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Daily Analysis: Bitcoin Steals the Show, as Stocks Remain Stable

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Daily Analysis: Bitcoin Steals the Show, as Stocks Remain Stable

Introduction

Tuesday Market Recap

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Asset Current Value Daily Change
S&P 500 2383 -0.23%
DAX 12478 6.00%
WTI Crude Oil 48.62 -0.45%
GOLD 1256.00 -0.66%
Bitcoin 1471 7.20%
EUR/USD 1.0891 -0.07%

 

Global stock markets are slightly higher today, following the long weekend in Europe. Last week’s trends remained intact for the most part, as the major indices are still hovering at or just below their all-time highs, with the NASDAQ and European stocks still being relatively strong. Apple will report earnings today after the market close, and the Federal Reserve holds its monetary meeting on Wednesday, and those could mean that today’s session will be a less active one. Japanese stocks continue to rise strongly as the Yen’s weakness still pushes the Nikkei higher.

The Dollar and the Yen are still drifting lower while the Euro and the Pound remain among the strongest major currencies, as traders are still unwinding bets against European assets following the first round of the French elections. The Swiss Franc is also benefiting from the broad European rally, while other safe-haven assets like the Yen and gold are still struggling. Oil is also very weak despite the positive global sentiment, as the fundamental weakness of the commodity outweighs the risk-on environment, pointing to further losses for the sector.

Gold futures, 4-Hour Chart Analysis

Bitcoin

Bitcoin’s surge to all-time highs intensified this week as the largest cryptocurrency exploded above $1400, topping its previous record high by more than 10% now. BTC continues to ignore the fork-related fears and the rise of its competitors, and it looks set to hit $1500 in the coming days. Several coins entered a correction after the broad rally last week, as traders focused more on Bitcoin. Ethereum, Dash, Ethereum Classic, Ripple, Monero, NEM, and Litecoin are all off their recent highs.

Bitcoin, 4-Hour Chart Analysis

Technical Picture

The DAX is still trading in a holding pattern since the French election, near its all-time high at 12,500, but it still failed to cross that crucial level despite the positive sentiment. The bearish cross on the MACD indicator suggests short-term weakness. The benchmark might be ready to re-test the previous highs near 12,370 or even the rising trend-line at 12,250. Another major support zone is found at that level between 12,085 and 12,150.

DAX, 4-Hour Chart Analysis

Key Economic Releases on Monday and Tuesday

Day Country Release Actual Expected Previous
Monday UK Treasury Sec Mnuchin Speaks
Monday US Personal Spending 0.00% -0.10% 0.20%
Monday US ISM Manufacturing PMI 54.8 56.6 57.2
Tuesday CHINA Manufacturing PMI 50.3 51.4 51.2
Tuesday AUSTRALIA Base Interest Rate 1.50% 1.50% 1.50%
Tuesday UK Manufacturing PMI 57.3 54 54.2

 

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
10:30 UK Construction PMI 52.1 52.2
11:00 EUROZONE Prelim GDP 0.50% 0.40%
16:30 US Crude Oil Inventories -3.6 million
16:00 US ISM Non-Manufacturing PMI 56.1 55.2
14:15 US ADP Employment Report 178,000 263,000
20:00 US FOMC Statement
20:00 US Base Interest Rate 1.00% 1.00%
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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.

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