Daily Analysis: Markets Rebound after Crazy Thursday as Cryptocurrencies Hold Gains

Friday Market Recap

Asset Current Value Daily Change
S&P 500 2433 0.07%
DAX 12732 0.33%
WTI Crude Oil 44.80 0.72%
GOLD 1258.00 0.25%
Bitcoin 2450 5.83%
EUR/USD 1.1202 0.07%

Stock markets are slightly higher globally today, as the US Dollar is correcting its strong post-Fed move in quiet trading. The Bank of Japan was in focus today, as it left its monetary policy and outlook unchanged despite the rate hike by the US central bank. The Yen continued lower after the decision, helping Asian markets in early trading, although the Chinese index was a tad lower once again. European and US stocks are fractionally higher, with the NASDAQ still in a weak position following the flash-decline in the tech giants exactly one week ago.

USD/JPY, 4-Hour Chart Analysis

Commodities are also trading higher, led by the rebound in the battered crude oil, while gold is also trying to rally after its post fed correction while industrial metals are little changed, with the Chinese weakness weighing on the segment. European currencies are broadly higher as the Eurozone inflation reading was in line with expectations after a series of misses. That said, the Euro is still well below its recent highs against the Dollar, and the Pound is also shy of the 1.30 level it reached before the snap election.


Ethereum led the way higher yesterday, but today the rebound stalled in the crypto market, as the majors are still stuck in a short-term downtrend. Today’s session could be crucial in deciding whether or not the coins will test their lows of yesterday or turn higher after the sharp correction.  Ethereum, Litecoin, Dash, Zcash, Bitshares, and Stratis are in more promising technical positions, while Bitcoin, Monero, Ripple, and ETC are among the weaker looking coins.

Bitcoin, 4-Hour Chart Analysis

Technical Picture

The seemingly never-ending trend in the German DAX index looks to be faltering, with a rather strong momentum divergence forming on the 4-hour chart and a broadening short-term top formation also being formed on the same time-frame. The 12,650 level is in focus right now, while the recent all-time high near 12,900 is providing primary resistance. The rising long-term trendline is found just above 12,600, while further support levels at 12,500 and 12,375 could serve as targets for a move lower.

DAX Index, 4-Hour Chart Analysis

Key Economic Releases on Friday

Time, CET Country Release Actual Expected Previous
Tent. JAPAN Monetary Statement
11:00 EUROZONE Final CPI 1.4% 1.4% 1.4%
14:30 US Building Permits 1.17 mill 1.25 mill 1.23 mill
14:30 US Housing Starts 1.09 mill 1.23 mill 1.17 mill
16:00 US Prelim Consumer Sentiment 97.2 97.1

Key Economic Releases on Monday

Time, CET Country Release Expected Previous
1:00 JAPAN Trade Balance 0.1 trill
1:00 UK Rightmove HPI 1.2%

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Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.