Connect with us

Analysis

Daily Analysis: Cryptocurrencies Surge and Stocks Rise as Fed Leaves Rate Unchanged

Published

on

Thursday Market Recap

// -- Discuss and ask questions in our community on Workplace.
Asset Current Value Daily Change
S&P 500 2385 0.14%
DAX 12620 1.05%
WTI Crude Oil 46.55 -2.38%
GOLD 1229.00 -1.52%
Bitcoin 1565 6.80%
EUR/USD 1.0935 0.30%

The Federal Reserve didn’t surprise the market yesterday evening, as it left its benchmark rate unchanged, although the central bank called the current weakness in economic numbers “transitory’ causing a brief rally in the Dollar and a dip in stocks. Rate hike odds for the next meeting are now above 90%, as Janet Yellen & Co. are expected to raise rates two more times this year. The major global indices are up today despite yesterday’s weakness, as European stocks are boosted by the conclusion of the French presidential debate, with Macron still being an overwhelming favorite before Sunday’s run-off. US Stocks are also slightly higher, despite Facebook’s disappointing earnings report, although the S&P 500 and the DOW are still lagging the global leaders.

Forex trends haven’t changed drastically since the Fed decision, as the weakness in the Yen, the Dollar, and most prominently commodity-related currencies remain weak. The US Dollar is trading near the 1.09 level compared to the Euro, despite the slightly better economic releases this week, such as the ISM Non-Manufacturing PMI and today’s new Jobless Claims number. Industrial metals and crude oil are falling alarmingly, as the weakness in China continues to weigh heavily on the segment. WTI Crude hit another 6-month low, and it’s getting close to the November lows near $46. Safe-haven assets are also under pressure, with gold dipping below the key $1240 level for the first time since mid-March.

// -- 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 -- //

Gold below its rising trendline, 4-Hour Chart Analysis

Cryptocurrencies

Crytocurrencies have a blowout session so far, as Bitcoin left the $1500 mark behind with ease, although the current parabolic rise could warn of a blow-off top in the near future. Litecoin, Ethereum, Ripple, and Monero are leading the way for the other major coins today, with double-digit gains and new highs for all of them. Dash, Ethereum Classic, and NEM are also up, but they remain near their previous highs, after the brief correction of the previous few days.

Ripple, 4-Hour Chart Analysis

Technical Picture

DAX, 4-Hour Chart Analysis

The DAX jumped higher today, as the French election now looks like a sealed deal, and it hit a new all-time high on the back of the positive sentiment. The MACD indicator is in overbought territory and the price just hit the upper boundary of the rising trend channel, so it’s definitely not the best time to jump on the trend. That said, further gains might be ahead in the coming days, but the weakness in some of the main US indices still warns of a looming correction. A re-test of the prior high near the 12,375 level is likely during the correction, although the 12.250 level could also be in play.

Key Economic Releases on Thursday

Day Country Release Actual Expected Previous
3:30 AUSTRALIA Trade Balance 3.11 bill 3.3 bill 3.57 bill
10:30 UK Service PMI 55.8 54.6 55.0
14:30 CANADA Trade Balance -0.1 bill 0.3 bill -1 bill
14:30 US Initial Jobless Claims (weekly) 238,000 246,000 257,000
14:30 US Trade Balance -43.7 bill -44.9 bill -43.6 bill
18:30 EUROZONE ECB President Draghi Speaks

 

Key Economic Releases on Friday

Time, CET Country Release Expected Previous
3:30 CANADA Employment Change 20,000 19,400
10:30 CANADA Unemployment Rate 6.70% 6.70%
14:30 US Employment Change 194,000 98,000
14:30 US Unemployment Rate 4.60% 4.50%
14:30 US Hourly Earnings 0.30% 0.20%
20:00 US FED Chair Yellen Speaks
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?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

Published

on

Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

// -- Discuss and ask questions in our community on Workplace.

BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

// -- 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 -- //

Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

(more…)

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?

Continue Reading

Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

Published

on

The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

// -- Discuss and ask questions in our community on Workplace.

BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

// -- 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 -- //

Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

(more…)

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?

Continue Reading

Analysis

XRP Looking to Make a Significant Rally

Published

on

The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

// -- Discuss and ask questions in our community on Workplace.

Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

// -- 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 -- //

Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of 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?

Continue Reading

Trending