Last week, we saw the consolidation of the Dollar and not much price action in any assets. Towards the end of Friday, there was a bullish move in the asset and we saw a selloff in Gold due to this.
Tokyo trading saw Gold open lower and the Dollar open higher as the trend continues. In the near term, we should see some retracement until key levels are hit.
Bitcoin held strong last week and the capitulation was not as bad as most predicted. It may not be over but for now, the digital asset has settled at its new support level.
In today’s DIFX Analytics, we’re going to look into the following assets:
Dollar is bullish
The DXY has finally seen the bullish gains we expected last week. Price action is crossing the 50-day EMA and is trading at $107.496.
Due to low CPI data, we can expect further bullish price action in the Dollar as part of its retracement from the selloff. Traders will be keeping a close eye on any fundamental data coming out this week that could hint at inflation signals.
At the moment, a 50 basis point rate hike is priced in.
Bitcoin hit a support level at $15,800
Bitcoin fell beneath the 50-day moving average after hovering near the indicator for most of last week. We have seen price action fall to touch the support at $15,800.
RSI is reading at 31 on the hourly chart which is bearish for the indicator in the near term. $15,600 – $15,800 is a strong support level for the asset and traders will be watching to see if this holds.
Gold opened lower
Gold is bearish and trending lower. The 50-day EMA has crossed below the 100-day EMA which is a bearish signal. Price action is declining with trend indicators.
RSI is very low with a 34 reading on the hourly chart. We can expect further downside movement until the support at $1720 – $1724 is hit.
EUR/USD bearish confirmation
EUR/USD is looking very bearish as it fell below $1.03. The 50-day EMA is approaching the 100-day EMA which is a reversal signal.
We have received confirmation for the retracement phase for EUR/USD. RSI is reading at 29 which is very bearish.
Traders are expecting continued downward movement toward the support levels at $1.020 – $1.022.
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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 by 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.
