DIFX DIVE: This Week in Markets

This week, we were expecting the Bank of Japan (BoJ) to decide on its monetary policy with the rising inflation. After two days of discussions, BoJ decided to keep its ultra-dovish monetary policy.

This decision resulted in a weaker Japanese Yen.

In today’s DIFX Analytics, we’re going to look into the following assets:

Bitcoin/US Dollar (BTC/USD)

Bitcoin is trading at around $21,000. Before the asset makes a move for $21,630, we may see more consolation around this area.

Just today, Genesis filed for bankruptcy, the latest victim of the FTX meltdown. However, the crypto market has not shown a sharp reaction to the news.

  • Market Sentiment: Bullish
  • Support: $20,400
  • Resistance: $21,600

The Dollar Index (DXY)

Based on the market sentiment, the dollar may decline below $101.5, otherwise, the asset would make a move for $103.

We are expecting a 25 basis point rate hike for mid-February, which means more weakness from the Dollar.

  • Market Sentiment: Bearish
  • Support: $102
  • Resistance: $102.5

Euro/US Dollar (EUR/USD)

EUR/USD is in a consolidation phase and for the past day, the price of the asset has been moving sideways between $1.082 – $1.084.

The ascending lower trend line has pushed higher, adding more pressure on the resistance. This is a bullish pattern and we can see the price action break resistance to set a new high.

  • Market Sentiment: Bullish
  • Support: $1.0785
  • Resistance: $1.0869

Gold/US Dollar (XAU/USD)

Gold is now out of the symmetrical triangle and is pushing to a new high at $1935.

Fundamentally, we expect the precious metal to continue bullish with inflation cooling down. In the near term, gold may see a pullback, however, in the long run, the asset is still bullish.

  • Market Sentiment: Bullish
  • Support: $1896
  • Resistance: $1945

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Disclaimer

Crypto products are unregulated and could be highly volatile. Please be aware of the risks before investing.

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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.

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