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In fact, for the past two and a half months (since December 14 of 2019), Bitcoin’s price and dominance have been strongly inversely correlated: a 95% confidence interval puts correlation between -.92 and -.81, which is nothing short of stunning; it basically reveals that an increase in Bitcoin’s price is almost certainly accompanied by a decrease in its dominance level.
Technically the EURUSD is up against resistance on the daily and the coronavirus spread in Italy is likely to add fundamental pressures as safe havens sought. EURUSD Hits Daily Confluence of Resistance Further to our previous article, the left chart shows the EURUSD daily time frame. The currency pair has retraced to the 38.2% Fibonacci level, which may …
Read moreEURUSD Retraces to Fibonacci and SMA Confluence of Resistance
Coronavirus is hurting demand for oil and action is needed by OPEC+ to support prices. Oil Hit From Both the Demand and Supply Sides Oil fell heavily on Monday following concerns about the spread of the coronavirus outside of China, with cases growing in South Korea and Italy. Moreover, the virus has exacerbated an already poor economy where China …
Read moreOil Fundamentals Need to Improve Or Bounces Will Attract Attention
German industrial production is in dire straits; hurt by trade wars and declining Chinese demand. The EURUSD is reflecting this weakness and any bounces are likely to be viewed as bear market rallies. German Industrial Production Weakness Since January 2018 German industrial production has been heading south-east. This is clearly denoted by the red downtrend …
Read moreEURUSD Bear Continues; Bounces Are Targets As Germany Languishes
Fed Chair Jerome Powell told Congress yesterday that the US economy is in a good place given the decline in trade uncertainty [after the phase one trade deal was signed between the US and China] and the stabilization of global growth. However, he did concede that there is a potential threat from the coronavirus. “Good Place” Reflected in PMIs …
We observed the correlation with Bitcoin’s price and the transaction volume of the preceding 1 – 7 days, and found day 4 had the strongest correlation — suggesting that previous transaction count may have some predictive power in terms of Bitcoin’s price.
The coronavirus is hurting the Chinese economy and the epidemic is mauling the demand for copper. The spread of the coronavirus is exacerbating an already fragile Chinese economy and one of the places this is being reflected is in the demand for copper. Since 21 January the base metal’s price has declined by 10.25%. Price may …
Read moreCoronavirus Hurting Dr. Copper; Base Metal Rallies In a Decline
GBPUSD fell sharply last week losing 2.4% of its value . However, today has seen a rally into resistance, which may provide a low risk short opportunity. Preliminary GDP q/q is due out tomorrow and is forecast to show zero growth. However, manufacturing production is expected to show an increase on a month-on-month basis. The market will …
The risk-on markets have had a superb week. However, the short-term oscillators are overbought and will need to normalize. Moreover, a coronavirus drug breakthrough has been downplayed by the WHO, which stated that there are “no known” drug treatments against the virus. These two variables may combine to push down risk markets. GER30 Trades At …
Read moreStrong Risk-On Week; Potential Profit Taking Makes Shorts Attractive
Risk-on has dominated over Asian and European sessions. Rally running into potential resistance. The risk markets have rallied over the last 2 trading sessions as traders try and bottom pick the strong sell off caused by the coronavirus uncertainty last week and particularly the sell down on Friday. This was supported by a good US ISM Manufacturing print …
Read moreRisk Jitters Remain Due to Coronavirus; Rallies May Be Short Opportunities