Analysis Topic: Currency Market Analysis
The analysis published under this topic are as follows.Friday, July 27, 2018
Trump Put to Lower US Dollar / Currencies / US Dollar
Has President Trump introduced a Trump Put by lashing out about rising interest rates and calling for a weaker dollar? The market reacted swiftly - and rationally - albeit not the way Trump had intended. Let me explain.
Trump suggests the U.S. is put at a “disadvantage” given that the European Central Bank and Bank of Japan continue their more expansionary monetary policies. Markets reacted by selling off the dollar versus major currencies. If that were all, you might shrug this off as disruptor-in-chief rattling the currency markets a bit. Maybe there isn’t much more to it. After all, speculators had been bidding up the greenback of late and, possibly, this was as good a catalyst as any to take some profits.1 But that’s not the end of it. First, Mr. Trump appears to favor a weaker dollar and may well provide more verbal intervention should the dollar resume its climb. In that sense, Mr. Trump has introduced Trump put. But why is it that a comment by the President moves currency markets? Partially, this may be because he has shown a willingness to use executive power to interfere with trade.
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Friday, July 27, 2018
British Pound Likely to Extend Declines – The Big Picture / Currencies / British Pound
FXOpen writes: The weekly chart of GBP/USD indicates that pair broke key support levels. On the other hand, EUR/GBP may perhaps move higher in the medium term.
Key Points
- The British Pound started a major downward move from the 1.4375 swing high against the US Dollar.
- GBP/USD broke a key bullish trend line with support at 1.3720 on the weekly chart.
- EUR/GBP formed a short-term top near the 0.9300 level and declined.
- The pair is following a declining channel with resistance near 0.8930 on the weekly chart.
Thursday, July 26, 2018
Robust Crypto Exchanges Needed In The Wake Of Hacking Incidences / Currencies / BlockChain
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Thursday, July 26, 2018
British Pound, Canadian Dollar, Russian Ruble and Euro Show Massive Volatility / Rotation Setup / Currencies / Forex Trading
Our research team has been watching the foreign currency markets with great interest. Recently, the strength of the US Dollar has put extended pressures on many foreign currencies. The recent crash of the Chinese Yuan has alerted many traders to the concerns that China could be edging over the precipice in terms of debt and credit market collapse.
As traders/investors, we need to understand how these currencies move, and future moves may drive the global equity markets to new highs or lows. Let’s take a brief look at how some of our proprietary indicators are set up on these Weekly charts.
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Tuesday, July 24, 2018
Has the USD Finally Topped? / Currencies / US Dollar
The USD has had a bullish run out of it’s Intermediate and Yearly Cycle Low (YCL) in early February but it is now deep in my timing band to start seeking out its next 5-6 Month Intermediate Cycle Low (ICL). While I don’t want to overplay the negative correlation between the USD and Gold the correlation has been quite strong for most of 2018. A major top in the USD here, should benefit Gold and the broader CRB here.
My first chart is a close up Daily showing Friday’s bearish reversal candle and close below the 10ma on day 9. A close below the 10ma usually always signal’s a move into a short term Trading or Daily Cycle Low (TCL/DCL) and should provide enough Time for the USD to test the 200ma near 92 on my Daily chart. Day 9 is the earliest top we have seen in a short term Trading or Daily Cycle but we now need further confirmation, including a close next week below the 10wma on the Weekly. Note that the 10wma has been very strong support since early April but Time is also becoming an Issue for the USD here.
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Thursday, July 19, 2018
Bitcoin Price Rallies to Upper Channel – What Next? / Currencies / Bitcoin
Even we were concerned with Bitcoin briefly traded below $6k in late June. Yet, the recent upside price move was incredibly quick and the price of Bitcoin ran right up to our upper price channel. We believe this will become a new price peak over the next few days/weeks where the price of Bitcoin should continue to drop from these levels near $7500. We know there are many Bitcoin investors that want to hear us state that it should continue to push higher, but there are other factors at play here that may limit this movement.
The price channels that are currently constraining the price of Bitcoin originate back in February and March of 2018. The low and high price rotation within these months start the points of interest for our research team. From these points, we have continued to identify key price levels that appear to contain breakouts.
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Tuesday, July 17, 2018
Bitcoin Holders Are Today Learning Something Goldbugs Already Know / Currencies / Bitcoin
Precious metals investors have learned a difficult truth in recent years. The best way to control a market is to put Wall Street in charge of it.
Gold and silver futures were created in the 1970s with the admitted purpose of “increasing volatility” in the markets and discouraging the ownership of physical bullion. It is a lesson that participants in other markets would do well to learn – specifically the Bitcoin and cryptocurrency markets.
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Tuesday, July 17, 2018
Bitcoin Price Analysis – Bullish Golden Cross on the Hourly? / Currencies / Bitcoin
John Lee Quigley writes: $6400 was acting as a significant resistance level for Bitcoin’s price, however, over the last hour, the price has managed to break to the upside and is currently trading above the $6500 level. The move up over the last hour was on significant volume showing there is some weight behind the move which contrasts heavily with last weeks price action when many were speculating a return to sub-$6000 levels.
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Sunday, July 15, 2018
The US Dollar Crash of 2018 Has Begun / Currencies / US Dollar
Previous analysis updated – in previous analysis produced on the 21st June 2018, I called the high of the rally at 95.22. This was wrong. It traded marginally higher, 3 pips in fact, putting in a high of 95.25 on the 28th June. It now appears as if it is all systems go for the mini crash of 2018. This should, in my opinion, be confirmed next week with follow through to the downside.Read full article... Read full article...
Friday, July 13, 2018
Focus on the Greenback, Will USD Fall Below Euro 1.6? / Currencies / Forex Trading
Although last week’s decline took the USD Index under the late June’s lows, currency bulls didn’t break down with this deterioration and responded to their rivals fairly in previous days. Thanks to their determination, the greenback has wiped out most of the recent decline, which in combination with several other positive factors about which we wrote in today's Forex Trading Alert suggests that ...
Before, we analyze the current situation in our currency pairs, let’s examine the short-term picture of the USD Index.
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Friday, July 13, 2018
Bitcoin Picture Less Than Pretty / Currencies / Bitcoin
The move up seemed to be continuing and the first impression was that we were seeing a first period of appreciation in some time. But the operative word here is “seemed.” If we take a closer look at what the current environment really is, the picture is far less pretty.
Bitcoin has been around for close to a decade now. Yet we haven’t seen much in the way of research on the Bitcoin network and the principles governing it. Sure, there have been studies analyzing the system from an economic point of view, but their number has been low relative to other topics covered by economic research. In other words, Bitcoin hasn’t been researched that much by people from academia. Against such a backdrop, it is interesting to see new papers taking on the problem of incentives in the Bitcoin network. In an article on the MIT Technology Review website, we read:
Wednesday, July 11, 2018
The Value of Bitcoin / Currencies / Bitcoin
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Wednesday, July 11, 2018
How NOT to Become a Casualty in the War on Cash / Currencies / War on Cash
Lots of bullion investors wonder if the metal they hold might one day be needed for barter and trade. They bought gold and silver, at least in part, as a form of insurance. It just might come in handy in an extreme circumstance such as a currency crisis of the sort Venezuelans are grappling with right now.
However, a hyper-inflationary collapse in the dollar isn’t the only dire scenario to insure against.
It is now clear that the dollar, and the financial network it runs on, is a mechanism for controlling people who don’t toe the government line.
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Wednesday, July 11, 2018
An Elixir for Argentina’s Fiscal Dysfunction / Currencies / Argentina
Argentina and its peso are in trouble, again. By officially replacing the peso with the U.S. dollar, Argentina’s peso nightmare would end. But, in a country in which fiscal fiddlers know many tricks, some fiscal rules must also be added to the prescription.
Dollarization should impose a hard budget constraint on Argentina. Under dollarization, which exists in 33 countries, hard budget constraints are imposed because dollarized countries must finance government spending by taxing or borrowing in either domestic or international bond markets. They cannot finance government expenditures by using a central bank, which issues a domestic currency. As a result, fiscal deficits, when they occur, tend to be relatively small. But, there has been one noteworthy, unusual case: Zimbabwe. This case merits our attention.
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Wednesday, July 11, 2018
Argentina Should Scrap the Peso and Dollarize / Currencies / Argentina
On July 9th, Argentina will celebrate its 202nd birthday. The biggest spoiler during the festivities will be the beleaguered peso. It’s not the first time the peso has been a spoiler. Since its founding, Argentina has been burdened with numerous economic crises. Most can be laid at the feet of domestic mismanagement and currency problems (read: currency collapses). To list but a few of these crises: 1876, 1890, 1914, 1930, 1952, 1958, 1967, 1975, 1985, 1989, 2001, and 2018(?).
By the time its 100th birthday rolled around, Argentina had experienced only three major economic crises. Alas, the next 102 years have been much more eventful, with eight currency crises, not counting 2018.
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Monday, July 09, 2018
How Trade Wars Penalize Asian Currencies / Currencies / Protectionism
Not so long ago, Asian currencies anticipated depreciation pressures to increase, due to monetary normalization. Yet, it is the trade wars that are now penalizing all currencies, particularly in exporting economies.In January, I gave a global economic briefing on the outlook of the Philippines in the Nordic Chamber of Commerce in Manila. At the time, the peso was still about 50.80 to U.S. dollar. Among other things, I projected the peso to soften to 54 or more toward the end of the year, which I considered largely the net effect of normalization in advanced economies, elevated trade friction worldwide, as well as fiscal expansion (the Duterte investment program).
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Saturday, July 07, 2018
The Euro, the British Pound and the Other Side of the Coin / Currencies / Forex Trading
Analyzing the medium-term charts of the euro and the British pound, we see that currency bulls fought fiercely with their rivals during recent weeks. Despite several attempts to push both currencies lower, they successfully defended their main strongholds in both cases and defeated fans of the greenback. What does this mean for the U.S. currency and its European competitors?
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Thursday, July 05, 2018
Elliott Wave Analysis: Is US Dollar About to Turn? / Currencies / US Dollar
At Elliottwave-Forecast.com, we use correlation as one tool to complement our forecast. We often use USDPLN as we believe it is good proxy for Dollar Index (DXY). In below’s chart, we overlay the two instrument, and we can clearly see they are nearly identical
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Thursday, July 05, 2018
Why Is the Cryptocurrency Market So Volatile: Expert Take / Currencies / Bitcoin
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Wednesday, July 04, 2018
Back to Resistance for Bitcoin and Ethereum / Currencies / Bitcoin
By Ryan Wilday: In last week’s article, my charts showed that I expected a corrective rally into the zones we are now pushing against. As always, I marked key resistance with a box and price has entered those areas. These zones are $6724-$7045 in bitcoin (BTC-USD) and $461-$489 in ethereum (ETH-USD).
Because I don’t view the downside trend as complete, nor do we have price through resistance in, my primary remains that that we’ll see further downside. But any thesis regarding market direction must be held loosely. Instead this is an opportunity for me to observe how the market reacts.
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