Friday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||51.86||0.31%|
A surprisingly quick military reaction by the Trump administration cause turmoil overnight, as the US fired 59 Tomahawk missiles as a retaliation following a chemical weapon attack by the Assad regime. Global stocks dipped lower initially, although they were already losing ground in late trading as rumors about a possible attack spread. US futures rebounded off the overnight lows before the crucial employment report. Non-farm payrolls rose by 98,000 in March, which was way less than expected, while average earnings came in at 0.2% in line with expectations. The Dollar still pushed higher after the release as the previous month earnings reading was revised higher and the unemployment rate unexpectedly ticked lower to 4.5%.
The British Pound was once again under pressure this morning following the release some negative economic news from the UK. Manufacturing and industrial production unexpectedly declined in the past month, possibly as a consequence of Brexit fears. Safe-haven assets were aggressively bought following the missile attack, and gold was the biggest winner while the Yen gave back most of its gains today in early trading. Oil also got bought on political fears, and the crucial commodity is holding up to its gains above the $52 per barrel level.
Bitcoin continued its march towards its prior highs, as it breached the $1200-$1215 resistance zone, before starting a slight correction. The smaller altcoins are broadly weaker today, especially Litecoin, which corrected back below the $10 level. Dash is still holding up above the $60 level, and it’s probably in the phase of building a base above the crucial support. Monero is still below $20 after dipping below $19 yesterday, while Ethereum continues to trade in a choppy fashion above the $40 level. Volatility in Ripple declined significantly, and it still trades above the 0.03 level that stopped its violent correction.
DAX, 4-Hour Chart Analysis
The German Index continued the correction that we pointed out earlier on this week, and it retreated to the 12,150 level while reaching the mid-point of the dominant rising trend channel. The MACD indicator is still on a sell signal, although it’s getting back to neutral territory. Further correction towards the 12,075 level is possible, with the lower boundary of the trend channel currently found at 12,000. The prior high at 12,350 is ahead as primary resistance, while the all-time nominal high is at slightly above that at 12,500.
Key Economic Releases on Friday
Key Economic Releases on Monday
|22:00||US||Fed Chair Janet Yellen Speech||–||–|
Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move
Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||56.65||-0.68%|
The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.
EUR/USD, 4-Hour Chart Analysis
The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.
WTI Crude Oil, 4-Hour Chart Analysis
The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.
As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.
ETH/USD, 4-Hour Chart Analysis
The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.
BTC/USD, 4-Hour Chart Analysis
Key Economic Releases on Wednesday
|11:30||UK||Claimant Count Change||5,900||3,300||6,500|
|15:30||US||Crude Oil Inventories||-5.1 mill||-3.6 mill||-5.6 mill|
|21:00||US||Fed Rate Decision||1.5%||1.5%||1.25%|
Featured image from Shutterstock
Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets
Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.
While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.
XRP/USDT, 4-Hour Chart Analysis
Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.
ETH/USD, 4-Hour Chart Analysis
Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins
The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.
Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.
LTC/USD, 4-Hour Chart Analysis
Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.
XRPUSDT/USD, 4-Hour Chart Analysis
- Ripple Spikes 50% as Bitcoin Lifts Smaller Altcoin...
- Trade Recommendation: Syscoin
- Trade Recommendation: ETC/BTC Pair Bottoming Out
- What’s Behind the Cryptosurge
- Crypto Market Reaches Historic Milestone as Ether...
- A Career in Crypto: How to Work in the World’s Fas...
- Technical Analysis: Volatility on the Rise Again...
- Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move December 14, 2017
- Crypto Market Reaches Historic Milestone as Ether, Ripple Surge December 14, 2017
- Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets December 13, 2017
- Federal Reserve Hikes Interest Rates for Third Time This Year, Keep 2018 Policy Outlook Unchanged December 13, 2017
- Trump’s Proposed Tax Changes Could Impact Cryptocurrency Investors December 13, 2017
- Trade Recommendation: Syscoin December 13, 2017
- Trade Recommendation: Ride the Next Rally of Bitcoin December 13, 2017
- Ethereum Just Broke $700 for the First Time December 13, 2017
- Trade Recommendation: ETC/BTC Pair Bottoming Out December 13, 2017
- Trade Recommendation: USDJPY December 13, 2017
A part of CCN
Analysis4 days ago
Long-Term Cryptocurrency Analysis: Look Out Below?
Recommendations6 days ago
Trade Recommendation: Litecoin
Analysis1 week ago
$100 Litecoin Looks Poised for Greater Upside
Cryptocurrencies4 days ago
Trade Recommendation: Zcash
Cryptocurrencies1 week ago
Trade Recommendation: Neo
Cryptocurrencies2 days ago
Trade Recommendation: Bitcoin Cash
Cryptocurrencies5 days ago
Trade Recommendation: Stellar
Cryptocurrencies5 days ago
Trade Recommendation: Ethereum Classic