First, a review of last week’s events:
EUR/USD. Recall that most experts (55% vs. 45%) voted for further strengthening of the dollar, calling the year’s low of 1.1300 recorded on August 15 as the goal. This forecast came completely true, and the pair touched the bottom at this point on the last day of October, which was also facilitated by the optimism of the US President regarding the negotiations with China. True, in contrast to D. Trump, Larry Fink, head of one of the largest BlackRock investment funds, said he expected a full-scale trade war with China in the coming weeks.
The joy of the bulls was short-lived. The market met November with growing thirst for risky investments, which was supplemented by news of progress in the Brexit negotiations. As a result, the pair flew up to the height of 1.1455, after which everyone froze in anticipation of data on the American labor market, which, as we expected, somewhat strengthened the dollar. Thus, the number of new jobs created outside the agricultural sector (NFP) more than doubled (from 118K to 250K), which allowed the dollar to win back about 65 points. As a result, the pair completed the week in the same place where it began, in the zone 1.1390;
GBP/USD. As the experts expected, the British currency fell in the first half of the week, trying to reach the 2018 low, 1.2660. However, n the November start was turning for this pair as well. On the background of the news on possible signing of an agreement with the EU on Brexit soon, the pound showed an impressive growth, soaring by 340 points. The pair finished the week at 1.2960, in the zone which can be conditionally defined as the Pivot Point of the last three months;
USD/JPY. The forecast for this pair was also absolutely accurate. Recall that the majority of experts (70%), supported by graphical analysis, voted for the strengthening of the dollar and the growth of the pair. The heights of 112.85 and 113.35 were named as targets. And It all happened. On Tuesday, the pair reached the resistance of 112.85, broke through it and fixed the weekly high at 113.38. After that, there was a retreat to the level of 112.55, and the last chord of the week sounded at the level of 113.20;
Cryptocurrencies. Our forecast said that in the absence of really important news, the BTC/USD will continue to move in the narrow range of $6,325-6,660 with a predominance of the bearish sentiment. The next support was around $6,100. This scenario was realized with a small tolerance: pushing off from the resistance of 6.550, the pair went to the lower border of the lateral channel 6.320. The bears managed to break through it in the middle of the week, and the bitcoin dropped to the horizon of 6,240, but quickly turned around and climbed to the center of the side channel in the 6.425 zone. This confirmed the assumption that, knocking the rate down to the mining profitability level, the major players are beginning to actively buy coins, as a result of which the quotes are quickly returning to the initial level.
The bitcoin’s fate was repeated by most of the top altcoins: many coins, such as Ethereum (ETH/USD) and Litecoin (LTH/USD), finished the week with a slight, barely noticeable, decrease, while others, like Ripple (XRP/USD), ended the week with a zero result.
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