Last week, there was heavy turbulence in both the traditional and crypto markets to the point where this week has stagnated in terms of price action. There has been a brief consolidation phase in the entire market.
Technicals are pointing at a reversal in the Dollar and investors are expecting upwards gains. Technicals in the crypto market are flat and we are expecting digital assets to slide down more before a reversal.
Yesterday, the Fed’s hawkish statements barely affected the markets. What has become clear is that the Fed will most likely be hiking 50 basis points in December and this has been priced in by the huge selloff we saw last week.
In today’s DIFX Analytics, we’re going to look into the following assets:
The Dollar is building momentum
The dollar Index is gaining strength as it begins to retrace upwards. The Index briefly saw gains during New York trading but gave those gains back during Tokyo trading.
Yesterday, Fed officials claimed that they were not close to any sort of pivot yet the Dollar barely budged. Technically, we are expecting a retracement toward $107.7 in the near term.
Bitcoin is trading flat
Bitcoin is still consolidating at the 50-day EMA on the hourly chart. The asset is struggling to break to the upside past $17,000 as the resistance level seems to be quite strong.
RSI rejected the 70 levels and is reading at 56. Price action looks bearish at the moment and we can still expect more downside moves until fundamentals change in the market.
Gold is attempting downside reversal
Gold has signaled a slight reversal from the uptrend. It is now trading beneath the 50-day EMA on the hourly chart.
RSI is reading at 50. Price action rejected the 50-day EMA at $1766 and is now trading at $1764.
Euro enters bearish retracement
EUR/USD is trading near the 50-day EMA as it enters its reversal. We have seen price action trade between $1.03 & $1.04 during the retracement period.
RSI is falling below 50 indicating further bearish moves. We can expect the price to fall to the support level of around $1.0225.
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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.
