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Daily Analysis: Japan Surges on as Stocks Settle Down

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Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2564 0.04%
DAX 13013 0.08%
WTI Crude Oil 52.55 1.25%
GOLD 1279.00 -0.11%
Bitcoin 5596 -5.63%
EUR/USD 1.1765 0.14%

The Japanese market continued to be in the center of attention as Abe’s weekend victory gave another boost to local equities, sending them to yet another two-decade high. US and European stocks are still little changed, trading inside their narrow ranges, as volatility remains very low across the globe. The DOW got an early lift from the better than expected earnings of Caterpillar, but the momentum was lacking throughout the session. British assets remained under pressure, as the Brexit talks are still concerning investors but most of the major indices are very close to their all-time highs.

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Nikkei, Daily Chart Analysis

Currencies had another active session, with still the New Zealand Dollar’s weakness being the most apparent trend, while the Great British Pound also feeling the Brexit pain. The USD remained bullish despite the renewed concerns regarding the tax reform, which caused a brief sell-off in the Greenback towards the end of the session. As the rising trend in Treasury yields continues, the Dollar will likely stay stable, although the selection process of the next Fed Chair could still provide surprises in the coming weeks.

Commodities are mixed amid the choppy moves in commodities, with crude oil trading higher, boosted by the instability in the Middle East, while gold is still struggling to find footage. The low-volatility environment, the rising yields, and the strength in the Dollar all put pressure on the precious metal, but for now, the previous lows are holding up.

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Cryptocurrencies

The crypto segment turned upside down today, compared to the recent trends, as Bitcoin turned lower after a lengthy period of relative strength thanks to the Bitcoin Gold fork, while altcoins pushed significantly higher, led by the recently struggling IOTA, Ripple, and NEO, while almost all of the major coins joined the advance. The Ethereum Classic and Bitcoin Cash are still the major laggards of the sector, while Litecoin, Dash, and Monero represent stability trading with relatively low volatility in their lengthy correction patterns. Ethereum also recovered into its long-standing trading range following a more volatile period around the Byzantium upgrade.                  

ETH/USD, 4-Hour Chart Analysis

Technical Picture

The NASDAQ has been relatively weak amid the concerns regarding this week’s earnings report by likes of Microsoft, Amazon, and Google, and the benchmark is still lagging the DOW and the S&P 500 in the in the quiet environment. The index is still clearly in a short-term uptrend, but given the generally overbought stance of the US market, it could lead the way higher in a coming correction. Support is currently found near 6000, 5900, and 5850.

NASDAQ 100 Futures, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
9:00 GERMANY Manufacturing PMI 60.5 60.1 60.6
9:00 GERMANY Services PMI 57.4 55.5 55.6
10:00 EUROZONE Manufacturing PMI 58.6 57.9 58.1
10:00 EUROZONE Services PMI 54.9 55.7 55.8

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
2:30 AUSTRALIA CPI 0.8% 0.2%
10:00 GERMANY IFO Business Climate 0.4% 0.2%
10;30 UK Prelim GDP 0.3% 0.3%
14:30 US Core Durable Goods Orders 1.1% 2.0%
16:00 CANADA BOC Rate Decision 1.0% 1.0%
16:00 CANADA BOC Statement
16:00 US New Home Sales 556,000 560,000

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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