Daily Analysis: Cryptocurrencies Still in Correction amid Post-Fed Turmoil
Thursday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||44.52||-0.42%|
The Dollar is up and everything is down after the Fed decision, that’s the short summary of the day, so far, although not all markets agree with the consensus. The US bond market still sees very low rates going forward, despite the Fed’s intentions. Global stock markets are broadly lower, with the NASDAQ leading the way once again, as the tech giants are back in the crosshairs. Banks are outperforming the major indices, and that helps the S&P 500 in holding up well compared to the tech benchmarks. The weakness of the Yen supports the Japanese markets, while European shares are among the weakest globally.
EUR/USD, 4-Hour Chart Analysis
The Great British Pound is among the best performing major currencies of the day following the Bank of England’s monetary meeting that delivered a very surprising vote (looks like British voting patterns are quite confusing…), with Pound surged after the decision, as the central bank proved way more hawkish in the uncertain environment than expected. Commodities are hit hard by the Dollar rally, with precious metals, oil, and the industrial segment all experiencing losses.
The crypto-correction continued in earnest today, as the majors were all headed sharply lower again, experiencing 30+% losses. Bitcoin fell as far as $2150, while Ethereum dipped $130 and bottomed near $270, so far. NEM and Monero are also in deep correction, hitting short-term lows together with the two most valuable coins. Ripple and Litecoin are showing signs of relative strength in the correction, Dash and ETC are only trading near their weekend break-out levels, while Bitshares is holding strong against BTC.
Ethereum, 4-Hour Chart Analysis
The NASDAQ resumed its correction following the Fed decision, but the Monday lows held during the US session, so far. We still expect a test of the long-term trendline and the 5600 level during the correction, with a possible spike to the key support zone slightly below the 5500 level. The 5775 level is the primary resistance right now, and below that the short-term downtrend remains intact.
Key Economic Releases on Thursday
|9:30||SWITZERLAND||SNB Monetary Statement||–||–||–|
|13:00||UK||BOE Monetary Statement||–||–||–|
|14:30||US||Philly Fed Index||27.6||25.5||38.8|
|14:30||US||Initial Jobless Claims||237,000||241,000||245,000|
Key Economic Releases on Friday
|14:30||US||Building Permits||1.25 mill||1.23 mill|
|14:30||US||Housing Starts||–||1.17 mill|