Connect with us

Analysis

Daily Analysis: Dollar Dips as US Retail Sales Disappoint Once Again

Published

on

Friday Market Recap

Asset Current Value Daily Change
S&P 500 2387 -0.17%
DAX 12730 0.18%
WTI Crude Oil 47.88 0.02%
GOLD 1230.00 0.48%
Bitcoin 1795 -2.15%
EUR/USD 1.0915 0.46%

 

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

Global stocks are mixed and little changed so far today, as the rebound that started yesterday in late trading faded this morning. European stocks are slightly higher, while the Nikkei and the main US benchmarks are lower compared to yesterday’s closing prices. The US Retail Sales and CPI reports were the most expected announcements today, as the Federal Reserve is very keen on those numbers and last month’s readings were far from being convincing. The report missed expectations once again, and that might set the tone for the coming weeks especially for currencies as the Dollar might be under pressure if investors change their rate hike expectations.

Gold is finally showing some strength, thanks to the dip in the Dollar and the slight negative change in sentiment that also helped the Yen and the Swiss Franc today. The Pound is still relatively weak as it has been since the Bank of England’s meeting, while the Euro bounced back above 1.09 against the Dollar after the negative US releases. Oil is trading right at the $48 per barrel level, as industrial commodities are still stable, thanks to the small rebound in China.

Dollar Index, 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 -- //

Cryptocurrencies

Cryptocurrencies are little changed once again today, with most of the majors trading in narrow ranges after the strong gains of the previous weeks. Litecoin, the most active coin of the week fell to a 20-handle this morning, being down by 5%. Ripple is drifting higher, and it’s above 0.20 again, possibly preparing for another major move. Ethereum, Ethereum Classic, Dash, and Monero are virtually unchanged while NEM has been following Ripple higher so far today. Bitcoin is lower, back near the $1800 level, but no real technical damage has been done, with even the short-term rising trend still being intact.

Ripple, 4-Hour Chart Analysis

Technical Picture

The NASDAQ is still the leader among the US indices as the status quo of the past few weeks is unchanged. The technology index is just below its all-time high today, despite yesterday’s dip and the weakness of the broader indices. The S&P 500 is clearly lagging the benchmark, while the NASDAQ held up well above the short-term support level, despite drifting out from the post-election trend earlier on this week. The MACD edged lower during the consolidation, clearing the overbought condition, so another push higher is now possible for the index in the coming days if its relative strength overwhelms the negative divergence of the major benchmarks.

NASDAQ 100 Futures, 4-Hour Chart Analysis (S&P 500 Comparison)

Key Economic Releases on Friday

Country Release Actual Expected Previous
GERMANY Prelim GDP 0.60% 0.60% 0.40%
US CPI Index 0.20% 0.30% -0.30%
US Core CPI 0.10% 0.20% -0.10%
US Retail Sales (monthly) 0.40% 0.60% -0.20%
US Core Retail Sales 0.30% 0.50% 0.00%
US UOM Consumer Sentiment  97.7 97.0 97.0

 

Key Economic Releases on Monday

Time, CET Country Release Expected Previous
4:00 CHINA Industrial Production (yearly) 7.6%
9:15 SWITZERLAND PPI Index 0.10%
14:30 US ES Manufacturing Index 5.2
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