- Terra price action ‘slips in the cake’ of breaking above the 38.2% Fibonacci level.
- LUNA price action concedes against the dollar, with that last one slowly coming back stronger after a short hiatus.
- ECB's Lagarde unveils no new surprises, helping dollar recover – a negative for cryptos.
Terra (LUNA) price action drops back to the first level of support as price action starts to wobble, with a little bit of dollar strength coming back into markets as the euro dips back below parity following the ECB meeting. With US GDP holding up unexpectedly well, the strong dollar may have weakened a bit, but it has yet to be history.
LUNA price is no match for the dollar bulls
Terra price action, although very distant from the ECB, is seeing repercussions from the rate decision and the press conference. The 75 bps hike was so well communicated that it was highly anticipated, and as it met expectations, a sell-off got underway. Just minutes after that initial communication, US GDP came in at 2.6% from -0.6% QoQ and acted as a kicker. The US itself and the dollar are still outperforming, meaning that the dollar strength is still here to stay especially as there is no evidence of a slowdown yet in the US’s steamrolling economy.
LUNA price action is thus unable to break above the 38.2% Fibonacci level at $0.000314. Instead, a rejection is set to unfold with the dollar pushing back against any up moves and price action looking for support near $0.000306 instead. Expect to see a possible further push to the downside once the US session takes over as the EU session closes, and a possible dip towards $0.000300.
LUNA/USD Daily chart
Of course, the rally on the back of the weaker dollar has been substantial. With the US midterms' an upcoming risk and potentially continued uncertainty around the Fed rate decision, EURUSD could jump higher once the dust settles after the ECB meeting. That would mean that LUNA price action could move higher on the back of renewed dollar weakness. The 38.2% Fibonacci level could then finally get broken, resulting in a rally towards $0.000350.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.