Daily Analysis: Crypto-Rally Still in Focus as Stock Markets Remain in Limbo
Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||48.45||1.32%|
The broad rally in cryptocurrencies stole the show today, as financial markets remained hesitant before the much-awaited Jackson Hole FED-symposium. With trading volumes still being very low across the board, the relatively busy currency markets dominated the session. The much worse than expected US New Home Sales number put some pressure on equities and the Dollar, while the European PMI reports came in mixed. With the Fed’s annual meeting starting tomorrow, we expect volatility and volumes to pick up during the last two days of the week, with a strong focus on the Dollar and US Treasuries.
NASDAQ, 4-Hour Chart Analysis
The major indices are trading slightly lower after the two day rebound, but they remain well off their correction lows, despite the still apparent internal weakness. European stocks are down again, as the Euro gained ground once again on the Greenback, as Dollar was pushed lower by the chatter regarding a possible government shutdown in the US. The Great British Pound also continued its bearish run, as evidence is mounting that the Brexit process is already affecting growth. Oil and gold are both up, as the precious metal continues its bullish consolidation below $1300, looking ready to finally exit its long-standing trading range. Oil is helped by the slightly bullish US inventories data, but it remains inside a declining short-term trend and below the key $48.50 level.
Gold, 4-Hour Chart Analysis
All the major coins are up today, as the rebound in Bitcoin and the break-out of Ripple pulled the market higher, and he all-time high in total market capitalization also improved sentiment. BTC is back at the $4200 level, although the overbought long-term readings should still be alarming for investors here. The prior movers are holding their ground well, with Dash still hovering around $300, and Monero touching $100 for a new high in early trading before turning south. NEO ended its short-term correction with a bang, as the up-and-coming coin shot up by 20%, exiting its downtrend. As the cryptocurrency segment is worth more than $150 billion now (a staggering 200% jump off the correction lows) it seems that institutional adaption is back on track after the feared BTC fork.
XRP/USDT, 4-Hour Chart Analysis
The most traded currency pair remains in a clear uptrend after the recent correction. The MACD indicator is back on a short-term buy signal after the bottom that formed just below 1.17. The pair might be ready to test the 1.20 level, but volatility is expected to rise significantly in the back end of the week as the Fed’s symposium starts. A clear break below 1.1675 could trigger a deeper correction, as the rising trendline converges with a strong support/resistance zone in the coming days there. The 1.1850 and 1.19 levels are ahead as short-term resistance.
EUR/USD, 4-Hour Chart Analysis
Key Economic Releases on Wednesday
|9:00||EUROZONE||ECB President Draghi Speaks||–||–||–|
|16:00||US||New Home Sales||571,000||615,000||610,000|
|16:30||US||Crude Oil Inventories||-3.3 mill||-3.3 mill||-8.9 mill|
Key Economic Releases on Thursday
|10:30||UK||Second Estimate GDP||0.3%||0.3%|
|14:30||US||Existing Home Sales||5.55 mill||5.52 mill|
|All Day||US||Jakson Hole Symposium||–||–|
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