Crypto-Bounce Continues as Central Bankers Toy with Markets | Hacked: Hacking Finance
user

Analysis

Crypto-Bounce Continues as Central Bankers Toy with Markets

Posted on .

Crypto-Bounce Continues as Central Bankers Toy with Markets

Introduction

This article was posted on Wednesday, 14:36, UTC.

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2429 0.38%
DAX 12668 -0.02%
WTI Crude Oil 44.27 0.07%
GOLD 1253.00 0.43%
Bitcoin 2534 5.13%
EUR/USD 1.1335 -0.07%

Yesterday’s crazy afternoon, fueled by the newest cyber threat Petya and the plunge in the NASDAQ, is a thing of the past now, as global stocks have rebounded off their lows and trade broadly higher. European shares are still underperforming their global peers, as we expected, and the DAX finally broke below its long-standing trendline possibly pointing to a deeper correction. The Euro is on a rollercoaster ride this week, thanks to the European Central Bank’s summit in Portugal. Just today, the common currency surged to a 12-month high against the US Dollar before collapsing back towards yesterday’s close after another round of speeches regarding the Eurozone’s monetary policies.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

EUR/USD 4-Hour Chart Analysis

Apart from the Euro, the Canadian Dollar is the biggest moving fiat currency once again as the rally fueled by the recent positive economic surprises continues in the “Loonie”.  Gold is still hovering around the $1250 level after Monday’s suspicious flash crash, and that might be a good sign for the metal, as it failed to gather downside momentum after the dip. Oil is consolidating near the $44 level, as the Saudi-Qatar crisis is on hold for now, with next week’s deadline for the ultimatum slowly approaching.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Cryptocurrencies

The crypto-market continues to heal after Monday’s scary dip, and the weakest link of that day, Ethereum, is showing signs of relative strength, as it approaches our target for the bounce at $300. While the long-term picture is getting close to neutral, more corrective action is likely before a move to new highs, although the actual lows are most likely in.  Small cap coins are also looking encouraging, while Dash remains the strongest looking major. We still suggest tracking the moves of Ethereum and Bitcoin as correlations could still jump in the case of another dip, as the correction phase runs its course.

Ethereum, 4-Hour Chart Analysis

Technical Picture

The DAX broke below the crucial support level that we pointed out recently and exited the long-term trend channel with the overnight dip. A test of the zone between 12,375 to 12,500 is the most likely scenario, and bulls should still wait before opening new positions in the benchmark. Yesterday’s strong decline in the NASDAQ could point to a broad correction in global stocks, and the strength of the Euro could further weigh on European equities.

DAX Index 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
10:00 EUROZONE M3 Money Supply 5.0% 5.0% 4.9%
14:30 US Goods Trade Balance -65.9 bill -66.2 bill -67.1 bill
15:00 US Pending Home Sales 0.9% -1.3%
16:30 US Crude Oil Inventories -2.1 mill -2.5 mill

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
10:00 GERMANY Prelim CPI 0.0% -0.2%
14:30 US Final GDP 1.2% 1.2%
15:00 US Initial Jobless Claims 240,000 241,000

 
Featured image from Shutterstock

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
The smaller coins have been following the majors lower in…