Too busy to stay updated on the markets? We are here to give you a quick glimpse into what’s happening in the crypto and traditional markets. Tune into our weekly DIFX Trading Analysis and Insights to optimize your trading strategies.
Yesterday (October 13th), the US published the Consumer Price Index (CPI) for September, which came out more than expected (8.2% as opposed to the expected 8.1%). In this week’s DIFX Dive, we’ll be analyzing the following assets to see their response to the news:
Dollar Index (DXY)
The CPI data caused a quick jump in the DXY to break above the resistance at $113.6 but was soon followed by a selloff to break below the trend to the downside.
The Index is now trading between the 50 and 100 daily moving averages as it experiences a consolidation stage after the sell-off.
Traders can expect the index to move between $110 – $114 in the short term.
US Dollar/Japanese Yen (USD/JPY)
USD/JPY has been bullish since the break above $146. The CPI data caused the pair to test the 24-year high at $147.6 which experienced a massive rejection.
The Bank of Japan has claimed that they would take action in case of any sudden movement of the pair, however, we have not seen any signs of manipulation as of yet.
The resistance at $147.6 is the last key level holding the pair back from further gains toward $150.
Gold/US Dollar (XAU/USD)
Gold is currently staying between $1640 and $1680. The CPI data pushed the price to $1642.
As the USD sell-off began, the bulls entered the market for Gold and since then, we have seen it retrace above the support at $1660.
RSI is gaining momentum as well and traders are betting on a push for $1680 in the short term.
Bitcoin/US Dollar (BTC/USD)
The CPI data caused a drop in Bitcoin as well, however, it saw a strong rebound to the upside.
We can see that the support level at $19,300 is extremely reliable and there are solid long positions around this level.
Price action has developed a trend line with lower highs as we see a squeeze develop. Traders can keep an eye on whether there is a breakout for either side in the short term.
Crypto products are unregulated and could be highly volatile. Please be aware of the risks before investing.
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.
