Crypto update: the coins remain locked in the trading range like Ripple and Bitcoin

January 5, 2019 Bitcoin

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Image of the Forex market

Well	Current value	Daily change
EUR / USD	1.1401	0.07%
GBP / USD	1.2730	0.78%
USD / JPY	108.42	0.72%
AUD / USD	.7117	1.60%
GOLD	1,285	-0.79%
WTI Crude Oil	47.87	2.22%
BTC / USD	3,756	-0.83%

The week ended with another very active trading day among all asset classes, and although risk assets generally met, the forex markets were slightly chaotic. The effects of the flash crash were still evident, but the confident employment report in the United States and the accommodating words of Fed chairman Jerome Powell dominated the main markets.

The day started positively thanks to Caixin Services PMI and the British Services PMI better than expected, but since the IPC of the Eurozone lost the consensus estimate, the risk activities were lowered before 39; opening of the United States. Non-farm payrolls in USD have increased by 312,000 compared to the expected 179,000, while wages have increased more since 2009 on an annual basis, while they have increased by 0.4% in December.

The dollar rose higher along with the Treasury yields after the relationship, but it became markedly lower after Powell's speech, where he took a much more flexible position with respect to interest rates and the Fed's balance sheet than before, triggering a strong short hold in stocks.

Technical analysis

EUR / USD, 4 hour chart analysis

Despite the withdrawal of the Dollar, the EUR / USD is still clearly stuck in its long-standing trading range, while hovering near the 1.14 level just before the weekend break. All eyes are still on the resistance level at 1.1440 and the support level at 1.13, and we remain neutral compared to the most traded pair from a short-term perspective, despite being bearish from a broader point of view.

While Jerome Powell's dovish shift could lead to a dollar correction, bond markets have already discounted all rate hikes, and recent trends have actually hinted at the possibility of a rate cut this year, and even that failed to push the reserve currency significantly lower

The robust US labor market is not in contradiction with the global economic slowdown, as the labor market is usually lagging behind with economic activity, so we still expect the global bearish change to be persistent, with new lows in the next month between risky assets, such as the EUR / USD pair.

AUD / USD, 4 hour chart analysis

AUD / USD rallied on Chinese data better than expected, erasing oversold readings that we reported earlier this week, and a move to the 0.7165-0.72 resistance zone could be ahead. This could provide a reduced entry point for long-term positions, as we expect the downward trend to continue in the coming months.

EUR / JPY, 4 hour chart analysis

The relative weakness of the euro is also evident with respect to the Japanese yen, as, despite the strong rebound between the various asset classes, the common currency failed to recover substantially against the main safe haven asset.

That said, given the readings of the still highly oversold momentum, a progression up to 125 or even 125.80 could be ahead, with the dominant short-term trend that is also found in that area. The long-term downtrend is not in danger in the pair, and traders should be looking for short entry points while the correction is running.

Gold futures, 4-hour chart analysis

Gold has dropped almost exactly above the $ 1300 level we have reported over the weekend and, given the overwhelming momentum readings, the precious metal could have a deeper correction forward, with strong areas of support found between $ 1255 and $ 1260 and in the $ 1240- $ 1245 area.

Long-term fundamentals seem better and better for gold, and we remain bullish from a broader perspective even if the rebound in risk assets could drag the lowest metal in the coming weeks, and we expect a rally to endurance. of $ 1360 after the possible correction.