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Daily Analysis: Ripple Explodes Again as EUR/USD Surges Past 1.10

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Daily Analysis: Ripple Explodes Again as EUR/USD Surges Past 1.10

Introduction

This article was posted on Tuesday, 15:34, UTC.

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2401 0.10%
DAX 12825 0.15%
WTI Crude Oil 48.95 0.18%
GOLD 1234.00 0.30%
Bitcoin 1744 -0.82%
EUR/USD 1.1070 0.85%

 

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The major stock markets continue to trade in a narrow range near their all-time highs after the slight overnight weakness. The performance of the global benchmarks evened out following last week’s strong divergence although the NASDAQ is still the clear leader. The Chinese market is still in a correction, and that helps the US and European indices so far this week. It should come as no surprise that the Chinese authorities revealed that they injected a whopping $25 billion of liquidity to restore confidence in the troubled banking system. Economic numbers once again disappointed in the US and that weighs heavily on the USD, together with the renewed fears regarding Trump’s Russian connections. Building Permits Housing Starts both showed the cooling of the housing market, while Industrial Production was slightly above the consensus estimate.

Shanghai Composite, 4-Hour Chart Analysis

The Euro is the biggest winner of the Dollar slump among the major currencies, while the Pound is relatively weak despite some favorable British economic reports earlier today. Meanwhile, the Chinese market remained stable, despite the weak industrial production data, helping the rally in commodities and related assets. The Yen, the Swiss Franc and gold are also surprisingly strong against the Dollar, while commodity-currencies are boosted by the continued strength in crude oil and the Chinese rebound.

Cryptocurrencies

Ripple continues to dominate the cryptocurrency market this week, as it completed the break-out above the $0.25 level and is currently trading near $0.33 after a rise of more than 35%. XRP reached a market capitalization of $12 billion, pushing Bitcoin’s market share below 50%. BTC rebounded off the $1600 support once again, as the choppy correction continued in the currency. The other majors remained weak, expect the rising star Stellar Lumen, with Litecoin falling the most once again, correcting back below the $25 level. NEM fully decoupled from Ripple, being down by another 5% today, while Ethereum, Ethereum Classic, Dash, and Monero are all drifting lower as well.

Ripple, 4-Hour Chart Analysis

Technical Picture

The NASDAQ continues to hit all-time highs on a daily basis, led by the big six, Amazon, Apple, Google, Facebook, Microsoft, and Netflix.  The benchmark established an advancing trend channel, although the broader indices are still suspiciously lagging the tech segment despite the more balanced performances this week. The European exchanges also gave up their relative strength, but they are still hovering just below their recent highs, as volatility remains very low, and trading volumes are also muted.

NASDAQ 100 Futures, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Monetary Meeting Minutes
10:30 UK CPI Index 2.7% 2.6% 2.3%
11:00 EUROZONE Flash GDP 0.50% 0.50% 0.50%
11:00 GERMANY ZEW Economic Sentiment 20.6 22.3 19.5
14:30 US Building Permits 1.23 mill 1.27 mill 1.27 mill
14:30 US Housing Starts 1.17 mill 1.26 mill 1.22 mill
15:15 US Industrial Production 1.00% 0.4% 0.5%

 

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
10:30 UK Average Earnings 2.4% 2.3%
10:30 UK Unemployment Rate 4.7% 4.7%
11:00 EUROZONE Final CPI 1.90% 1.90%
14:30 CANADA Manufacturing Sales 0.40% -0.20%
16:30 US Crude Oil Inventories 55.0
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Mate Cser

Mate Cser

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.

Comments
  • Litecoin is at $24USD? should I buy more or sell out?

    • user

      AUTHOR Mate Cser

      Posted on 12:51 am May 17, 2017.

      Hi, regarding cryptocoins, I suggest following Jim Fredrickson’s posts and advice. In my opinion, LTC is still in an uptrend, possibly close to the end of the current correction, I would be looking for buy signals rather than sell signals here. As always, keep your position sizes manageable, especially in such volatile trends. Great trading!

  • View Comments (2) ...
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