Bitcoin targets $30,000 in the final day of the year
Global markets were subdued on the final trading day of the year. In the United Kingdom, the FTSE 100 index declined by 1.68% while in France, the CAC 40 index fell by more than 0.35%. Similarly, in the United States, futures tied to the Dow Jones, S&P 500, and Nasdaq 100 indices fell by more than 0.15%. This price action was possible because of profit-taking and the dimming hopes of another stimulus package in the United States. In a statement yesterday, Senator Mitch McConnel said that the Senate would not consider the $2,000 stimulus bill in the near term.
The Australian dollar declined slightly as traders reacted to early signs that the Australian economy was starting to cool. In a report, China Logistics said that the overall manufacturing PMI declined from 52.1 in November to 51.9 in December. The median estimates by analysts were for the PMI to drop to 52.0. In the same month, the composite PMI dropped to 55.1 while the non-manufacturing PMI fell to 55.7. This number came a day after the country’s statistics bureau lowered the overall annual economic forecast from 6.1% to 6.0%.
The commodities market was mixed today as traders started to think about the coming year. The price of crude oil declined slightly even after the positive inventories’ numbers from the United States. Base metals like copper and aluminium declined after the relatively disappointing economic data from China. The price of precious metals like gold, silver, and platinum was also barely moved. Meanwhile, the unstoppable cryptocurrencies rally continued, with Bitcoin approaching $30,000 and Ethereum rising to more than $750.
The EUR/USD pair hovered near the highest point since February 2018 in the final day of the year. The pair is trading at 1.2285, which is a few points below the YTD high of 1.2300. On the daily chart, the price is substantially above the 50-day and 25-day moving averages. The Relative Strength Index and the Stochastic Oscillator are hovering near the overbought level. Therefore, there is a possibility of a pull-back in the coming week as volume starts to increase.
The GBP/USD continued to rally after the UK parliament passed the Brexit deal agreed last week. The pair rose to an intraday high of 1.3655. On the four-hour chart, the price moved above the previous resistance level of 1.3625. The pair is also slightly above the 25-day and 15-day moving averages. It is also along the upper side of the Bollinger Bands. The Stochastic oscillator has also moved above the overbought level. Therefore, the pair will possibly continue rising, with the next key target being at 1.3700.
The BTC/USD pair rose to an intraday high of $29,298 as demand for the currency continued to rise. On the daily chart, the pair has moved above all the moving averages. The accumulation and distribution indicator has continued to rise while oscillators like the RSI and the commodities channel index are at the overbought level. Therefore, while the pair will possibly keep rising, there is a possibility of a pullback.