Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Descending Triangle, USD Flexes Muscles

Published 10/10/2018, 06:50 pm
Updated 09/07/2023, 08:32 pm

The EUR/USD was unable to hold above 1.15, USD/CAD regained 1.30, and Bitcoin began to form a dangerous descending triangle against the $6000 level.

Ahead of the all-important CPI numbers in the United States later this week, the core data (changes in prices of goods and services excluding energy) points to yet another increase.

This is what the Fed likes to see in the midst of a double tightening cycle: raising federal fund rates and a shrinking balance sheet. It puts the Fed on course for a fourth rate hike in December, further fueling US dollar bulls.

Relative ranges are continuing to hold but it seems as though the US dollar is building energy for another jump. The trigger could be the crypto-market.

The danger is that retail traders are positioned on the long side.

With market forces trying to balance on a sub-$6000 move, retail traders will suffer. The spillover should bring higher USD/JPY due to equity flows, and a break of recent ranges on other major pairs.

The market's reaction to last week’s NFP numbers was confusing, but fairly typical for the start of a new month.

Make no mistake, we’re in for a wild run into the last quarter of the year. All eyes should be on the $6000 Bitcoin level. It may be the trigger for a spike in financial markets’ volatility.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.