The Crypto market usually also has a rough time in September. Bitcoin lost 12.7% in September 2021, 17.4% in 2020, 17.5% in 2018, 21.4% in 2017 and 45.4% in 2015. The main cryptocurrency increased by 13.3% and 3.95% in 2016 and 2019, respectively.
USD strength on risk off mood
2021-01-22 • Updated
Ichimoku Kinko Hyo
USD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver stands lower on the key retracement area of 38.2%. It seems that bulls lose control for another day.
EU Market View
Asian equity markets traded cautiously after the mixed lead from Wall St where most indices stalled at record levels. European stock markets are seen opening lower Friday, ending a generally positive week on a cautious note amid concerns that growing Covid-19 cases will stunt economic growth. European Central Bank President Christine Lagarde warned Thursday that ever-increasing Covid-19 numbers and restrictive measures, such as lockdowns, to curb the spread of the virus could challenge the region’s economic outlook.
Lagarde also indicated more clearly than ever that the ECB would not use the full amount of its chief bond buying program if it does not need to.
In FX markets, USD remained subdued, EUR/USD held on to yesterday's gains and GBP/USD oscillated around 1.37. Looking ahead, highlights from macroeconomic calendar include UK and Canadian retail sales, EZ, UK, US flash PMIs, existing home sales.
EU Key Point
- UK December retail sales 0.4% vs 1.0% m/m than
- Chinese officials saying yuan is currently at a reasonable level.
- HK press report parts of Kowloon to be locked down in the next 3 days.
US100 broke through the strong resistance trendline, following July's inflation numbers on Wednesday, which were less than analysts expected…
Powell wants a soft landing for inflation, as Greenspan did in 1994. But it looks like he will get a hard landing.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances
Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.
Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.