Daily Analysis: Cryptocurrencies under Pressure as Oil Jumps and US Stocks Still in Limbo

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2475 0.27%
DAX 12283 0.61%
WTI Crude Oil 47.19 1.83%
GOLD 1284.00 0.45%
Bitcoin 2595 -5.31%
EUR/USD 1.1686 0.37%

The Federal Reserve’s scheduled meeting starts today, but the central bank won’t release its interest rate decision and monetary statement until tomorrow. US equities are likely to trade in a low volatility, low volume environment, with the all-time highs in the major indices still just a few ticks away. European stocks emerged from the oversold levels of yesterday, although they are still very weak compared to their US peers, as the pressure from the strong Euro didn’t ease significantly. German business confidence hit a new all time high in July, but make no mistake, the central banks remain the main forces behind the market, and even the earnings season is taking a back seat before tomorrow’s announcement.

That said, Google’s parent Alphabet (GOOG) took a small beating after reporting mixed quarterly numbers, as the core business seems to be under a bit of a margin pressure. Maybe the quasi-monopolistic position of the company in the online advertising business is being challenged by the likes of Facebook? Whatever is the case, the NASDAQ 100 is still the engine of growth in the US market, and after emerging from the flash crash induced correction that started in June, the tech benchmark looks set to hit the 6000 level for the first time in its history. Google actually dipped lower from an all-time high above the historic $1000 level in after-market trading following the report.

Alphabet (GOOG), Daily Chart Analysis

Commodities are having an active day, with both oil and copper up helped by the recent weakness of the Dollar, and the renewed optimism regarding the future of the future of the central bank policies. Oil is also boosted by the encouraging comments from Saudi Arabia and Nigeria on the production cuts of the OPEC in Russia, which calmed traders after a string of worrying developments regarding the fragile agreement. The Japanese Yen and gold are both drifting lower thanks to the positive change in sentiment while commodity currencies are gaining ground in the otherwise calm forex markets.

Gold, 4-Hour Chart Analysis

Cryptocurrencies

The crypto market is still in a short-term correction after last week’s strong rally, and despite today’s dip odds still favor more upside in the coming period. The sudden decline took the majors under their short-term supports, but the long-term picture points to this only being a correction in a new uptrend. The next couple of could be crucial for Bitcoin, the current leader of the segment, as the crucial $2450-$2500 zone should hold the correction.

Bitcoin, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
10:00 GERMANY IFO Business Climate Index 116.2 114.9 115.1
16:00 US CB Consumer Confidence 116.2 118.9
16:00 US Richmond Manufacturing Index 7 7

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
3:30 AUSTRALIA CPI Index 0.4% 0.5%
9:30 UK Nationwide HPI 2.7%
10:30 UK GDP 0.3% 0.2%
16:00 US New Home Sales 615,000 610,000
16:30 US Crude Oil Inventories -4.7 mill
20:00 US FOMC Rate Decision 1.25% 1.25%
20:00 US Fed Monetary Statement

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Author:
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.