DIFX DIVE: Weekly Analysis 21-25 November 2022

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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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