Gold is increasingly bullish and had tested $1850 a few times in the past 24 hours until it broke it to the upside. We can expect further bullish gains in Gold until $1861 – $1869 is hit.
The opportunity cost of holding nonyielding bullion is decreasing as the Fed begins to slow down rate hikes and eventually stop them altogether. Coupled with the fact that China covid cases are returning and Gold has returned as a safe-haven asset, we can expect the asset to push up throughout 2023.
EUR/USD is bearish and we saw the fx pair break the trend to the downside. As the Dollar finds some strength, we should see EURUSD retrace down to support levels.
Bitcoin has finally found some legs and is making a run for $17,000.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin is pushing upwards
Bitcoin saw some bulls toward $17,000.
RSI has pushed upwards and is chasing the 70 levels. We may see the RSI breach above 70 which will pull the asset above $17,000.
Bitcoin has also crossed above the moving averages, a further indication of bullish sentiment.
Dollar reversal in play
Dollar has broken above the 100-day EMA on the 4-hour chart as confirmation of a reversal. RSI has pushed above the trend to touch near 70, another indication of a bullish reversal.
We have long awaited this reversal in trend and it seems we are now seeing it in play as volume has returned to the markets.
We could expect the Dollar to continue its gains until $105.3.
EUR/USD has broken the trend to the downside
As mentioned in the analysis yesterday, we saw price action break the trend and is looking very bearish. RSI has also found a new range trading below the 50 level.
Price action on the 4-hour chart broke below the 50-day and 100-day EMAs for the first time since mid-November.
The reversal on EUR/USD has been confirmed and we should see more bears until the next support is hit at $1.05 followed by $1.04.
Gold breaks $1850
Gold has broken above $1850, a solid psychological resistance and as it has broken, we could see bullish moves toward $1861-$1869.
You can see the next short-term support levels on the chart:
- Support 1: $1833
- Support 2: $1824
- Support 3: $1815
We should take any retracements as a pullback before considering them as a reversal.
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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.
