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Over the past few weeks, the price of Bitcoin has fallen sharply to the lowest level since 2017. After attempting to gain a week ago, the price started to decline once again and today, reached an intraday low of $3733. The combined market capitalization of cryptocurrencies has declined to about $125 billion. A month ago, the value of these currencies was above $230 billion.

Among traders, there is fear that the ongoing price decline is making digital currencies worthless. The argument is that as the price drops, so does the level of unprofitability among miners. While the average cost of mining a Bitcoin is not known, estimates place it at more than $4,000. Therefore, at the current prices, it means that most miners are operating at a loss.

Unlike stocks and bonds, Bitcoin does not have any yield. Therefore, its value is derived from the anticipation of future use. As a result, it can be closely equated to gold, which is usually seen as a store of value. Those investing in Bitcoin are doing so in the hope that the price will move up.

The BTC/USD pair is trading at the 3804 level, which is below the short and longer-term EMAs on the four-hour chart below. The RSI has fallen from 60 to the current 38, while the momentum indicator has fallen sharply. Therefore, it is likely that the BTC/USD pair will continue moving lower as sentiment falls.

Avvenire daily newspaper reported that Italian Prime Minister Giuseppe Conte said he will submit a new 2019 Draft Budget Plan to EU in the next few hours. There is no detail about the new plan yet. But Conte said new proposal could reasonably include a deficit lower than previously forecast. That is, it would be lower than the deficit target of 2.4% of GDP 2019.

European Commission for for Economic and Financial Affairs Pierre Moscovici said the Commission is waiting for concrete and credible moves from Italy on the budget. He noted that talks were now proceeding at an intense pace, but emphasized that the Commission was "waiting for more details".

The Australian dollar remained close to yesterday's highs after the RBA left interest rates unchanged for the 28th consecutive month. The bank said that the current expansionary policy was helping the country improve its economic situation stating how the unemployment rate was at 5.0%, which was the lowest level it has been in six years, while inflation has remained low and stable. Inflation is expected to pick up over the next couple of years reaching 2¼ in 2019, up from the current 1.9%. During the past two months, the Aussie has gained by more than 5% making it one of the best-performing currencies. Tomorrow, traders will receive the final reading of the Q3 GDP growth.

The price of crude oil continued the rally started yesterday in overnight trading. The price of Brent rose to a high of $62.3 while that of West Texas Intermediate (WTI) rose to $53.9. The rally comes after Saudi and Russia agreed to halt production ahead of the OPEC meeting on Thursday. It also rose mostly because of optimism that global growth will pick up in 2019 after the trade truce between US and China. Later today, the American Petroleum Institute (API) will release inventory numbers for the past week.

The Canadian dollar halted the sharp gain started on Friday evening. This is as traders wait for the important labor productivity data for the third quarter. Traders expect the number to show that productivity increased by 0.4%. This will be lower than the previously-released gain of 0.7%. Tomorrow, the Bank of Canada will release its interest rates decision. Traders expect that the bank will leave rates unchanged during this meeting.

EUR/USD

The euro rose sharply against the USD in overnight trading. This happened despite ISM manufacturing PMI data showing a rise in PMI to 59.3, which was higher than the consensus estimate of 57.6. The pair reached an intraday high of 1.1375. The pair's price is above the 25-day and 50-day EMA and is closer to the high of 1.1400. With no major economic data expected today, the pair could continue moving up to the resistance level of 1.1400.

USD/CAD

The USD/CAD pair eased the decline started on Friday as traders wait for the labor productivity data from Canada and the decision of the BOC tomorrow. The current price of 1.3180 is below the important 50-day and 25-day EMA. It is also along an important support on the four-hour chart below. The pair will likely continue the downward movement ahead of the BOC decision. If it does, traders should watch out for the important support level of 1.3050.

XBR/USD

The price of Brent crude continued rising overnight as sentiment rose. The XBR/USD pair reached a high of 62.65, which is the highest level since November 23. The RSI has moved up from 21 to the current 58. Since markets move by sentiment and the fear of missing out, there is a likelihood that the price of Brent will continue moving up. If it does, it will likely test the important resistance level of 65 in the short term.

Daily Pivots: (S1) 0.8882; (P) 0.8905; (R1) 0.8948; More...

Despite breaching 0.8939 resistance, EUR/GBP cannot sustain above this resistance yet. Intraday bias stays neutral first. On the upside, firm break of 0.8939 resistance will confirm completion of the fall from 0.9098 and turn outlook bullish for this resistance. On the downside, below 0.8810 will turn bias to the downside for 0.8655 low instead.

In the bigger picture, EUR/GBP is seen as staying in long term range pattern started at 0.9304 (2016 high). Sustained break of 0.8939 resistance will confirm that it's in a medium term rising leg for 0.9098 and above. And for now, in case of another fall, downside will likely be contained by 0.8620/55 support zone to bring rebound.

Daily Pivots: (S1) 1.5369; (P) 1.5407; (R1) 1.5468; More....

EUR/AUD recovers mildly but intraday bias on the downside with 1.5505 minor resistance intact. Deeper decline should be seen to 1.5271/5313 cluster support zone next. On the upside, above 1.5505 minor resistance will turn intraday bias neutral and bring consolidation. But recovery should be limited below 1.5781 resistance to bring fall resumption.

In the bigger picture, current development argues that up trend from 1.3624 (2017 low) is possibly completed at 1.6357, ahead of 1.6587 (2015 high). This is supported by bearish divergence condition in weekly MACD. Deeper decline is now in favor to 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313). Break will target 61.8% retracement at 1.4668. This will remain the favored case as long as 1.5781 resistance holds.

XAUUSD (1236.73): Gold advanced higher on the day on Monday as price action was seen inching closer to the 1242.25 level of resistance and the next target. In the near term, support is seen at 1227.10 which could be tested on a dip. Establishing support at this level will signal further gains to the upside. Alternately, failure to hold the declines at 1227.10 could potentially risk gold to erase the gains and inch ower to the support level at 1217.00

GBPUSD (1.2741): The GBPUSD currency pair continues to consolidate near the support area of 1.2747 region. Price action slipped below this level but posted a quick reversal. In the short term, the GBPUSD could be seen holding on the ranging pattern with an increased risk of a test to the 1.2683 level of lower support. To the upside, price action needs to break out from the falling trend line to confirm any upside in price.

EURUSD (1.1375): The EURUSD closed with a doji pattern yesterday, and price action seems supported above the 1.1315 - 1.1300 level. As long as this level holds, the EURUSD could attempt to test the upper range at 1.1435 level. A breakout from this level is needed for the EURUSD to post further gains. However, in the short term, we expect the common currency to maintain a sideways holding pattern.

Data from the Eurozone showed that final manufacturing PMI grew to 51.8 in November. This was a slight increase from 51.6 in the previous month. The UK's manufacturing PMI was up to 53.1 in November, up from 51.1 in October.

The ISM manufacturing PMI was higher than forecast, rising to 59.3 on the index. This was also better than the October's print which saw the index falling to 57.7. The increase in the ISM manufacturing came as production index grew to 60.6 on the month compared to October 59.9. New orders index rose to 62.1, advancing from 57.4.

Construction data, however, came out weaker than forecasts. Private construction was seen falling 0.4% in October compared to the previous month. On a yearly basis, construction spending grew 3.9%.

The economic schedule for today is relatively quiet in comparison to the week. The RBA held its monetary policy meeting earlier today. The central bank, as widely expected left the interest rates unchanged at 1.50%.

Looking ahead, the European trading session is quiet with only the release of the Swiss inflation report. Headline consumer prices are forecast to fall by 0.1%. This follows a 0.2% increase the month before.

The Bank of England Governor, Mark Carney will be speaking later in the afternoon. The UK's construction PMI will be out today. Forecasts point to construction activity easing to 52.5 on the index from 53.2 in October.

Producer prices data from the Eurozone are out next, and factory gate inflation is expected to remain steady, rising by 0.5% on the month. The NY trading session will see Fed members Williams and BoE MPC member Vlieghe speaking.

Daily Pivots: (S1) 0.7339; (P) 0.7366; (R1) 0.7387; More...

Intraday bias in AUD/USD remains on the upside. Current rebound from 0.7020 medium term bottom should target 38.2% retracement of 0.8135 to 0.7020 at 0.7446 and above. On the downside, break of 0.7284 minor support will turn intraday bias neutral first. But near term outlook will stay bullish as long as 0.7199 support holds.

In the bigger picture, AUD/USD's decline from 0.8135 should have completed at 0.7020 already, ahead of 0.6826 key support (2016 low). Stronger rebound should be seen. But still, we'd expect strong resistance from 0.7500 support turned resistance to limit upside. Medium term fall from 0.8135 should extend to take on 0.6826 low at a later stage.