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Here are the assets we’ll be looking to in this edition of DIFX Dive:
Bitcoin/US Dollar (BTC/USD)
Bitcoin has broken to the upside from the triangle that it was trading in for the past few weeks. As the market sees a selloff in the Dollar, crypto has seen bullish gains.
Bitcoin has entered the $20,000 range again after spending substantial time beneath this resistance level. Traders can expect further bullish gains to $22,000 if the dollar shorts persist.
- Market Sentiment: Bullish
- Next Resistance: $22,000
US Dollar/Japanese Yen (USD/JPY)
This week, the dollar sell-off has contributed to the weakness in the currency pair. The pair is currently trading in the $145-$152 range.
We can expect the Yen to experience a natural retracement from the dollar to try and restore some losses.
Heading to the next week, investors have to wait for Powell’s speech as this will indicate if the Fed will begin to slow down its current aggressive stance.
- Market Sentiment: Bearish
Euro/US Dollar (EUR/USD)
Christine Lagarde, the president of European Central Bank (ECB) was dovish in her stance on the outlook of the central banks’ policies moving forward which contributed to a selloff in the pair.
EUR/USD is currently bearish after experiencing rejection at $1.009. We can expect the pair to trade toward the moving averages.
There should be volatility next week as the Fed is expected to hike interest rates for a projected 75 basis points.
- Market Sentiment: Bearish
British Pound/US Dollar (GBP/USD)
A weak dollar coupled with a market that responded confidently to Rishi Sunak’s leadership has been bullish for cable this week.
GBP/USD has seen some rejection at the monthly high of $1.164. The pair is heading down toward the support lines at $1.152 and $1.142.
Investors will keep an eye on Sunak’s next moves as he begins to dig through the debris left behind by past PMs in an attempt to reconstruct a damaged economy.
- Market Sentiment: Bullish
- Next Supports: $1.142 and $1.152
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.
