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XTB TRADEBEAT

Bitcoin steals the show, Antipodean currencies on the back foot

Summary:

  • Bitcoin has drawn the most attention so far today as it’s crossed $15k mark
  • Antipodean currencies take a step back as the greenback gains
  • European equity markets recover following a pause in the tech sell-off

Thursday in another big day for Bitcoin which has already managed to top a $15k mark for the first time ever. While the buying spree could continue yet for a while, a more severe pullback could come in out of nowhere as it happened in the past. We present the three major reasons which could contribute to a Bitcoin sell-off in the nearest future. In addition we analyze a daily chart of the cryptocurrency in order to envisage when to look for a possible correction to the downside.

Taking a brief look at the FX market one may spot that the US dollar is by far the strongest currency in the G10 basket while Antipodean currencies such as AUD and NZD are declining quite severely. Do notice that Antipodean currencies have come under pressure as Australian trade data disappointed and IMF issued a negative report on China. The International Monetary Fund is sceptical about China’s plans for jobs and growth whilst trying to fix the banking and debt situation at the same time.

European indices opened in the green posting modest gains as the tech stocks sell-off paused. This sector is trying to recover from recent losses pushing higher benchmarks from the old continent today. The impulse to stop declines was sent by Nasdaq (US100) which managed to inch higher in Wednesday’s session. A bit weaker common currency against the US dollar is also favouring European exporters. At the time of writing all major indices across the old continent are trading above the flat line, however gains aren’t spectacular.

USDJPY might enter a short-term upward trend following last bounce. In the long term, this currency pair still moves in consolidation with upper limit at around 114,50, where a potential mid-term target is also located. Nevertheless, if circumstances remain favourable, we might see this pair climbing even higher.

Data-wise today is a bit calmer, however, there are still a few interesting reports concerning such currencies as USD and weakened CAD. Moreover, signals from the ongoing Brexit talks and rising tensions in the UK government could steer the GBP today.

Disclaimer

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