Bitcoin, XRP Talking Points:
- According to Coinbase, Bitcoin registered the highest trading volume since November 2018 yesterday as it drove above $8,000
- XRP is on pace for its best intraday performance since September 2018 after Coinbase announced it will offer the coin to New York residents
- Interested in trading cryptocurrencies? Check out how other IG Clients are positioned on Bitcoin, XRP, Ether and Litecoin with Retail Sentiment Data
Bitcoin Price Rally Continues as XRP Boasts Largest Gain in 8 Months
The cryptocurrency resurgence continued Tuesday as Bitcoin rocketed through $8,000 for the first time since July 31, 2018. Year-to-date, the coin is now up 111%. By comparison, the S&P 500 is up 13.25% in the same span. The rally comes amid the Consensus conference in New York, one of the most influential blockchain and digital assets events of the year where industry professionals gather to discuss a variety of issues facing the cryptocurrency world. This year’s conference convenes from May 13 to May 15.
Read about the correlation between weakening emerging market currencies and cryptocurrency strength here.
As the conference proceeds and the benefits of cryptocurrency are touted, Bitcoin recorded its highest intraday trading volume since November 20, 2018. At the same time, the digital asset posted its third largest single-day rally in 2019 at 12.11%. Beyond that, the daily return was the fourth largest since 2018.
Bitcoin Price Chart: Daily Time Frame (May 2018 – May 2019) (Chart 1)
Price and volume data from Coinbase exchange via TradingView
On the back of the rally, Bitcoin must now negotiate a series of psychological levels at $8,000 and $8,500 – which also marks the digital currency’s July swing high. That said, nearby support at $7,385 and a plethora of optimistic media coverage could look to bolster the outlook for BTC in the short-term. Bitcoin’s high on Tuesday – around $8,360 – marks the highest price for the coin since July 25, 2018.
XRPUSD Price Chart: Daily Time Frame (May 2018 – May 2019) (Chart 2)
Price and volume data from Bitfinex exchange via TradingView
Although Bitcoin is in the midst of a formidable rally, XRP looks to be Tuesday’s star performer. The coin surged over 24% on news that the Coinbase cryptocurrency exchange would offer XRP trading to New York users. The move grants broader access to the coin which should serve to increase liquidity. At the time of this article’s publication, the coin is on pace for its largest single-day rally since September 21, 2018. Similarly, XRP recorded its highest volume trading day since November 25,2018 – with hours left for further exchange.
Tuesday’s rally also erased all losses for the digital asset in the year-to-date. Prior to the surge, XRP had shed roughly 15% of its value since the beginning of 2019. As the session progresses, the coin now boasts a YTD return of over 10%. The single-day swing displays the considerable volatility in the cryptocurrency market. That said, follow @PeterHanksFX on Twitter for further cryptocurrency analysis as the Consensus conference continues and the coin prices fluctuate.
–Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX
DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
Weekly Trade Levels for US Dollar, Euro, Sterling, Loonie, Gold & Oil
DXY, Euro, Loonie Monthly Opening-Ranges Intact
The US Dollar Index is trading into the monthly opening-range highs into the start of the week and the focus is a reaction around the 98.05/10 resistance zone- note that the monthly ranges in Euro and Loonie also remain intact. In this webinar we review updated technical setups on DXY, EUR/USD, USD/CAD, GBP/USD, Crude Oil (WTI), Gold, USD/JPY, AUD/USD, EUR/AUD & SPX.
Why does the average trader lose? Avoid these Mistakes in your trading
Key Trade Levels in Focus
DXY – Immediate focus is on topside resistance at 98.05/10. Initial support at 97.87 with near-term bullish invalidation raised to 97.71.
EUR/USD – Euro is coiling into the monthly opening-range just above slope support. Immediate focus is on support at 1.1140. Initial resistance at 1.1187 with near-term bearish invalidation at monthly-open resistance at 1.1215– look for a bigger reaction there IF reached. A break lower would expose 1.1110.
GBP/USD – Sterling broke below multi-month slope support last week with price responding to near-term pitchfork support into the open. Initial resistance at 1.2798 with bearish invalidation at 1.2859. Downside support objectives at the August low-day close at 1.2697 and the 100% extension at 1.2662.
Gold – Risk for near-term recovery while above the yearly / monthly low-day close at 1270. Initial resistance at 1280 with near-term bearish invalidation with the monthly open a 1283.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
Key Event Risk This Week
Economic Calendar – latest economic developments and upcoming event risk
Active Trade Setups:
—Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex
AUDUSD Soars on Shock Election, Apple Shares Slump, Risk of S&P 500 Drop
AUD: The Aussie outperforms following a shock election outcome, in which Prime Minister Scott Morrison secured re-election (full story). In reaction, the Aussie gapped higher at the Asia open, reclaiming the 0.69 handle against the greenback. However, as equity markets have headed lower throughout the European morning, risks are for gains to be faded. Alongside this, key headwinds in the form of trade war tensions and a potential RBA June rate cut are likely to limit upside. Reminder, RBA Governor Lowe due to speak tonight after RBA meeting minutes (calendar)
Crude Oil: Oil prices surged at the Asia open as Saudi Arabia signalled that cuts could be extended throughout the remainder of 2019 at the JMMC meeting, while President Trump had also stepped up his critical rhetoric towards Iran. Although, with equity prices beginning to push lower, oil prices have pared the majority of its initial gains.
Equities: US equity futures have headed lower amid the continued crackdown by the US on China’s Huawei, which in turn has chipmakers come under pressure, while Google also stated that they are to restrict the company’s use on android services. Elsewhere, Apple’s price target had been cut by HSBC to $174 (median street price target = $220), citing concerns over China, while tariff led price increases on Apple products could also have dire consequences on demand. Apple shares currently lower by 2.4% in pre-market.
Source: DailyFX, Thomson Reuters
DailyFX Economic Calendar: – North American Releases
WHAT’S DRIVING MARKETS TODAY
- “Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low” by Nick Cawley, Market Analyst
- “COT Report: Japanese Yen and Euro Shorts Collapse, USD Longs Reduced” by Justin McQueen, Market Analyst
- “Crude Oil Price May Be Carving Out a Top” by Paul Robinson, Currency Strategist
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
— Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.firstname.lastname@example.org
Follow Justin on Twitter @JMcQueenFX
Gold Price Sell-Off Continues, Silver Price Hits a Six-Month Low
Gold (XAU) and Silver (XAG) Price Analysis and Charts.
Gold (XAU) Needs to Support to Hold
The sell-off on gold continues with the precious metal down around $30 in less than a week. Gold is under pressure from a resurgent US dollar, buoyed by last Friday’s Uni of Michigan data which smashed expectations and hit a multi-year high. The important 61.8% Fibonacci retracement level at $1,287/oz. failed to provide any support when broken last week, while the $1,287 – $1,281/oz. zone made up of old horizontal support is being tested now. A clear break and close below opens the way to the recent double bottom around $1,266/oz. which is currently being guarded by the 200-day moving average at $1,268.6/oz. Below here the 50% Fibonacci retracement level at $1,262/oz heaves into view.
Gold (XAU) Daily Price Chart (August 2018 – May 20, 2019)
Silver (XAG) Nears a Fresh Six-Month Low
Another precious metal under heavy selling pressure. Silver is now at levels last seen in early December last year and is over 11% lower since making its recent high of $16.21/oz. in late February. The downtrend since the late-February high continues to be respected and it is possible that silver completely retraces all the way back down to the November 14 low at $13.89/oz. Psychological support at $14.00/oz. may slow the decline, while the CCI indicator shows that the market is extremely oversold.
Silver (XAG) Daily Price Chart (August 2018 – May 20, 2019)
IG Client Sentiment data show that retail traders are 79.1% net-long gold, a bearish contrarian indicator. Recent daily and weekly sentiment shifts give us a stronger bearish contrarian bias.
— Written by Nick Cawley, Market Analyst
To contact Nick, email him at email@example.com
Follow Nick on Twitter @nickcawley1
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