Monday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||48.80||-1.92%|
With most of the trading desks closing for vacations after Jobs Friday, and with only a few major economic releases coming out during the week, low volumes are almost certain. Today’s session already reflects that as moves in the major asset classes are muted, and even the recently active forex market quiet. The New Zealand Dollar is the only exception as the Kiwi is tanking before the RBNZ’s rate decision that is scheduled for Wednesday, as inflation expectations came in below the consensus today. Oil and the whole energy complex is also active today, with crude oil being down by 25 after hitting resistance near $50 last week.
NZD/USD, 4-Hour Chart Analysis
The US Dollar is still in the center of attention following the strong bounce on Friday, but so far the move has stalled and the currency is trading in a narrow range today against its most important peers. Stocks are little changed today, with a slight outperformance for the NASDAQ and more weakness from the DAX, thanks to a negative surprise in German Industrial Production. Day traders should be aware that this week could continue to be choppy, without clear trending moves, and a better environment for range trading strategies.
Bitcoin made headlines with its new all-time highs during the weekend, and the currency rallied again today in early trading, hitting $3400 for a new high. The most valuable coin now surpassed $55 billion in capitalization, while the total market got close to $120 billion as confidence returned after the deep correction and the Bitcoin Fork last week. That said, the second largest coin, Ethereum is still more than 30% off its high, Ripple is still trading at less than half of its maximum and the other majors are also shy of their highs. With the overall long-term picture being bullish, we expect more upside in the coming weeks, as only Ripple and ETC are still in downtrends among the majors.
BTC/USD, 4-Hour Chart Analysis
The NASDAQ is trading slightly higher today, but it’s still within a narrow range around the 5915 level after a period of negative weakness last week. The 6000 level is still ahead as primary resistance, while a break below 5850 would signal a deeper correction, with a target zone around 5725. Trading volumes are very low today, and that could lead to a low volatility drift until Friday, when the CPI reading hits the wires.
NASDAQ 100, 4-Hour Chart Analysis
Key Economic Releases on Monday
|1:30||AUSTRALIA||AIG Construction Index||60.5||–||56.0|
|10:30||EUROZONE||Sentix Investor Confidence||27.7||27.8||28.3|
Key Economic Releases on Tuesday
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