Brad Alexander
FX Large Limited
We see price action on BitCoin approaching the upper trend line in this downward trend on the weekly chart, but is it a short trade in the works?
From the technical standpoint, the correlation between the rise and fall of BTCUSD and the reversal of indicators is obvious.
Even on other time frames you will find similar correlations but be careful.
Fundamental analysis of cryptocurrency can be tricky, especially now that both Republicans and Democrats are endorsing crypto in the US general elections.
After all these months we can now trade a two-way market on JPY and we see price action on USDJPY approaching the upper trend line.
The stochastic oscillator is moving into overbought territory but you might want to wait for a downturn before pulling the trigger on a short trade.
Watch out though as we have a statement due from the Bank of Japan which could change things.
Speaking of Central Banks, we also have statements from the Banks of Canada, Switzerland and the US Fed so watch for volatility and opportunities.
The Swiss National Bank is expected to lower its Interest Rate by 0.25%.
CHF has been weak lately in anticipation of the cut so let’s see if the news moves price action.
That’s all for now.
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While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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