The Daily Cryptomenon
This analysis was written at 9:00 am GMT +3, on 15.03.2021
The market is currently waiting on two important news events, the first is a speech by Joe Biden later on today about the COVID-19 rescue plan, and the other comes later in the week as the FOMC rate decision. Bitcoin has managed to continue to move higher establishing an all new high at $61,800 before correcting a bit lower.
EURUSD continues to battle against overwhelming bearish pressure, that comes from both the USD and EUR sides. Gold seems on the verge of increased bullish pressure as fears of an increase in inflation is giving traders some hope.
With that said, let’s find out how the markets are doing on March 15th, 2021.
Bitcoin ets New All-Time High
Bitcoin continues to impress and establish a dominant bullish movement with the instrument breaking above the $60,000 and setting a new All-Time high at $61,800. This has increased the appetite of Bulls even more, as they’ve now set their eyes on the $70,000 target. This could be a huge accomplishment for the Bulls as they move closer to the $100,000 mark.
Currently, the instrument is trying to revive the momentum, as it trades just above the previous resistance at $58,400.
Looking into the resistance and support structure of the instrument, the path of least resistance appears to the topside, at least based on the short-term technical picture. Furthermore, the SMAs (50, 100, 200) are showing that the movement is in the hands of Bulls with the 50 and 100-SMAs trading above the 200 one. In order for the Bulls to continue the upward move, the instrument must be able to break through the $60,000, after it broke below it in the correction phase.
The first level of resistance that the instrument will be facing is seen around the $60,000, and followed closely by the $61,800 which marks the most recent high. As mentioned, these levels need to be broken in order for the Bulls to continue the movement higher.
If the decline continues and breaks below the previous resistance-turned-support at $58,400, then we could be witnessing another move to the downside towards the $56,000 which coincides with the 50-SMA on the 4-hour chart.
Current Market Sentiment: Consolidating.
EURUSD Drops to 1.1900
As the week gets going in the European session, we are seeing that the EURUSD heavily offered after the instrument was unable to break above the 1.2000. The move lower caused it to cross below the 50-SMA on the 4-hour chart and seems that this bearish cross might affect the next journey for the instrument.
The U.S. Treasury yields are not helping the EURUSD’s case for more upside as the USD gains with the increase in yields, furthermore, another speech by Biden is scheduled for today.
Comments from both U.S. Treasury Secretary Janet Yellen and ECB member, Kazaks, have added negative pressure on the instrument. The former dismissed any kind of reflation risks and seemed to have accepted any near-term risks that might arise from the increase in rates. The latter, casted a long and dark shadow on the EURUSD by saying that the ECB would consider easing support if the economy was performing better, not to mention the current political atmosphere in Germany, all of which are not helping the EURUSD.
The focus for today will be the speech by President Joe Biden, which might have some added information about the $1.9 stimulus package roll-out plan, and when can people begin to receive their checks in the mail. However, the focus this week will be on the Fed meeting on Wednesday.
From a technical point, EURUSD might be consolidating at current levels as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are printing close to their respective midlines.
Current Market Sentiment: Consolidation.
Gold Sees More Upside
As last week came to an end, we saw that gold was able to find some strong support around $1,700. The upside in gold has grown to be more attractive buyers as fears of an inflation spike in the market in sending traders into inflation hedges such as the yellow metal and BTC. All thanks to the newly approved $1.9 trillion stimulus package from the U.S. government. However, gains have been under some pressure with the increase in yields from the U.S. Treasury.
The U.S. Treasury rates are back above 1.60% with the focus for gold traders this week, will be fully on the FOMC. However, before that comes any closer we have Joe Biden’s speech which includes an address on the COVID-19 rescue plan, and might give fresh input for gold traders. All in all, there are many things that are affecting the instrument, it’s enough that we can expect some interesting movements in the yellow metal.
Looking into the resistance and support structure of the graph, we can notice that there is some slight bullish pressure mounting on the precious metal with Bulls attempting to recapture the $1,740. This is due to the lack of any meaningful resistance between gold’s current level and the target price.
If the bullish momentum continues, the instrument will be targeting the $1,750, which will challenge the Bulls commitment. On the other hand, a fall below the current strong supportive zone below $1,720 and $1,717, could unleash more bearish pressure on the instrument.
Current Market Sentiment: Consolidation.
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