Wall Street banks are all expected to see a major decline in profits during earnings week as the bank crisis may hurt readings for the rest of the year. Many analysts believe that banks will become defensive as they combat low liquidity.
The market is awaiting inflation data on Wednesday as this will give a strong indication as to how the Fed will navigate the rest of the year in terms of interest rates which are expected to be cut toward the second half of the year.
Tightening in the job market was a good sign and the market has forecast CPI data at 5.2% which is down from the 6% from the previous month.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin is seeing a bearish divergence in RSI as it hits resistance near $28,000 – $29,000.
Price action has consolidated around this range for weeks now without much volatility since the bullish move into this area. We can expect some retracement back down to the $25,000 – $26,000 support area.
The Dollar Index (DXY)
The Dollar Index is trending lower and we can see a clear bearish formation.
As RSI dips below the 50 reading, we can see price action has followed. Trading beneath the 50 and 200-day EMAs is a clear sign of bearishness in the market.
Ether slid after rejecting the $1930 resistance. The asset is experiencing some bearish divergence as technicals fail to set new highs.
With the Shanghai and Capello upgrades expected soon, we may witness a selloff as holders can now access their staked Ether.
Gold/US Dollar (XAU/USD)
Gold set a new high but has since had a pull-back beneath $2000.
RSI has weakened over the past month on the daily chart and we could expect some bearish moves in the asset.
Fundamentally, Gold has seen bulls due to uncertainty in the markets, and even though the bank crisis fears seem cooled down, the safe haven is still looking pretty solid.
US Dollar/Japanese Yen (USD/JPY)
USD/JPY rejected the 200-day EMA.
As the Dollar falls, so does USD/JPY and RSI is trading near the 50 reading. We can expect the price to fall to $128.67 in the near term as the first target.
Euro/US Dollar (EUR/USD)
EUR/USD is hovering near resistance at $1.097.
We can forecast the price to remain in range and reject downwards. The 50-day EMA is the first support at $1.0749.
Disclaimer
Crypto products are unregulated and could be highly volatile. Please be aware of the risks before investing.
Trading Disclaimer
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.
