RSI) is at 33.79, indicating a bearish sentiment. Moreover, the Moving Average Convergence Divergence (MACD) is in a bearish crossover, further supporting the bearish outlook. The wide Bollinger Bands suggest high market volatility.

The 50-day and 200-day moving averages are both sloping downward, providing a bearish signal, while the 100-day moving average is currently sideways, suggesting a period of consolidation.

Key Levels to Watch:

• Support: $80.68
• Resistance: $86.00

Trade Suggestion:

• Entry: $79.10
• Take Profit: $73.18
• Stop Loss: $84.23

Top Currency in the Coming Week

EURUSD

EURUSD Poised for Upside with Bullish RSI and Wide Bollinger Bands

EURUSD, the pairing of the Euro with the US dollar, is currently trading in an up channel, suggesting an upside in the coming days. The Relative Strength Index (RSI) is at 49.46, indicating bullish sentiment. However, the Moving Average Convergence Divergence (MACD) is in a negative crossover, which could create some bearish pressure. The wide Bollinger Bands suggest higher market volatility.

The 50-day and 200-day moving averages are both sloping upward, providing a bullish signal. Additionally, the 100-day moving average is also upward, signifying an uptrend phase.

Key Levels to Watch:

• Support: 1.0935
• Resistance: 1.1041

Trade Suggestion:

• Entry: 1.1091
• Take Profit: 1.1203
• Stop Loss: 1.1002

GBPUSD

GBPUSD Faces Downside Amid Neutral RSI and Bearish MACD Crossover

GBPUSD, the pairing of the British Pound with the US dollar, is currently trading in a down channel, suggesting a potential downside in the near future. The Relative Strength Index (RSI) is at 45.21, placing it in the neutral zone. Moreover, the Moving Average Convergence Divergence (MACD) is in a bearish crossover, indicating a potential downturn. The wide Bollinger Bands suggest high market volatility.

The 50-day and 200-day moving averages are both sloping downward, providing a bearish signal. However, the 100-day moving average is currently sideways, suggesting a consolidation phase.

Key Levels to Watch:

• Support: 1.2676
• Resistance: 1.2791

Trade Suggestion:

• Entry: 1.2607
• Take Profit: 1.2433
• Stop Loss: 1.2751

AUDUSD

AUDUSD Faces Downside Amid Bearish RSI and Wide Bollinger Bands

AUDUSD, the pairing of the Australian Dollar with the US dollar, is currently trading in a downside channel, signaling a potential downside in the coming days. The Relative Strength Index (RSI) is at 39.06, indicating a bearish sentiment. Moreover, the Moving Average Convergence Divergence (MACD) is in a bearish crossover, suggesting a bearish trend. The wide Bollinger Bands suggest high market volatility.

While the 50-day and 200-day moving averages are both sloping sideways, the 100-day moving average is currently sloping downward, indicating a downtrend.

Key Levels to Watch:

• Support: 0.6522
• Resistance: 0.6592

Trade Suggestion:

• Entry: 0.6475
• Take Profit: 0.6362
• Stop Loss: 0.6573

Top Index in the Coming Week

Dow Jones

Dow Jones Poised for Upside with Bullish RSI and Wide Bollinger Bands

Dow Jones, a stock market index, is currently trading in an up channel, suggesting an upside in the coming days. The Relative Strength Index (RSI) is at 51.81, indicating bullish sentiment. However, the Moving Average Convergence Divergence (MACD) is in a negative crossover, which could create some bearish pressure. The wide Bollinger Bands suggest higher market volatility.

The 50-day and 200-day moving averages are both sloping upward, providing a bullish signal. Additionally, the 100-day moving average is also upward, signifying an uptrend phase.

Key Levels to Watch:

• Support: 35115.77
• Resistance: 35323.47

Trade Suggestion:

• Entry: 35432.79
• Take Profit: 35749.81
• Stop Loss: 35203.22

FTSE 100

FTSE 100 Faces Downside Amid Neutral RSI and MACD Crossover

FTSE 100, a stock market index, is currently trading in a down channel, suggesting a potential downside in the near future. The Relative Strength Index (RSI) is at 44.15, placing it in the neutral zone. Moreover, the Moving Average Convergence Divergence (MACD) is in a neutral crossover, signaling a lack of clear direction. The wide Bollinger Bands suggest high market volatility.

The 50-day and 200-day moving averages are both sloping downward, providing a bearish signal. However, the 100-day moving average is currently sideways, suggesting a consolidation phase.

Key Levels to Watch:

• Support: 7458.1
• Resistance: 7557.0

Trade Suggestion:

• Entry: 7395.1
• Take Profit: 7251.2
• Stop Loss: 7507.6

Market Recap of The Past Week

Gold Prices Surge Above $1,940 as US Yields Decline

The price of gold surpassed $1,940 on Friday during the American session. The US July jobs report revealed a less-than-expected 187,000 increase in Nonfarm Payrolls, which assisted XAU/USD in gaining traction. Consequently, the benchmark 10-year US Treasury bond rate reversed its daily gains.

Uncertainty Surrounding Labor Market Report Influences Gold Price

As investors awaited the United States Nonfarm Payrolls (NFP) data, the price of gold (XAU/USD) fluctuated. The precious metal struggled to make a clear decision as the labor market report could potentially impact the Federal Reserve’s (Fed) September monetary policy. The preliminary consensus predicted that the labor market would continue to be resilient despite the central bank’s aggressive rate tightening and the challenging lending environment.

Conflicting Interest Rate Predictions Keep Gold Directionless

Fed policymakers gave conflicting interest rate predictions, causing the price of gold to remain directionless. While reducing inflationary pressures, Chicago Fed Bank President Austan Goolsbee supported additional policy tightening. On the other hand, Raphael Bostic, president of the Atlanta Fed Bank, believed that a rate increase in September was no longer necessary. This divergence of opinions contributed to the uncertainty surrounding gold prices.

Outlook for Gold Suggests Downside in the Coming Days

GOLD is currently trading in a down channel, indicating a potential downside in the coming days. Traders and investors are closely monitoring the market to make informed decisions.

Global Supply Constraints Drive Oil Prices Higher

Oil prices have experienced a continuous increase for six weeks in a row. This rise was fueled by major producers Saudi Arabia and Russia extending output curbs through September, which heightened fears of undersupply.

US Economic Data and Tight Labor Market Conditions Impact Oil Prices

Data released on Friday showed that the US economy maintained a slow pace of job growth in July, but solid wage rises and a fall in the unemployment rate indicated that labor market conditions remained tight. These factors played a significant role in driving the recent surge in oil prices.

WTI Crude Oil Indicates Upside Potential in the Coming Days

WTI CRUDE OIL is currently trading in an upward channel, suggesting a potential upside in the near future. Traders and investors are closely watching the market dynamics to seize opportunities.

Bitcoin Prices Hold Above $29,000 Despite Disappointing US NFP Data

The price of Bitcoin is currently trading near a six-week low. Despite the disappointing US NFP data, the asset has managed to maintain its position above the critical $29,000 level, raising hopes for a potential price recovery in August.

Uncertainty Lingers Amidst Regulatory Environment

Market participants have been eagerly awaiting a trigger in the Bitcoin market, such as the approval of a spot Bitcoin Exchange Traded Fund (ETF) by the US Securities and Exchange Commission. However, regulatory uncertainty in the United States and the regulator’s crackdown on cryptocurrency continue to cast a shadow on Bitcoin’s upward trajectory.

Bitcoin Shows Potential for Upside to $30,000

Despite the recent challenges, bitcoin’s price aims for a return to $30,000, as market sentiment remains cautiously optimistic. Traders are closely observing the market for any signs of a trend reversal.

CPI (YoY) (Jul), EUR Influences GBP and its Subsequent Pairs

The Consumer Price Index (CPI) measures the change in the prices of goods and services in a basket of consumer items. Central banks pay close attention to this figure as they aim to maintain price stability.

EURGBP Indicates Potential Upside in the Coming Week

EURGBP is currently trading in an upward channel, suggesting potential upside movements in the coming week. Market participants are closely monitoring economic indicators and central bank actions for any significant impact on the currency pair.

ISM Manufacturing PMI (Jun), U.S. Affects USD and its Subsequent Pairs

The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) Report on Business provides valuable insights into the US manufacturing sector. Traders and investors use this data to assess the overall economic health of the country.

USDZAR Indicates Potential Upside in the Coming Week

USDZAR is currently trading in an upward channel, indicating the possibility of further upside movements in the coming week. Market participants are closely observing economic indicators and geopolitical developments for potential impacts on the currency pair.

RBA Interest Rate Decision (Aug), AUD Impacts AUD and its Subsequent Pairs

The Reserve Bank of Australia (RBA) plays a crucial role in setting the benchmark interest rate, which can significantly influence the valuation of the Australian Dollar. Traders carefully analyze interest rate changes to make informed trading decisions.

AUDUSD Indicates Potential Downside in the Coming Week

AUDUSD is currently trading in a downward channel, indicating potential downside movements in the coming week. Traders and investors are closely watching economic data releases and central bank communications for any potential impacts on the currency pair.

Conclusion

As the week unfolds, traders and investors should keep a close eye on the key events mentioned in this article, as they can significantly impact the respective currencies and equities. The release of economic indicators and quarterly results can lead to market movements, presenting both opportunities and risks for market participants. Staying informed and making well-informed decisions is crucial in navigating the financial markets successfully.