Retail Sales data was released yesterday which measures the total value of sales at the retail level. This can contribute to inflation data as it is an indicator of consumer spending in terms of supply and demand. It can also measure the pace of growth in the US economy.
The data came out higher than forecasted which shows there was growth in this sector. This is negative because the Fed is attempting to contract the economy and this contradicts their interest rate hikes.
This was bullish for the Dollar yet we did not see a steep upside move across fx pairs. Fundamentally and technically investors are seeing a retracement in the Dollar.
Bitcoin and Ethereum have not seen much volatility of late and have both entered a consolidation stage. Crypto markets seem to have cooled off after massive moves last week.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin rejects $17,000
Bitcoin was rejected by the $17,000 resistance level and has fallen into the $16,000 – $17,000 range.
ٍRSI is mid-range at 44; Once RSI drops to 30, we can expect the price to fall as well. We can assume that price action would continue its slide until it hits at least the $16,000 support line.
US Dollar eyes out reversal
The dollar Index has rejected $106 as it prepares for a retracement. The Index is trading at $106.4 and is gaining momentum.
We can see a slight trend forming to the upside as price action begins to set higher lows. RSI is picking up and is currently reading at 39.
Traders can expect price action to rally to the 50-day EMA at $107.9. If broken, the next resistance is $109.4.
Ethereum breaks to the downside
Ether broke out of the triangle and is trading below the 50-day EMA. RSI is trading beneath the 50 levels on the hourly chart. The first support level is at $1170 and if broken, a move for $1100 is confirmed.
Price action has been consolidating since the break out of the triangle but briefly made a move for the 50-day EMA which was rejected. Traders can expect bearish movement in the near term.
Gold enters a retracement phase
Gold has broken the trend to the downside and is currently trading at $1767. RSI broke the bullish trend and has fallen to 55 which indicates a bearish sentiment for the asset.
These are reversal signals and we can expect price action to fall to the $1745 level in the short term.
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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.
