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Bearish Dollar with Gold at $1805, and Bitcoin is eyeing $17k

The Dollar opened lower at the start of the week after markets were closed on Boxing Day. There have not been significant directional moves in the FX markets due to a lack of volatility in the market with traders taking a break during the festive season.

The last bit of action came when the BoJ increased the yield range but since the dust settled on that news, consolidation trends have taken over much of the market.

Gold saw quite a bit of volume to the downside but after it rejected $1785, it reversed back up to $1805. We have seen more volume in the metal than in many other assets as of late.

EUR/USD is back in a bullish trend after failing to make a move for the 100-day EMA on the 4-hour chart.

The data last week was not enough to push the market into the reversal that we expected and it seems the Dollar is still bearish.

Bitcoin is still at $16800 and we can expect it to stay around this range until it breaks out of this triangle. This period of consolidation is expected to continue into 2023 as traders take time off while the markets slow down.

In today’s DIFX Analytics, we’re going to look into the following assets:

The Dollar opens the week lower

The Dollar opened the week lower after markets were closed on Monday. We have seen narrow choppy trading as of late with not much of a trend.

The Dollar has failed to break out of the $104-$105 range for the past 2 weeks with significant momentum. RSI is trending downwards as it has failed to set a new swing high since early November.

Price action has followed this bearish trend spending most of its time beneath the 50-day EMA on the 4-hour chart.

Bitcoin is eyeing $17k

Bitcoin is forming an ascending triangle as the asset sets higher lows. RSI is slightly bullish with some upside as it made a move for 60 twice.

We have seen the price action of the digital asset move above the 50-day and 100-day EMA in recent trading. Analysts predict that price will break out of this range to the upside to make a move for $17,000.

EUR/USD is in tight range 

EURUSD is in a tight range between $1.0580 – $1.0660. The FX pair has not seen much volatility of late due to most traders going on holiday and taking a break for the Christmas period.

RSI has also been trading mid-range with a 60 reading. Price action has hovered above EMA on the 4-hour chart and should continue upwards in a bullish fashion.

Analysts are not expecting much volume during the final week of trading for the year.

Gold is still in bullish range at $1805

Gold is still trading within the bullish trend that it has followed since early November. The asset was bearish until a rejection at $1785 and is now trading at $1805.

The RSI on the 4-hour chart is reading at 54 at the time of writing which is a consolidation range. We have seen Gold bullish with the asset rejecting the 100-day EMA on every opportunity to touch it.

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DIFX shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee, or implication by DIFX that the forecast information will eventuate, that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses in particular if the conditions or assumptions used for the forecast or mentioned in the analysis do not eventuate as anticipated and the forecast is not realized.

 

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