Cryptographic update: Ethereum continues to lead the rally in the short term

January 3, 2019 Bitcoin

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Image of the Forex market

Well	Current value	Daily change
EUR / USD	1.1403	0.53%
GBP / USD	1.2640	0.29%
USD / JPY	107.77	-1.02%
AUD / USD	.7006	0.31%
GOLD	1,293	0.54%
WTI Crude Oil	46.66	0.73%
BTC / USD	3,770	-2.98%

The second day of trading in the year was profoundly influenced by yesterday's unbridled moves. Forced liquidations that were triggered by Apple's (AAPL) earnings warning caused turbulence in all asset classes, and, interestingly, some of the major currency pairs (Yen, Australian Dollar and US dollar) have seen the most important moves.

Safe haven assets continued to show today's inflows, with gold and US Treasuries gathering in the volatile environment. US yields hit their lowest levels in months across the yield curve, with the ISM manufacturing PMI far worse than expected, triggering new global growth concerns.

On the other hand, the ADP employment report was a positive surprise, but that was not enough to stop safe haven flows, with equity markets moving just above their last global level.

Technical analysis

USD / JPY, 4 hour chart analysis

USD / JPY was at the epicenter of yesterday's move, and with Japanese markets still closed today, the lack of liquidity has exaggerated moves in yen-linked pairs. USD / JPY is still stuck below the 108 level and well below pre-crash levels, after testing the March low just below 105 overnight.

The long-term downtrend is intact in the pair, but a 109 level test is likely next week, but given the fragility of the market and the global risk change, traders should only look for entry points on the short side here . The strong resistance levels are now close to 108.25, 108.75, and close to the 110.50 level, while the long-term support if found close to 105.50.

EUR / GBP, 4-hour chart analysis

EUR / GBP has had a couple of very volatile sessions, spiked both below and above its recent trading interval, before settling just above the 0.90 level. The broader uptrend is still intact and the odds continue to drive a movement towards 2017 close to 0.9350, although uncertainty regarding the Brexit process is still a major risk factor for all related activities. to the pound.

Support levels are now close to 0.90, 0.8970, to 0.8920, while the resistance is just above 0.9050.

Futures S & P 500, analysis of the 4-hour chart

US equities are struggling to also establish a short-term uptrend in the face of global bearish change, and this is a negative sign for all risky assets. The dollar fell along with the shares for the better part of the day, and especially after the huge negative surprise in the manufacturing PMI.

Even if the rebound started just before the end of the year could still continue, new lows are very likely in the coming months. Traders should consider each rally as an opportunity to sell stocks, with the global slowdown that now affects the US economy, so far resilient.

Copper futures, analysis of the 4-hour chart

Copper, one of the raw materials most sensitive to growth, continues to confirm the risk-off exchange rate, moving below a long-standing commercial segment in recent days, testing its August low today in the first negotiations. The odds now favor a move below the $ 2.50 level, with China's economic weakness increasing the odds of a collapse, along with today's US data.

An unlikely upturn in the segment would be a bullish signal, but for now traders should look for a continuation of the broader bearish trend, with a long-term target of $ 2.30.