Monday trading has started with a Dollar retracement after a massive selloff last week. We should see Dollar bulls as traders take some profits.
Last week, we saw the market price in the cool inflation reading at 7.7% which could indicate softer rate hikes moving forward. This could be the pivot the market was waiting for and we should expect the direction of the Dollar to turn and bring in more downside price action shortly.
Bitcoin and Ethereum are consolidating after the selloff last week. We should see these assets slide off more as the effects of the FTX collapse continues.
In today’s DIFX Analytics, we’re going to look into the following assets:
Ether holds above $1000
Ethereum has not seen the extent of bearish movements as other crypto tokens and has yet to set a new swing low. The digital asset is trading at $1189 at the time of writing.
You can see the key levels of support and resistance on the chart. We can expect price action to react to these levels in the near term.
Bitcoin consolidates after the massive retreat
Bitcoin is on a steady decline and is currently trading at $16,000.
We are expecting cascading effects from the FTX contagion within the crypto space over the next few weeks and with that in mind, we may see Bitcoin touch the next support level at $13,000.
Gold enters new range above $1700
Gold has set a new swing high at $1770. We have seen the asset enter into a new range between $1720 – $1800.
RSI is losing strength and we are expecting a retracement. In the short term, we can see the price action fall to the $1740 level.
Euro rallies to $1.0364
EUR/USD has been rejected by the resistance level at $1.0364. We can now expect to see price action between $1.01 – $1.03.
RSI has broken over 70 and is now falling as the retracement begins. We can expect the pair to fall toward $1.02 as traders take profits.
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