Daily Market Report - Wednesday, Aug 30, 2023


The price of Bitcoin (BTCUSD) has increased by more than 7% in the past 24 hours to $28,100 as the US court ruled in favor of Grayscale Investments, a subsidiary of Digital Currency Group, in regard to the application of a spot BTC ETF. The upside momentum was also lifted after the social media platform X, formerly known as Twitter, obtained a license required for crypto payments and trading in the US.

According to technical analysis, the BTC/USD pair is presently displaying a fluctuating trend, with possible resistance anticipated around the $28,600 mark. On the other hand, if a downward trend emerges, Bitcoin's price is anticipated to encounter solid support levels around $26,600 and $26,200.

The major cryptocurrency exchange Coinbase (NASDAQ: COIN) saw its stock jump around 15% on Tuesday on Bitcoin ETF Win. Coinbase is a global prime broker platform for digital assets.


European and UK shares opened higher Wednesday continuing the theme from the previous session. Wall Street registered solid gains on Tuesday after the US rate hike in 2023 fell after worse-than-expected economic numbers bolstered hopes the Fed can pause in September. A sharp decline in US Treasury yields also lifted technology and other growth stocks.


Crude oil futures registered a higher note early Wednesday lifted by better-than-expected reports on US crude stockpiles and broad-based US Dollar weakness. The latest API inventory report showed that US crude inventories tumbled by 11.5 million barrels last week, far exceeding expectations for a 2.9-million-barrel decline. For today, the main drivers for the crude oil remain the movement of the US dollar, the EIA crude inventory report and the key US economic data.

In the currency market, the US dollar index trades flat following the previous session's negative closing. The king dollar sharply reversed from the highs on Tuesday after the US JOLTS jobs data and consumer confidence both came in well below expectations. On the other hand, EURUSD holding the early highs ahead of the Consumer Price Index (CPI) figures from Germany, which is set to be released at 12:00 GMT today. However, the sustainability of any gain in the currency pair in the coming days will largely depend on how the US dollar behaves.


The safe-haven metal remains steady versus a falling US Dollar. The bullish momentum was boosted after Consumer confidence in the US declined more than expected in August. Moving ahead to the North American session, gold traders and investors should closely monitor the release of US ADP Employment Change figures for August and the GDP growth rate for the April-June period, especially after Fed Chair Jerome Powell emphasized the importance of data-dependency to uphold the current hawkish stance.

Economic Outlook

On the data front, the US consumer confidence unexpectedly declined in August. Consumer confidence declined in August to 106.1 down from a revised 114.0 in July, the Conference Board announced in a statement. US Job Openings in July fell by more than expected to a larger-than 2-year low, at 8.83 million, versus expectations of 9.49 million.

Moving ahead today, the important events to watch:

Germany – CPI: GMT – 12:00

US – ADP employment report: GMT – 12:15

US – GDP: GMT – 12:30

Technical Outlook and Review

The currency pair trades above 1.0880. For today, the next resistance is located for the pair at around 1.0910, a break above this level will confirm a possible move to 1.0950/60. On the downside, any meaningful pullback now seems to find some support near the 1.0840/30 zones, below which the slide could further get extended towards the 1.0800/1.0780 region.


The important levels to watch for today: Support- 1.0830 and 1.0800 Resistance- 1.0910 and 1.0950.

GOLD: The technical scenario is absolutely bullish after the price break above the $1930 zone. While considering the recent bullish rally the metal may find strong resistance today in the area of $1942/45 where the price has strong resistance.

gold neww

The important levels to watch for today: Support- 1930 and 1924 Resistance- 1942 and 1945.

Quote of the day In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep the money. -Ray Dalio.
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