Last week, we saw nonfarm payroll data come out higher than expected which should have been bullish for the Dollar, however, the Dollar continued to decline downwards as the market held on to any reason to short the safe haven.
Unemployment data came out at 3.7% which was as expected and this resulted in bearish sentiment as it confirmed unemployment was in fact rising month on month. It’s safe to say the market has now fully priced in a 50 basis point rate hike for December as no other data released could turn the tide before then.
We have seen Gold increase in value as investors move into risk-on assets. Gold has not been this bullish since the start of rate hikes back in March 2022.
Bitcoin has started to see a reversal and we may expect more upwards movements in the coming weeks. The FTT chaos seems to have faded somewhat and we could expect normal price action moves to return.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin is eyeing $18k
Bitcoin has broken through the resistance level at $17,000 and is trading bullish. Price action has settled above the 50-day and 100-day EMAs on the 4-hourly chart. We are expecting a bullish reversal as these EMA’s are about to intersect to the upside.
RSI is pushing past 70 levels which shows bullish sentiment around Bitcoin.
Dollar declines below $105
The data that came out the previous week pushed the Dollar down beneath the support at $105.34.
This resulted in further declines toward the support level at $103.72. Confirmed payroll data came out bullish for the dollar, however, we have not seen much of a reversal.
RSI touched 30 on the 4-hourly chart and we are expecting more bearish movements until the major support is hit.
Gold is bullish and settles above $1800
We have seen bullish moves in Gold since the Dollar selloff began last week. Gold pierced through the resistance at $1800 and touched as high as $1810.
RSI is experiencing some divergence from price action as it failed to set a new high on the most recent bull run. We can expect some retracement at this level if the dollar sees some pullback.
Euro is bullish and has pushed past resistance levels
After the support at $1.03 was touched toward the end of last week, we saw moves upwards and we can expect more bullish gains upside towards $1.06.
RSI hit 70 and is now reading at 64. As the dollar selloff began after inflation data last week, EURUSD has experienced major gains.
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