The Fed revised Inflation data last week Friday which showed that CPI data in November and December 2022 was higher than previously shown. In the revised version, seasonal factors were taken into consideration.
The market is now at a pivotal moment as the CPI data is set to release this Tuesday. It’s unclear whether the sentiment is hawkish or dovish.
Powell was slightly dovish during his speech last week, however, jobs data came out much stronger than expected which is hawkish on the Dollar. The CPI data will set the stage for the directional moves out of the Dollar for the next month.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin/US Dollar (BTC/USD)
Bitcoin is now trading lower as news that the SEC has labeled BUSD a security has been announced.
We can expect the asset to fall to $20,400 which is the first support.
The 50-day EMA is near the 200-day EMA and was potentially going to cross it in the near term.
However, the recent news of the SEC has resulted in a decline in the overall crypto market.
The Dollar Index (DXY)
DXY has seen RSI rise above the neutral 50 level as the dollar starts to put in some gains.
The index is trading between the 50 & 200 daily EMAs.
The Fed has positioned themselves as hawkish after the speech was initially taken as dovish.
Jobs data was also missed completely which has the market anticipating the CPI data may be off as well.
ETH/US Dollar (ETH/USD)
Ethereum has fallen below the 200-day and 50-day EMAs on the back of the Binance-related news.
We can anticipate more bearish moves downwards toward $1400 in the near term.
The Dollar is also strengthening as the market is wary of the CPI data released later this week.
If the Dollar turns bullish then we can expect Ether to slide further down.
Gold/US Dollar (XAU/USD)
Gold is looking slightly bearish trading at $1855.
We have seen the RSI break to the downside, pulling price action lower.
The next support for Gold is $1827.
If CPI data misses targets to the upside then we may see Gold fall to this level in the near term.
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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.
