The dollar has fallen 2% since the open on Monday as the dovish sentiment from the Fed is leading the market to price in less aggressive rate hikes going forward. The market is expecting a 50 basis point rate hike in December as well as a 25 basis point rate hike in February.
Bitcoin was green this week. The largest cryptocurrency of the world set lows of $15,400 and highs of $16,800. We can assume this a considerably less volatile week in comparison to recent times. In the long term and if no more surprises enter the market, bitcoin may witness some positive moves.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin/US Dollar (BTC/USD)
The sentiment for Bitcoin is bearish as the asset recently broke out of an asymmetric triangle formation. We are expecting negative price action following the breakout.
RSI is below 50 which is weak. It seems like the moving average is moving downward and and the price may fall more in the near term.
Sentiment: Bearish
The Dollar Index (DXY)
The Dollar Index is experiencing some rejection at $105.6 and RSI is reading weak long-term. It has been on an ever-falling downtrend, signaling bearish sentiment.
The price may rise short-term while more short positions are accumulated, putting downside pressure on the Dollar.
The resistance at $106.8 – $107.2 seems like a good area for traders to take action.
- Sentiment: Consolidation
- Next Support Level: $103.7
Gold/US Dollar (XAU/USD)
Gold is currently consolidating in a bearish flag formation. We expect the asset to break the pattern to the downside and go beneath the trend line on the chart. After that, we can expect the asset to decline to at least $1741.
Traders should pay attention to when RSI falls below 50 on the hourly chart.
- Sentiment: Consolidation
- Next Support Level: $1741
Euro/US Dollar (EUR/USD)
EUR/USD is experiencing a bearish divergence from price action as the RSI set lower lows. The resistance at $1.0428 has been quite responsive to short positions in the past day as we have seen price reject this area.
In the short term, traders can expect bearish price action and the trend line to be broken to the downside.
Sentiment: Bearish
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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.
