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Daily Analysis: DAX Hits New High Again as Ripple Explodes

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Monday Market Recap

Asset Current Value Daily Change
S&P 500 2356 -0.15%
DAX 12315 0.20%
WTI Crude Oil 50.65 0.12%
GOLD 1252.50 0.11%
Bitcoin 1129 4.25%
EUR/USD 1.0675 0.19%

 

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Global stock markets started the week where they left off on Friday as European markets, especially German stocks, remained relatively strong. The DAX hit yet another high as it continues to head towards its nominal all-time high at 12500. US futures are virtually unchanged as the S&P 500 is still hovering around the crucial support/resistance line that we have been monitoring all week long. Economic releases were mixed so far, with the European manufacturing PMIs coming in slightly below the expected levels, although they are still showing growth.

The most awaited European number, the British PMI, was well below the consensus estimate, and the British Pound is trading lower against its major peers after the release. The Australian Dollar is also under pressure as retail sales disappointed in the country. Commodities are relatively so far today, as WTI Crude Oil is still holding on above the $50 per barrel level, following last week’s strong bounce. Gold started the quarter just below the $1250 level, as it got slightly lower during the morning session while the US Dollar gained ground.

Ripple had an epic Sunday after the huge break-out on Friday, as it blew through the 0.0025 resistance and surged all the up to 0.007, almost tripling in value, before entering a deep intraday correction. Litecoin is rallying again as well, and it’s now above the $8 level after the stellar run last week. Bitcoin finally cleared the 1100 level, but momentum is still weak in the most traded cryptocurrency, as the smaller altcoins remain in focus. Dash continued its deep correction, although it might have finally found support near the $63 level. Ethereum and Monero are also sliding, albeit on low volume and without causing major technical damage so far.

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Ripple/Bitcoin, 4-Hour Chart

Technical Picture

S&P 500 Index, 4-Hour Chart Analysis

The S&P 500 continues to trade in the holding pattern above the line-in-the-sand support resistance \zone on the 4-hour chart. The index remains relatively weak compared to the DAX and the Eurostoxx 50 although the Nasdaq lost some of its relative strength, possible pointing to a coming downswing for the US markets. Trend-line resistance is ahead near 2372, with strong support found near the 2319 level, with a weaker line around 2332.

Key Economic Releases on Monday

Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Retail Sales (monthly) -0.10% 0.30% 0.40%
10:30 UK Manufacturing PMI 54.2 55.1 54.6
16:00 US ISM Manufacturing PMI 57.2 57.2 57.7
Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Retail Sales (monthly) -0.10% 0.30% 0.40%
10:30 UK Manufacturing PMI 54.2 55.1 54.6
16:00 US ISM Manufacturing PMI 57.2 57.2 57.7
 14:30 CANADA GDP (monthly) 0.60% 0.30% 0.30%
15:45 US Chicago PMI 57.7 57.2 57.4

Key Economic Releases on Tuesday

Time, CET Country Release Expected Previous
6:30 AUSTRALIA RBA Rate Decision 1.50% 1.50%
10:30 UK Construction PMI 52.50% 52.50%
14:30 CANADA Trade Balance 0.7 billion 0.8 billion
 14:30 US Trade Balance -46.7 billion -48.5 billion
16:00 US Factory Orders (monthyl) 0.90% 1.2%
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Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

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Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

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EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

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WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

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Analysis

Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets

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Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.

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While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.

XRP/USDT, 4-Hour Chart Analysis

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Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.

ETH/USD, 4-Hour Chart Analysis

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Analysis

Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins

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The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.

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Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.

LTC/USD, 4-Hour Chart Analysis

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Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.

XRPUSDT/USD, 4-Hour Chart Analysis

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