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Reserve Bank of Australia Preview: Hinting toward an end to its rate hike cycle?

Reserve Bank of Australia Preview: Hinting toward an end to its rate hike cycle?

FXStreet News FXStreet News 05.12.2022 16:29
Reserve Bank of Australia is set to hike OCR by another 25 bps to 3.1% in December.The central bank will be on a natural pause until the February meeting.AUD/USD could test 200-DMA resistance should RBA disappoint the doves.The Reserve Bank of Australia (RBA) is on course to hike rates for the eighth consecutive month when the board members meet on December 5. The central bank will announce the interest rate decision at 03:30 GMT, with markets predicting that the RBA could be close to the end of its rate hike cycle.All eyes on RBA’s future pathA majority of the economists foresee the RBA raising the Official Cash Rate (OCR) by 25 bps from 2.85% to 3.10% at its December policy meeting, summing up to a total of 300 bps in rate increases in eight months.However, RBAWatch shows about a 30% probability of the central bank not announcing any change to its OCR this month. According to the Reuters poll, the median expectation is for a 3.60% terminal rate, although some industry experts suggest that Tuesday’s hike will be the last in the RBA’s tightening cycle.Participating in a panel discussion titled "Growth and Inflation Dynamics" at the Bank of Thailand 80th Anniversary Conference last Friday, the RBA Governor Philip Lowe said that the central bank’s decision to downshift reflects monetary policy lags.That said, there will be a natural pause until the RBA’s meeting in February, as the bank does not hold the policy meeting in January. This break will allow them to assess the impact of the policy tightening, thus far.Therefore, Tuesday’s policy statement will be closely scrutinized for hints on whether the RBA will continue its rate-hike track early next year. Even though the Australian Consumer Price Index (CPI) hit 7.3% in the July-September period, the highest since 1990, the slowdown in the October CPI rate to 6.9%, hinted at possible peak inflation. Markets are expecting the RBA to take note of easing inflationary pressures, with all eyes now focused on any changes to this statement - “the Board expects to increase interest rates further over the period ahead.”China’s shift toward Covid reopening could also ease concerns over the supply bottlenecks, alleviating further pressure on the RBA from the inflation perspective. Trading AUD/USD with the RBAAUD/USD is sitting at the best levels seen since September near 0.6850 as we head toward Tuesday’s RBA policy announcements. Dovish Fed outlook and China’s reopening optimism have fuelled the latest uptrend in the Aussie pair.If the central bank surprises with a less than 25 bps rate increase or delivers a 25 bps hike with cues on an end to its tightening cycle, it would be an outright dovish move, taking the wind out of AUD/USD’s ongoing bullish momentum. In such a case, the currency pair could fall back toward the December 2 low at 0.6742.Further south, the confluence of the 21- and 100-Daily Moving Averages (DMA) at 0.6685 will come to buyers’ rescue. The 14-day Relative Strength Index (RSI) holds firmer above the midline, providing credence to the bullish potential.Should the RBA’s policy guidance hint at future rate increases, it will be seen as a hawkish rate hike and would offer additional legs to the northward journey in AUD/USD. Bulls could drive the pair toward the 200-DMA at 0.6921 on a sustained move above the 0.6900 barrier. AUD/USD: Daily chart
Tesla Stock News and Forecast: TSLA sinks after automaker cuts Shanghai production

Tesla Stock News and Forecast: TSLA sinks after automaker cuts Shanghai production

FXStreet News FXStreet News 05.12.2022 16:29
Tesla is cutting production by 20% at its Shanghai factory.The move will mostly involve Model Y production.The production cut is due to a demand shortfall.TSLA stock drops 4.7% on Shanghai news. Tesla (TSLA) stock gave up 4.7% in Monday's premarket after Bloomberg reported that its Shanghai factory would trim record production by 20% due to sluggish Chinese demand. Shares of the leading electric vehicle maker dropped to $185.75 on the news. At the same time most of the US futures market is down in the premarket. Futures for all three major indices, the Dow, S&P 500 and the NASDAQ, are off close to 0.5%.Tesla stock news: Model Y production clippedThe news out of Shanghai caught investors off guard, because until now Tesla had been undergoing a global ramp up in production. These included plants in Berlin and Austin, Texas as well. The Shanghai production cut is said to be caused by a reduction in that market's demand. Due to frequent covid-related shutdowns across China this year, the economy there appears to have pulled back quite a bit.Demand has shrunk even while Tesla has been ramping up production there to an all-time high. In November Tesla reported deliveries just under 100,300 vehicles. Cutting back to 80,000 units a month is still quite a substantial figure, and Bloomberg sources said it would be easy to ramp back up once demand returns. Reports say the cut will primarily focus on Model Ys. Earlier news accounts said that Tesla had finally exceeded Chinese demand in November for both Model Ys and Model 3s. Waiting times between customer order and final delivery for both models are said to be way down compared with earlier in the year.Source: CnEVPostTesla can of course export vehicles produced at the Shanghai plant, and it does do this. In fact, that is normally the course of action. Tesla Shanghai spends the start of each quarter producing vehicles for export and then spend the latter half producing for the domestic market. In October, for instance, 54,504 vehicles were exported, and just 17,200 vehicles were delivered there in China. Tesla should produce more than 1 million vehicles at the Shanghai factory in 2023.In other news the European Union's Trade & Technology Council has vocally implied that it may challenge parts of the US Inflation Reduction Act (IRA) at the World Trade Organization. Members of the EU regard certain features of the IRA as protectionist since only US-based companies can receive the many tax breaks for going green that the legislation allows. A primary target of EU member countries are the EV tax credits. In order for a consumer to be eligible for a $7,500 tax credit on a new EV, the vehicle must be assembled in North America. "There is a risk that the Inflation Reduction Act could lead to unfair competition, could close markets and fragment critical supply chains," said President of the European Commission Ursula von der Leyen. "We must take action to rebalance the playing field... to improve our state aid frameworks. In other words: We need to do our homework in Europe and at the same time work with the US to mitigate competitive disadvantages."Tesla stock forecastWith the latest setback, TSLA stock is once again experiencing resistance at the $200 level. Last Thursday Tesla stock nearly cleared $199 before selling off and closing lower. In order to make a run at late October and early November's swing high at $234, bulls first need to reconquer the $200 level, which is suddenly seeming to be a difficult task.Nearby support at $180 and $167.50 should both offer some confidence in the mean time. The 9-day moving average also found a base of support recently at the $180 level before moving higher. The Moving Average Convergence Divergence (MACD) still shows that a rally is on, so it is quite possible that an unknown catalyst (Tesla Semi?) arrives in the headlines later this week and works to rally the troops for another try at $200.TSLA 1-day stock chart
AMC stock price soared 13% yesterday. What can we expect from the price line?

AMC stock price soared 13% yesterday. What can we expect from the price line?

FXStreet News FXStreet News 02.12.2022 15:31
AMC Entertainment stock closed up 13% on Thursday. AMC stock trading was halted on Thursday due to unusual volatility. 46 million AMC shares had traded by shortly after noon. AMC stock is again advancing in Friday's premarket. AMC Entertainment (AMC) stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average, and AMC stock leapt as much as 27% before trading was halted shortly before 12:30pm. Trading then recommenced with AMC's share price closing up 13% at $8.17, its highest closing price since September 21. AMC Entertainment stock news: Call options bring all the boys to the yard AMC Entertainment stock got going early on Thursday and reached as high as a 27% gain before being halted. Authorities said about 46 million shares changed hands by that time compared to an average of 25 million. The AMC price action was led by option market activity. Retail traders and especially the much-maligned AMC Apes were furious with the trading halt. Read next: Porsche NFT Collection Will Hit The Market In January 2023 | FXMAG.COM Bloomberg reported that by 3pm, 550,000 call contracts representing 55 million shares had traded, while the 20-day average was 163,000. Activity was especially noted in the $8, $8.50 and $9 strike prices that are expiring this Friday. On Thursday these strikes saw more than 80,000, 63,000 and 71,000 call contracts trade by the close. The $10 strike also saw nearly 36,000 contracts trade as well. The $8 strike closed the session at $0.36 a share, and the $8.50 closed at $0.17 a share. BNK Invest noted heightened activity last Tuesday as well, writing, "Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AMC Entertainment Holdings Inc. (Symbol: AMC), where a total volume of 136,950 contracts has been traded thus far today, a contract volume which is representative of approximately 13.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.6% of AMC's average daily trading volume over the past month, of 26.5 million shares." AMC Apes on Twitter have been badgering CEO Adam Aron about the APE equity unit price as it recently fell below $1. It closed Thursday up 1.1% at $0.9822, and is now trading up to $1.02 in Friday's premarket. Black Panther: Wakanda Forever dominated the US box office once again last weekend, but observers believe its numbers are falling too rapidly. Still the superhero film has grossed about $683 million worldwide and is already the seventh highest grossing movie of the year with more room to run. AMC stock forecast The Moving Average Convergence Divergence (MACD) indicator in regard to AMC stock's daily chart shows a moderate bullish pattern. Thursday's burst blew well above the November 14 and 15 pinnacle, and a cursory look at this chart makes one think there is more energy left for upside. Of course, traders will be closing out their call options in the afternoon, but other might be already buying up those for next week. $10.39 looms large for bulls since this is where they got stopped out in mid-September. Before AMC can reach that point, however, the R1 pivot sits at $8.70 and the R2 is at $10.18. The 21-day moving average at $6.87 is the current pivot, and $5.17 is the long-term support level from November 7 and 9. AMC 1-day chart
Taking care of cryptocurrencies - ByBit highlights talks safety measures

The leading cryptocurrency gains from dovish Fed signals

FXStreet News FXStreet News 02.12.2022 15:31
Bitcoin price jumps for the week and breaks away from the $16,000 level. BTC enjoys tailwinds as the Fed has communicated that it will hike less aggressively. Markets are rallying and are set to see a Christmas miracle for their performance. Bitcoin (BTC) price has seen bulls shooting out of the gates this week as a sudden wave of positive news swamped the markets. Not only is Germany near signing a decade-and-a-half deal with Qatar to ensure non-Russian gas supply, but equities also welcomed the less hawkish tilt of the Fed. With the end of 2022 in sight, the Christmas rally is rolling in as traders are gearing up for it. BTC itself could be seen hitting $19,000, bringing a 15% profit as a gift to end the year with, although there is one challenge remaining. BTC bounces off crucial support yet again Bitcoin price is recouping the losses it incurred at the beginning of November as traders are finally trading away from the low at $16,000. That comes as a sudden tilt in sentiment kicked in throughout this week, with the speech from Fed Chairman Powell as the cherry on the cake. Several tail risks that have exercised their bearish pressure on the price action are slowly but surely abating. Read next: Porsche NFT Collection Will Hit The Market In January 2023 | FXMAG.COM BTC looks primed to continue its rally and could be seen hitting $19,000 possibly by the end of next week or the week after that if economic numbers keep confirming what Powell said. The only element in the way is the 55-day Simple Moving Average (SMA) on the weekly chart near $18,460. That could still trigger a rejection as it did in September and October, although the current bullish sentiment could easily be strong enough to trade beyond that point as tail risks deflate. BTC/USD weekly chart As the current rally is based on the communication from Fed Chairman Powell, the data could still point to a sticky and elevated inflation level. That would trigger a massive sell-off as the economic background is clearly not improving on inflation pressures. BTC would be slammed against that $16,000 level and flirt with fresh lows for 2022.
Crypto Lender BlockFi Became The Latest To Fall

FTX collapse: Sam Bankman-Fried said withdrawals could open soon

FXStreet News FXStreet News 01.12.2022 16:11
Sam Bankman-Fried, former CEO of bankrupt crypto exchange FTX, said withdrawals from FTX US could open soon. The former FTX executive hinted that LedgerX could be up and running in the near future. Bankman-Fried added that he cannot make promises while claiming that FTX US customers could soon be made whole. Sam Bankman-Fried, popularly known as SBF, told New York Times’ Andrew Ross Sorkin that FTX US customers could be made whole soon. SBF claims that these entities: FTX US and FTX US derivatives, formerly known as LedgerX, could be “up and running soon.” Sam Bankman-Fried claims withdrawals could open at FTX US Sam Bankman-Fried, co-founder and the former CEO of FTX exchange, spoke to Andrew Ross Sorkin of “The New York Times’ DealBook.” SBF made a virtual appearance at the media company’s DealBook Summit and assured FTX US users that withdrawals could open soon. Read next: Tech stocks: Mullen loses almost 5%, Tesla gains over 7%. Nasdaq soars on the back of Powell's rhetoric | FXMAG.COM SBF has been vocal about the fall of his crypto empire, the liquidity crisis and failed attempts at getting FTX exchange and its subsidiaries bailed out. The former FTX CEO has apologized to users and finally stepped into the media spotlight from the Bahamas on November 30. Andrew Ross Sorkin asked SBF a host of questions on risk management, regulation, real-estate in the Bahamas and FTX entities’ solvency. Commenting on FTX US exchange platform, SBF said, The US platform—the US regulated platform with American users—to my knowledge, that’s fully solvent. That’s fully funded and I believe that withdrawals could be opened up today and everyone could be made whole from that. LedgerX could be up and running soon Sam Bankman-Fried’s FTX US acquired LedgerX in October 2021. SBF renamed LedgerX as FTX US Derivatives. The exchange platform offers cryptocurrency futures, options, and swaps. When FTX exchange went bankrupt, LedgerX was one of the entities that remained solvent. Commenting on the future of LedgerX, co-founder of the FTX empire said that FTX US derivatives could “even be up and running right now.” According to a Bloomberg report, FTX US derivatives made $175 million available for use in the FTX’s bankruptcy proceedings. The derivatives platform therefore offered a crumb of support to FTX, that owes $3.1 billion to its top 50 creditors.
Tech stocks: Mullen loses almost 5%, Tesla gains over 7%. Nasdaq soars on the back of Powell's rhetoric

Tech stocks: Mullen loses almost 5%, Tesla gains over 7%. Nasdaq soars on the back of Powell's rhetoric

FXStreet News FXStreet News 01.12.2022 16:11
Mullen stock lost 4.6% on Wednesday. TSLA shares gained 7.7% at the same time. The NASDAQ also rallied 4.4% on the strength of Powell's Fed pivot. MULN stock has 43% short interest at the moment. Mullen Automotive (MULN) stock finds itself falling behind once again. On Wednesday, electric vehicle leader Tesla (TSLA) exploded 7.7% on Federal Reserve Chair Jerome Powell's announcement that the central bank would be looking at smaller interest rate hikes going forward. This appeared to be the "pivot" the entire market had been waiting for, and stocks shot up relentlessly. The NASDAQ, on which MULN stock trades, closed up 4.4% on the session. MULN stock was dead in the water however. Shares of the upstart EV maker contrasted with Wednesday's market sharply, closing down 4.6% at $0.1921. Mullen Automotive stock news: Short volume growing heavy for MULN Mullen Automotive stock received little interest from traders on Wednesday as the rest of the market stole all the focus. Taking a look at the S&P 500 heat map below makes it clear that even some of the biggest names in the market took flight. Microsoft (MSFT) and Alphabet (GOOGL) both closed more than 6% ahead, and Nvidia (NVDA) even advanced 8.2%. With that much bullish volatility, there was no need to pay attention to a long-term penny stock play like Mullen. Only a few oil & gas companies closed lower on the day. S&P 500 Heat Map for Nov. 30, 2022 A big reason that MULN stock continued to descend was that shares recently dropped below the $0.21 support level that held up back during its recent swing low on October 18 and 19. This time Mullen Automotive stock has ignored the support level and continued moving lower one penny at a time. Of course, it must worry existing shareholders that short interest reached 43% on Wednesday. That is nearly twice as bad as other EV startups. Hyzon Motors (HYZN) and Arcimoto (FUV), for instance, have short interest of 22% and 27%. Another drag on the MULN share price is that Tesla keeps making all the headlines. Tesla's Texas Gigafactory has been producing 1,000 Model Ys per week since June, but unsubstantiated rumors are leaking that the EV leader will ramp up to 5,000 per week by 2023. Insiders have told the blogs that management is aiming for 75,000 Model Ys to be produced at the Texas plant in the first quarter of 2023. This means 25,000 a month and nearly 5,000 per week. Additionally, Tesla will deliver its first Tesla Semi, a fully battery electric semi tractor trailer, to Pepsi (PEP) at a Thursday event at its Nevada factory. The Tesla Semi is expected to greatly expand Tesla's profits in the coming years and is said to have a range between 300 and 500 miles. Also Tesla says it uses less than 2kWh to travel one mile, a rather efficient figure. This contrasts sharply with Mullen, who does not plan to deliver its Mullen Five crossover vehicle until the second quarter of 2024. With the recent addition of assets from Electric Last Mile Solutions (ELMS), Mullen is a long way away from completely retooling its new Indiana plant to prepare for production. Mullen finally closed its $105 million deal to buy the bankrupt ELMS assets on Thursday. The Indiana plant will be used to produce both the Mullen FIVE model and the Bollinger B1 and B2 models. “I have been working on this plan for many years, putting in place the strategic and critical enablers to be a dominant competitor in the EV market,” Mullen CEO David Michery said. “Successfully completing this asset acquisition moves Mullen into an all-new position with IP, plants and product platforms that no other competitor can offer to both retail and commercial customers. We have everything we need to launch the Mullen and Bollinger EVs product lineup.” Mullen Automotive stock forecast As previously stated, MULN stock crashed through the $0.21 support level on November 23 and has not looked back. It would seem that this is now the target for bulls. A move above would signal that a rally is likely starting up. Above that pivot sits nearby points of resistance at $0.2244 from the 9-day moving average and at $0.27 from the 21-day moving average. There is no historical support for MULN stock at the moment, which will be the main worry for bulls. It would be best to wait for a daily close above $0.21 before getting back in. The Moving Average Convergence Divergence (MACD) indicator is also slotted in a bearish pattern. MULN 1-day stock chart
The NonFarm Payrolls Report Had Negative Impact On The EUR/USD Pair

ECB director calls for Bitcoin ban, says BTC is not suitable for payments or investments

FXStreet News FXStreet News 30.11.2022 16:21
European Central Bank's head stated Bitcoin should not be legalized. The bank’s director general Ulrich Bindseil states that regulation of cryptocurrencies is not equivalent to legalization. The blog post from the central bank comes after the FTX exchange filed for bankruptcy on November 11. The European Central Bank (ECB) detailed its stance on Bitcoin (BTC) and the cryptocurrency ecosystem in a blog post on November 30. In this article, the financial institution outlined the stark differences between regulation of digital assets in Europe and the US and that they should not be legitimized. FTX implosion and regulators This development comes after FTX, one of the largest exchanges in the world, imploded and filed for bankruptcy. As a result of the exchange's fallout, many creditors have millions stuck on the platform and are awaiting a decision. This dark patch in the cryptocurrency ecosystem's timeline has attracted many critics to say, "I told you so." However, cryptocurrency enthusiasts like Changpeng Zhao, the founder of the Binance exchange, remain optimistic and have come together and allocated billions to help the crypto ecosystem. European Central Bank warns about Bitcoin’s long-term damage to traditional finance ECB’s Director General Ulrich Bindseil and advisor Jürgen Schaff outlined the negative impacts of cryptocurrencies and how regulators are not on the same page. Bindseil and his colleagues' criticisms include, the system's high energy consumption, its waste products, and BTC's suitability as a payment system or form of investment. The blog further adds that since it is neither an effective payment system nor an investment, “it should be treated as neither in regulatory terms and thus should not be legitimised.” The financial industry should be wary of the long-term damage of promoting Bitcoin investments - despite short-term profits they could make (even without their skin in the game). Additionally, the duo further outlines the stark difference between how Europe and the US approach the crypto space in terms of regulation. The blog stated, While the EU has agreed on a comprehensive regulatory package… Congress and the federal authorities in the US have not yet been able to agree on coherent rules. Bindseil and Schaff add that the current regulation of digital assets is “partly shaped by misconceptions” and the belief that laws should not hinder “innovation.”
US October PCE inflation & ISM Manufacturing PMI Preview: Seen through Fed’s eyes

US October PCE inflation & ISM Manufacturing PMI Preview: Seen through Fed’s eyes

FXStreet News FXStreet News 30.11.2022 16:21
The US core Consumption Expenditures Price Index will likely signal easing pressures.The US ISM Manufacturing PMI is foreseen to fall into contraction territory.EUR/USD could revisit the 1.0500 price zone after the dust settles.December will kick start with a high note in the United States, as the country publishes the Personal Consumption Expenditures (PCE) Price Index data, the US Federal Reserve’s preferred inflation gauge, while the Institute of Supply Management (ISM) will unveil the November Manufacturing PMI.Updates on inflation and business growth will be critical ahead of the last US Fed decision of the year, scheduled for December 14.Core PCE inflation, which excludes volatile food and energy prices, is expected to have risen by 0.3% MoM, while the annual reading is foreseen at 5%, easing from 5.1% in November. On the other hand, the ISM Manufacturing PMI is expected to have fallen into contraction territory, from 50.2 in October to 49.8.Signs of easing inflation will be encouraging but not a surprise. Neither will confirmation the economy has contracted. Still, a Manufacturing PMI below 50 would undoubtedly hit the US Dollar, while a better-than-anticipated figure could boost the battered American currency.US Federal Reserve's upcoming decisionThe United States Federal Reserve (Fed) has hinted at a potential easing in the pace of tightening. After hiking rates by 75 bps for five consecutive meetings, the central bank is now expected to pull the trigger by a modest 50 bps. Data pulled from the CME FedWatch Tool shows a roughly 70% likelihood of such an outcome, sending the benchmark rate to a range of 4.25% to 4.5%.Easing price pressures and fears higher rates will slow economic progress could easily explain the upcoming decision, although it is worth noting that Fed officials will always prioritize inflation. Should the related data surprise on the upside, market players could lift bets on another 75 bps and send the Dollar up amid a risk-averse environment which could put stock markets in a selling spiral. A worse-than-anticipated ISM Manufacturing PMI should exacerbate the dismal mood scenario.Softer-than-anticipated core PCE inflation, alongside an ISM Manufacturing PMI at 50 or above, should trigger optimism. Stock markets will likely rally, while the US Dollar will likely fall against all of its major rivals.EUR/USD possible scenariosThe EUR/USD pair peaked at 1.0496 at the beginning of the week, its highest since last June. It bottomed at 1.0318 on Tuesday, bouncing back from the level and now aims to regain the 1.0400 threshold.From a technical perspective, the risk skews to the upside, although the lack of action these days has left the daily chart with a neutral-to-bullish tenor. EUR/USD remains stuck around a bearish 200-day Simple Moving Average (SMA), unable to clear the moving average since June 2021. Nevertheless, the 20 SMA continues advancing above a now mildly bullish 100 SMA, reflecting buyers’ strength. The Momentum indicator heads south above its midline, but the Relative Strength Index (RSI) indicator resumes its advance at around 61, also reflecting bulls’ dominance.EUR/USD can recover its bullish momentum if it closes Wednesday above the 100-day and challenges the weekly high should US data spur optimism. A slide below 1.0300, on the other hand, should open the door for a steeper bearish correction towards 1.0240, the November 21 daily low. Further declines seem unlikely, although if the pair breaks lower, a retest of parity will be on the table.
ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it

FXStreet News FXStreet News 29.11.2022 16:27
Economists expect ADP's private-sector jobs report to show an increase of 200,000 jobs.Investors lean toward selling the Dollar ahead of a speech by Fed Chair Powell.Only an increase of over 300,000 would boost the Greenback.Houston, we have a correlation – ADP's jobs report has finally come in line with the official Nonfarm Payrolls (NFP) report. It took a hiatus and a change in formula to make that happen, but what matters is that this release finally matters. Investors will be closely watching the upcoming publication for November. America's largest payroll provider reported an increase of 239,000 private-sector jobs in October, and the official read came out at 261,000 total jobs, both public and private. This time, economists expect an increase of 200,000 in both, but if ADP's number significantly differs, it will shape estimates for the NFP.Source: FXStreetThe Federal Reserve and markets want to see the labor market cool down after the reopening-driven boom, which caused substantial shortages. There are still two jobs for each vacant worker. While the pace of hiring has slowed in recent months, there is still a long way to go. Weekly jobless claims have remained low and retail sales are on the rise – showing that consumers still have spare cash to spend. That means a significant drop in hiring – or job losses – seems highly unlikely at this juncture.Expected market reactionA disappointing increase of fewer than 200,000 would hit the US Dollar, as it would lower expectations for a fast pace of rate hikes by the Fed. What would happen if the ADP's data met expectations? Here is where market biases come into play, and I see them as negative. Since the US reported a weak inflation report on November 10, US 10-year yields have been trending lower. This move has seen its bumps in the road, but the direction has been clear – down.Another reason is the timing of ADP's report. It is released a few hours before Fed Chairman of the Federal Reserve Jerome Powell speaks. The world's most powerful central banker will likely be dovish – or at least that is what markets expect after a preview by Bloomberg on the topic.It is not only that news outlet – the Federal Open Meeting Committee (FOMC) Meeting Minutes leaned toward slowing the pace of hikes, much more than the final peak, which could be higher. These expectations will limit any upside.I will go further and argue that it would take an increase of no fewer than 300,000 jobs to trigger an upside move in the Dollar. Only such a leap in hiring would cause markets to pause and rethink. Final thoughtsADP's jobs report has grown in importance after providing guidance last month, overshadowing the second release of US GDP due only 15 minutes afterward. Markets want to sell the Dollar and the bar is high to buy it.
Bitcoin price hears jingle bells rolling in

Bitcoin price hears jingle bells rolling in

FXStreet News FXStreet News 29.11.2022 16:27
Bitcoin price looks set to rally substantially higher now that the social unrest in China is calming down.BTC could stage a 17% rally in the coming week.If the current breakout sees follow-through, this rally could extend toward the end of the year.Bitcoin (BTC) price is popping higher this Tuesday morning in the ASIA PAC session as Chinese markets spurt higher. After the social unrest over the weekend and on Monday, markets are taking a 180-degree turn as the Chinese government comes with more easing policy guidance and commits to speed up the vaccination rate. On the back of these measures, markets are rallying as another supply chain glut is to be avoided, and inflation forces should decrease a bit further, triggering a rally in BTC that could continue into Christmas.BTC is set to cut back over half of the losses for NovemberBitcoin price performs a technical bullish pop as support returns at $16,020 on Monday, pushing price action back up. Currently, the red descending trend line is breaking with bulls piercing through it. If this move gets some follow-through and trade further away from that trend line, expect to see a higher-stretched rally.BTC thus has been underpinned, and with the systemic risk out of China that another supply chain glut is being avoided overnight a sudden soft patch is opening up with room for several rallies. Expect to see some choppiness toward $17,000 at the monthly S2 support level that will currently act as resistance. Once that has been thrown over and drafted back as a bullish element, the rally could continue toward $19,036 with the monthly S1, the 55-day Simple Moving Average (SMA) and the high of November 21 as pivotal levels that bear a 17% gain . BTC/USD daily chartRisk to the downside still comes with the expected default of BlockFi in the aftermath of the FTX implosion. As the dominoes continue to fall, the distrust between the different stakeholders in the cryptocurrency industry is growing. A break and retest at $15,500 would not be unthinkable on the back of that.
The Fundamental Interest In Ethereum Is Much Higher Than In Bitcoin

Price of Ether declines as COVID reality in China discourages investing in risk assets

FXStreet News FXStreet News 28.11.2022 16:10
Ethereum price slips over 1.5% in ASIA PAC trading on Monday after riots and protests across China. ETH gets global selling pressure as financial markets are dipping as well. Expect to see another leg lower in search of support together with all other asset classes. Ethereum (ETH) price saw a lackluster weekend regarding its price action and performance. On Saturday, some hopes were there that the pivotal level at $1,243 could get a test, but bulls never made it up that far. Instead, prices slipped lower on Sunday, and this morning, on the back of widespread social unrest in China that is hardly ever seen, overall markets are choosing to go with a risk-off tone for today. Read next: Farmers In China Suffer From Covid Restrictions| FXMAG.COM ETH slips below an important line in the sand Ethereum price is playing a dangerous game this morning as it came under pressure from a global risk-off tone triggered by pictures and videos on social media from China. Several cities have reported social unrest and called Xi to step down as the lockdown measures are starting to hit people’s morale. As this is very rare in China, this form of rebellion could start to weigh on several performance numbers from producers that are very dependent on local production in China. Apple has already come out this morning with a statement that it is falling behind on its delivery promises for its most recent iPhone. ETH currently flirts with the red descending trend line in the sand, refraining from ETH to make lows again toward $1,074. Unfortunately, if markets do not change sentiment throughout the day, the risk is that it will dip lower toward that mentioned level. The trade becomes a bearish triangle again, with $1,074 as the base and set to break lower to $1,014, which would carry a 15% loss. ETH/USD daily chart Although sentiment at the beginning of this week looks bearish, some social unrest in China may not immediately trigger a sell-off in the US later today or in the coming days. The same goes for the situation in Ukraine, which is showing fatigue and does not cap equities from rallying anymore. Expect later this week to see Ethereum price hit $1,243 and get ready for a pop higher toward $1,337 at the 55-day Simple Moving Average.
Expectations of decent sales during holiday season have let Best Buy gain

Shopify - on Black Friday sales amounted to over $3bn

FXStreet News FXStreet News 28.11.2022 16:10
Shopify reported sales of $3.36 billion from its vendors on Black Friday. This was an increase of 17% over 2021. SHOP stock has added more than 6% in Friday’s premarket. China is dealing with the anti-covid protests that are hurting the NASDAQ.   Shopify (SHOP) advanced 6.4% in Monday’s premarket after news of strong sales from Black Friday impressed the market. Global sales topped $3.36 billion on the United States' top retail shopping day of the year, but interestingly a large subsection of the sales came from abroad. While SHOP stock is ahead 6.4% at $39.15 about 30 minutes before the open, the rest of the market is more somber. Anti-covid regulation protests have engulfed China, and markets are selling off over worries that their longevity may produce a material hit to US companies that have production contracts in China. NASDAQ futures are off 0.9% on Monday. Already Bloomberg is reporting that Apple (AAPL) is likely to miss its iPhone production goals for November by 6 million units. Tesla (TSLA) stock has also lost more than 2% in the premarket based on worries over meeting its production targets as well despite the fact that it will begin deliveries of electric semi-trailer trucks in the coming week. Shopify stock news: Black Friday revenue jumps 17% from last year As 2022 has witnessed the United States go in and out of recession and big box retailers like Target (TGT) deal with customers' inflation fatigue, many observers thought Black Friday might be a letdown this year. However, Shopify’s thousands of mom-and-pop ecommerce retailers did not get the memo. Instead, Shopify saw Black Friday sales jump 17% from last year and even 19% on a constant currency basis. "Black Friday Cyber Monday has grown into a full-on shopping season,” said Harley Finkelstein, Shopify’s president. “The weekend that started it all is still one of the biggest commerce events of the year, and our merchants have broken Black Friday sales records again. Our merchants have built beloved brands with loyal communities that support them. This weekend, we’re celebrating the incredible power of entrepreneurship on a global stage.” Shopify said its ecommerce partners sold $3.5 million per minute worth of merchandise around noon on Friday. Many Americans take the day off after Thanksgiving on Thursday. Besides the United States, Shopify said a large percentage of sales came from Canada and the United Kingdom. In a statement Shopify said the average checkout cart amounted to $102.31, and that apparel & accessories, health & beauty, and home & garden were the top product categories for customers. In its list of top trading ideas for 2023, Bank of America said on Monday that shorting US tech made the list. The "old leadership, still over-owned, era of QE is no longer, era of globalization no longer, plus peak penetration and regulation risks,” the analysts wrote. Shopify stock forecast Before this sudden bout of good news, SHOP stock had been in a clear sell-off. Shopify stock rose from October 13 to November 15 before its recent downturn. Shopify stock has made it back to the shoulders of the opening price for the sessions on either side of the shooting star candlestick on November 15. That type of candlestick that falls off its high, early session price to close lower than its open (in the shape of an upside down hammer) is a major bearish sign, and that is exactly what occurred over the following two weeks. The Moving Average Convergence Divergence (MACD) also duly turned over, and the 9-day moving average in the past week had begun dropping back closer to its 21-day counterpart. Now SHOP bulls can only focus on $41.73 – the high from the November 15 shooting star. Based on SHOP price action in both mid-November and August, shares will likely face resistance between $40 and that higher price level. Beyond there Shopify stock briefly made its way to $45.43 on August 11 but was immediately pushed down harshly from a wave of profit-taking. Support might be found between the 21-day moving average and the ascending bottom trend line that started in mid-October. This is an area roughly between $35.50 and $37.50. SHOP 1-day chart
Ford's EPS is estimated to hit 0.27. Zacks investment research comments on incoming carmaker's earnings report

Barclays and UBS correct their price targets on NIO

FXStreet News FXStreet News 18.11.2022 14:48
NIO is advancing in Friday's premarket. The Chinese EV maker has been hurt by renewed covid worries. Two analysts downgraded Nio stock this week. Nio (NIO) stock is advancing a little over a percentage point in Friday's premarket as the Chinese automaker continues to try to make up the ground it lost on Wednesday. In the middle day of this week, Nio stock gave up 8.5% on the news that Peking University was locked down due to a single covid case. Other rumors emerged that China is experiencing a covid resurgence, with some reports stating that authorities in the industrial hub of Guangzhou had set up temporary treatment centers and quarantine facilities. This is worrying, because Nio has already halted production twice this year to combat covid, and the news arrives just a week after Nio impressed shareholders by aiming for Q4 44% production growth in just one quarter. That is a lot of growth in a three-month time period, and any single obstacle could set the entire schedule back. Nio stock market news In addition to the covid situation battering Chinese share prices this week, Mercedes-Benz cut prices across the board on its Chinese stock of EVs. The lower end of these vehicles is thought to compete directly with Nio and more so now that prices have been reduced. In the case of the Mercedes-Benz EQE, the headline price was clipped by a little over 9%. This is quite poor timing as higher battery component prices in 2022 have hurt Nio's margins alongside the rest of the industry. Nio's adjusted earnings loss in the third quarter reported one week ago was nearly double what Wall Street had expected, primarily due to these higher input costs. Taking the lay of the land, two separate analysts cut their price targets on Nio stock on Thursday alone. UBS downgraded Nio from Buy to Neutral and cut its $32 price target the whole way to $13. Cutting your price target by more than half is never a good sign, but because it was about 25% above Nio's current price, shares closed up about 1.3% in the session. Barclays also clipped its price target from $19 to $18, noting the rising costs in the sector, but maintained its Overweight rating. One piece of news that may be spurring the Nio share price ahead is Thursday's Alibaba (BABA) earnings. As the most popular Chinese stock in the US market, Alibaba's quarterly earnings impressed the market by beating expectations for profitability and guiding for higher Q4 revenue. Other Chinese ADRs like NIO are benefitting from their national equity market standard-bearer. Nio stock market forecast Despite Wednesday's drawdown, Nio stock is 5.3% lower than a week ago, moving averages still have it looking bullish. The Moving Average Convergence Divergence (MACD) remains crossed over and driving upward, and the 9-day moving average remains 26 cents ahead of the 21-day average. Both of these instances should have traders watching for further upside price action. Resistance at $12 from November 7, as well as the 14th and 15th, will be top of mind for bulls at present. Beyond here lies another resistance point at $13 and then again at $16.54. The last one has a number of price action activities surrounding it and giving it an air of greater significance. A close above $16.54 places Nio stock in rally territory. Support sits between $9 and $9.50. NIO 1-day stock
Today's market closing will be crucial for MATIC

Today's market closing will be crucial for MATIC

FXStreet News FXStreet News 18.11.2022 14:48
Polygon prices fade slightly in European trading but still hold onto +1% daily gain. MATIC flirts with the opening price from Monday morning. It will be important to see where MATIC can close at the US closing bell before going into the weekend. Polygon (MATIC) price is on the cusp of catching up for at least some of the incurred losses for November as price action is bouncing off an interesting support level. With markets being reminded again of the tail risks still hanging over price action, MATIC could receive some underpinning from bulls. Expect to see MATIC trying to squeeze out a small gain for the week on Friday, with an important close setting up the weekend that could hold more gains. MATIC is at a key level that could bring 7% gain over the weekend Polygon price is currently flirting with the opening price from Monday morning during the ASIA PAC session at $0.888. It would be good for morale and confidence if MATIC can close above that marker and possibly above the green ascending trend line and the 55-day Simple Moving Average (SMA) that all meet around that same level. This makes the $0.888 level a crossroads that could see some more follow-through into the weekend, should bulls be able to keep supporting the price action and accomplish the mission to get that Friday close above $0.888. If this vision is carried to fruition, MATIC price would set forth a good weekend as traders would get a hall pass to rally higher toward $0.96. Although that means only a slim 7% profit, it would make sense as the Relative Strength Index (RSI) would not overheat too quickly and could be the first signal that more gains are at hand. With the holiday week in the US next week, a Thanksgiving rally could be underway with $1.18 on the horizon. MATIC/USD daily chart It is a good reminder yet again that the current tail risks are still alive and present and could flair up at any moment. Although markets were on edge on the back of that missile attack in Poland, the situation de-escalated in just 12 hours. However, it comes with an advisory that traders need to keep in mind that the war in Ukraine is far from over. The comments from both Ukraine and Russia on Thursday show that they are still miles apart from one another, and any next escalation could easily push MATIC back to $0.862 or $0.777 on the downside.
China Protests Hit Apple | BlockFi Files For Bankruptcy

Nvidia expects its earnings will beat Q3 results in the next quarter

FXStreet News FXStreet News 17.11.2022 16:02
NVDA stock gains more than 2% after hours following Q3 earnings. Nvidia missed non-GAAP EPS consensus by 17%. Management expects Q4 revenue to be higher than Q3. Nvidia (NVDA) stock gained 2.2% to $162.60 late Wednesday despite the fact that the premier chip designer in the world missed the Wall Street non-GAAP line of $0.70 a share. Adjusted earnings per share (EPS) actually came in more than 17% below consensus at $0.52. "Why the advance for Nvidia price then?" you ask. It pretty much comes down to revenues. The market was expecting a third poor quarter in a row on the revenue front, but Nvidia emerged in Q3 with $5.93 billion. This was about $115 million ahead of the Street's average forecast. Nvidia earnings news The real silver lining, if you want to call it that, is that management pushed revenue expectations for Q4 higher than the present. Nvidia sales have been in a freefall for most of 2022 as many crypto miners have gone belly-up in the face of falling crypto prices and stopped buying their usual allotment of GPUs. Management, however, guided for $6 billion in Q4 sales, adding that the range was just 2% above or below that figure. The top line of that range at $6.12 billion was still about $20 million below the earlier analyst consensus, but the market has been optimistic this week. Much of that optimism is spillover from inflation data coming in soft and the US Midterm Elections having passed, but the market seems to believe that the worst is over for the semiconductor giant. Though Nvidia's share price remains down 47% year to date, NVDA stock has charged forward more than 35% in the past month. This does seem somewhat surprising, seeing as revenue is down about 17% YoY and EPS in Q3 was down by more than half over that same time period. Management's guidance for gross margin, however, also turned heads. Despite finishing the third quarter with a 56.1% adjusted gross margin, the executive said it would hit 66% in the fourth quarter. This signals to shareholders that notwithstanding the higher inventory levels reducing demand this year, Nvidia is not even close to being a price taker. While the gaming segment continues to deteriorate, down 51% YoY, data center revenue continued to outperform. Sales from that segment rose 31% YoY despite softness in China stemming from covid lockdowns. A big reason for its fall in gross margin during the quarter was a $700+ million charge caused by this lower demand from Chinese data centers. Read next: Many sued in FTX scandal, Elon Musk to reduce his time at Twitter, EU stocks edged higher on Thursday| FXMAG.COM Executives said the inability to sell its A100 and H100 data center processors to Chinese customers due to ongoing US sanctions also hurt results, but that Chinese customers instead chose to bulk up on other products. "We’re seeing surging demand in some very important sectors of AIs and important breakthroughs in AI," said CEO Jensen Huang, while noting that demand for general-purpose computing chips had slowed. "One is called deep recommender systems, which is quite essential now to the best content or item or product to recommend to somebody who’s using a device that is like a cell phone or interacting with a computer just using voice." Nvidia stock forecast Nvidia stock is beginning to trade lower in Thursday's premarket, however, alongside the broad market. Shares are off 1.4% in line with the Nasdaq Composite, so this does not seem to be a result of Nvidia's earnings. The major event has been St. Louis Federal Reserve President James Bullard saying that a "doveish" Fed policy from this point would still require a full one percentage point hike to the fed funds rate. If the market does seek support, NVDA stock can find it at the 9-day moving average near $153. A more drastic sell-off could force it down to the 21-day average at $140. For bulls to come back into this name, Nvidia stock needs to break above the Tuesday high at $170. The Moving Average Convergence Divergence (MACD) is still in a bullish crossover stance, but it has begun to move sideways. NVDA 1-day chart
ByBit talks trading bots. What are they? How can they help?

Nayib Bukele, president of El Salvador announces country will buy one Bitcoin daily

FXStreet News FXStreet News 17.11.2022 16:02
Bitcoin price hints at 23% crash as bearish continuation pattern develops. El Salvador’s decision to accumulate BTC could sidestep this pessimistic fate. Invalidation of the bearish outlook will only occur if the big crypto flips $19,011 hurdle into support. Bitcoin price has been in a pickle since the start of 2022, be it the Terra-Luna debacle, Three Arrows Capital implosion or the latest collapse of the FTX exchange. Bullish news has been rare for the big crypto, or so we thought. Nayib Bukele, the president of El Salvador, announced earlier on Thursday that the Central American country will initiate a BTC buying program starting November 18. El Salvador helped Bitcoin reach all-time high last year El Salvador’s most relevant appearance in crypto headlines was when it accepted Bitcoin as a legal tender on September 2021. Due to the market conditions, Bitcoin price dropped 23% in the subsequent three weeks or so but rallied a whopping 70% soon thereafter and hit a new all-time high of $68,789 on November 10, 2021. If history were to repeat this time, a bullish outlook for the cryptocurrency ecosystem and Bitcoin could be around the corner. However, technicals do not seem to be as forgiving as one would expect and are forecasting a brutal sell-off. As a result, a minor bounce followed by a nosedive could be in the works for BTC. Bitcoin price and its bearish outlook Bitcoin price shows what everybody has been dreading, a bearish continuation pattern. This setup is known as a bearish pennant and contains a massive crash followed by a consolidation in the form of a symmetrical triangle. The target for this technical formation is obtained by measuring the 23% Bitcoin price crash noted between November 8 and 10 and adding it to the breakout point at $16,352. Although BTC has not breached the pennant to the downside, the target based on this measurement technique is $12,490. This target is definitely not a surprise considering our previous publications forecasting a macro bottom between $11,989 and $13,575. What may, however, catch traders off guard would be the buy-stop liquidity run above $17,200. Traders should prepare for a quick liquidity grab above the said level before any major move the downside begins. BTC/USDT 1-day chart Institutions announce their FTX losses one-by-one Adding credence to the bearish outlook is the Singapore's government-owned holding Temasek announcement on November 16 to write down its $275 million investment in FTX. Considering how big the now-defunct exchange was, more institutions are likely going to come out of the woodwork and could trigger another sell-off. Genesis’ lending division is also in trouble as it halted customer redemptions and new loan originations on November 16. This has caused widespread panic among investors, triggering a 3.5% downswing in Bitcoin price. As a safe play, investors and traders should consider withdrawing funds from centralized exchanges and look into self-custody to prevent the spread of the ongoing contagion. Regardless, the bearish outlook detailed above will only face invalidation if Bitcoin price produces a decisive flip of the highest trading volume level of 2022 at $19,011. In that case, a shift in the narrative could attract enough sidelined buyers to catalyze a bullish move to tag the $20,000 psychological level.
Digital World Acquisition Corp (DWAC) stock roars ahead on Trump 2024 presidential bid

Digital World Acquisition Corp (DWAC) stock roars ahead on Trump 2024 presidential bid

FXStreet News FXStreet News 16.11.2022 16:17
Donald Trump has announced a new presidential run for 2024.His main Republican competitor for the party primary looks like Ron DeSantis.Trump's picks for the 2022 midterm elections fared quite poorly.DWAC stock rallies again on the US presidential candidacy announcement.Digital World Acquisition Corp (DWAC) advanced 5.2% in Wednesday's premarket a day after former President Donald Trump announced his candidacy for the US presidential election in 2024 once again. Trump won the 2016 election against Hillary Clinton but lost the 2020 election against current President Joe Biden. If he wins the Republican primary in the summer of 2024, then he will once again face Biden in a rematch. This news reflects well on DWAC stock since it is still straining to gain the necessary shareholder votes to extend the timeline for merging with Trump's social media platform TRUTH Social. DWAC stock newsDigital World shares advanced to $26.69 in the premarket after Trump announced his presidential bid at his private club Mar-a-Lago in Florida. "Two years ago, we were a great nation, and soon we will be a great nation again," Trump said to applause.Florida was a perfect state in which to announce his bid as most pundits think Florida Governor Ron DeSantis is the likely frontrunner in the race. DeSantis won his governor race by a wide margin last Tuesday, November 8, while the majority of major Republican politicians in tossup races tended to lose to the Democrats. The Republican Party elite has already signaled their willingness to leave Trump and his foibles behind and instead support the new popular governor from Florida.Much of this negativity regarding Trump from his own party stems from his publically-supported candidates in the midterm elections held last week largely coming up short. Mehmet Oz and Herschel Walker failed to achieve majorities in Pennsylvania and Georgia Senate races, respectively, although the Georgia race will head to a runoff election in December. Arizona gubernatorial candidate Kari Lake also lost her bid and was a prominent advocate of Trump's 2020 election denial.Digital World still has until November 22 to meet the necessary threshold for proxy votes to extend its merger timeline to November of 2023. DWAC needs 65% of shareholders to support the merger extension, something they have failed to do on numerous occasions over the past five months. If they fail to obtain the necessary 65% of 'Yes' votes, DWAC may be forced to liquidate after December 8 and give back $10 a share to every shareholder.DWAC stock forecastAfter Tuesday's 8.8% sell-off, DWAC shares are back below the overbought region on the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicator is still showing a rally in progress as the signal line remains above the MACD line.Bulls will hope to use this momentum to overtake the resistance at $29.65 from November 7 and 8. Above there is a supply zone that should offer further resistance between $32 and $33.60. Support sits at $25 and $21.88.DWAC 1-day stock chart
XRP price bows to headwinds, FTX-triggered liquidity crisis risks prolonging crypto winter

XRP price bows to headwinds, FTX-triggered liquidity crisis risks prolonging crypto winter

FXStreet News FXStreet News 16.11.2022 16:17
XRP price is stuck between a rock and a hard place amid fears of a longer crypto winter.The crypto market faces a liquidity crisis that could extend crypto winter to the end of 2023.A buy signal from the Super Trend indicator reveals that buyers have the upper hand, and XRP price can close the gap to $0.50.XRP price could erase most of the gains accrued over the last few days due to fears of the overreaching effects of the FTX crisis. The international money transfer token tested support at $0.32 twice in less than two weeks, owing to the resistance encountered at $0.40. It appears that XRP price will consolidate between the demand area at $0.31 and the supply area at $0.41 as market participants make up their minds.How the FTX debacle could prolong crypto winterThe collapse of FTX, its sister company Alameda and about 130 affiliated businesses created a liquidity crunch that continues to reverberate in the market. Alameda Research, Sam Bankman-Fried’s trading arm, was among the top market makers in crypto. However, a shady relationship with FTX triggered a series of events that would later force both companies to cease operations last Friday – filing bankruptcy proceedings under Chapter 11.A report by Kaiko Research shows liquidity in crypto is provided by a handful of trading firms, including Amber Group, B2C2, Genesis, Cumberland and (the now defunct) Alameda. The exit of one of the biggest market makers has resulted in what experts call the “Alameda Gap.”“Liquidity typically drops during times of volatility as market makers pull bids/asks from order books to manage risk and avoid toxic flow. But the drop in liquidity we have observed over the past week is far larger than any other previous market drawdown, which suggests the Alameda Gap in liquidity could be here to stay, at least in the short term,” Kaiko Research outlined in the report.Large investors could be staying away from the crypto ecosystem. A report from Coinbase indicates that stablecoin dominance is rising after hitting a new record high of 18%. This increase shows that investors are closing their positions in crypto assets in favor of dollar-pegged stablecoins.According to analysts from Coinbase, the crypto market is still a long way from pushing the FTX crisis in the rearview and could face “second-order effects.” With investor confidence eroded, it will take time to repair the reputation, pushing the crypto winter toward the end of 2023.XRP price recovery stifled under $0.40XRP price has approached resistance at $0.40 twice in the last seven days and failed to break through. On the downside, support at $0.32 continues to hold firmly, giving bulls a chance to propel the price upstream.The 50-day Exponential Moving Average (EMA) (in blue) at $0.3840 caps movement to the upside, leaving buyers with no option but to wait for lower-priced entries. A sell signal from the Moving Average Convergence Divergence (MACD) might exacerbate the losses.XRPUSD daily chartTraders can squeeze more gains from XRP price with short positions placed slightly below the short-term support at $0.3700. A possible return of the MACD into the negative region (below the mean line) will cement the sellers’ presence in the market. Potential take-profit targets lie at $0.3400, and the primary support at $0.3200.Conversely, traders must pay attention to a buy signal recently presented by the Super Trend indicator. As long as buyers heed this call to buy more XRP, the stubborn resistance at $0.400 might not stand a chance against a tail force with a destination target at $0.5100.
Did Binance knowingly sell FTT and trigger a market crash that wiped out billions?

Did Binance knowingly sell FTT and trigger a market crash that wiped out billions?

FXStreet News FXStreet News 15.11.2022 15:42
Binance’s Vice President of government affairs in Europe, Daniel Trinder, was questioned over Biannce’s selling of FTT tokens.Trinder stated that Binance would provide evidence pertaining to the potential acquisition of FTX.Binance denied any intent of collapsing FTX consequent to its FTT dumping.Binance, along with other entities of the crypto space, were called upon to testify before UK Parliament’s Treasury Committee. This was conducted by the authorities to get a clearer understanding of Binance’s intention and involvement in the recent market crash which bankrupted FTX.Binance to provide evidenceBinance’s Vice President of government affairs in Europe, Daniel Trinder, in a statement to Bloomberg, confirmed that the crypto exchange would be providing the information demanded by the authorities. This information includes internal correspondence as well as records concerning the sudden sale of Binance’s FTT holdings.As part of the inquiry, the Treasury Committee will also be looking into the evidence provided by the exchange regarding FTX’s potential acquisition.This is crucial in understanding whether Binance had any malicious intention behind its decision to sell off its FTT holdings. Since the announcement of the sale led to the crypto market imploding, the onus would fall on Binance to prove they did not cause the crash. Days later, FTX also filed for bankruptcy as the exchange was left with just $900 million in liquid assets against liabilities worth $9 billion.Binance was also initially planning on rescuing FTX by acquiring it, but less than 24 hours after the announcement, it pulled the plug on the plan. This led to a further deterioration in FTT’s value, racking up losses for the exchange. Addressing the overall condition of the market post-Binance’s decision, the Chair of the committee, Harriett Baldwin, said,“You’ve got to admit that you were a player in that sequence of events.” Trinder replied, stating Binance’s move was born out of the intention of protecting its users first, and this was the main reason behind terminating the deal. However, Binance is still attempting to fix the condition of the market in its own way.As reported by FXStreet on November 14, Binance’s CEO ChangPeng Zhao (CZ) announced an “Industry Recovery Fund”. This fund is intended to be used to rescue fundamentally strong projects in a liquidity crisis. Supporting the same exchange, OKX also announced a $100 million support fund.Regardless, once the evidence submitted by Binance becomes public, the world would be able to find out just exactly how innocent Binance was in this entire ordeal.
USA: retail sales print may show a noticeable growth

USA: retail sales print may show a noticeable growth

FXStreet News FXStreet News 15.11.2022 15:42
Retail Sales in the US are expected to rise by 1% following a stagnant September. Risk perception is likely to continue to drive the US Dollar's (USD) valuation. Market participants will pay close attention to the Q3 earnings reports of big retailers. Retail Sales in the United States (US) are forecast to rise by 1% in October after staying unchanged at $684 billion in September. The US Dollar (USD) has been struggling to find demand following the softer-than-expected Consumer Price Index (CPI) figures for October and the Retail Sales report is unlikely to impact the USD’s valuation in a meaningful way. According to the CME Group FedWatch Tool, the probability of a smaller, 50 basis points (bps), Federal Reserve rate increase in December stands at 80%, up significantly from 50% before the October inflation report. Although some FOMC policymakers urged markets not to get ahead of themselves by pricing in a less aggressive tightening outlook, the sharp decline witnessed in the US Dollar Index showed that investors had been looking for an opportunity to unwind crowded Dollar longs. Market implications Since the US Census Bureau’s Retail Sales data is not adjusted for price changes, it will not offer an accurate picture of consumer activity. Nevertheless, an unexpected decline in Retail Sales could trigger a “bad news is good news” reaction in financial markets as it would point to a slowdown in consumer demand, which the Fed has been trying hard to achieve by hiking rates. In that scenario, risk flows could continue to dominate the markets and make it difficult for the US Dollar (USD) to hold its ground against its risk-sensitive rivals, such as the Euro (EUR) and the Pound Sterling (GBP). On the other hand, better-than-expected growth in sales could help the USD stage a recovery. However, a USD-positive market reaction should remain short-lived unless there is a noticeable negative shift in risk sentiment. It’s worth noting that several big retailers in the US are scheduled to report third-quarter earnings this week. Investors are likely to pay closer attention to these numbers rather than the Retail Sales report. At the time of press, Walmart's shares were up nearly 5% on the day after the retail giant announced that it expects sales in the US to increase by 5.5% in fiscal 2023, compared to 4.5% in the previous earning report. Lowe’s, Target and TJX Companies will release earnings figures on Wednesday. Macy’s, Kohls, Ross Stores and Gap will report on Thursday before Foot Locker and Buckle Inc. wrap up the week. To summarize, October Retail Sales report should do little to nothing to influence the market pricing of the Fed’s rate. Hence, overall risk perception should continue to drive the US Dollar’s action in the short term. In case Wall Street’s main indexes remain bullish in the second half of the week with big retailers reporting better-than-forecast earnings, the USD could have a hard time staging a rebound. US Dollar Index technical outlook US Dollar Index trades within a touching distance of 106.00. The 200-day Simple Moving Average (SMA) and the Fibonacci 50% retracement of the March-October uptrend reinforce that support. In case the index drops below that level and fails to reclaim it, it could target 105.00 (psychological level) and 104.00 (Fibonacci 61.8% retracement) next. On the upside, interim resistance seems to have formed at 107.00 (static level) ahead of 108.00 (Fibonacci 38.2% retracement). With a daily close above the latter, the index could extend its recovery toward 109.00, where the 100-day SMA is located. In the meantime, the Relative Strength Index (RSI) indicator on the daily chart stays near 30, suggesting that there could be a technical correction before the next leg lower.
SNDL stock jumps more than 7% on Q3 revenue beat

SNDL stock jumps more than 7% on Q3 revenue beat

FXStreet News FXStreet News 14.11.2022 15:58
SNDL stock has advanced forward in Monday's premarket after Q3 earnings.Company bested revenue estimates for the quarter.The company greatly improved adjusted EBITDA compared to Q2. Management extended share repurchase policy by one year.SNDL (SNDL) stock has jumped 7.3% in Monday's premarket after revenue for the third quarter came in ahead of estimates. Among what sparse analyst predictions did circulate, expectations averaged nearly $175 million. Instead, the Canadian cannabis producer and alcohol distributor formerly known as Sundial Growers offered up its highest revenue to date – $230.5 million.SNDL earnings newsThe company's net loss of $98.8 million was quite substantial, but management said $95 million was attributable to non-cash impairments and a drop in the value of warrants. Across the corporation's 236 million shares, this amounts to a per-share loss of $0.42. Adjusted by removing the non-cash charges, SNDL fielded a per share bottom line of $-0.02 – right in line with estimates."As a result of our team's focus on operational execution and sustainable profitability, we delivered record revenue and cash flow from operations in the third quarter," said Zach George, Chief Executive Officer of SNDL.Adjusted EBITDA rose to $13.7 million compared to just $2.8 million in the second quarter. It is difficult to compare these figures on a YoY basis since the Alcanna acquisition did not finalize until earlier this year.Management repurchased about 1.2 million shares at a weighted-average price of $2.64 during the quarter. Management extended the existing share repurchase program to November 2023 and said it could purchase up to 101 million shares based on the policy.SNDL had $988 million on its balance sheet at the end of Q3, $278 million of which was unrestricted. The company prided itself on having no long-term debt and not raising further equity since the summer of 2021.SNDL stock forecastThe only important thing to see here is that the daily candle for Monday has gapped up beyond the 100-day moving average in purple. Since mid-year SNDL stock has pushed above the descending trendline that formed a cap for the first part of 2022. That was a sign of things to come. Bulls will now focus on the $3.60 resistance price level that stopped them in July and August. Another resistance top was formed at $3.90 in June. These are the points where profit-taking is likely to occur.SNDL 1-day chart
Changpeng Zhao's (Binance) announcement makes the leading cryptocurrency price soar

Changpeng Zhao's (Binance) announcement makes the leading cryptocurrency price soar

FXStreet News FXStreet News 14.11.2022 15:58
Bitcoin price rallied 5% within an hour following Binance CEO Changpeng Zhao’s announcement to support crypto projects with a recovery fund. CZ wants to revive projects hit by a liquidity crisis post FTX-Alameda collapse. Analysts predict a short-term recovery in Bitcoin price with more downside from a macro outlook should the current support levels give way. Binance CEO Changpeng Zhao’s (CZ) announcement of his plan to rescue crypto projects hit by the recent liquidity crisis triggered a recovery in Bitcoin. The largest asset by market capitalization rallied 5% within an hour of CZ’s announcement. Analysts remain bullish on BTC and particularly decentralized exchange tokens and related altcoins and expect a spike in buying pressure in today’s US trading session. Bitcoin price begins recovery after Binance’s announcement Bitcoin price yielded 21% losses for holders over the past week following the collapse of FTX exchange and sister trading firm Alameda Research as investor confidence hit rock bottom. BTC crumbled under rising selling pressure from traders lining up to exit the risk asset after FTX’s bankruptcy filing. Binance CEO Changpeng Zhao announced his plan to put together an “Industry Recovery Fund,” and offer a second chance to projects hit by a liquidity crisis. In response to the news of the announcement, prices of Bitcoin, Ethereum and other altcoins in the top 30 recovered 5% within an hour. Bitcoin price rallied from its 24-hour low of $15,906 to a high of $16,580. This move fueled bullish sentiment amongst BTC holders after the recent run of negative headlines. Bitcoin price could attempt further recovery as CZ unveils a plan to rescue crypto projects. Traders are betting on Bitcoin price rally Nearly 71% of all accounts with an open position in Bitcoin on Binance Futures exchange are betting on a BTC price rally. This is an affirmation of the fresh bullish sentiment among traders as Binance paves the road for crypto recovery. Binance Futures long/short ratio After its lowest weekly close in two years, Bitcoin price is ready for a recovery. Elon Musk, CEO of Tesla tweeted that Bitcoin will make it, but it might be a long winter. Bullish affirmation from the self-proclaimed Dogefather and crypto proponent Musk and a plan for recovery from Binance CEO CZ have lent a bullish start to the week before the New York trading session opens. RektCapital, crypto analyst and trader argues Bitcoin price is currently down 75% from its all-time high. In previous bear markets, the retracement has averaged around 84.5%. Thus, by historical standards there isn’t much downside left to go, and Bitcoin price could therefore begin its steady climb in the short-term. Bitcoin price could retest $17,251 Akash Girimath, technical analyst at FXStreet evaluated the BTC/USDT perpetual futures chart and argued that Bitcoin price could witness an 8% upswing and retest the inefficiency known as the Fair Value Gap (FVG) at $17,251. BTCUSDT perpetual futures chart If Bitcoin price manages to flip the hurdle at $17,593, it would invalidate the bearish bias and extend its gains from $17,251 to $19,500.
GBPUSD holds steady near mid-1.1700s, highest since late August amid sustained USD selling

GBPUSD holds steady near mid-1.1700s, highest since late August amid sustained USD selling

FXStreet News FXStreet News 11.11.2022 13:39
GBPUSD edges higher to its highest level since late August, albeit lacks follow-through.The heavily offered tone surrounding the USD is seen as a key factor offering support.A bleak outlook for the UK economy is holding back bulls from placing aggressive bets.The GBPUSD pair attracts some buying near the 1.1650-1.1645 region on Friday and climbs to its highest level since late August during the first half of the European session. The pair is currently trading around the mid-1.1700s and is looking to build on the previous day's post-US CPI strong bullish momentum beyond the 100-day SMA.The US Dollar (USD) selling remains unabated amid firming expectations that the Fed will slow the pace of its policy tightening. In fact, the USD Index, which measures the greenback's performance against a basket of currencies, drops to a two-and-half-month low and turns out to be a key factor acting as a tailwind for the GBPUSD pair.The British Pound, on the other hand, draws some support from mostly upbeat UK economic data released earlier this Friday. The UK Office for National Statistics reported this Friday that the domestic economy contracted by 0.6% in September against -0.4% expected and the previous month's upwardly revised reading of -0.1%.Furthermore, the quarterly GDP print, the yearly growth rate, along with the Manufacturing and Industrial production, came in better than market expectations and offers additional support to the GBPUSD pair. Spot prices, however, lack follow-through buying amid a gloomy outlook for the UK economy, which is holding back bulls from placing fresh bets.It is worth recalling that the Bank of England (BoE) warned last week that a recession in the UK could last for all of 2023 and the first half of 2024. This, in turn, warrants caution before positioning for any further near-term appreciating move. Traders now look to the Preliminary Michigan US Consumer Sentiment Index for a fresh impetus.
Bitcoin price gets help from equities, but positive weekly close unlikely

Bitcoin price gets help from equities, but positive weekly close unlikely

FXStreet News FXStreet News 11.11.2022 13:39
Bitcoin price action will close the week with a loss unless the weekend brings more bullish surprises.BTC price action helps avoid a meltdown from US inflation and equities.Expect to see a recovery back to $19,036 by Sunday.Bitcoin (BTC) price action is trying to avoid a meltdown, as seen in June and May earlier this year. After Binance’s failed takeover of FTX, the whole cryptocurrency asset class went into meltdown mode. Luckily on Thursday, a lower US inflation print triggered a massive stock rally that created a tailwind for cryptocurrencies, which traders are using to pair back some incurred losses from earlier this week.BTC price will need time to recover to $20,000Bitcoin price on the weekly chart paints a less interesting picture against the daily performance from Thursday at the US closing bell. Cryptocurrencies, in general, had helped regain some control and stop the selling frenzy that was taking place after the FTX fiasco. With the Dow Jones rallying over 1000 points after a lower US inflation print, Bitcoin enjoyed a supportive tailwind that helped it regain its footing near a key technical level.BTC price action going into the weekend has a good chance to get back to $19,036. That level is key as it acted as a pivotal level for most of 2022. Where Bitcoin closes on Sunday will determine whether $21,000 is to be forecasted for next week and should be possible if stocks can continue their rally.BTC/USD weekly chartRisk to the downside will come when BTC price action slips below the red descending trend line. That would put Bitcoin price back into bear market territory and build up selling pressure again at $16,020. That level did not hold up this week. On the next firm test for the end of this week or next week, it looks quite fragile with $15,000 up next.
USA: A 50bp rate hike in December is highly expected, disappointing inflation print may lead to a dollar sell-off

According to FXStreet the December decision of Fed will be affected by the next inflation print which is released on December 13th...

FXStreet News FXStreet News 10.11.2022 16:00
US core inflation has risen by only 0.3% in October, a welcome relief. Markets are set to reprice the Fed peak rate and rally. The bank's next rate decision hinges on another CPI report. Democrats must be frustrated – US inflation has finally dropped significantly, but this report came after the elections. But we are not here to talk about the mid-terms– which had little impact on investors – but about the next moves in markets. In short: the party will likely continue. The US Core Consumer Price Index rose by only 0.3% in October, half of September's rise and below 0.5% expected. The YoY figure advanced by only 6.3% vs. the 6.6% predicted. This is a notable fall. In addition, headline CPI decelerated to 7.7%, which is good news for consumers. However, an equal slowdown in Core CPI was also seen in July. When that figure rose by 0.3%, markets rallied, but then faced two consecutive jumps of 0.6%. In short – this could still be a one-off. Higher rental prices take time to reach official statistics, and demand for other services such as flights remains robust. The unsnarling of supply chains and a cooldown in shopping of goods is behind the recent drop. The current party in stock markets and the decline in the Dollar will likely continue. The data is probably sufficient to cement a 50 bps hike in December, a step down after four consecutive 75 bps hikes. But what's next? It is essential to remember that Fed Chair Jerome Powell stressed that the peak interest rate would be higher than 1) What the bank previously expected 2) What markets expected. Beyond December, the Fed could still raise rates, hit a high peak above 5% and hold it there for a long time. The next CPI report is published on December 13, and the Fed announces its decision on December 14. A swing back to a strong inflation read – October could be a one-off like July – would change matters significantly. A 50 bps hike in December would be accompanied by forecasts for higher rates. Enjoy the party, but remember to lock at the clock.
US CPI comes below expectation at 7.7%, will this kick-start a recovery rally for cryptos?

US CPI comes below expectation at 7.7%, will this kick-start a recovery rally for cryptos?

FXStreet News FXStreet News 10.11.2022 16:00
The US Consumer Price Index decreased to 7.7% on November 10.The ongoing CPI levels are still way too high for the Federal Reserve.Bitcoin price targeting $16,457, rising from $15,900.The Consumer Price Index (CPI) has been a matter of concern for not just the US stock market but also the crypto market. Although the inflation rate has been reducing month-on-month, it is still far from what the Federal Reserve (Fed) has targeted since March 2021.This is where inflation standsThe US Bureau of Labor Statistics (BLS) released the CPI for October, with the figure noting a bare difference from September’s 8.2%. Investors were already anticipating the CPI to be at 7.9%, which could potentially lead to another 75bps hike followed by a pivot in Federal Reserve’s stance from hawkish to dovish.US Consumer Price IndexMike Feroli, the Chief US Economist at JP Morgan, in a preview to ZeroHedge, had given out certain targets for the stock market ahead of the CPI release. Feroli adds that if the inflation rate was to hover around 8.1% to 8.3%, the stock markets were expected to decline by 2-3%.Whereas if the rate stood under 8% or at 7.9%, the stock markets would remain virtually unchanged. Anything below 7.9% would be a matter of celebration, and the stock markets were expected to react positively. Now that the CPI stands at 7.7%, the markets are reacting accordingly.However, the Federal Reserve is still adamant about bringing the inflation rate down to 2% in the long run. The Fed preferred inflation measure is not the CPI but the Personal Consumption Expedintures (PCE) Price Index, but the US central bank has been targeting this since March 2021, when the rise above 2% first began. Commenting on the same, President of the Federal Reserve Bank of Richmond, Thomas Barkin, said,“The Fed can’t let inflation fester and expectations rise. If we back off for fear of a downturn, inflation comes back even stronger and requires even more restraint. That’s why the Fed is not waiting around for things to settle on their own time.”Barkin added that the Fed is willing to do whatever it takes to achieve 2%.Just this month, the Fed raised the interest rate by 75 basis points (BPS) for the fourth month consecutively, bringing the rate to 3.75% - 4.25%. The Federal Reserve is still maintaining its stance on the interest rate hike, expecting it to reach 4.5% to 4.75%. According to the Fed Chair, Jerome Powell, the interest rates will keep rising as long as inflation stays high.Bitcoin rises to $16,500Bitcoin price fell to $15,900 on November 9 following the broader market crash but could be seen hovering at $16,475 on November 10. A recovery towards $17,500 is expected from the king coin, but if the bearish sentiment takes precedence, a decline to $15,000 could be on the cards.BTCUSD 1-day chart
US October CPI Preview: US Dollar to weaken on a CPI-inspired risk rally

US October CPI Preview: US Dollar to weaken on a CPI-inspired risk rally

FXStreet News FXStreet News 09.11.2022 16:22
Annual Consumer Price Index (CPI) is forecast to decline to 8% in October.Federal Reserve hinted at the possibility of a smaller rate hike in December.US Dollar is likely to face additional selling pressure if CPI figures match expectations.Inflation in the United States, as measured by the Consumer Price Index (CPI), is expected to edge lower to 8% in October from 8.2% in September. The Core CPI, which excludes volatile food and energy prices, is forecast to retreat to 6.5% on a yearly basis from 6.6%.One of the primary indicators as well as a sizable component of rising inflation in the US is used car prices. These have witnessed a sharp increase since the mid 2021s. The latest data published by Manheim showed earlier in the month that used vehicle prices dropped by 2.2% in October, resulting in a 10.6% decline from a year ago. This development by itself could indicate inflation softened in October. House rental prices, which have a 33% weight in CPI compared to 9.2% for used and motor vehicles, however, continue to rise at a steady pace. Hence, a significant fall in inflation or core inflation seems unlikely in October.Market implications The US Dollar (USD) has been struggling to gather strength since the beginning of the week despite the upbeat October jobs report and the US Federal Reserve’s hawkish policy outlook. In the monetary policy statement published after the November meeting, the US central bank noted that policymakers will take cumulative tightening, policy lags and financial developments into account when determining the pace of rate hikes. Although this statement hinted at the possibility that the Fed may have reached its peak hawkishness, FOMC Chairman Jerome Powel reaffirmed the aggressive tightening stance. Powell said that he expected the terminal rate projection to be revised higher in December’s Summary of Economic Projections and explained that reaching the upper limit and keeping rates there was now more important than the speed of rate increases.The USD managed to outperform its rivals following the Fed event but it came under heavy selling pressure on Friday. The US Bureau of Labor Statistics announced that Nonfarm Payrolls rose by 261,000 in October. This reading surpassed analysts’ estimate of 200,000 by a wide margin but failed to provide a boost to the USD as the underlying details of the report revealed that annual wage inflation declined to 4.7% from 5%.The market reaction to the October labor market data suggests that investors are unlikely to seek refuge in the USD as long as CPI prints arrive near or below expectations. The CME Group FedWatch Tool shows that the probability of a 50 basis points FOMC rate hike in December currently stands at 54.4%, up from 51.5% on Fed day last week. With the annual core inflation reading of 6.5% or lower, an increase in the probability of a smaller rate increase in December is likely to rise. In that scenario, another bout of risk appetite could hurt the US Dollar and open the door to a rally in Wall Street.On the other hand, an unexpected rise in either the headline annual CPI or the Core CPI is likely to remind investors of the Fed’s commitment to battle inflation and hurt the risk-sensitive assets while providing a boost to the US Dollar.US Dollar Index Technical OutlookAfter breaking below the ascending trend line coming from mid-August in late October, the US Dollar Index failed to return above that level. Additionally, the Relative Strength Index (RSI) indicator on the daily chart stays below 50, pointing to a bearish bias in the short term. The index stays within a touching distance of the 100-day Simple Moving Average (SMA), which is currently located at 109.50. The Fibonacci 50% retracement of the latest uptrend reinforces that level as support as well. With a daily close below 109.50, the index could extend its slide toward 108.50 (Fibonacci 61.8% retracement) and 107.70 (September 13 low).On the upside, the index faces interim resistance at 110.70 (Fibonacci 38.2% retracement) ahead of 111.40 (20-day SMA, 50-day SMA) and 112.00 (Fibonacci 23.6% retracement, psychological level).
Luna Classic price craters as FTT tanks 70% following FTX massacre

Luna Classic price craters as FTT tanks 70% following FTX massacre

FXStreet News FXStreet News 09.11.2022 16:22
Luna Classic price action only tanks 23% on the back of news that the Binance merger with FTX is an empty shell.LUNC price action could trigger another 76% decline in the coming weeks.Expect to see very nervous and choppy price action as this turns into a Nightmare on Elm Street sequel for cryptocurrencies.Luna Classic (LUNC) price action had its own Gordon Gecko moment, or in this case Changpeng Zhao’s Binance Holding. The battered FTX exchange had hopes of being salvaged after Zhao came out with a letter of intent to take over FTX and merge it with his big crypto whale Binance. However, it turned out that the letter of intent does not hold any legal binding and thus could see Binance walk away quite easily from the deal as they see fit, should the price tag become too expensive.LUNC price action at a crossroads to reenter the bear marketLuna Classic price action was doing so well, as price action had a massive recovery in September, and although performance in October was a bit downtrending, at least price action behaved normally. That confidence investors are looking for is gone as suddenly this massive shock on a possible default by FTX has made its utility coin FTT implode by 70% overnight. This, in its turn, has made investors slam the brakes on their holdings by selling across the board in every crypto and alt-currency. LUNC price action is currently seeing selling pressure at a very dangerous point near $0.00016500, which is the intersection between the red descending trend line since September and the pivotal level from May 30. Should LUNC price action break and close below there, expect to see a reentry in bear market territory with many more losses to come. Those losses could even mount to 76% should the market cap of LUNC shrink, with $0.00004824 as the lowest level in its existence.LUNC/USD daily chartShould the level hold overnight and trigger a close above the level, expect to see more support. The Relative Strength Index (RSI) backs this idea as it is trading near or at the oversold level, which means that selling more now would hold very slim returns as there is not much more room to go lower. In that case, expect small recoveries as investors lick their wounds, with a return to the monthly S1 at $0.00020000.
The GBP/USD Pair Seems To Be Moving Upward A Rally

BoE's Pill talks further rate hikes citing considering "broader economic outlook"

FXStreet News FXStreet News 08.11.2022 16:02
GBPUSD with a bearish intraday bias, Pound to strengthen above 1.1550. DXY up for the first time after two negative days on US Election Day. Americans vote for a new Congress and governorships. The GBPUSD hit a fresh daily low at 1.4128 on Tuesday and then rose back above 1.1450. It remains in negative territory for the day, pulling back after being unable to hold above 1.1500. The key driver in cable's retreat is a stronger US dollar, even as US yields decline. US mid-term elections are taking place. Republicans are poised for a victory according to the latest polls. Americans are voting to elect one-third of the Senate, all seats of the House of Representatives, and more than 30 governors. The election results will likely have significant implications for Biden's administration agenda. With a cautious tone amid US elections, price action across financial markets remains limited. US yields are modestly lower while the DXY gains 0.12%, rising after two days of sharp declines. Regarding US economic data released Tuesday, the NFIB Business Optimism Index declined to 91.3 in October from 92.1. This week's key number will be the Consumer Price Index on Thursday, which could critically impact markets and expectations about Federal Reserve's monetary policy. Earlier today, Bank of England Chief Economist Huw Pill said the central bank needs to raise rates further to tighten monetary policy. "At some point, we need to think about broader economic outlook". Bearish intraday, above 1.1400 The GBPUSD is moving with a bearish intraday bias, but so far it has remained above an important support area between 1.1400 and 1.1420. A break lower could trigger more losses, toward the 20-Simple Moving Average in 4-hour charts at 1.1350. On the upside, a firm break above 1.1550 would strengthen the outlook for the Pound, targeting 1.1600 and probably a test of the monthly high at the 1.1650 zone.
Bitcoin price loses ground ahead of crucial US Midterm Elections and CPI inflation release

Bitcoin price loses ground ahead of crucial US Midterm Elections and CPI inflation release

FXStreet News FXStreet News 08.11.2022 16:02
Bitcoin and Ethereum prices decline, experts predict a recovery if inflation numbers come out relatively low.US Midterm Elections being watched closely by traders, experts express optimism on crypto regulation.Exchange tokens yielded massive returns while Bitcoin struggled to recover losses ahead of US Midterm Elections.The United States Midterm Election results have a big chance have the potential to move Bitcoin price, with meaningful crypto legislation set to be discussed in the coming months. Despite the recent uncertainty in cryptocurrencies, exchange tokens have yielded double-digit gains when compared to Bitcoin. If US Consumer Price Index (CPI) numbers are higher than expected, though, Bitcoin price could nosedive. Bitcoin price dipped ahead of meaningful US Midterm ElectionsBitcoin wiped out its recent gains on Monday ahead of the United States Midterm Election which are taking place on Tuesday and the crucial release of US Consumer Price Index data on Thursday at 13.30 GMT. The largest cryptocurrency by market capitalization is exchanging hands at $19,725 at the time of writing, down 5% overnight. Bitcoin price has broken below the key $20,000 level as BTC holders remain uncertain of the United States Midterm Election outcome. The Democrats and Republicans are battling on the polls for control over the two big chambers of the US Congress, the Senate and the House of Representatives. Bitcoin price could witness a profound impact as the outcome of the US Midterm Election could influence the industry globally for years. Regulators from the European Union and the International Monetary Fund and the US financial regulator, the Securities and Exchange Commission, have been calling for tougher rules on crypto trading. Bitcoin and crypto regulation is key to adoption of cryptocurrencies. The decision of the US Congress and the United States government on two key bills: Digital Commodities Consumer Protection Act (DCCPA) and stablecoin regulation are central to the crypto industry. Ben Emons, Managing Director at economic policy consultant Global Macro Strategies, believes there is plenty of momentum for cryptocurrency regulation in Congress. Bills submitted by Republicans and Democrats are still going to be actively discussed and potentially voted on. Emons argues, I think most likely is that the bills that have been floating in the House in particular are still going to be actively discussed and potentially voted on no matter what the outcome is, because there is a really strong bipartisan movement in the House, in particular on getting regulation for crypto.How could a bipartisan congress effort impact Bitcoin price?Bloomberg reported that based on a recent poll, Republicans could gain a majority in both chambers in the US Midterm Elections. Biden would still lead from the presidency for at least two more years, but the government and Congress could remain collaborative on virtual asset legislation. Bitcoin and stablecoin regulation is therefore in the cards for Q1 2023. Mike Conaway, Former House Agriculture Committee Chairman, expressed optimism that talks on crypto bills won’t be derailed, even if there is a divided government in the coming year. Conaway currently represents companies dealing in digital assets and he believes that most aspects of the cryptocurrency industry have remained reasonably bipartisan. He claims that approving crypto legislation would be an “easy triumph” for the White House, at the same time Congress would demonstrate to the public that Democrats and Republicans could still cooperate on issues. Bitcoin price could therefore rally alongside wider acceptance of BTC as a form of payment, higher demand for the asset and liberalizing policies in crypto. High US CPI release would damage Bitcoin price bullsThe US Midterm Election is not the only big event looming this week for Bitcoin price, as the US Consumer Price Index release will also be a key driver of sentiment among Bitcoin holders. Bitcoin price could remain below the $20,000 level if inflation remains high. Currently inflation is at a 40-year high and as a result the US Federal Reserve (Fed) has cranked up interest rates, which has shifted the focus of Americans to the economy. However, opinion polls show the interest in cryptocurrencies is still high. Bitcoin and cryptocurrencies have appeared on the United States electorate radar. Cryptocurrency platforms and exchanges have spent more on lobbyists ahead of the US Midterm Elections than they have in the preceding eight years. Bitcoin and crypto companies and their staff have contributed $73 million to 2022 elections, according to data from the Wall Street Journal. This number is up $13 million from the 2020 cycle. Bitcoin price suffers losses while exchange tokens outperformBitcoin price failed to recoup its losses from last week. Native tokens from exchanges like OKB, Zipmex (ZMT), BTSE token (BTSE) and Loopring (LRC) yielded upwards of 25% gains over the past week. FTT price crumbled under the rumor of FTX exchange’s insolvency and Binance exiting its position, selling $584 million worth of FTT tokens in the open market. However, other exchange tokens held steady ground, while Bitcoin price struggled to recover. Native tokens of exchanges v. Bitcoin Binance’s BNB token slightly outperformed Bitcoin, alongside OKB and CRO tokens. Binance's native token holders are concerned that BNB is getting caught in a crossfire between its CEO Changpeng “CZ” Zhao and FTX’s Sam Bankman Fried.Bitcoin price is awaiting an influx of volatility ahead of the US Midterm Election outcome and release of inflation data this week. The asset’s bullish thesis could be invalidated by rising inflation.
FXStreet Team talks possibility of a 8% decline of Ripple price... Yes, the US inflation print is coming...

FXStreet Team talks possibility of a 8% decline of Ripple price... Yes, the US inflation print is coming...

FXStreet News FXStreet News 07.11.2022 16:19
Ripple price action goes nowhere as the gains from Friday evaporate over the weekend. XRP price action sees traders looking for support as the selling action took over as of Saturday. Expect a possible decline of another 8% toward Thursday as traders fear the US inflation print. Ripple (XRP) price action sees traders being pulled off their pink cloud from last week as stocks and cryptocurrencies rallied rapidly in the aftermath of the US job numbers. Markets saw the lower-than-expected figure as an element that could point to the Fed not being forced to keep hiking at the current pace. However, considering the hawkish press conference from Powell, traders are starting to think that the Fed is preparing markets for another jump in inflation numbers, breaking the 40-year high currently in the books, which would mean that the current economic backdrop is still very much at play. XRP price set to break below support Ripple price action is currently seeing its support coming under pressure as the sell-off continues this Monday morning, giving back almost all the gains from Friday. That traders are pulling out that quickly is not good news. Seeing the element that European and US indices are on the back foot, expect this to weigh on XRP price action. More downside could be holding roughly another 8% of losses should the important supportive factor break and give way to the bears. XRP price action uses that supportive factor given by the 55-day Simple Moving Average (SMA), underpinning the price action last week on three occasions. Seeing the additional element that the 55-day SMA moved above the 200-day SMA, some bullish signs were spotted. As long as the 200-day SMA is not moving higher though, that long-awaited Golden Cross is not happening. Thus risks of sudden breakdowns in the price action will still occur on regular occasions. XRP/USD daily chart The other scenario is quite simple as binary: the 55-day SMA holds support and provides bulls a new entry level to build upon. That would mean that a bounce occurs as price action remains underpinned at $0.46 and pushes price action back to $0.48. Look for a test and break again above $0.51, as that would mean new highs are possible, while lower highs could point to a simple squeeze to the downside.
Trump SPAC partner Digital World Acquisition Corp (DWAC) soars 32% to start week

Trump SPAC partner Digital World Acquisition Corp (DWAC) soars 32% to start week

FXStreet News FXStreet News 07.11.2022 16:19
Digital World Acquisition Corp has postponed merger extension to Nov. 22.DWAC stock trades above $23 in pre-market.Donald Trump has hinted that he may announce his run for 2024 presidency after mid-terms.Digital World Acquisition Corp (DWAC) shares are spiking as much as 32% to $23.08 in Monday's premarket after news arrived over the weekend that Trump was nearing the announcement of a new run for president. The special purpose acquisition company (SPAC) endeavoring to merge with the parent company of Donald Trump's Truth Social app also advanced more than 7% on Friday after management postponed the shareholder meeting to decide on an extension of its time to complete a merger. By moving the stockholder meeting from November 3 to November 22, the company now has more time available to pick up necessary proxy votes to extend the merger timeline.DWAC stock newsThe market met the rescheduling with great fanfare on Friday, but it seems Donald Trump's possible presidential run is garnering even more excitement. On Friday, Politico reported that Trump may announce his 2024 presidential run on November 14. Shareholders expect this to drive more traffic to the Truth Social app. Talk of another Trump presidential run emerged after a Trump rally last week in which he said he would "very, very probably do it again." This would be after the congressional midterm elections on Tuesday, November 8, in which Trump has signaled support for a number of Republican candidates.DWAC needs 65% of its shareholders to vote in favor of extending the deal for another year, up until September 8, 2023, to be precise. Back in September when the initial vote was scheduled, the SPAC only had 43% of shareholders voting in favor. The problem is that a large percentage of DWAC shareholders are individual investors who do not pay attention to details like proxy votes. Getting in touch with so many individuals is tedious work."The Special Meeting, which was originally scheduled for September 6, 2022, is being further adjourned in order to solicit more votes toward the approval to further amend the Company's amended and restated certificate of incorporation ("Extension Amendment") to extend the period of time available to complete a business combination, in three-month increments, until September 8, 2023, or such earlier date as determined by the Company's Board of Directors," the SPAC said in a statement on November 3. "The Extension Amendment would effectively provide for an additional six months, past the two three-month extensions currently permitted by the Company's existing governing documents, to complete an initial business combination."DWAC stock forecastNow above $20 in the premarket, DWAC bulls will definitely be taking profits near the open or once the SPAC reaches $21.88. That price level is the high from October 13 as well as open from September 20. It is also just under the swing low from June 30. Above here is the more important $25 level that acted as resistance during the first half of September. The Relative Strength Index (RSI) is eyeing a jump above the 50 level, which is normally bullish. Additionally, the 9-day moving average has moved about 10 cents ahead of the 21-day moving average, displaying the energy for a further rally. Support is around $16.DWAC daily stock chart
NZD/USD: Reserve Bank Of New Zealand Is Expected To Hike The Rate By 50bp

Fubo stock benefits from better-than-expected Q3 results

FXStreet News FXStreet News 04.11.2022 15:05
FUBO jumped more than 4% on Q3 results. FuboTV offered up a beat on top and bottom lines. FUBO stock is down 90% over the past year. FuboTV (FUBO), the company that bills itself as the Netflix of live sports, saw its share price rise in Friday's premarket after the New York-based company reported earnings that beat consensus on the top and bottom lines. FUBO stock has risen 4.7% to $3.55. FuboTV earnings news Fubo reported Q3 adjusted earnings per share (EPS) of $-0.52, which was about 10 cents ahead of the average forecast from Wall Street. Likewise, revenue of $225 million beat consensus of $213 million. Guidance for the fourth quarter was rather conservative, however. Management said that revenue would arrive between $227.5 million and $282.5 million – an unusually wide range. The midpoint here – $250 million – was well under the prior consensus from analysts of just above $275 million. The company also said it expected to have about 1.365 million subscribers by the end of the year. The market is likely mostly enthused by the fact that while much of the pandemic's top growth stocks are seeing hefty sales growth percentages fall by the wayside, FuboTV still grew sales by just under 44% YoY in the third quarter. “Revenue and subscriber growth for our global streaming business was solid with North American subscribers reaching a record high of 1,231,000," said CEO David Gandler in a statement. "As our premium offering continues to drive an ever greater number of consumers to our platform, our differentiated product experience and broad content portfolio keep them engaged - with this quarter representing an all-time low for subscriber churn." Gandler especially focused on the 10 percentage point drop in adjusted EBITDA Margin to -41.2%. Of course, that still looks quite poor as a snapshot, but at least it is an improvement. Also, it distracts from the fact that total operating expenses grew at about the same rate as revenue and that the net loss grew by 44% YoY. Source: Q3 Shareholder Letter FuboTV stock forecast The 8-week moving average is now pushing above the 30-week average – a positive sign. This was helped by the mid-August surge to $8.14, which dissipated rather abruptly. Despite being down 90% over the past year, however, FUBO stock has actually recovered on the Relative Strength Index (RSI) and is no longer in oversold territory. The market seems to be saying that it is now fairly priced. FUBO weekly chart The daily chart below shows a number of recent lower highs, however. FUBO bulls have their work cut out for them. First, they need to conquer the October 18 high at $4.74. Then they have resistance from mid-September at $5.12. Supporters will need to focus on these two points of resistance before they can think about the longer-term high at $8.14. FUBO daily chart
The Bank Of Japan Will Likely Stick To Its Policy Stance

Judging from FXStreet's comment, today's labour market data isn't that helpful for USD

FXStreet News FXStreet News 04.11.2022 15:05
USDJPY comes under some selling pressure amid broad-based USD weakness. The mixed US jobs data does little to impress the USD bulls or lend any support. The risk-on impulse and the Fed-BoJ policy divergence should limit the downside. The USDJPY pair comes under some selling pressure during the early North American session and drops to a fresh daily low in the last hour. Spot prices, however, quickly recover a few pips from sub-147.00 levels, though remain in the negative territory amid the heavily offered tone surrounding the US Dollar. Read next: US Unemployment Rate Increased To 3.7%, UK Private Wealth Portfolios, PBoC Trying To Gain Access To Top Internet Companies Data| FXMAG.COM In fact, the USD Index retreats further from a two-week high touched the previous day in reaction to the mixed US monthly employment details, which, in turn, is seen exerting pressure on the USDJPY pair. The closely-watched NFP report showed that the US economy added 261K new jobs in October against the 200K estimated. Furthermore, the previous month's reading was also revised higher to 315K from the 263K. That said, a slight disappointment from the unemployment rate, which rose to 3.7%, overshadows the upbeat headline prints and weighs on the greenback. Furthermore, speculations that Japanese authorities might intervene again to soften any steep fall in the domestic currency contribute to offered tone surrounding the USDJPY pair. That said, the risk-on impulse - as depicted by a strong rally in the equity markets - should keep a lid on any further gains for the safe-haven JPY. Apart from this, a more hawkish stance adopted by the Federal Reserve should act as a tailwind for the greenback. This, in turn, should help limit the downside for the major and warrants some caution for aggressive bearish traders. It is worth recalling that Fed Chair Jerome Powell smashed expectations for a dovish pivot and said on Wednesday that it was premature to discuss a pause in the rate-hiking cycle. Powell added that the terminal rate will still be higher than anticipated, which remains supportive of elevated US Treasury bond yields. In contrast, the Bank of Japan, so far, has shown no inclination to hike interest rates and reiterated that it will continue to guide the 10-year bond yield at 0%. This results in a further widening of the US-Japan rate differential and favours the USDJPY bulls.
British pound to US dollar suffering bearish sentiment and BoE decision

British pound to US dollar suffering bearish sentiment and BoE decision

FXStreet News FXStreet News 03.11.2022 15:55
GBPUSD extends the downtrend for the second successive day and dives to a two-week low. The sharp intraday fall confirms a bearish breakdown through the 1.1370 confluence support. The oversold RSI (14) on hourly charts warrants some caution before placing fresh bearish bets. The GBPUSD pair extends the previous day's post-FOMC sharp downfall from the 1.1565 region and remains under heavy selling pressure for the second straight day on Thursday. The downward trajectory picks up pace after the Bank of England announced its policy decision and drags spot prices to a fresh two-week low, closer to mid-1.1100s during the early North American session. A convincing breakthrough the 1.1370 confluence support, comprising the lower end of a one-week-old descending channel and the 100-period SMA on the 4-hour chart, was seen as a key trigger for bearish traders. Some follow-through selling below the 200-period SMA and the 1.1200 round figure aggravates the bearish pressure and might have set the stage for a further depreciating move. The negative outlook is reinforced by the fact that oscillators on the daily chart have just started drifting into bearish territory. That said, RSI (14) on hourly charts is already flashing oversold conditions, making it prudent to wait for some consolidation or a modest bounce before the next leg down. Nevertheless, the GBPUSD pair seems poised to extend its recent slide from a multi-week high. The next relevant target to the downside is pegged near the 1.1100 round-figure mark before spot prices eventually drop to the 1.1060 region. The downward trajectory could further get extended to the 1.1000 psychological mark en route to the September monthly low, around the 1.0925 area. On the flip side, any meaningful recovery attempted might attract fresh sellers near the 1.1200 mark. This, in turn, should cap the GBPUSD pair near the 200-period SMA on the 4-hour chart, currently around the 1.1235-1.1240 region. A sustained strength beyond, though seems unlikely, might trigger a short-covering rally and allow bulls to aim back to reclaim the 1.1300 round figure. GBP/USD 4-hour chart
Stocks: Roku's revenue much higher than expected. In Q3 new Roku accounts grew 2.3M

Stocks: Roku's revenue much higher than expected. In Q3 new Roku accounts grew 2.3M

FXStreet News FXStreet News 03.11.2022 15:55
Roku cut Q4 revenue guidance by $94 million. ROKU stock has slid 20% on the outlook. ROKU share price is trading at January 2019 level. Roku (ROKU) stock appears ready to open on Thursday down a hefty 20%. The streaming company stock has sold off severely on the back of fourth-quarter guidance well below Wall Street's expectations. Management is now guiding for $800 million in Q4 revenue, while analysts had a consensus figure of $894 million. That latter consensus figure was already cut dramatically by about $300 million this year, so subsequent guidance below that level stunned the market. The share price of the pandemic favorite is now off 91% from its high of $490 back in July 2021. Roku earnings results For the third quarter, Roku delivered a GAAP earnings per share of $-0.88. This was much better than consensus of $-1.23 however. Revenue also outperformed earlier guidance, coming in at $761 million. That figure was about $68 million ahead of the forecast average. Revenue grew 12% YoY. Costs for the company ballooned, however. The Q3 operating loss of $147 million was much worse than the $69 million operating profit from Q3 2021. "Platform revenue was up 15% YoY to $670 million, representing 88% of total revenue," said CFO Steve Louden. "While platform revenue came in above our expectations and was a positive given the difficult macro environment, the advertising business continues to grow more slowly than our beginning of year forecast due to the current weakness in the overall TV ad market and the ad-scatter market in particular." Louden has found a successor CFO and will be leaving Roku shortly. Besides the worrisome lowered revenue guidance for Q4, management also said the fourth quarter loss could balloon to $-1.75, about 60 cents worse than earlier projections. Roku added 2.3 million new accounts during the third quarter for a total of 65.4 million. Average Revenue Per User (ARPU), however, grew by just 15 cents to $44.25. This is much slower growth than shareholders had gotten used to. During the pandemic, ARPU rose as much as $12 YoY during some quarters. Roku stock forecast The 91% drop-off in Roku's share price is one of the worst performances of any large-cap stock during 2022's tyrannical bear market. Readers will remember that Roku stock actually peaked in July 2021 several months before many of its peers, which mostly peaked in November. By November of 2021, Roku stock had already reached oversold levels on the weekly Relative Strength Index (RSI). Now with its share price in the low $40s, Roku is trading at this price level for the first time since January 2019. There is only one historical support level here, which can be seen on the weekly chart below. The $27 price level was the December 2018 low four years ago. At this point, ROKU shares have been bouncing in and out of oversold levels for a year now, while the share price has continued to sink. At the moment ROKU is not even at oversold levels, because the RSI is "relative". There are no positives here. Despite Roku selling for two times the revenue, the chart leads us to believe that Roku will not bounce back anytime soon. ROKU weekly chart
🔥 SHIBA Volatile Move Ahead: Triangle Analysis

Shiba Inu price action proves technical analysis is crucial, but it shows a sad ending

FXStreet News FXStreet News 02.11.2022 15:39
Shiba Inu price action jumped 20% in two trading days last week as whales pumped up the price. SHIB price, however, is now seen turning to the downside and sits at a crucial technical point. Expect to see a 20% move this week if this key level breaks. Shiba Inu (SHIB) price action finished off a stunning trading period last week, where it printed 20% of gains in just two trading days and shot through a very important technical moving average. Meanwhile, price action has been cooling down, and as the dust settles it becomes clear that the technical forces are again the main drivers. In fact, it appears that the whales who pumped up the price action had dumped it again as quickly as they got in before retail traders started to chase the moves. SHIB price pump, dump and fall Last week, Shiba Inu price action was in a perfect pump-and-dump scenario where whales triggered an initial move that counted for a 10% price increase. As the word spread on social media, several smaller traders tried chasing the move and entered at sometimes very irrational levels with no real logical trade management for stop losses or profit-taking levels. What erupted was a second wave that brought another 10%, which offered the whales a window of opportunity to offload with massive gains, leaving the retail traders out to dry with mounting losses. SHIB price action has already been erasing most of the second wave from last week and is currently pressing on the key level at $0.00001209, where the monthly pivot for November is still held on Tuesday. Once through there, the 55-day Simple Moving Average is the only element preventing price action from fully collapsing toward $0.00000965, below $0.00001000. Whether the monthly pivot of October will do the trick as it did in its last trading days is doubtful and remains to be seen. SHIB/USD daily chart The only olive branch that could save this jump from fully paring back comes from the Fed this evening. There have been some rumours these past few weeks that the Fed could start to slow down its rate hiking cycle and start hiking with smaller increments. This would be perceived by the markets as dovish and support equities in their rally, as well as help stronger cryptocurrencies against a weaker dollar. That would mean that SHIB price action could shoot back up toward $0.00001500 before being capped by the monthly R1 resistance level.
Netflix earnings spark a rally, Housing Market Cools, Bitcoin higher

Revenue of Paramount Global turned out to be 5% lower than expected. Actual EPS amounted to $0.39, 5 cents less than the estimated figure

FXStreet News FXStreet News 02.11.2022 15:39
Paramount Global missed Q3 consensus on top and bottom lines. PARA shares have sold off 10% after the earnings announcement. Streaming subscribers and revenue improved during the quarter. Paramount Global (PARA) collapsed 10% on Wednesday morning after unleashing a none-to-good quarterly report for the third quarter. The stock is now trading at a new all-time low of $17.25, although shares of the media company dropped below $17 in the premarket. Paramount Global earnings news Paramount missed Wall Street consensus for adjusted earnings per share (EPS) by 5 cents after the figure came in at $0.39. That number is down 48.7% compared with the same quarter in 2021. The bottom line figure was greatly affected by a $169 million charge for restructuring and other corporate needs. Revenue of $6.92 billion rose nearly 5% YoY but missed consensus by $130 million. Subscription revenue did improve, but investments in content and international expansion took that growth and then some. Advertising revenue in the company's broadcast TV division dropped 2% YoY, which management blamed on the macro picture. Total direct-to-consumer subscriptions, such as streaming, rose to 67 million customers. This segment includes Paramount+, PlutoTV and BET+. Paramount+ added 4.6 million subscribers during the third quarter, increasing revenue in the process by 95% YoY. Paramount Global stock forecast As already stated, PARA stock is at an all-time low. When this happens, there are no historical price levels to measure against, so instead we have to use the financial equivalent of alchemy – Fibonacci levels. As we have it, PARA has found early support on Wednesday at the 50% Fibo level, which in point of fact is not actually part of the Fibonacci sequence. A better estimate for the near-term bottom would be the 61.8% Fibo at $16.13. The 78.6% level at $15.05 also might be eyed by bears. Regardless, if PARA does bounce off of one of these levels, then expect a move toward the 23.6% Fibo level at $18.57. PARA daily chart
Tesla stock advances on Cybertruck production schedule, Nio rallies on October deliveries

Tesla stock advances on Cybertruck production schedule, Nio rallies on October deliveries

FXStreet News FXStreet News 01.11.2022 15:44
TSLA stock rises on late 2023 start for mass Cybertruck production.NIO stock jumps 8% on October deliveries.Market is expecting bullish Fed pivot language on Wednesday.After Monday's down day, it appears the market is back in good spirits with abundant earnings announcements coming out minute by minute. In the electric vehicle space, two separate announcements are boosting the share prices of two of the most-followed EV manufacturers. Tesla (TSLA) has announced the schedule for beginning commercial production on its Cybertruck. China's Nio (NIO) has released October delivery figures that have nearly tripled YoY but are down sequentially.Tesla stock has risen 2.4% to $233, while NIO stock has advanced 8.1% to $10.45 in Tuesday's premarket.Tesla stock newsTesla is now pinpointing the end of 2023 as the target to begin mass commercial production of its Cybertruck model, according to a story from Reuters. Keen observers will remember that since introducing the futuristic model in 2019, Elon Musk's company has already pushed the schedule back three times. Shareholders are probably hoping this new date change sticks for once. Tesla has not formally announced the total number of reservations for the vehicle, but crowdsourced trackers suggest the figure is over 1 million reservations. Tesla actually halted new reservations for the Cybertruck back in May. Musk said Tesla had "more orders of the first Cybertrucks than we could possibly fulfill for three years after the start of production."Last month executives said the company's Austin, Texas plant would begin early production in the summer of 2023, which would mean it could take until sometime in 2026 for the company to deliver existing orders. Tesla will not see full Cybertruck revenue figures until the first quarter of 2024, but the news is of course something for the market to look forward to.Nio stock newsNio delivered 10,059 vehicles in October, a 174% jump over the same month one year ago. The bad news is that this figure dropped 7.5% from September. The company has shipped 92,493 units year to date, which is up a more measured 32% YoY.Of the 10,059 models in October, 2,814 were ES7 SUVs, 3,050 were ET7s and 1,030 were ET5s. The ET7 sedan was just unveiled in October for the European market, where Nio has launched in Germany, Denmark, Sweden and the Netherlands.Competitor Li Auto (LI) delivered a similar number of models in October, but its delivery growth rate was a lesser 31% YoY. XPeng (XPEV) delivered 5,101 units in October, a 50% drop from last year. XPeng's deliveries have been dropping since June, but its new G9 model was just released at the very end of the month and might help out November deliveries.Tesla, Nio stock forecastsTSLA stock has parried recent gains in the past few day, but Tuesday seems to be a turning point higher. The Moving Average Convergence Divergence (MACD) indicator has crossed over on the daily chart, and there is little significant near-term resistance. Now above the 20-day moving average, TSLA bulls will likely make a move to the 50-day moving average, which is currently near $261. Tesla shares in the premarket are sitting right on minimal resistance from October 7 and 27, but this seems likely to be broken. The futures market is optimistic, and many observers are expecting a Fed pivot on interest rates come Wednesday.TSLA daily chartNIO has three price targets all arranged in short order to the upside. After a disastrous October, the MACD on this one appears to be turning a corner – the bullish crossover pattern that portends rallies. First, it needs to close above $11. NIO stock found resistance here on October 26. Then there is the 20-day moving average at $11.80 that needs to be conquered. After that is the $13 level that the share price danced around from October 10 to 18. Only after reconquering $13 will more bulls jump in order to move the stock up to the supply zone (resistance) between $16 and $16.54.NIO daily chart
Fed November Preview: Is it time for a dovish signal?

Fed November Preview: Is it time for a dovish signal?

FXStreet News FXStreet News 01.11.2022 15:44
US Federal Reserve is widely expected to raise its policy rate by 75 bps.Markets are undecided about the size of the Fed’s December hike.Wall Street’s reaction to the Fed event could help the dollar determine its next direction.Following its two-day policy meeting, the US Federal Reserve is expected to raise its policy rate by 75 basis points (bps) to the range of 3.75% - 4% on Wednesday, November 2. The market positioning suggests that such a decision is already priced in, opening the door for a significant reaction to the US central bank’s communication regarding future policy actions. According to the CME Group’s FedWatch Tool, the probability of a 75 bps hike this week stands at around 90%. In December, however, there is a 51% chance of the Fed opting for a smaller 50 bps rate increase.Source: CME GroupThe change of heart came after Nick Timiraos, chief economics correspondent at The Wall Street Journal, wrote earlier in the month that the FOMC policymakers were planning to debate whether and how to signal a smaller hike at the last policy meeting of the year. Additionally, macroeconomic data releases from the US following that development caused investors to adopt a cautious stance and made it difficult for the US dollar to preserve its strength. The S&P Global’s PMI survey revealed that the Composite Output Index declined to 47.3 in October’s flash estimate from 49.5, showing an ongoing contraction in the private sector’s business activity at an accelerating pace.Furthermore, investors grow increasingly concerned about a housing market collapse amid the negative impact of the Fed’s rate hikes on mortgage demand. The US Federal Housing Finance Agency reported that house prices declined by 0.7% in August and the National Association of Realtors announced that Pending Home Sales fell by 10.2% in September, bringing the annual decrease to an eye-opening 31%.Dovish scenarioIn case the Fed’s policy statement or FOMC Chairman Jerome Powell’s comments at the press conference confirms the US central bank’s intention to go for a 50 bps hike in December, that would likely be assessed as a dovish tilt in the policy outlook. It’s worth noting, however, that the Fed decided to abandon forward guidance earlier in the year and said that policy decisions will be based on incoming data and be taken on a meeting-by-meeting basis. Hence, it would be unlikely for Powell to outright name the size of the next rate move. A mention of inflation showing signs of having peaked in the policy statement or the press conference could be seen as a dovish clue. The Fed will continue to tighten its policy regardless as its goal is to bring back inflation to its 2% target but it could afford to take its foot off the gas pedal if it actually doesn’t project further buildup in price pressures. A more concerned tone regarding the economic outlook, conditions in the housing market and the possibility of a recession could also fuel expectations that the Fed has reached its peak hawkishness. Hawkish scenarioPowell will surely be asked about the next rate decision even if he doesn’t offer any clues in his prepared remarks. If the chairman clarifies that one more 75 bps hike will remain on the table for the December meeting unless they see a significant softening in inflation, that would confirm the Fed’s data-dependent approach. In such a scenario, investors would be forced to wait until the next batch of Consumer Price Index (CPI) data before deciding on the next policy action. Nevertheless, market participants are unlikely to commit to a risk rally if they have second thoughts about a potential Fed policy shift and allow the USD to stay resilient against its rivals in the near term.SummaryFOMC policymakers are walking a fine line as they try to reassure markets that they will continue to battle inflation while avoiding a deep recession. In the absence of forward guidance, it will be even trickier for the Fed to communicate its policy outlook clearly. In December, the updated Summary of Economic Projections will be a useful tool for Fed officials if they want to convey that it’s time for them to ease on tightening. Thus, it wouldn’t be a shocker if the Fed doubles down on the data-dependent approach but investors will scrutinize Powell’s remarks and overall tone, paving the way for increased dollar volatility. Wall Street’s performance in the Fed aftermath could prove to be a reliable guideline in assessing the dollar’s next direction.
Reserve Bank of Australia Preview: Lowe and co have a tough decision to make

Reserve Bank of Australia Preview: Lowe and co have a tough decision to make

FXStreet News FXStreet News 31.10.2022 16:59
The Reserve Bank of Australia will likely hike the cash rate by 25 bps.Mortgage rates in Australia are becoming a problem for households.AUD/USD is at risk of resuming its bearish trend and testing the 0.6300 area.The Reserve Bank of Australia (RBA) will announce its monetary policy decision on November 1, with board members stuck between a rock and a hard place. The Australian central bank hiked the cash rate in every single meeting since May but was the first to slow the pace of quantitative tightening, going for a modest 25 bps hike in October. The latter followed five-consecutive 50 bps hikes.Australian policymakers joined the global tightening train amid spiraling inflation in May, when the benchmark rate stood at 0.1%. The decision to downsize in October resulted from soaring mortgage costs. With rates going from 0.1% to 2.6%, roughly 30% of homeowners started struggling to pay their home loans, according to Finder’s consumer sentiment tracker. But if the RBA wants inflation to return to target, it would need a more restrictive rate.Australian inflation out of controlAccording to the Australian Bureau of Statistics, the Consumer Price Index (CPI) rose by 1.8% in the third quarter of the year, while the annualized pace of inflation hit 7.3%. The Trimmed Mean CPI, which tends to soften the average prices´ increase, rose by 6.1% YoY, the highest reading since the series commenced two decades ago.Finally, like most major central banks, the RBA Board has the mandate to control inflation. Policymakers may keep an eye on a potential recession, but controlling prices is their priority.For the time being, financial markets anticipate another 25 bps rate hike and one more of the same size in December, although a 50 bps move is still on the table, given the most recent inflation estimates.Either way, the RBA will likely disappoint markets. A surprise higher-than-anticipated hike will lift the risks of a recession, while a conservative one will hardly affect inflation.It is worth adding that the US Federal Reserve (Fed) will meet this week itself to decide on monetary policy. The United States central bank has aggressively tightened its monetary policy, and another 75 bps rate hike is already priced in for this meeting. US policymakers are also expected to pave the way for smaller hikes starting in December. The current interest rate in the US is 3.0%-3.25% and is expected to reach 4.5% by the end of the year.The RBA began later with hikes and kick-started easing the first. The conservative stance is dovish itself, and markets are not expecting a hawkish surprise from Governor Philip Lowe.AUD/USD possible scenariosThe AUD/USD pair hovers around 0.6400 ahead of the event. The pair recovered from a 2022 low of 0.6169, reaching 0.6521 before easing. It is currently meeting buyers at around the 38.2% retracement of the aforementioned rally at 0.6385. A break below the latter should favor a slide towards the 0.6300 price zone, where buyers may stand ready to defend the 61.8% retracement. The pair will resume its bearish trend on a daily close below 0.6300.An unexpected bullish surprise could help AUD to resume its bullish run. The first resistance level comes in at 0.6440, followed by the 0.6500 figure. Yet it seems unlikely AUD/USD will strengthen beyond the monthly high ahead of US first-tier events scheduled for later in the week.
Binance Coin price pumps on improving fundamentals – forecasting a bullish move to $380

Binance Coin price pumps on improving fundamentals – forecasting a bullish move to $380

FXStreet News FXStreet News 31.10.2022 16:59
Binance Coin price breaks above a key descending trend line as it rallies to $335.Binance exchange announces its 31st project, Hashflow, on the Binance Launchpool.Previously sidelined investors return to back BNB's move to $380.Binance Coin price is on the move on Monday, oblivious to the upcoming Fed's FOMC (Federal Open Market Committee) meeting on November 2. Market participants anticipate stricter measures as the Fed fights inflation. A 0.75% interest rate hike could mean pressure mounting on the crypto market as investors keep their hands-off riskier assets.Meet Hashflow on Binance LaunchpoolBinance exchange has announced the launch of its 31st project on the Binance Launchpool. Hashflow (HFT) is a DEX (decentralized exchange) that links traders with professional market watchers.According to a blog post released by the world's largest exchange by trading volume, users now have an opportunity to stake both BNB and BUSD in separate pools to farm HFT tokens for the next 30 days – starting from November 11, 2022, at 00:00 UTC.Following Hashflow's time on the Binance Launchpool, HFT will move to the innovation zone, where trading will open with three pairs, HFT/BTC, HFT/BUSD and HFT/USDT.Binance Coin price exploded in the wake of the Hashflow news to trade 7.8% higher on the day. This sudden movement in BNB price reflects a spike in investor risk appetite as they prepare to farm HFT. Demand for BNB will go up as long as Hashflow appeals to investors over the next 30 days.Looking at the Supply Distribution metric from Santiment, large volume investors, also known as whales in crypto jargon, are throwing their support behind BNB. It is this increase in demand that could be fueling BNB's rally. Holders with between 10,000 and 100,000 BNB now number 188 after gradually growing from 181 on September 21.Binance Coin Supply DistributionBinance Coin price suddenly flipped bullish even though last week's forecasts seemed highly bearish. The buyer congestion at $250 allowed bulls to regain control. With buying pressure behind BNB growing aggressively, its price had no option but to obliterate resistance at $300.Binance Coin is trading at $332 after brushing shoulders with $335. Its technical outlook remains positive, looking at the DMI (Directional Movement Index). Buyers will be at the helm of the uptrend if the divergence between its -DI and the +DI keeps expanding.BNB/USD daily chartTraders scanning for more long positions must wait for a confirmed break above the seller congestion at $340. BNB's uptrend will be secured if the 100-day SMA (simple Moving Average) (in blue) crosses above the 200-day SMA (in purple). BNB will probably hold above support at $330 while waiting for the second breakout phase to $380.
This is the biggest pain point for Bitcoin and Ethereum in the current cycle

This is the biggest pain point for Bitcoin and Ethereum in the current cycle

FXStreet News FXStreet News 28.10.2022 16:55
$1.3 billion of Bitcoin options are set to expire on October 28 with most holders finding the paper they were written on worthless.Ethereum options worth $1.1 billion are also set to expire, two days after the altcoin ushered in a new price rally. Ethereum’s historical volatility has hit a monthly high of 57.35% in light of the massive breakout in the altcoin.According to data from crypto options and futures exchange Deribit, on October 28, a larger-than-average $2.4 billion worth of Bitcoin and Ethereum options are set to expire. Over the past week, Ethereum price witnessed a massive recovery, and Bitcoin price climbed above the $20,000 level. Many option traders are likely to have been caught out by the bullish pivot, with data from options exchanges revealing a higher ratio of traders purchased bearish put contracts, betting on BTC and ETH price going down, than bet it would rise. The majority of losers will see their put options expire worthless, whilst those who bought bullish call options are set to celebrate. Large volume of Bitcoin and Ethereum options expire on October 28Data from Deribit, a crypto options exchange reveals a particularly large volume of Bitcoin and Ethereum options are set to be cashed in – or not, today.. $1.3 billion worth of Bitcoin options and $1.1 billion in Ethereum options reach their expiration date on October 28, 2022. The total Bitcoin option market cap at any given time rarely rises above $10 billion so that puts this mega-expiry into perspective. Indeed, it was only back in June 2020 that the record for a Bitcoin options expiry stood at $1 billion. Today options expiry is also significant due to the volatility in Bitcoin and Ethereum prices in the week leading up to the expiration date. Open interest by strike price on DeribitBitcoin and Ethereum maximum pain pointThe past week saw Bitcoin price breaking past the $20,000 barrier and Ethereum yielding 17.5% gains for holders. Indeed, with its rapid price movements, Ethereum’s historical volatility has hit 57.35%, a monthly high. This is great news for those who bought BTC and ETH call options but not so great for those who bought put options. The Put/Call Ratio for the day for BTC stands at 0.85 for October 28 and shows the majority were buyers of puts and thus are likely to be feeling the pain as their contracts expire worthless. For Ethereum the Put/Call ratio stands at a lower 0.68 suggesting even more traders betted wrongly that the market would fall and will be drinking their cups of woe.Colin Wu, a Chinese journalist has evaluated the data from Deribit’s charts on Bitcoin and Ethereum options and identified the $1,400 level as Ethereum’s biggest pain point, meaning if ETH remains above that level it will cause the greatest pain for bearish put holders. For Bitcoin the biggest pain point is the $19,500 level. The Put/Call ratio is considered an indicator of trader sentiment and a value greater than 0.7 which signal traders are buying more puts than calls, is usually interpreted as bearish. Therefore, at 0.85 and 0.68 trader sentiment for Bitcoin and Ethereum actually remains overall bearish. However the indicator can also be used in a contrarian fashion with volatile changes higher or lower signaling reversals on the horizon. It is in this way that it might have signaled the recent swing higher in price for the two cryptos. Further declines are unlikely but they might eventually give another contrarian bullish signal too.
Amazon (AMZN) stock drops beneath demand zone, heads for covid low

Amazon (AMZN) stock drops beneath demand zone, heads for covid low

FXStreet News FXStreet News 28.10.2022 16:55
Amazon stock plunged 20% afterhours on Thursday following poor guidance.AMZN shares are down a better 10% on Friday.Amazon shares have lost their footing at the $101 support level and now look to $81.30 or $86 for help.Amazon (AMZN) stock has dropped below the $100 level as forseen by Thursday night's reckoning. Upon handing in quarterly results that showed sales missing Wall Street consensus by $370 million, Amazon promptly sold down more than 20% late Thursday. Friday's market action, however, shows that folks are buying the dip, and AMZN shares are down a less drastic albeit still severe 10.1% at $99.70. The more significant point for traders is that Amazon stock has blown through the wide-ranging demand zone that has supported the share price all summer and had its origin in the pre-pandemic February 2020 period.Amazon stock newsThe market is less radical on Friday after a good night sleep and the realization that the Q4 guidance that was most significant to the market's lack of confidence is not the end of the world. Managment said rather than the $155 billion in sales that Wall Street had been expecting for the holiday quarter, internal company forecasts showed the $140 billion to $148 billion range much more likely. What this means to longtime observers is that last year's 24% spike in revenue between Q3 and Q4 is now expected at a much more moderate 13.4% climb. Known for its hefty Christmas season sales, this would seem to show a much reduced holiday take and possibly even a longer-term slowdown in revenue growth.Wall Street was not terribly excited about the sell-off in Amazon stock since it remains a top stock pick among most analyst shops. Goldman cut its price target from $176 to $165 but was sure to follow that up with its continued belief in the company's growth prospects. "Based on our work, we remain convinced in a multi-year operating income margin expansion story for Amazon on the back of improved eCommerce margins, less International losses & higher profit margin mix contribution from AWS and advertising," Goldman said in a note accompanying the price target reappraisal.Morgan Stanley cut its price target from $175 to $140 but retained its Outperform rating. Source: Benzinga.comSource: Benzinga.comAmazon stock forecastNow we get to the crux of the situation. Amazon has left the $101 to $109.50 range behind as it is now trading sub-$100. That demand zone lasted from May through July when AMZN shares were in the doldrums. Now it no longer has an pull it would seem. The major problem for bulls wishing to buy the dip is that the $90s do not seem to offer much in the way of historical support. There might be some support at $95, but that level only ever acted as resistance as recently as late 2019.That makes the covid low from March 2020 at $81.30 a more likely bottom. Many other stocks have already reached the covid nadir, so it would not be all that unusual. It would require a further nearly 20% drop though. Another shoe might need to drop on the macro end of things to bring Amazon stock to this point. Above the $81.30 support also sits $86, which worked well in the fall of 2019 and might also become significant as the market heads into year-end.AMZN weekly chart
China Protests Hit Apple | BlockFi Files For Bankruptcy

Earnings reports of MSFT, Meta and Google are behind us. Today, in the after-hours, it's time to meet Apple's earnings...

FXStreet News FXStreet News 27.10.2022 16:19
AAPL stock reports earnings post-market on October 27. Wall Street expects $1.27 in EPS on $88.77 billion in revenue. The week has already seen poor performances by Alphabet, Microsoft and Meta Platforms. The entire market now hinges on Apple (AAPL). This momentous earnings week has seen Alphabet (GOOGL), Microsoft (MSFT) and then Meta Platforms (META) sell-off in major fashion. The latter is down 22% today after delivering earnings late Wednesday that seemed to impress exactly no one. Still, it should be lost on precisely no one that part of Meta's lackluster recent performance is due to Apple's clampdown on privacy issues which has become a major headwind to digital advertisers like Meta. After restricting applications on iPhones from retrieving essential personal data, Apple has increased its focus on its own ad business. No one wants to say the M word out loud, but until regulators get serious, Apple has the best chance of besting this quarter's earnings call compared to its cohort. The premier consumer tech maker will unveil its fiscal fourth quarter after the market closes on Thursday, October 27. Apple stock earnings preview The general feeling is that the market cannot take another mega-cap miss this week. Early in the week pundits were declaring a bear market rally was set to continue. The S&P 500 has already added 300 points since October 13, so really the past two weeks already amount to a rally. One more miss from Apple, however, might have the effect of leading to a new marketwide low. Wall Street has not set the bar too high for Apple, which just released the iPhone 14 last month. Analyst consensus puts the EPS for the quarter at $1.27. This is ahead of the $1.20 produced in the most recent quarter and the $1.24 a share reported in the same quarter last year. Taking inflation into account then, Wall Street is expecting an earnings decrease from last year. This would seem to give Apple the upper hand with respect to reporting a beat on the bottom line, but of course, the strong US Dollar will likely have a major effect on its foreign profits. The $88.77 billion expected for revenue this quarter is well ahead of the $83.36 billion delivered one year ago, but again that is tempered by this past year's sharp inflation jump. For the full year, analysts expect $392.78 billion in revenue for fiscal 2022 and $411.63 billion for fiscal 2023. Any change to the guidance for the next fiscal year will have a major effect on the market's temperament. Of course, a beat and raise are what the market is hoping for. Because the iPhone 14 was just released and was followed shortly thereafter with rumors that Apple had cut production levels for its iPhone 14 Plus model, shareholders and analysts alike will greatly focus on whatever CEO Tim Cook says regarding the demand for its most popular product. In fact, any color regarding the iPhone 14 might decided the direction of the AAPL stock price. Apple stock forecast AAPL stock is sitting between two wide support and resistance levels. First on the topside is the $176 level reached on August 17 before a sell-off ensued. On the bottom side is the $130 level where Apple stock found support on June 16 and 17. In between are the 50-day moving average at $152.76. Apple shares have not made it above this barrier since dropping below on September 13. On the underside is the 20-day moving average at $143.60. Both of these moving averages could also become significant depending on the direction of the post-market move. AAPL daily chart
XRP Price: Addresses holding XRP cross 4.34 million, hit new milestone

XRP Price: Addresses holding XRP cross 4.34 million, hit new milestone

FXStreet News FXStreet News 27.10.2022 16:19
Investor’s confidence in Ripple has recently climbed with the spike in addresses holding XRP. Based on data from XRP validator Rich-List.Info, the total number of addresses currently sits at 4.34 million. XRP price has remained largely unchanged over the past week. XRP holders’ confidence in the altcoin surged as the number of addresses holding XRP crossed 4.34 million. Proponents noted a spike in the total number of addresses holding XRP in the last 25 days. The development comes as the payment giant sees a positive breakthrough in its case against the US Securities and Exchange Commision (SEC), over whether Ripple should be classed as a security or not. Also read: Australia to treat cryptocurrencies as assets, crypto traders disappointedXRP addresses hit a new milestoneBased on data from XRP validator Rich-List.Info, the total number of addresses holding XRP is currently 4,341,298 (4.34 million). According to the data, 29,883 new addresses were added in the last 25 days. XRP wallet address from Rich-List.InfoThe rise comes after another development in Ripple’s involvement in a legal wrangle with US financial regulator the SEC. In the latest development, the payment giant’s counsel gained access to key documents related to what is referred to as the Hinman speech. William Hinman was Director of the Division of Corporation Finance at the SEC in 2018 and gave a speech in which he said Bitcoin (BTC) and Ethereum (ETH) were not securities. Ripple has been arguing the speech reflects the opinions of the SEC as it was informed by legal experts working there. For some time they have attempted to have documents – emails, for example – written by these experts to Hinman, which they claim he used when writing his speech, included as evidence. With access to these documents now granted, the blockchain company has recorded a significant win in the lawsuit and revived XRP holders’ confidence in the asset. The fact that Ripple counsel has gained access to the Hinman speech and related documents has also fueled wider investor confidence. Interest in XRP surges amidst developments in the lawsuitPositive developments in the SEC v. Ripple case combined with the rise in the number of addresses holding XRP are two key factors driving the altcoin’s price higher. XRP has yielded nearly 5% gains over the past week. Nathan Pidcock, a crypto analyst and trader believes XRP price needs to break past the $0.4986 level to confirm a bullish trend reversal in the altcoin. XRP-USDT price chart
Nvidia's earnings beat expectations. Did you know that crypto mining account for ca. 1% of company's revenue?

Intel's Mobileye raises IPO price to $21, MBLY stock begins trading on Wednesday

FXStreet News FXStreet News 26.10.2022 16:52
MBLY will be Mobileye's new ticker. Underwriters were able to push up the initial $18-$20 range. Intel will retain voting control of the stock through Class B shares. Intel's (INTC) spin-off of its Mobileye autonomous vehicle unit is finally upon us. Shares of the Israel-based company, which will trade under the ticker MBLY, are set to trade on Wednesday, October 26, at an initial price of $21. This is higher than the $18 to $20 range that was proposed just last week. While Intel is expected to retain a majority share of the company, MBLY stock will be able to raise about $861 million after placing 41 million shares with institutions and others contacted by book runners Goldman Sachs and Morgan Stanley. The $16.7 billion valuation is well down from the estimated $50 billion that was rumored several years ago. Intel bought the previously public company in 2017 for $15.3 billion. The semiconductor powerhouse will still retain about 99% of the voting power through its Class B shares. The IPO has taken many by surprise as this is a poor climate to sell shares. All major indices have fallen asunder in 2022, and the Renaissance IPO Index is down more than 51% year to date. Interestingly, a good percentage of the funds raised will be paid back to parent company Intel for a loan. The rest will be used for corporate purposes. Mobileye will then raise an additional $100 million by selling another 4.76 million shares once the current IPO is complete. Underwriters also have 30 days to purchase an additional 6.15 million shares. Mobileye had revenue of $854 million in the first half of 2022 but registered a loss of $67 million. If sales were comparable in the second half of the year, this would mean that Mobileye was IPOing at 9.8 times revenue. Turnover is said to have grown 22% YoY for the first half of the year. It is thought that Intel is pushing forward with the IPO due to the fact that it needs funds for its $20 billion chip foundry being built outside Columbus, Ohio. CEO Pat Gelsinger has said the site may eventually require $80 billion to achieve its potential as the embattled CEO seeks to turn the legacy chip designer into a leading US chip manufacturer that can compete with the likes of Samsung and Taiwan Semiconductor (TSM). Intel stock is relatively flat at $27.44 at the time of writing.
The NonFarm Payrolls Report Had Negative Impact On The EUR/USD Pair

European Central Bank Preview: Small chance President Christine Lagarde delivers a hawkish message

FXStreet News FXStreet News 26.10.2022 16:52
The European Central Bank is expected to hike benchmark rates by 75 bps. European policymakers expected to juggle controlling inflation without slowing economic growth further. The EUR/USD pair has recovered above parity ahead of the critical event. The European Central Bank (ECB) will announce its monetary policy decision next Thursday, and President Christine Lagarde and Co are expected to finally capitulate on their cautious approach to quantitative tightening. Given that the Consumer Price Index (CPI) in the Old Continent keeps reaching record highs, the European central bank will have to grab the bull by the horns and proceed with another 75 bps. The Deposit Facility rate now stands at 0.75%, and the Main Refinancing Rate at 1.25%. President Lagarde's cautious approach to monetary policy has ended with every single ECB meeting this year read as dovish by speculative interest. Indeed, the ECB started the tightening cycle in July, when the central bank hiked its main benchmark rates by 50 bps, followed by one 75 bps hike in September. Back then, Lagarde warned it could be a one-off, initially supported by European policymakers noting that large rate hikes would not be the norm in the short term. Hot inflation and tepid growth However, and up to these days, pressures on the main sources of inflation, energy and food, have not abated. On the contrary, the energy crisis triggered by Moscow’s invasion of Ukraine has pushed the CPI to a record high of 10.9% YoY in September 2022, with food prices rising even higher amid increased fuel and plastic costs. The Western world has massively sanctioned Russia by cutting off imports from the country, with the latter interrupting gas provisions to Europe. That resulted in skyrocketing energy prices and a boost for the already high CPI. Also, the European Union banned imports of polymer products back in July, used to make plastic packaging. The ECB stated in September that it “expects to raise interest rates further because inflation remains far too high and is likely to stay above target for an extended period.” Policymakers significantly revised up their inflation projections and inflation is now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024. Meanwhile, the euro area faces a “substantial slowdown in economic growth,” as the statement reads, and the central bank downwardly revised its growth figures, with the economy seen expanding by 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024. That means that European policymakers are, like all of their overseas counterparts, trapped between a rock and a hard place. Rising inflation coupled with an economic downturn and spiced with aggressive rate hikes is a burden for households and businesses that so far, has only been worsening. The ECB has to choose whether to maintain an aggressive monetary policy, risk a steeper economic downturn, or go with a moderate stance, which could have no real impact on inflation in the near term. Furthermore, several central banks have delivered several massive rate hikes, which, so far, did not make a dent on soaring inflation. EUR/USD possible reaction The EUR/USD pair is on the loose ahead of the release amid an American Dollar sell-off. The pair trades above parity after plummeting to a multi-decade low of 0.9535 earlier in October, as opposed to the ECB, the US Federal Reserve is foreseen slowing the pace of tightening after hiking rates by another 75 bps in November. If the ECB delivers a modest 50 bps rate hike, EUR will likely fall back below the 1.0000 threshold, with a critical support level at a daily descendant trend line coming from this year's high at 1.1494, now in the 0.9940 price zone. A pullback to the area followed by a quick recovery should confirm an interim bottom in the pair and hint at more gains ahead. On the other hand, if the ECB actually pulls the trigger by 75 bps but confirms it will slow the pace of tightening from now on, the risk for EUR/USD will also skew to the downside. Finally, the central bank needs to hike by 75 bps and deliver a hawkish message to provide an additional boost to the pair that could send it beyond 1.0100/20 in the near term. September monthly high comes at 1.0197, an unlikely level to reach post-ECB. Nevertheless, an extension beyond it in the upcoming days should further confirm the end of the bearish trend.
BOC Preview: Getting ready for a dovish pivot?

BOC Preview: Getting ready for a dovish pivot?

FXStreet News FXStreet News 25.10.2022 16:47
The BOC’s rate hike announcement will be accompanied by MPR on Wednesday.The Canadian central bank is set to raise rates by 75 bps, from 3.25% to 4.00%.Economic projections and Governor Macklem’s presser hold the key for the CAD.The Bank of Canada (BOC) is on track to deliver another 75 basis points (bps) hike when it concludes its October monetary policy meeting at 14:00 GMT this Wednesday. Amidst red-hot inflation and mounting recession risks, the central bank is widely expected to raise its policy rate from 3.25% to 4.00%.In September, the central bank announced a 75 bps rate hike and took the key rates to the highest since 2008 at 3.25%. The move pushed monetary policy into restrictive territory. The BOC also hinted at more aggressive tightening despite cooling inflation and a dwindling economic recovery.Will the central bank shrug off recession fears this time as well? Is the central bank getting ready for the shift to a dovish pivot? Markets will try to seek answers from the bank’s Monetary Policy Report (MPR), which will be published parallelly at the time of the interest rate decision. Governor Tiff Macklem’s press conference at 15:00 GMT will be also closely scrutinized for the bank’s next policy move.Calls for another super-sized rate hike at the October meeting amplified last week after Canada's annual inflation rate eased but exceeded forecasts in September. Canadian Consumer Price Index (CPI) stood at 6.9%, beating estimates of 6.8% but down from 7.0% in August. Excluding food and energy, core CPI rose 5.4% from 5.3% in August.All eyes will be on the bank’s economic projections, with downward revisions to growth and inflation forecasts for this year and the next. Various economists and industry experts have already flagged growing risks of the Canadian economy tipping into recession next year amid the housing downturn.Macklem, however, reiterated that the primary goal of the bank is to restore price stability. He said in a video tagged #AskTheBoC earlier this month, "it is by raising interest rates that we're going to slow spending in the economy, give the economy time to catch up and take the steam out of inflation.”Therefore, it seems unlikely that the bank will decide to shift gears and slow down the pace of tightening, as it remains committed to raising rates until inflation is brought under control. In case it does, the crucial details could be outlined in the MPR accompanying the rate decision. USD/CAD probable scenariosIn case the BOC meets expectations and announces a 75 bps rate hike, the Canadian dollar could see a “sell the fact” trading, bumping up USD/CAD back towards 1.3850. The uptick in the pair could gather pace if the MPR rings in caution over recessionary risks and hints at a potential cooling in the bank’s tightening pace at the upcoming meetings. Markets are expecting the policy rate to peak between 4.25% and 4.50% early next year.Should the central bank say that it will stay data-dependent while delivering a 75 bps rate increase, it will be also viewed as a dovish hike. The BOC could sound cautious ahead of Friday’s monthly GDP release. Meanwhile, a clear shift to a dovish pivot is likely to smash the loonie against the US dollar.If the bank surprises markets with an unexpected 50 bps rate hike, it will reinforce the bullish outlook on the USD/CAD pair, as the Fed remains on course to go for a 75 bps rate hike next month. Although there are slim chances for the BOC to under-deliver, given its price stability mandate.A hawkish rate hike, with Macklem and Company maintaining their pledge to increase rates, in order to bring down inflation, could help CAD bulls extend their recent winning momentum. The major could target levels at around 1.3600, multi-week troughs.
Dogecoin price is ready to gain positive momentum as whales make a comeback

Dogecoin price is ready to gain positive momentum as whales make a comeback

FXStreet News FXStreet News 25.10.2022 16:47
Dogecoin price holds above a well-established support area, reinforced by the 23.6% Fibonacci retracement level.A section of Dogecoin whales are back to filling their bags in support of a northbound move to $0.0668Dogecoin price recovery may stall at $0.0683 based on insight from the IOMAP on-chain metric.Dogecoin price is searching for an escape from the ongoing consolidation between $0.0578 and $0.0610. The largest meme token trades at $0.0599, although it barely moved over the last 24 hours. However, with support still firming between $0.0560 and $0.0578, the path with the least resistance is bound to remain to the upside.Whales back a potential Dogecoin price rallyThe Dogecoin price consolidation is attracting the attention of large-volume investors, also known as whales, in the crypto industry. Looking at on-chain data from Santiment, addresses holding between 10,000 and 100,000 tokens have since late August continued to buy DOGE.From the chart below, that cohort accounts for 3.53% of the network's total supply, up from 3.45%, as recorded on August 22. A similar growth pattern was exhibited by addresses holding between 100,000 and 1,000,000 tokens, which currently account for 5.69% of DOGE's circulating supply.Dogecoin Supply DistributionAlthough the whales' impact seems to have been thwarted by dominant bear market forces, Dogecoin price will continue preparing for a bullish outcome. Retail investors will eventually return as DOGE swings out of the ongoing consolidation.Dogecoin price is on the cusp of a bullish moveDogecoin price is grinding closer to a much-awaited breakout that could elevate it to highs at $0.0668. Sellers have since October 10 tried but failed to compromise support given by the demand area between $0.0560 and $0.0578. Reinforcing this buyer congestion zone is the 23.6% Fibonacci retracement level.If short-term support holds, as highlighted by the 50-day SMA (Simple Moving Average) (in red), Dogecoin price could quickly free itself from stubbornly bearish shackles.DOGE/USD daily chartCycling above the 100-day SMA (in blue) will change the DOGE price technical outlook to favor bulls. However, buy orders will be recommended only after the meme coin obliterates the falling trend line resistance.As the uptrend starts, traders should consider booking profits along the way, with the 78.6% Fibonacci retracement level at $0.0643 and the resistance at $0.0668 flaunted as possible exit positions.Dogecoin IOMAP chartThe IOMAP on-chain model reveals a huge seller concentration area between $0.0691 and $0.0671. Approximately 88,300 addresses previously purchased 42.22 billion DOGE within the range. Dogecoin price upside momentum could weaken as it climbs the ladder. It is worth mentioning that holders will consider selling to break even, which would beef up the overhead pressure on the meme coin.
Japan: Core CPI inflation soars 3.6% exceeding market expectations. Even if this value is not odd-looking amid current international "standards", still, it's the highest in 40 years

USD/JPY Price Analysis: Intraday rally stalls near 61.8% Fibo./100-hour SMA confluence

FXStreet News FXStreet News 24.10.2022 19:03
USD/JPY rebounds swiftly from a nearly two-week low touched earlier this Monday. Resurgent USD demand and the Fed-BoJ policy divergence provide a strong boost. Bulls now await sustained strength beyond the 149.55-149.60 confluence hurdle. The USD/JPY pair attracts aggressive buying near the 145.45 region on Monday and rallied over 400 pips from a nearly two-week low touched earlier this Monday. The pair maintains its bid tone through the early North American session and is currently placed around the 149.15-149.20 region. The initial market reaction to a suspected intervention by the Bank of Japan (BoJ) fades rather quickly amid resurgent US dollar demand. Furthermore, the risk-on impulse - as depicted by a generally positive tone around the equity markets - undermines the safe-haven JPY and offers support to the USD/JPY pair. Meanwhile, retreating US Treasury bond yields keeps a lid on any further gains, though a big divergence in the policy stance adopted by the BoJ and other major central banks favours bullish traders. From a technical perspective, the strong intraday rally stalls ahead of the 149.50-149.55 confluence hurdle. The said area comprises the 100-hour SMA and 61.8% Fibonacci retracement level of the USD/JPY pair's sharp pullback from the 152.00 neighbourhood, or the highest-level August 1990 touched last Friday. This should now act as a pivotal point, which if cleared decisively should lift spot prices to the 150.00 psychological mark en route to the next relevant hurdle near the 150.55-150.60 area. On the flip side, weakness back below the 149.00 mark now seems to find decent support near the 50% Fibo. level, around the 148.70 region. Any subsequent downfall could attract fresh buyers near the 148.30-148.25 region, which should help limit the downside near the 38.2% Fibo. level, around the 148.00 mark. A convincing break below the latter will negate any near-term positive bias and make the USD/JPY pair vulnerable to slide back towards retesting the 147.00 mark, or the 23.6% Fibo. level. USD/JPY 1-hour chart
Ethereum price only has one entry point for a long position

Ethereum price only has one entry point for a long position

FXStreet News FXStreet News 24.10.2022 19:03
Ethereum price action has seen a bullish push over the weekend.ETH price action is set to jump further if it can bounce off the red descending trend line.Traders will need to keep tight trade management as one hiccup could easily see the whole rally reversed in hours.Ethereum (ETH) price action is set to jump between 7% on the low side and 28% by a more generous calculation, according to price targets established for the end of the week. As the dust settles over recent events, traders are reassessing the situation and it is becoming clear two key factors are dictating the future path of trading. The first is company earnings this week and the second, how the UK political situation unfolds. These will determine how far ETH price action could rally.ETH price action will need careful trade managementEthereum price action is set to rally substantially this week with, at first sight, a profit of 7% to 28% on the table. Over the weekend it became clear EU earnings compared negatively to US earnings, with the former talking about restructurings and job cuts, while in the US, there were only very small indications of this. This could mean that a deep recession is set to hit the EU economy and, for now, avoid the US. ETH price action will, last but not least, react to whether Rishi Sunak can calm UK politics and attendant market woes. If he can finally get a grip on the situation, expect Ethereum price action to quickly rally towards the 55-day Simple Moving Average (SMA) at $1,400.00. Once broken above, expect a strong rally towards and into the weekend, with $1,688 set to be tested and traders booking profit around the monthly R1 resistance level. ETH/USD Daily chartThis article mentions a solid trading plan and trade management are needed due to the weakness of the recovery. The risk is, one negative catalyst could easily blow traders out of the markets and cause them heavy losses on their longs. Hence the only sensible entry point for prospective longs would be on a bounce off the red descending trend line. For if it breaks down again, ETH price action is likely to trade near $1,200 again and could even start to accelerate its losses.
USD/JPY retreats after hitting fresh 32-year peak. Still well bid around mid-151.00s

USD/JPY retreats after hitting fresh 32-year peak. Still well bid around mid-151.00s

FXStreet News FXStreet News 21.10.2022 16:42
USD/JPY builds on the breakout rally beyond 150.00 and surges to a new 32-year high.The Fed-BoJ policy divergence, widening US-Japan rate differential weighs on the JPY.Hawkish Fed expectations, elevated US bond yields lift the USD and remain supportive.The USD/JPY pair adds to its strong intraday gains and continues scaling higher through the early North American session. The momentum, however, stalls ahead of the 152.00 round-figure mark and spot prices quickly retreat to mid-151.00s in the last hour.The Japanese yen has been the worst-performing G10 currency and has depreciated over 30% against the US dollar since the beginning of this year. A big divergence in the monetary policy stance adopted by the Bank of Japan and the Federal Reserve turns out to be a key factor behind the USD/JPY pair's bullish move.In fact, the BoJ remains committed to continuing with its monetary easing and so far, has shown no inclination to hike interest rates from ultra-low levels. Furthermore, the Japanese central bank announced emergency bond-buying worth $667 million to keep the yields on the Japanese Government Bonds below 0.25%.In contrast, the yield on the benchmark 10-year US Treasury note hits its highest level since the 2008 financial crisis amid expectations for a more aggressive policy tightening by the Fed. This results in the widening of the US-Japan rate differential, which, along with resurgent US dollar demand, boosts the USD/JPY pair.Apart from this, Friday's strong rally could also be attributed to some technical buying following the overnight breakout through the 150.00 psychological mark. That said, reports that the Fed could debate on whether and how to signal plans to approve a smaller increase in December prompts some USD selling and caps the USD/JPY pair.Moreover, extremely overstretched technical indicators on short-term charts warrant some caution and might hold back bullish traders from placing fresh bets. Nevertheless, the USD/JPY pair remains on track to register its 10th straight weekly advance as the focus now shifts to the BoJ monetary policy meeting on October 28.
US-Listed Chinese Stocks Have Already Fallen Sharply

Stocks: In 2016 and 2018 end of the year was quite pessimistic for Meta stock price, what about this year?

FXStreet News FXStreet News 21.10.2022 16:42
Snap lost 27% following its Q3 earnings call. Meta Platforms has followed suit, dropping 3.7%. The Trade Desk has also lost 4%. Meta Platforms (META) is down 3.7% in Friday's premarket at $126.62. Once again the collapse in the ur-social media company's share price can be blamed on Snap (SNAP). The latter's earnings call late Thursday forced it to sell off more than 27% afterhours when management refused for the second quarter in a row to provide guidance for the following quarter. This poor performance has seeped into the market's outlook on both Meta Platforms stock and The Trade Desk (TTD). The latter is a digital advertising marketplace that fell 4% in the premarket. Both companies were affected negatively last quarter as well due to poor Snap earnings news. TTD, however, quickly rebounded last quarter on its own earnings call. Snap did miss revenue projections by a slight $10 million, but overall the rest of earnings were farely decent. The company beat consensus on both earnings and active daily users. Operating income, adjusted EBITDA and free cash flow, however, suffered compared to a year earlier. Meta Platforms stock forecast META stock has had a horrible year so far, but it is now sitting on support from November and December of 2018. Bargain basement value pickers might get interested at this level, since it holds such precedence on the monthly chart below. A break here would send shares down to support at $115 from late 2016. Isn't that something? META always seems to be finding its multi-year low at the very end of the year. It happened in 2016, 2018 and....maybe 2022. Resistance remains between $160 and $180. Lastly, it is significant that this is the first time that META stock has ever touched the oversold level on the monthly Relative Strength Index (RSI) indicator. Could this be another sign of a bottom? META monthly chart The Trade Desk stock forecast The Trade Desk stock is in a much healthier place compared with META. First, the 8-week moving average is still above the 30-week. This is a rarity among tech stocks in this down cycle. Second, TTD might have alread put in a higher low last week. At least, that is what it looks like. This would be a fantastic case for shareholders since it would mean that the new support level is $50 rather than $40 from July. Last of all, the Moving Average Convergence Divergence (MACD) indicator looks to be popping above the 50 level soon, which is typically a bullish signal. A real bear market rally could push shares back up to the recent resistance zone around $74. TTD weekly chart
EUR/USD Forecast: US Dollar fights back after a near-term knee-jerk

EUR/USD Forecast: US Dollar fights back after a near-term knee-jerk

FXStreet News FXStreet News 20.10.2022 15:51
EUR/USD Current Price: 0.9801Wall Street aimed higher ahead of the opening amid solid earnings reports.The German Producer Price Index rose by 45.8% YoY in September, higher than anticipated.EUR/USD struggles to retain the 0.9800 threshold as USD buyers do not give up.The EUR/USD pair recovered above the 0.9800 threshold after spending the first half of the day at around 0.9770. Demand for the American Dollar receded overnight, despite the market mood remains sour. Global stocks remain on the back foot, struggling to leave the red, although Wall Street’s futures are on the rise as strong earning reports cooled recession concerns.Meanwhile, US government bond yields maintain upward pressure. The sensitive 2-year Treasury bond yield surged to a multi-year high of 4.61% on Thursday, now hovering around 4.57%. The 10-year note yields 4.12%, unchanged on a daily basis. The widening spread in an inverted curve reflects mounting concerns about economic developments. Recession-related fears have been the main theme after the US Gross Domestic Product printed two consecutive negative readings.EUR/USD is also benefiting from UK political noise. The British Pound is up amid Prime Minister Liz Truss's announcing her decision to leave the government after the failed attempt to bring financial stability, triggering exactly the opposite.Data-wise, the macroeconomic calendar included the German Producer Price Index, which surged in September by 45.8% YoY, higher than anticipated. Wholesale prices were up 2.3% MoM, easing from 7.9% in August. The US published Initial Jobless Claims for the week ended October 14, which declined to 214K, better than anticipated. However, the Philadelphia Fed Manufacturing Survey improved by less than anticipated in October, to -8.7 from -9.9 in September.EUR/USD short-term technical outlookThe EUR/USD pair has recovered part of the ground lost on Wednesday, but the chances of a firmer recovery are still unclear. The daily chart shows that technical indicators lack directional strength while hovering around their midlines, in line with the absence of a near-term trend. At the same time, a mildly bearish 20 SMA provides intraday support, although the longer ones maintain their downward slopes well above the current level. In between, a daily descendant trend line coming from the year high at 1.1494 provides resistance at around 0.9970.The 4-hour chart offers a neutral-to-bearish stance. The pair hovers between directionless moving averages, reflecting the absence of clear speculative interest one way or the other. Meanwhile, the Momentum indicator is flat just below its midline, while the RSI aims marginally higher within neutral levels.Support levels: 0.9790 0.9750 0.9710 Resistance levels: 0.9845 0.9890 0.9930
Technical analysis of the leading cryptocurrency, Bitcoin, by Sebastian Seliga (InstaForex) - 27/10/22

Cryptocurrency winter coming to an end in November?

FXStreet News FXStreet News 20.10.2022 15:51
Traders are euphoric and anticipate a rebound in Bitcoin, Binance Coin, XRP and Cardano, showing massive bullish sentiment. Outlook on Ethereum remains bearish despite the recent rally in top cryptocurrencies. Whales have started accumulating Bitcoin on Binance and Coinbase, indicating a rally in the asset. Read next: Tesla (TSLA) Stock Price Dropped Around 5.77% In Pre-Market Trading| FXMAG.COM Trader sentiment on Bitcoin and top altcoins like Binance Coin, XRP and Cardano has turned bullish. Crypto intelligence tracker Santiment considers that the crowd is currently euphoric on these cryptocurrencies, indicating the possibility of a November rally. Crypto crowd sentiment on altcoins turns bullish Analysts noted a persistent negative sentiment and bearishness among traders towards Bitcoin and top altcoins in the last two months. Based on data from crypto intelligence tracker Santiment, traders have turned bullish on Bitcoin, Binance coin, XRP and Cardano. The sentiment towards the largest altcoin Ethereum is just slightly bearish. Crowd sentiment on Bitcoin, XRP, Cardano and Binance Coin Though the strength of the USD has kept risk assets like cryptocurrencies under check, crowd sentiment is considered a catalyst for asset’s price rally. Bitcoin is stuck inside a tight range, awaiting an explosive breakout. The longer Bitcoin price trends within the range, the higher the eventual breakout.   Short-term uncertainty and lack of volatility has not deterred institutional investors. Based on a survey by BNY Mellon, 91% of institutional investors are keen on investing in tokenized assets over the next few years. Bitcoin accumulation signals price rally Large wallet investors are accumulating Bitcoin on centralized exchanges Binance and Coinbase. Based on data from CryptoQuant, accumulation started when BTC price hit the $20,000 level. Bitcoin spot trading volume dominance skyrocketed, hitting 84%. Typically, accumulation by whales and spot trading volume dominance are bullish signals for Bitcoin price. BTC spot trading volume dominance Bitcoin spot trading volume for all exchanges has increased twenty times over the past six months. The volume renewed a year-high in September 2022, however since then there has been no significant change in the daily closed price, indicating someone is buying all the sell-side liquidity.
ByBit talks Grayscale Bitcoin Trust. How Does GBTC work?

Bitcoin price: Could BTC be headed to $13,000 in the global liquidity crunch?

FXStreet News FXStreet News 19.10.2022 16:00
Bitcoin is considered a liquidity sponge by analysts, soaking excess monetary supply in times of crisis. The current global liquidity squeeze is having a magnified negative impact on Bitcoin price due to its illiquid supply of 77.15%. Bitcoin price could decline to the $13,000 level over the next month – before bouncing back to the $29,000 target, analysts say. Bitcoin price is heavily influenced by liquidity conditions – one of the most important factors in any market. The global liquidity crunch has impacted Bitcoin price in a major way and, as a result, analysts are presenting a bearish outlook for BTC. How the global contraction in liquidity has affected Bitcoin price Sam Rule, senior crypto market analyst at Bitcoin Magazine argues that one of the most important factors in any market is liquidity. Liquidity can be defined in many different ways, but the analyst is looking at global liquidity and its impact on Bitcoin price. One high-level view of liquidity is based on the condition of central bank balance sheets across the world. During recent crises central banks have become primary conduits of liquidity for the economy through keeping interest rates low and buying up sovereign debt, mortgage-backed securities and other financial instruments. Rule argues that this infusion of liquidity has come about, however, from the purchase of assets that are overall riskier in nature. This has led to one of the largest rises in asset valuations globally, over the last 12 years, since the great financial crisis. Central bank balance sheets in the US, China, Japan and European Union have reached $31 trillion in 2022, nearly ten times their level in 2003. While this is a growing trend for the last two decades, 2020 fiscal and monetary policies in response to the COVID-19 pandemic took balance sheets to record levels. Total assets of major central banks and Bitcoin Rule notes that Bitcoin’s new all-time high of $60,000 in March 2021, coincided with an annual peak in the rate-of-change in major central bank asset accumulation. Since then, however, central banks have reversed their previously expansive monetary policies to fight rising inflation, and now instead of pumping liquidity into the economy are drawing it out. The implication is that this policy reversal has been a major macro-driving force for BTC price’s decline over the last year, as well as volatility in all markets. Will Bitcoin price hit $13,000 or $29,000 first? NekozTek, crypto analyst and trader, notes that active Bitcoin sales by miners stopped about a month ago. The sale of Bitcoin by miners increases the selling pressure on the asset and adversely affects BTC price. Miner reserves have declined consistently since the beginning of August 2022 and October 13 marks an increase in the reserves. The analyst is bullish on Bitcoin and expects the price to appreciate over the next few months. Bitcoin miner reserve v. price usd Aditya Roy, crypto analyst and trader compared the 2018 bear market to the ongoing Bitcoin cycle and predicted that BTC could bottom in November, hitting the $13,000 level. Roy identified a support level at circa $18,000 formed by the multiple bottoms touched by price since June 2022. This level, were it to break, would likely see a volatile move south. According to the technical analyst the number of touches a level is subjected to increases the volatility of the final break when it comes, suggesting the risk of an explosive move south if the support zone at at $18,000 cracks. BTC-USD price chart
Tesla Does Not Say Much Directly About The Demand Situation, Ally Financial Sees A Slowdown In Car Loans

Tesla Earnings Preview: TSLA stock on edge ahead of Q3 release post-market

FXStreet News FXStreet News 19.10.2022 16:00
TSLA stock closes slightly higher on Tuesday. Tesla is due to release earnings after the market closes on Wednesday. Delivery numbers already disappointed earlier in the month. All eyes will turn to Tesla (TSLA) on Wednesday as the FANGT sector looks to reestablish its leadership role in the overall health of the stock market. So far, fallen angel Netflix (NFLX) has kept up its side of the bargain with strong subscriber numbers seeing the stock rocket by up to 14% in Tuesday's afterhours session. Some worrying rumors have been circulating about Apple (AAPL) cutting iPhone production numbers, so we will have to bide our time there. Tesla has already perhaps gotten some bad news out of the way when it fell sharply following the release of delivery numbers earlier this month. Tesla stock news Deliveries for Q3 fell short of what analysts had been expecting – 343,830 versus 358,000 expected. Tesla also produced 365,923, so the reduced delivery numbers raised some concerns among investors. Tesla's stock price immediately fell just under 9% the next trading session and has been under constant selling pressure since. For Q3 earnings, the expectation is for EPS to hit $1.01 and revenue to come in at $22 billion. Elon Musk has apparently confirmed on Twitter he will attend the conference call. Investors will be looking for a range of clues for future performance. FX headwinds are a thorn for all US-based globalized companies, and if not hedged FX headwinds are posing significant challenges. Updates about the demand profile in China are also crucial as this is an increasingly important market for Tesla. Given the already sharp sell-off following delivery news, it would appear to slant the risk-reward slightly to the upside in my view. Elon Musk is always upbeat and is likely to remain so. Whether this is enough to fend off some of the doubters remains to be seen. Wall Street remains of a similar view despite some concern over these delivery numbers. Morgan Stanley had said that Tesla was looking at demand destruction, but Citi and Wedbush remain positive on the prospects post-earnings. Tesla stock forecast The key support at $207 has again been held, and that level becomes key. If Tesla breaks lower, then it will likely test the lower end of the trend support and 200-week moving average at $160. Already we see both the Relative Strength Index (RSI) and Stochastic showing a modest oversold signal. Holding $207 can see Tesla test $254 reasonably quickly as trend-following and some short covering pushes the move higher. Tesla (TSLA) stock daily
Where inflation stands and what to expect, overview of 8 major currencies

Where inflation stands and what to expect, overview of 8 major currencies

FXStreet News FXStreet News 18.10.2022 15:27
Five out of eight major currencies face inflation reports this week.With accelerating costs and rising rates, every publication makes a difference to currencies.Here is the state of inflation and currencies in a busy week.Move away Nonfarm Payrolls – jobs and growth figures have taken the back seat in comparison to inflation data, in the US and all over the world. The re-emergence of price increases and interest rate rises to battle them – a paradigm shift – have put the Consumer Price Index releases on the top of the agenda for forex traders. Here is an overview of how inflation stands in the main economies. US – highest core inflation since Eye of the TigerCPI: 8.1%, Interest rate 3-3.25%, next release November 10The world's largest economy reported headline inflation of 8.1% YoY in September and more importantly, core inflation of 6.6% YoY. That is the highest in 40 years and more than triple the Federal Reserve's 2% target.It also shows the Federal Reserve's efforts to curb inflation haven't succeeded yet. Following the October 13 CPI release, markets cemented a fourth consecutive 75 bps rate hike from the Fed, coming in November. The chances of another 75 bps move in December have also risen. Japan is specialCPI 3%, interest rate -0.10%, next release October 21Japan has been the outlier in the developed world – clinging onto negative interest rates while the entire world is hiking. That is why the yen is so weak, and interventions have failed to buoy the currency. The only way for the yen to rise is for inflation – perhaps coming from imported goods – to boost it. That would allow the Bank of Japan to climb down the tree of ultra-loose monetary policy. With core inflation hardly at 2% and headline inflation at the lower end of its peers, a significant increase is needed. Eurozone at double digits, from Russia with loveCPI 10%, interest rate 1.25%, next preliminary release October 31Pointing the figure at Putin, Vladimir Vladimirovich, is probably the right thing to do. While employment is high and wages are rising, Europe's core inflation is only at 4.8%, while headline CPI is at 10%. The final read on October 19 will likely confirm it. High energy costs are the main culprit for rising prices, and they are set to cause economic pain.That means a limit on how much the ECB could raise rates. It is expected to hike them by 75 bps on October 27, but will probably slow down afterward. Hawks at the Frankfurt-based institution will look for any uptick to justify bigger moves in December, raising the ceiling for the final rate.UK suffers from the worst of all worldsCPI 9.9%, interest rate 2.25%, next releases October 19Britain suffers from high energy prices like Europe – exacerbated by low gas storage capacity. That has sent headline inflation to 9.9% in August, but the report for September is projected to push it back to 10%. Core inflation is also an issue, at 6.3%. High prices are set to trigger a big rate hike from the Bank of England, probably 75 bps on November 3. However, it could be higher if the government fails to get its act together and cut costs. Britain's volatile political environment and market sensitivity to debt, as if it were an emerging market do not imply that inflation reports have no impact on the pound. On the contrary – amid the chaos, the BOE could cling to inflation as the sole driver of policy, moving away from the political mess.Switzerland is itchy on (low) inflationCPI 3.3%, interest rate 0.50%, next release November 4Switzerland is relatively immune to rising energy costs that have engulfed the old continent, and high wages in the rich nation mean they have limited room to rise. Moreover, the mountainous nation struggled to prevent deflation, so inflation hardly caught up.Nevertheless, the Swiss National Bank acted to bring interest rates out of the abyss of negative levels and seems keen to continue doing so – even if inflation moderates, as seen in the last report, when monthly inflation slipped by 0.2%. Further rate hikes are likely and the franc remains sensitive to the next CPI print. Canada lags behind the US, prices of homes hurtCPI 7%, interest rate 3.25%, next release October 19It took more than a decade, but predictions of a Canadian housing bubble to burst have finally come true. The negative prints on home prices somewhat overshadow the 7% annual inflation rate and 5.6% on Core CPI, both over 1% below the US.Nevertheless, any increase in prices – stemming from US imported goods or other costs – will likely trigger rate hikes from the Bank of Canada and shocks to the Canadian dollar. The BoC lifted borrowing costs by 100 bps in July, shocking the word, and is on the path of slowing down. The pace of this deceleration depends on inflation. Australia leads, this time down underCPI 6.1%, interest rate 2.60%, next release October 26Scenes from Sydney's New Year celebrations are broadcast to the rest of the world, which is still counting down. Australia also seems to lead in exiting the tightening cycle. It surprised with a mere 25 bps hike last month – but that should not have been a surprise. The Reserve Bank of Australia had already signaled it would be slowing down, and for good reasons. Inflation is only at 6.1%, lower than in the US, Europe and the UK. As Australia publishes CPI figures only once per quarter, the data coming out on October 26 is critical. It could show a renewed increase in prices, changing the RBA's mind. Australia's inflation figures could provide substantial volatility.New Zealand fired upCPI 7.2%, interest rate 3.50%, next release, January 25Across the Tasman Sea, New Zealand is facing faster inflation – data released on October 18 showed that price rises are accelerating more than anticipated. Yet similar to Australia, it publishes inflation data only once per quarter. That means this latest CPI report will likely continue supporting the kiwi for some time.The RBNZ had already contemplated bigger rate hikes before the last move, and prospects of surpassing 4% have substantially risen after the data. The kiwi is likely to continue outperforming its peers. Final thoughtsInflation has been growing in importance for markets in 2022, and will likely remain prominent until the end of the first quarter of 2023 or beyond. Any change in CPI is set to have a substantial impact on currency valuations.
Goldman Sachs stock (GS) jumps more than 3% on major earnings win

Goldman Sachs stock (GS) jumps more than 3% on major earnings win

FXStreet News FXStreet News 18.10.2022 15:27
Goldman Sachs beat EPS consensus by 10%.GS stock has rallied 3.2% in the premarket on Tuesday.Goldman has decided to restructure its business.The Goldman Sachs Group (GS) released third-quarter earnings before the opening bell on Tuesday which could spur another equity rally. The storied investment bank earnings $8.25 per share (GAAP) compared to the consensus of $7.51 – a nearly 10% beat.GS stock advanced on the news, adding 3.2% in Tuesday's premarket to $316.55.Goldman Sachs earnings newsGoldman's EPS was better than the $7.73 earned in Q2 but well below the $14.93 earned one year ago during 2021's excessive bull market. Revenue of $11.98 billion also bested the consensus of $11.5 billion.The bank has restructured itself into three divisions: Asset & Wealth Management; Global Banking & Markets; and Platform Solutions. The last unit involves Goldman's digital services for its client base. Its neo-bank Marcus has been placed under the Asset & Wealth Management unit.Investment banking revenue of $1.58 billion dropped 57% YoY. Global Markets' net revenue grew 11% YoY, with its Equities division revenue falling 14% from a year ago. Consumer & Wealth Management revenue of $2.38 billion rose 18% YOY, but the Wealth Management segment revenue was flat. The Consumer Banking division also saw revenue decline 12% from a year ago.Goldman Sachs stock forecastBased on the descending topline trendline that began nearly a year ago, any rally would push Goldman Sachs stock back up to resistance at the $340 range. The 8-week moving average recently crossed below the 30-week average, but these Q3 results may be able to reverse that detail. The Moving Average Convergence Divergence (MACD) is also moving in the wrong direction, but that could change on a dime. It all depends on market action this week.There has been some respect paid to the $320 price level in recent months. A GS stock close above there should trigger the energy necessary for a run at $340. Based on the support lines from this year, serious support comes in at both $290 and $280.Goldman Sachs stock weekly chart
Ethereum price action could jump in a calm week

Ethereum price action could jump in a calm week

FXStreet News FXStreet News 17.10.2022 16:02
Ethereum price action set to rally 10% as markets calm down.ETH price uses a window of opportunity and low volatility to squeeze some gains.Expect to see $1,400 breached later this week.Ethereum (ETH) price action has seen a strong recovery that started on Sunday after the dust settled following the events of last week. Additionally, a lack of big catalysing events on the data front this week suggests a window of calmness may open up for markets. During this time ETH price action will probably try to eke out some gains as markets turn their focus instead to quarterly earnings from Netflix, Goldman Sachs and Snap later this week.ETH price has a rare opening to rally in this bear marketEthereum price action is up nearly 1% on the day this Monday as traders venture small-sized positions in risk assets. No real central bank speakers are featured on the docket, a very light economic data calendar and a few interesting quarterly updates from a few big equity names might be setting the scene for a positive week. The biggest issue will be on Tuesday when Netflix, one of the FAANG stocks to watch, releases its earnings, providing what might be the one speed bump this week.ETH price looks poised to jump above $1,342, which was the high of last week. Once that level is cleared, not much lies in the way in the form of resistance except the $1,400 psychological level, a key level to be reclaimed by the bulls in order to continue the recovery rally. If bulls can get a daily close above that bar and refrain from fading back below it the next day, the 55-day Simple Moving Average (SMA) and the monthly pivot are up for grabs at $1,444 by the end of the week.ETH/USD Daily chartIn terms of risks to the downside, these are mainly comprised of comments from president Xi during the party congress in China this week. In an opening statement, Xi mentioned that Taiwan will be reunited with China and that he will make it one of his top priorities during his next presidential mandate. This means that war is coming, and war in Taiwain would be ten times worse than what we have experienced thus far in Ukraine. Should signs emerge of a military excursion into the area, expect to see sharp moves lower, with ETH set to drop below $1,100 in a nosedive move towards $900.
Netflix Stock Price May Tumble Tomorrow! What Can We Expect From NFLX Earnings?

Netflix Stock Price May Tumble Tomorrow! What Can We Expect From NFLX Earnings?

FXStreet News FXStreet News 17.10.2022 16:02
Follow us on Google News Netflix is due to launch its advertising tier shortly for $6.99 per month. Netflix reports earnings on Tuesday after the close. NFLX stock is down over 60% year to date. Everyone loves a bargain, and Netflix (NFLX) is certainly offering a discount to investors. A reduction to the tune of 60% would usually be snapped up by shoppers, but in the case of NFLX stock, the large discount is still failing to attract much buying interest. Will the imminent release of earnings and the launch of its advertising tier change the investment thesis in the minds of investors? With the market backdrop remaining challenging, that may prove difficult, but there may be a short-term bounce to end the year as we approach earnings season to be followed by midterm elections. Stocks tend to like midterms and historically perform well following them. Netflix stock news Netflix will report earnings on Thursday after the close. Consensus earnings per share (EPS) forecasts are at $2.17, while revenue is expected to reach $7.85 billion. Earnings releases have not been kind to NFLX stock of late. Last time out was good with the stock bouncing higher, but in April Netflix stock collapsed 35% following earnings. As long-time critics of just how optimistic Wall Street analysts are, we note a report from Seeking Alpha. Netflix has been downgraded 29 times for EPS and 36 times for revenue, but those optimistic analysts still have a buy rating on the stock. Investors will also look for more info on the new advertising tier during the earnings conference call. We now know that the tier will cost $6.99, and guidance for subscriber growth from this new tier will be key. Netflix is expected to show subscriber growth of 1 million for the period. The streaming giant has certainly rerated as investors are no longer willing to pay such a premium when the explosive growth phase is over. This stock has seen its P/E collapse in line with price this year. Netflix (NFLX) P/E ratio Netflix stock forecast Netflix has been trying to bottom and has traded in a sideways range since August, so earnings could provide the catalysts for a breakout. As mentioned I believe the risk-reward lies in an upside surprise. Netflix has suffered this year already, and a lot of bad news can be assumed to already be in the price. Technically, a break higher would target $333, the earnings gap from April. There is a natural volume gap as a result. Breaking $214 will lead Netflix toward $165.90 and likely see a move to make a fresh yearly low. Netflix daily chart
Cryptocurrency Market: Hedge Funds Buy Cosmos, Ethereum May Reach $1400

Cryptocurrency Market: Hedge Funds Buy Cosmos, Ethereum May Reach $1400

FXStreet News FXStreet News 14.10.2022 15:56
Ethan Buchman cofounder of Inter-Blockchain Communication (IBC) announced the discovery of a major security flaw affecting all IBC-enabled chains on Cosmos. Crypto hedge funds have increased their purchase of Cosmos in recent weeks as it offers better yield than Ethereum. Analysts believe Ethereum price is ready for another leg up, eye $1,400 target before explosive breakout. Cosmos chains are facing a crisis due to a major security vulnerability in Inter-Blockchain Communication (IBC). The smooth execution of Ethereum’s Merge has brought the two competing blockchains closer in their consensus mechanism and future roadmap. Analysts debate over the bullish potential of Ethereum and Cosmos. Ethereum v. Cosmos: Which blockchain is endgame? Ethan Buchman, co-founder of IBC ecosystem announced a “major security flaw” that impacts all IBC-enabled Cosmos chains, for all versions of the IBC. Inter Blockchain Communication, or IBC, is a trust-minimized data transport layer for communicating between chains. There is an interchain app-layer built on top of IBC. The security flaw in question was first noticed after the $100 million cross-chain bridge hack on Binance chain. core developers of Cosmos and Osmosis, two decentralized exchanges, increased their security audits in response to the hack. Buchman assured users that all significant public IBC-enabled chains have been fixed. The remaining chains need to patch to two-thirds, once an official patch is released. Cosmos and Ethereum have both split from the common blockchain ancestor, Bitcoin. Both have iterated their own respective roadmaps and their endgames have begun to converge on multiple zones. Over 50 chains in the Cosmos ecosystem are connected by IBC and smart contracting has found multiple use cases, similar to Ethereum. Simultaneously, Ethereum’s transition to proof-of-stake is similar to Cosmos’ Tendermint. Tendermint is a blockchain protocol used to replicate and launch blockchain applications across machines in a secure and consistent manner. Cosmos, Binance Smart Chain and Tezos are a few projects that use Tendermint. As Ethereum and Cosmos approach their endgame, the two blockchains are converging in several zones. The line between appchains and rollups is becoming increasingly thin as the two have similar outcomes, and the two blockchains have adopted different approaches to attain sovereign interoperability. Why hedge funds are leaning towards Cosmos over Ethereum? Modular Asset Management’s crypto hedge fund has been purchasing Polkadot and Cosmos in increasing volume, over Ethereum. According to the fund, Polkadot and Cosmos have stronger suitability characteristics and potential to outperform after the $2 trillion shakeout that hit the crypto ecosystem recently. Daniel Liebau, Chief Investment Officer of Modular Asset Management told users in an interview that the fund has increased its purchase of Cosmos through the recent dip in the token’s price. Ethereum price has the potential for explosive rally Experts at financial comparison site Finder evaluated the Ethereum price trend and predicted a massive rally in the altcoin. They argue Ethereum price could pick up bullish momentum in 2023 and 2024 and climb from current levels to previous all-time high of $4,000. Finder’s analysts have set a target of $11,700 for 2030 and a steep climb in the altcoin’s price in the period between 2025 to 2030. Ethereum Price Prediction by Finder experts
Lucid Group Stock News and Forecast: LCID falls as stocks soar

Lucid Group Stock News and Forecast: LCID falls as stocks soar

FXStreet News FXStreet News 14.10.2022 15:56
Lucid Group stock falls on Thursday after a hot CPI report.Other stocks all stage a massive u-turn, but Lucid stays behind.LCID stock is down 68% YTD, 20% in past month.Lucid (LCID) stock failed to take part in turnaround Thursday as the stock closed at $13.01 for a small loss of 0.6%. This was in sharp contrast to the huge reversal in the stock market after another hot CPI report. Indices were down 3% just after the 40-year high in core CPI. However, a swift rebuke took place as sentiment and positioning were already max bearish. This led to a huge covering and a squeeze. In the end, the main indices closed up betweeen 2 and 3%, but Lucid remained mired in negative territory.Lucid stock newsOn Tuesday we got some comfort from the latest delivery numbers from Lucid. The group looks on track to meet its reduced yearly delivery target. Lucid delivered 1,398 vehicles on the production of 2,282 vehicles during the third quarter from its Arizona plant. The company has a reduced target of 6,000-7,000 vehicle deliveries, which it cut from 12,000 to 14,000. After the delivery number, Morgan Stanley was reasonably positive on the story, citing increased capital needs but also highlighting the continued supportive stake by the Saudi Investment Fund. However, the stock price has continued to languish and touched a yearly low on Tuesday of $12.20. Lucid stock forecastLucid stands to gain if we get a risk-on bear market rally, which was not looking likely on Thursday before the open. However, that probability increased as the day wore on. Lucid is one of the more beaten-down stocks, having fallen as mentioned above by 68% this year so far. We have detailed an 8-hour chart below to eliminate some of the noise from the massive spikes in 2021. What we are left with is still a clear downtrend. Resistance now is from the previous lows at $13.25 to $13.58. Trendline line support is $11.45, and below that $10 is where the stock languished for some time before exploding in early 2021. LCID stock 8-hour chart
US Retail Sales Preview: Positive surprises eyed for dollar bulls to regain poise

US Retail Sales Preview: Positive surprises eyed for dollar bulls to regain poise

FXStreet News FXStreet News 13.10.2022 16:49
The Retail Sales Control Group is foreseen at 0.3% in September after the previous miss.Core Retail Sales are set to drop by 0.1%, as high inflation digs a hole in consumers’ pockets.Only upside surprises in the headline and Core figures could revive the US dollar uptrend.Amidst the continued drop in gasoline prices, easing inflation expectations and improvement in American consumers’ confidence, yet another rise in US Retail Sales may not come as a surprise for the month of September. The more precise gauge, the Control Group is expected to show an increase, which could have a significant impact on the US dollar trades. The US Census Bureau will publish the data on October 14 at 12:30 GMT.The US consumer spending, as represented by Retail Sales, is expected to rise by 0.2% MoM in September after recording an unexpected increase of 0.3% in August. The July Retail Volume was revised lower to a 0.4% decline.Meanwhile, the Retail Sales Control Group (ex-food services, autos, gas, building materials) for September is seen higher at 0.3% versus August’s 0%. The core Retail Sales (ex-Autos) are likely to decline by 0.1% MoM in the reported month vs. -0.3% reported previously. Note that the figures aren’t adjusted for inflation.In August, American shoppers showed resilience despite a four-decade high inflation rate, as a majority of retail categories grew last month, as cheaper fuel prices allowed Americans to spend on food, motor vehicles and other discretionary purchases such as building materials and garden equipment.Trading the US dollar with Retail SalesA below-forecast reading for the Control Group cannot be ruled out after the previous miss. The headline print, however, could grab more attention again if it surprises the upside this time as well. For the US dollar to regain the upside traction, the Core figures also need to show an unexpected increase. The data is unadjusted for inflation and, therefore, only the above estimates readings would represent real growth in sales.If the Core Retail Sales print below estimates or even matches the forecasts, it could imply that consumers are feeling the pinch of widespread inflation notwithstanding some relief from falling prices at the gas station. It could weigh on the dollar temporarily, as expectations of steeper Fed rate hikes to tame inflation will overpower and keep the dollar bulls afloat. It’s worth noting that the US dollar’s reaction to the Retail Sales release could be influenced by the persisting risk trend and Fed rate hike expectations, as the data succeeds the all-important Consumer Price Index (CPI) release due on Thursday.The US inflation is the most critical gauge and will determine the size of the November Fed rate hike, especially after Wednesday’s FOMC minutes. The minutes showed that the Fed members “expect higher borrowing costs to slow economic activity by curbing spending, hiring and investment, which should weaken inflation pressures.” At the moment, markets are pricing an 81% probability of a 75 bps Fed rate rise next month.To conclude, Friday’s US Retail Sales and University of Michigan (UoM) Consumer Sentiment data will be also closely scrutinized, as they will shed additional light on household trends amid rising interest rates and the ongoing cost of living squeeze.
Technical analysis of the leading cryptocurrency, Bitcoin, by Sebastian Seliga (InstaForex) - 27/10/22

Bitcoin Price May Hover Between $12K And $14K, DonAlt Predicts

FXStreet News FXStreet News 13.10.2022 16:49
Crypto market capitalization excluding Bitcoin sustains above the $518.92 billion level, as analysts predict an explosive breakout. Bitcoin price showed signs of resilience despite the sixth straight week of decline for the S&P 500. Analysts evaluate whether the Bitcoin price breakout is towards the $10,000 or the $29,000 level. Justin Bennett, a crypto analyst observed the trend in the crypto market capitalization excluding Bitcoin and predicted a massive breakout. The analyst argues that it remains undecided whether Bitcoin will hit the $10,000 or the $29,000 level. Crypto market heads towards a massive breakout - Rally or decline? Justin Bennett, an internationally recognized Forex trader and crypto analyst evaluated the total crypto market capitalization chart excluding Bitcoin and predicted a massive breakout. Bennett believes that the quiet period for cryptocurrencies is about to end and the longer a market coils, the more explosive the breakout. Bennett’s prediction is based on altcoin market capitalization that hovers around $518.92 billion at the time of writing. The analyst has asked traders to prepare for the breakout. It remains unclear whether the breakout will be in the upward or downward direction, however Bitcoin has shown its resilience sustaining above the $19,000 level despite the decline in the S&P 500. Despite Bitcoin’s correlation with the US stock market, the cryptocurrency has remained steady in the face of declining stock prices and rising inflation. In the latest update from the US Federal Open Market Committee (FOMC), the monetary policy maker assured that higher interest rates are here to stay. This implies traders would remain cautious in their approach towards risk assets like Bitcoin and cryptocurrencies. Bitcoin price to $10,000 or $29,000? DonAlt, a pseudonymous crypto analyst known for his accurate predictions has marked key price levels for Bitcoin, in a new video. While the analyst is unsure of a Bitcoin price rally to the $33,000 level, DonAlt believes BTC could either hit the area between $12,000 to $14,000, a common price target for Bitcoin bears or the $29,000 level. The $29,000 level is considered a key point in Bitcoin price trend as the asset will derisk at this point and DonAlt has revealed his strategy to shed his BTC holdings here. DonAlt’s Bitcoin price targets
EUR/USD Forecast: Investors defending 0.9700 with little conviction

EUR/USD Forecast: Investors defending 0.9700 with little conviction

FXStreet News FXStreet News 11.10.2022 16:29
US Treasury yields soared after the long weekend, helping the greenback to retain its strength.US core annual inflation is expected to have continued rising in September.EUR/USD seesaws around the 0.9700 figure as market players await first-tier US data.The EUR/USD pair kept pivoting around the 0.9700 figure throughout the first half of the day, posing a fresh weekly low of 0.9670 before gaining some upward traction. The greenback appreciated as, after a long weekend, Treasury yields soared ahead of the opening, weighing on global indexes.The yield on the 10-year Treasury note peaked at 4.0%, while that on the 2-year note reached an intraday high of 4.35%. Government bonds recovered some ground, while yields retreated from their early highs but hold on to modest intraday gains.The dismal mood that dominated financial markets at the beginning of the week extended into Tuesday. Dollar and yields gains were directly linked to persistent inflation and recession concerns, and while the latest persist, fears eased ahead of Wall Street’s opening. The EUR/USD pair recovered up to 0.9737, still within familiar levels.A scarce macroeconomic calendar and US first-tier events scheduled for later in the week limit further volatility. The US will release the September Consumer Price Index next Thursday, which is expected to have risen at an annualized pace of 8.1%. The core reading is foreseen at 6.5%.EUR/USD short-term technical outlookThe EUR/USD pair trades in the 0.9720 price zone, so far holding above a Fibonacci support level, the 23.6% retracement of the September slide at 0.9690. Technical readings in the daily chart show that buying interest is nowhere to be found. The pair is developing below firmly bearish moving averages, with the 20 SMA heading firmly south at around 0.9830. The Momentum indicator is recovering ground but still below its midline, while the RSI indicator consolidates around 41, skewing the risk to the downside.In the 4-hour chart, chances of further gains seem limited. The 20 SMA has crossed below the 100 SMA, both heading firmly lower above the current level. At the same time, technical indicators recovered from oversold readings, maintaining their upward slopes but within negative levels. The case for recovery will be firmer if the pair extends gains above 0.9790, the 38.2% retracement of the decline mentioned above.Support levels: 0.9660 0.9615 0.9550Resistance levels: 0.9750 0.9790 0.9835
Netflix Stock News and Forecast: NFLX rises as JPMorgan moves bullish on advertising model

Netflix Stock News and Forecast: NFLX rises as JPMorgan moves bullish on advertising model

FXStreet News FXStreet News 11.10.2022 16:29
Netflix looks set for a boost on Tuesday as JPMorgan issues upbeat note.NFLX is set to gain as JPMorgan says advertising could add over $2.7 billion in revenue.NFLX stock is down 61% year to date.Netflix (NFLX) stock is trending on Tuesday due to JPMorgan issuing a bullish note outlining the potential for the advertising tier that Netflix is due to release shortly. Netflix has had a troubled year with regard to stock performance. While the platform itself remains almost essential in the modern household, the stock itself has seen a sharp decline. Netflix's valuation had pushed too high during the pandemic printing phase, and like many other lockdown stocks it has corrected harshly.Netflix stock newsJPMorgan was out with a positive note on the stock on Tuesday. The investment bank sees the potential of the new advertising tier as having the possibility to add as much as $2.7 billion in revenue from the US and Canada alone. It remains to be seen how well consumers react to advertising as that was one of the key USPs (unique selling points) of streaming versus traditional media. No ads, no waiting, binge. Already many streaming services have ditched binge-watching and are releasing shows every week, so this may be another step toward the old-school mainstream TV model.Ads and having to wait a week for a new show sounds very much like why we left TV stations in the first place. However, given the strong inflationary environment, there is no doubt the cheaper the better in some consumers thinking, so the advertising tier may see good uptake. Spotify uses a similar model. Also of note, especially to AMC and APE stockholders, is the limited cinema release of the latest Netflix sequel, Glass Onion A Knives Out Mystery. The sequel again stars Daniel Craig in the lead role. Netflix, according to reports, will give the film just a week in cinema before streaming it a month later, and it will only appear on 600 cinema screens. This is a test launch for Netflix as I believe it is the first Netflix film to go first to the cinema before appearing on the streaming service. Netflix stock forecastNetflix has been attempting to form a bottoming pattern with trendline support now at $223 and below the series of lows at $165.90. This is capped on the upside and is a wedge or pennant pattern. This can often lead to powerful breakouts. The key level to watch is $251.75. NFLX 1-day chart
SPDR S&P 500 ETF Trust (SPY) Forecast: Can we still rally?

SPDR S&P 500 ETF Trust (SPY) Forecast: Can we still rally?

FXStreet News FXStreet News 10.10.2022 16:31
S&P 500 closes the week sharply lower as the jobs report causes a sell-off.SPY still finished the week over 1% higher due to a strong Monday and Tuesday rally.Energy (XLE) is once again back at the top of the charts.A volatile week, they all seem to be at present, as Monday and Tuesday's massive rally was nearly totally reversed on Friday. Hopes for a Fed pivot had seemed misplaced, but equity investors took the bait and chased risk assets higher in the earlier part of the week. That then saw some profit-taking and position squaring ahead of Friday's big jobs report. Volatility once again picked up as the economy refuses to roll over, and so the Fed will have to inflict more pain. Already we see risk of financial contagion in bond markets, and worries are increasing that we may have a systemic black swan type of collapse somewhere. Already we had the Bank of England stepping in to support its bond markets due to some interesting leverage positions in the pension industry. Now investors are beginning to wonder where the next problem may arise. All this is leading the dollar higher as investors yet again rush to safety.SPY newsThe equity rally on Monday and Tuesday was already under threat once OPEC+ announced their supply cut. The headline 2 million barrels per day was higher than what had been expected, and this led oil prices back above $90. That gave any hopes for a Fed pivot a slight pause for thought, and then Friday's jobs report put any hopes of a Fed pivot to bed. Yields rose sharply as the US economy sees continued strength in the labor market. Equities fell sharply.Now investor focus will shift toward earnings season and Thursday's CPI release. There may be some hope for the CPI print as last week's spike in oil prices will not have an impact and prices have been falling across other commodities. Housing-related costs are also looking like they are rolling over. Earnings season kicks off later in the week with the big banks first up. Earnings season revolves around one company – Apple (AAPL). Once that goes, they all go. However, we see some signs of a reverse rally akin to the June rally. Conditions look eerily similar. First, corporate buybacks will restart once the earning season is over. CTAs will be forced to buy aggressively on any rally. Hedge funds are overly short, so a rally may squeeze them. The sentiment is terrible with most indicators showing close to max bearish. This is often a contra indicator. Also, seasonality cannot be dismissed. October is traditionally a positive month and even more so ahead of midterm elections. That is not to say equities cannot fall, but in my view the risk-reward is skewed higher.SPY forecastFriday's sell-off may have put some doubt into investors looking for a rally. The move was sharp. Once again we look to test the 200-week moving average. So far so good on that test. Abreak will look to support at $352. This would be a 50% Fibonacci retracement from the pandemic low to the high, so we do have strong technical support nearby as well as the potential rally argument made above. The pivot remains at $373 in my view. Breaking above should see a test of $388. SPY daily stock chart
Altcoins: Charles Hoskinson (Cardano) Comments On Ripple-SEC Case

Altcoins: Charles Hoskinson (Cardano) Comments On Ripple-SEC Case

FXStreet News FXStreet News 10.10.2022 16:31
The 45% XRP price rally will likely take a breather before continuing to $1.00. Traders should consider booking profits before XRP price confirms a rising wedge pattern. A retracement seems imminent, especially with the MACD presenting a sell signal. XRP price is retracing its steps after rising to $0.5477 over the weekend. Its peers, like Bitcoin (BTC) and Ethereum (ETH), showed strength early Monday but quickly resumed their dominant sluggish movements. XRP price is teetering at $0.5199 at the time of writing while bulls work to defend a rising trend line support. The cross-border money transfer token's trend correction will continue if a rising wedge pattern is validated. SEC vs. Ripple lawsuit shouldn't have happened – Cardano's founder Hoskinson The founder of Cardano, Charles Hoskinson, has over the last few days been on the receiving end of XRP holders for alleging that they (the XRP community) came up with a "grand conspiracy" linking former SEC (Securities and Exchange Commission) and Ethereum officials. However, Hoskinson has reiterated his stance, saying that it did not matter whether there was a conspiracy or not – what is important is how to get out of it. "I explained how we got here and how we need to get out," Hoskinson said in a podcast. According to the founder, the lawsuit would not have occurred if there had been regulatory clarity for the crypto industry in the United States. He believes that the SEC's "regulation by enforcement" method hurts the industry and is bad for everyone. Ripple and the SEC have been battling in court for nearly two years over a case the former filed against the payments company in December 2020. The SEC alleges that Ripple and its top executives sold unregistered XRP tokens, thus breaking the Securities Law. XRP price could start giving up its gains XRP price has, in the last several weeks, outperformed its peers – the prevailing bear market conditions notwithstanding. Supporting its grand move from $0.3127 to $0.5477 is an improving investor sentiment attributed to Ripple's recent small wins against the SEC. The judge recently overruled the regulator's motion not to disclose the contents of the now-popular William Hinman (former official of the SEC) speech. Legal experts believe that Ripple is close to winning the case, with the judge likely to dismiss, a situation that could propel XRP price to greater heights. Meanwhile, XRP price is on the verge of confirming a bear trend correction from a rising wedge pattern, as observed on the four-hour chart below. Rising wedges come into play when an asset's price makes a big swing north but slows down to allow consolidation. It is worth mentioning that XRP price is trading marginally above the pattern's support. Short sellers will, however, have to wait until the price closes or opens on a four-hour basis below the rising trend line before activating their orders. XRP/USD four-hour chart The MACD (Moving Average Convergence Divergence) affirms the incoming bearish grip on XRP price. As the index slides toward the mean line (0.00), sell orders are expected to increase, thus, creating overhead pressure. If the wedge is validated, XRP price will fall 8.24% to $0.4757 before another upswing is considered.
The Dow Jones Hit A Monthly High, The S&P 500 Index Also Rose

US Stocks: Twitter Stock Price Is Like A Highspeed Rollercoaster!

FXStreet News FXStreet News 07.10.2022 15:54
Twitter stock fell nearly 4% on Thursday as the Elon Musk saga continues. TWTR stock now trading nearly 10% below the offer price of $54.20. Twitter still has surged from lows of $41 last week. Read next: Terra's Worker Arrested! White House Comment On The OPEC Decision And Success of Deutsche Bank | FXMAG.COM The will-he-won't-he saga appears to be nearing a conclusion, but it is not over the finish line yet. Market participants and investors look to be doubting the deal if the latest share price movements are anything to go by. Twitter is trading at under $50 now at $49.30 this morning in Friday's premarket. That is a near 10% discount to the offer price of $54.20. Given the deal is due to close shortly, that is a larger-than-usual deal approaching the finish line. Usually, merger arbitrage players would be all over such a discount so near to closure, but this deal has been clouded in uncertainty from the start. Extra caution is obviously being taken in valuing the probability of the deal going through. Twitter stock news Always the risk in writing about this one is that the news changes dramatically and quickly, but the latest appears to be that the Twitter trial date to try and force Elon Musk to go through with his purchase has been delayed to allow the deal to go through by October 28, according to the judge. That appears to be good news. "This action is stayed until 5 PM on October 28, 2022, to permit the parties to close on the transaction," wrote Chancellor Kathaleen McCormick of Delaware's Court of Chancery. The judge also said if the deal does not close by then, a trial date in November will be set. Various media sources carried news earlier on Thursday that Elon Musk's team had attempted to delay the trial on Thursday, but Twitter responded: "Twitter opposes Defendants' motion...The obstacle to terminating this litigation is not, as Defendants say, that Twitter is unwilling to take yes for an answer. The obstacle is that Defendants still refuse to accept their contractual obligations." Twitter Stock Price - "Technical analysis does not really apply to a merger arbitrage situation" The TWTR stock price is obviously volatile as a result of all this contrasting news and is likely to remain so. Will the deal get finished, and if so when? The risk-reward diminishes near the strike or take-out price of $54.20. Technical analysis does not really apply to a merger arbitrage situation. Twitter stock daily chart
What coins worth a watch in the week ahead? ByBit highlights Ripple, LINK and CRV

What Could Today's NFP Release Mean For Bitcoin? What May Happen If Support Of $18.800K Is Broken?

FXStreet News FXStreet News 07.10.2022 15:54
Bitcoin price continues to consolidate around the $19,000 to $20,000 levels for the second week. Market participants should be prepared for a sweep of $17,593 if the $18,800 support level fails to hold. A breakdown of the $15,551 support level will signal an invalidation of the bullish outlook. Read next: Terra's Worker Arrested! White House Comment On The OPEC Decision And Success of Deutsche Bank | FXMAG.COM Bitcoin price has been in a steady consolidation for more than two weeks and shows no signs of directional bias. However, the Non-Farm Payrolls (NFP) announcement on October 7 could trigger a volatile episode for BTC that could resolve its range tightening and establish a directional bias. Bitcoin price and the big picture Bitcoin price remains above $19,157, which is the highest traded volume level for 2022, aka Point of Control (POC). As mentioned in the previous article, buyers are safe as long as BTC remains above the POC; however, a breakdown could result in a steep correction to the next high-volume node at $15,551. Beyond this support floor, there are two crucial levels at $13,575 and $11,989, where a macro bottom could occur for BTC. Not a lot has changed on this three-day chart for Bitcoin, but investors need to keep a close eye on the POC at $19,157 and the immediate support level at $15,551. BTCUSDT 3-day chart The next important chart is the eight-hour chart of Bitcoin price coupled with the Relative Strength Index (RSI), which has accurately predicted the local top/bottom formation since May 30. After a brief consolidation between the $18,000 and $19,000 levels, Bitcoin price shot up to $20,400, and the RSI also broke above the 43 to 46 hurdle and flipped it into a support level. The rally that originated here formed a local top at $20,500, which coincided with RSI forming the seventh top at the 65 to 72 hurdle. A closer look at the Bitcoin price shows a bear flag in play. As the name indicates, this technical formation contains a flagpole, which was formed as BTC crashed 18% between September 12 and 19. The consolidation in the form of an ascending parallel channel resulted in the flag formation. A breakdown of this technical pattern forecasts an 18% downswing to $15,800, obtained by adding the flagpole’s height to the breakout point at $19,417. BTCUSDT 8-hour chart Additionally, the realized price of whales holding more than 1,000 BTC is around $15,800. The realized price of these BTC is calculated by taking into account the volumes flowing in and out of exchanges and the Bitcoin price at that time. Interestingly, this number coincides perfectly with the technical forecasts, adding more credence to the possibility of a steep correction to $15,800. BTC Realized Price While the initial outlook for Bitcoin price might seem bearish from the above explanation, investors should look at this potential crash to $15,800 as an opportunity to accumulate BTC and altcoins at a discount. A surge in buying pressure at this level that results in a U-turn could be the best buying opportunity before Bitcoin price kick-starts a run-up to fill the CME gap, extending from $27,365 to $28,740. These gaps are formed in Bitcoin price as the Chicago Mercantile Exchange (CME) halts trading at the weekend. Therefore, a rebalance of these inefficiencies could be another key driver that triggers a reversal at $15,800. BTCUSD CME 12-hour chart On the other hand, if the selling pressure continues to build up on the back of rising geopolitical tensions and worsening economic conditions, Bitcoin price could crash to $15,800 and fail to recover. If this downswing pushes BTC to flip the $15,551 support level into a resistance barrier, it will invalidate the bullish thesis detailed above. In such a case, market participants should prepare for a potential crash to $13,575 and $11,989.
Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain

Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain

FXStreet News FXStreet News 06.10.2022 16:10
Economists expect a slowdown in US job growth to 250,000 in September. The Fed needs to see pain to pivot from tight policy, putting the focus on jobs.Only a sub-100K increase would dethrone the dollar – one of five scenarios.Each outcome is accompanied by a potential trade.No pain, no gain – this gym idiom resonates with stock bulls. The Federal Reserve has said it is willing to accept – and even wants to see – economic pain to see inflation falling. Last month was painful in financial markets, but did American employment also feel the pinch?The focus of September's Nonfarm Payrolls is on the headline change in jobs, vastly overshadowing wages and other figures. I will focus on the headline, providing five scenarios for market reactions. First, some background.Soft landing or hard recession?The Fed has stopped talking about a soft landing but refrains from using the R-word – recession. It is only talking about below-normal growth and the unemployment rate rising to 4.4% from 3.7%. Fewer workers mean less money to spend and easing price pressures. Earlier, hopes for an easing in the labor shortage – somewhat related to the "Great Resignation" phenomenon – was enough for the Fed. An unsnarling of supply-chain issues also carried hope for inflation to fall. That didn't happen either.August's super-strong increase in core inflation, 0.6% MoM, has convinced policymakers that pain is needed. The labor market has been far from reflecting anything resembling discomfort. The US gained 315K positions in August, beating expectations for the seventh time in eight months so far this year. No pain nor discomfort in these numbers:Source: FXStreetWhat would consist of pain? The Fed and markets eye the pre-pandemic average of roughly 200K. That might have been reached in September – at least according to expectations. The economic calendar points to an addition of 250,000 positions, so sub-200K is not too far away. Five scenarios for Nonfarm Payrolls1) Within expectations: An outcome of 200-300K would be considered within expectations in current volatile market conditions. It would imply slower US job growth but still healthy expansion. Investors would likely sell stocks and push the dollar higher, albeit moderately. The focus would quickly shift to next week's all-important inflation report as the real arbiter of the next move. USD/JPY would likely provide the most straightforward reaction to such an outcome. 2) Below expectations: An increase of 100-200K would already be significant, showing that the economy is creating jobs at a pace lower than the covid era. Stocks would rise on hopes for the Fed to slow its tightening pace and would price a 50 bps hike for November more seriously. The odds are currently tilted in favor of a 75 bps hike. The dollar would fall.However, after a small move, the basic trend of lower stocks and a stronger dollar would resume. Why? A small drop would be seen as a one-off event – inflation significantly slowed in July only to bounce back in August. A "sell the rally" move on GBP/USD could be a potential trade – volatility is high in this currency pair, which is set to overreact to a not-so-huge miss. 3) Significantly below expectations: Any sub-100K rise would already be worrying for the US economy, sending the dollar down and stocks surging. The effect would probably last for longer and would not be seen as a one-time event. It would be exacerbated if the US reports a loss of jobs – but that is highly unlikely. Buying AUD/USD or NZD/USD, the risk currencies could work out well. They tend to surge with stocks. 4) Above expectations: An increase of 300-400K jobs would trigger a sharp market fall and a fresh leg higher for the greenback. It would show that the steady trend of upbeat job growth continues and that the Fed still has more work to do. Selling EUR/USD would seem like a solid move to such an outcome, fading the recent recovery of the pair. 5) Considerably above expectations: A leap of over 400K positions would send the dollar soaring and shape a market sell-off – and it cannot be ruled out. America gained no fewer than 526K jobs in July and the relatively lower increase in August could be the real one-off. Selling AUD/USD or NZD/USD would work here – similar to scenario #3, the mirror image of this one. Final thoughtsWhile the Fed focuses on inflation, pain in the labor market – full employment is its second mandate – would be significant to markets. The dollar and stock markets are set to respond to any outcome, with the tables still tilted in favor of the greenback and against shares.
OPEC+ reject reports of increased output. Crude oil up

Energy Stocks: ExxonMobil Stock Price Up On The Back Of The OPEC+ Decision To Cut Supply!

FXStreet News FXStreet News 06.10.2022 16:10
XOM stock rallied 4% on OPEC+ supply cut. OPEC+ agreed to cut production by 2 million barrels per day. There is confusion about how the oil barrel production cuts will be implemented. Exxon Mobil stock is nearing a multi-month high. Exxon Mobil (XOM) shares added 4% to close at $99.12 on Wednesday after OPEC+ agreed to cut production by 2 million barrels a day. XOM stock has given up 0.9% in Thursday's premarket though as critics wonder whether the cuts will really be carried out. Exxon Mobil stock news When the news was announced on Wednesday morning, Brent crude shot up from $90.44 to above $93. Bulls could not push the price to $94, however, and oil sold off below $93 later in the day. The US government was unhappy with the cuts and, according to The Wall Street Journal, is considering easing sanctions on Venezuela to allow for more oil exports. These exports would heavily favor Chevron (CVX) though, not Exxon. Additionally, the Biden administration may sell more oil from its strategic petroleum reserve or SPR. Check out our video comment on the latest RBA decision: The critics have begun all but ignoring the headline figure, however. They say that OPEC+ has already been underproducing its target for months and that the actual physical cut will not likely amount to much. An executive from Velandera Energy Partners was vocal about this way of thinking, specifying that his company thinks only 1 million barrels will even be cut. Goldman Sachs was even more defensive, saying the cuts would not top half a million. In August, the oil cartel missed its target by as much as 3 million barrels a day. However, Goldman has been bullish on commodities for months and said it expects Brent to rebound to $110 this quarter. JPMorgan has a price target of $100 on oil. Both prices would buoy the Exxon Mobile share price. The cuts are scheduled to go into effect in November, and both Saudi Arabia and Russia are expected to cut 526,000 barrels a day from their current target of just over 11 million barrels a day. Saudi only produced 10.9 million barrels in August, however, so some of these cuts are just accounting changes regardless. "Other OPEC producers, such as Angola, Congo, Equatorial Guinea, and Nigeria, are already producing below their reduced November quotas, and as such, will not be required to cut production further," according to a report from OilPrice.com. Exxon Mobil stock forecast Two things stick out from the 1-day chart below for XOM stock. First, traders will note the Moving Average Convergence Divergence has crossed over and turned bullish. The second thing to notice is that XOM is already at or near resistance. On Wednesday, Exxon stock gave up right at the $100 level. It would be easy to say that this was just a psychological boundary, but XOM also faced difficulty here back between August 25 and 29. On the last day of that streak, it made it up to $101.56 but was pushed down before the close. Wednesday's close was also right in line with the high from September 12. The high at $105.57 back on June 8 was a decade-long high. It beat out the high from the summer of 2014 at $104.76, but again XOM could not hold this level for long. A likely pattern would see XOM drop back to support at just above $86 from August or $84 from late September before making a run at the June high. XOM daily chart
Work On The CBDC Pilot Program Is In Full Swing

Altcoins: You May Be Shocked With The Expectations For Ethereum Price (ETH/USD)!

FXStreet News FXStreet News 05.10.2022 15:51
Ethereum price enters a dangerous technical setup as price action fails to make new highs for October. ETH price is at risk of dropping back to $1,243 later this week. Expect to see pressure building on $1,243 with another leg lower towards $1,100. Ethereum (ETH) price action has been printing some nice gains with 7% on the docket in just two trading days this week. This third trading day indicates a change in sentiment that could see bearish pressures mounting. There is a risk that all gains from this week will be lost, and no new highs for the month will be printed. Further, bears may have an opportunity to break back below $1,200 by the end of the week if dollar strength kicks in. ETH price says goodbye to $1,400 forecast and instead welcomes in $1,200 Ethereum price takes a step back this morning with already -1% on the quote board as markets are rolling over in sentiment and seeing risk assets sold-off. The shift in sentiment comes from geopolitical tensions in Asia, where the US and South Korea have held joint exercises, including several missile attacks in response to North Korea after it launched a missile again on Tuesday. With the emergence of this new tail risk markets are worried that the US is poking the Chinese bear a bit too much. ETH price thus slips 1% for now and looks set to drop back to $1,300. From there, it is not that far to hit $1,243 and challenge that level as bears rush into the price action to drive it into the ground. This is because Ethereum bulls cannot make new highs for the week, which could point to a false bounce off support at $1,243. If that level breaks, $1,100 comes into play with the monthly S1 support level as nearby support to underpin the price action. ETH/USD Daily chart On the other hand, it is quite normal that markets would take a small step back as a three-day-winning streak is quite exceptional unless a big positive catalyst comes into play. If so, and a more bullish catalyst comes into play, expect this to be a phase purely of profit taking, and a small step back before further advances in price action. If so, a rally could materialise and pick up speed again by Friday towards $1,400.
NZD/USD: Reserve Bank Of New Zealand Is Expected To Hike The Rate By 50bp

Twitter Stock Price Up, Tesla (TSLA) Down, Elon Musk Has Shaken Up The Stock Market Again!

FXStreet News FXStreet News 05.10.2022 15:51
TWTR closes up 22.2% after Musk agrees to go through with acquisition. Tesla stock falls in premarket on the news. Musk says Twitter is part of his designs for a superapp. If you have been living under a rock for the last 24 hours, you may not have heard that Elon Musk has decided to buy Twitter (TWTR) for the original price of $54.20 agreed to back in April. ...And so our corporate fairy tale finally starts on its road to a conclusion. Musk was scheduled to be deposed later this week, and some pundits think the likelihood of failure in extricating himself from his agreement to buy the social media platform back in April was the major reason for wanting to end the current litigation. Either way, Twitter has agreed to the acquisition, and TWTR stock zoomed up 22.2% to close at $52. Carl Icahn reportedly profited about $250 million by holding onto TWTR when Musk tried to exit the deal in July and shares fell to $31.52. Twitter stock news According to reporting from The Financial Times, Musk's lawyers held a Zoom (ZM) call with Judge Kathaleen McCormick from the Delware Chancery Court and Twitter representatives early on Tuesday. The parties agreed to go through with the original acquisition framework, but Twitter has requested new stipulations on timelines and deliverables. Late Tuesday, Musk's legal team filed its intent with the Securities & Exchange Commission (SEC). The relevant section of the filing reads: "On October 3, 2022, the Reporting Person’s advisors sent a letter to Twitter (on the Reporting Person’s behalf) notifying Twitter that the Reporting Person intends to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement, on the terms and subject to the conditions set forth therein and pending receipt of the proceeds of the debt financing contemplated thereby, provided that the Delaware Chancery Court enter an immediate stay of the action, Twitter vs. Musk, et al. (C.A. No. 202-0613-KSJM), and adjourn the trial and all other proceedings related thereto pending such closing or further order of the court." A spokesperson for Twitter stated that the "intention of the company is to close the transaction at $54.20 per share". Now the only thing that stands in the way for the deal going through is ensuring that the financing is there. A number of Wall Street banks had already signed up for $13 billion in financing, which may be more difficult now that interest rates are racing higher. More of the debt may have to come from the banks themselves rather than outside clients. Binance, the crypto exchange, also had agreed to put up $500 million for the deal, and Oracle founder Larry Ellision had said he would put up at least $1 billion. That leaves Musk, who already owns 9.6% of Twitter, to come up with the other $25 billion or so. Plenty of other institutions will likely be brought into the fold, but the market is still thinking Musk will need to sell a further chunk of Tesla stock. TSLA gained 2.9% in Tuesday's regular session, but is off 1.5% in Wednesday's premarket. For his part, Musk decided to forget about his mid-Summer fight over the number of bots on the social network and focus on the possibilities. He posted that Twitter would become part of an "everthing app" called X, which of course reminds one of his vaunted X.com startup that eventually merged to become part of PayPal (PYPL).   Twitter stock forecast Technically, if you buy TWTR stock at $52, then you could make 4% when the acquisition is finalized. With 10-year treasuries still at 3.6% though and Musk requiring financing in a poorer investing climate, TWTR should remain at a discount until the end. Below you can see how both TWTR and TSLA reacted to the news release. TWTR ran up over 22%, and TSLA sold off after adding 2.9% in the regular session. TWTR vs TSLA 1-minute chart for 10/4/22 If this is indeed the end, how did TWTR do as a public company? The answer is: simply awful. If you had bought TWTR near its height in December 2013 (nearly 10 years ago), you would have lost money at Musk's acquisition price. Twitter will continue, but as a public stock it has never amounted to a solid business. Instead it might even be its lackluster corporate prospects that have endeared it to so many fans, myself included. TWTR monthly chart
ADP Jobs Preview: How the data creates a dollar selling opportunity ahead of the ISM Services PMI

ADP Jobs Preview: How the data creates a dollar selling opportunity ahead of the ISM Services PMI

FXStreet News FXStreet News 04.10.2022 16:25
Economists expect ADP's private-sector jobs report to show a modest increase in September. The dollar may take advantage of the low bar to recover.Expectations from the ISM Services PMI seem optimistic after the disappointing manufacturing report.If services show a weak New Orders component, the greenback could begin a fresh sell-offOne meeting at a time – that is how the Federal Reserve has vowed to operate in an uncertain world. For markets, it means every data point matters more than usual, and action becomes wilder when two top-tier figures are published within less than two hours. Here is my playbook for the two events. The first to come out is ADP's private-sector jobs report for September. America's largest payrolls firm resumed releasing its labor market reports last month after a summer break meant to improve the data quality, or at least the correlation with the official Nonfarm Payrolls report. That has yet to work out. For the third consecutive time, ADP's data missed economists' expectations and also failed to predict the strength of America's steaming hot labor market.The figures missed estimates in August, May and April:Source: FXStreetThe economic calendar shows an expected increase of 200,000 jobs in August, which seems modest in comparison to 315,000 positions created in the previous month. Given ADP's recent track record, any positive number would be considered satisfactory, as it would indicate an upbeat official figure as well. After several sessions of dollar weakness, a strong – or even a less than horrible – report would be sufficient to trigger a bounce in the greenback. Too optimistic ISM Services PMI?The ADP NFP is out at 12:15 GMT, and at 14:00, the ISM Services Purchasing Managers' Index (PMI) is out. Expectations are high: the headline is set to hold up at 56, a healthy distance from the 50-point threshold that separates contraction from expansion. The most forward-looking component of this future-leaning survey is New Orders. It is projected to slide from the high level of 61.8 to 58.9, still a strong point.Even the Prices Paid component carries elevated estimates of holding at 69.8 points. Given that the Fed watches such inflation expectations gauges closely, and without a drop towards or below 50, it will continue raising rates.If these high estimates may still be surpassed when examined on their own, the comparison with the ISM Manufacturing PMI gives pause for thought. That report, published on Monday, showed the inflation component sliding to 51.7. It is hard to see how an 18-point gap is maintained between the two sectors. The ISM Services PMI Prices Paid component has been too high for too long:Source: FXStreetI think that high expectations from this forward-looking survey for America's biggest sector open the door to a disappointment that would down the dollar – a repeat of Monday's greenback grind. That fall could be harder from a higher point, if ADP's data has provided a boost. Final thoughtsVolatility in markets is set to remain high until the Fed clearly signals it is slowing down the pace of rate hikes. A lower-than-expected hike in Australia and Britain's U-turn are insufficient – they are only the latest twists in the roller-coaster. Trade with care.
Rivian Automotive (RIVN) stock climbs on delivery news

Rivian Automotive (RIVN) stock climbs on delivery news

FXStreet News FXStreet News 04.10.2022 16:25
Rivian Automotive is on track to deliver 25,000 vehicles in 2022.RIVN stock rallied 9.1% in Tuesday's premarket.Tesla recently missed forecasts for Q3 deliveries.Rivian Automotive (RIVN) has garnered a gain of 9.1% in Tuesday's premarket after the maker known for its lineup of EV trucks reiterated delivery figures that many observers thought it would miss. In Monday's post-market Rivian announced that it expected to meet its goal of delivering 25,000 vehicles in 2022, a number that it has stuck to despite logistical glitches throughout the year. RIVN stock is now trading at $34.80, well above its May 11 low of $19.25, but shares remain down Rivian stock newsRivian manufactured 7,363 vehicles in the quarter ending in September and delivered 6,584 units. This was a largescale improvement over the previous quarter's production of 4,401 units and deliveries of 4,467. This amounts to QoQ rise in production of 67% and a 47% increase in deliveries. The figures show that management's attempt at ramping up production at its Illinois factory seems to be working.The delivery beat impressed the market as it came right on the heels of Tesla (TSLA) missing its much bigger delivery target by 14,000. Tesla delivered 343,830 vehicles in the third quarter, which was still up more than 42% YoY despite missing Wall Street forecasts.Rivian has dealt with much higher costs for raw materials this year and has stated in the past that its operating loss would end the year much worse than expected. Truist Securities coming out with its Buy rating last week now looks wise. Despite its many failings this year, analysts said the upstart was positioning itself for long-term growth and slapped an optimistic $65 price target on the stock. At the time this meant more than 100% upside in the next 12 months. Consensus among analysts calls for revenue at the automaker to rise 238% in 2023 to $6.16 billion.Rivian stock forecastDespite steadily climbing since its all-time low in May, RIVN stock is down 69% year to date, not counting the premarket advance. At $34.80, Rivian is sitting right on top of the 9-day moving average. A close above it tells us that Rivian bulls want this rally to continue. There has been much talk of an October bear market rally over the past week, and it looks like this may be the case with Rivian. The September downturn was awfully pessimistic, and many traders have begun looking for entries. Just take a look at the normally bearish Michael Burry's tweet below: Bulls will try to push RIVN stock to overtake the 21-day moving average as well this week. The longer time frame average is now at $35.50. From there the focus will be on the $40 price level. That level should be much harder to push past as it served as a double top that began in mid-August and finished in mid-September. Support registers in the area between $31 and $32.RIVN daily chart
EUR/USD Forecast: Risk-off flows hurting the EUR the most

EUR/USD Forecast: Risk-off flows hurting the EUR the most

FXStreet News FXStreet News 03.10.2022 15:12
EUR/USD Current Price: 0.9765UK political turmoil leads the way across financial markets.US ISM Manufacturing PMI is foreseen at 52.2 in September.EUR/USD gains bearish traction after failing to retain the 0.9800 mark.The EUR/USD pair is under mild selling pressure at the beginning of the week, trading in the 0.9760 price zone after peaking at 0.9834. Once again, market volatility is coming from the United Kingdom. Market talks signaled a potential plan to scrap a 45% income tax rate, spurring risk aversion. However, British Finance Minister Kwasi Kwarteng confirmed the government would not go ahead with such an idea, bringing some relief to the trading boards.And while most USD rivals managed to take advantage of the Pound’s strength, also rising against the greenback, EUR/USD remained under pressure, reflecting the intrinsic weakness of the shared currency.On the data front, S&P Global published the final readings of its September Manufacturing PMIs, which suffered downward revisions. The German index was confirmed at 47.8, while the Union’s one at 48.4, the latter down from 48.5. After Wall Street’s opening, S&P Global will release the US Manufacturing PMI, previously estimated at 51.8, while the country will release the official ISM Manufacturing PMI for the same month, foreseen at 52.2, down from 52.8 in August.EUR/USD short-term technical outlookThe EUR/USD pair is down for a second consecutive day and overall bearish. The pair is developing below the 38.2% retracement of its latest daily decline at around 0.9790 while still below bearish moving averages in the daily chart. The 20 SMA approaches from above the 50% retracement of the same slide at 0.9865. Additionally, technical indicators remain within negative levels, with the Momentum still grinding higher, but the RSI is flat at around 41.The near-term picture hints at a bearish continuation without confirming it. The pair is trading a few pips above a bullish 20 SMA, now providing dynamic support at 0.9740. However, technical indicators keep losing ground, maintaining their bearish slopes above their midlines. A steeper decline could be expected should the ongoing slide extends below 0.9690, a strong static support level.
Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

Bitcoin price: Watchout for 30% decline in Bitcoin price, according to this indicator

FXStreet News FXStreet News 03.10.2022 15:12
Bitcoin one-year running Return on Investment (ROI) has formed a bottom pattern, one that occurs a year after hitting cycle top. Robert Kiyosaki believes it is a buying opportunity for Bitcoin as the US dollar surges. Bitcoin price sustains above the key psychological level of $19,000 despite looming risk of decline. Bitcoin price surpassed the key psychological barrier at $19,000 and sustained above this level. American businessman and author Robert Kiyosaki believes that it is a buying opportunity for BTC. Analysts warn traders of a decline in the asset’s price in the short-term. Bottom pattern indicates risk of Bitcoin price drop to $13,200Analysts at crypto intelligence firm IntoTheCryptoverse evaluated the Bitcoin price trend. Analysts used the one-year running ROI indicator to identify a bottom pattern. Typically this pattern emerges when Bitcoin price hits a low a year after the market cycle top. In 2021, Bitcoin price hit $66,500 on October 20 and a new all-time high of $69,000 in November 2021. Analysts argue that it is likely for ROI to plummet to 0.2 or lower in October 2022. An ROI of 0.2 corresponds to a price of $13,200. BTC 365-day running ROIRobert Kiyosaki urges traders to buy BTCRobert Kiyosaki, American entrepreneur and author, told his 2.1 million followers that prices of assets considered as “safe haven” like Gold, Silver and Bitcoin will continue declining as the U.S. dollar strengthens, proving its worth once the “FED pivots” and drops interest rates.Kiyosaki believes this pivot could come as soon as January 2023 and the US dollar could “crash” in the same way as the recently collapsed English Pound Sterling. Kiyosaki argues,Will the US dollar follow English Pound Sterling? I believe it will. I believe the US dollar will crash by January 2023 after the Fed pivots.Crypto Faibik, a crypto educator and analyst has evaluated the Bitcoin price trend and predicted a lower low before a recovery in BTC. Facebook argues Bitcoin needs to sustain above the $18,400 level to recover. If Bitcoin plummets below its support, the asset is at a risk of 30% decline. BTC-USDT perpetual contracts
Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

FXStreet News FXStreet News 30.09.2022 13:39
Shiba Eternity, Shiba Inu’s collectible card game, will be available for download worldwide on October 6, 2022. Shytoshi Kusama will reveal the plans for Shiba Eternity on October 1, and drop details about the games. Analysts believe Shiba Inu price has lost bullish momentum, it remains to be seen whether Shiba Eternity launch can reinvigorate it.Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. Shiba Eternity download arrives worldwide on October 6Shiba Inu holders have been eagerly awaiting the launch of Shiba Eternity, the SHIB ecosystem’s collectible card game. Over the last two months, Shiba Inu developers have rolled out updates pertaining to the game and it has been available for download in a few parts of the world. Players in Vietnam and Australia, for example, had access to Shiba Eternity games and it is set to make its debut globally on October 6. Shiba Inu announced October 6 as its Download Day after initially scheduling it for October 1. Shiba Eternity download day on October 6, 2022Shytoshi Kusama will release crucial updates on how Shiba Eternity will play a key role in supporting the global SHIB community. The Shiba Inu announcement reads,Shiba Eternity’s download day will make history as the day when ShibArmy reached new heights on the Apple App Store and Google Play Store.Analysts observe decline in Shiba Inu’s bullish momentumDespite the bullish update from Shiba Inu developers, SHIB price itself has experienced a decline in bullish momentum. Shiba Inu price crossed the $0.00001127 level that aligns with the 61.8 Fibonacci retracement level and met strong resistance. RSI indicates the likelihood that Shiba Inu price will weaken further. Azeez Mustafa, a crypto analyst argues that Shiba Inu is likely to continue its downtrend and price could nosedive to $0.000009470.SHIB-USD price chartHowever, it remains to be seen whether Shiba Eternity acts as a catalyst for SHIB price and pushes the meme coin higher.
SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

FXStreet News FXStreet News 30.09.2022 13:39
S&P 500 falls again as the whipsaw continues.SPY falls 2% and Nasdaq falls nearly 3%.Nike adds to woes afterhours as margins fall.Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season, not helped of course by Nike afterhours. SPY newsFirst, back to Thursday's action. We saw a turnaround on Thursday, but not a turnaround many had been hoping for. Yields moved higher, Fed speakers remained hawkish, and so equities took fright. In truth, the supposed pivot from the Bank of England that led to Wednesday's rally was not cause for celebration. The UK narrowly avoided a Lehman-style moment in its UK pensions industry. This was not a cause for bullishness then.The penny dropped on Thursday, and investors dumped stocks. Apple was a leader, but a leader lower, as Bloomberg reported on it asking suppliers not to increase production. Meta Platforms (META) is out with a hiring freeze, and Nike then came out afterhours and said the dollar was a huge headwind ($4 billion in 2023) and that margins and inventories were a problem. SPY forecastPlenty of bearishness, but that makes the contrarian in me naturally uncomfortable. For starters, this is the end of the quarter, and we get some strange moves around the quarter end. Sentiment is also terrible with everyone max bearish. The CNN Fear and Greed Index is near max fear and positioning overly low, so we do have some conditions to see a dead cat bounce. We also have a month to go until Q3 earnings season, and October is historically a positive month. Now take a look at the long-term chart as it is very worrying. We are right on key support from the June low and now also the 200-week moving average. A break would see the target being the pre-pandemic high of around 3,400. SPX weeklyFor those of you looking at the SPY, the levels are $362 with a vacuum to $352 and the pre-pandemic high at $339.SPY weeklyOn the daily chart, $373 is the pivot for a rally. A break could see a move to $388 pretty quickly based on such negativity and sentiment – a short squeeze essentially. The equivalent level in the SPX is 3,750.SPY dailySPX daily
US August PCE Inflation Preview: Will it trigger a dollar correction?

US August PCE Inflation Preview: Will it trigger a dollar correction?

FXStreet News FXStreet News 29.09.2022 16:19
Monthly core PCE inflation is expected to rise by 0.5% in August.Markets see a more-than-50% chance of a 75 bps Fed hike in November.A soft PCE inflation report is likely to trigger a downward correction in DXY. The US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data, the US Federal Reserve’s preferred gauge of inflation, for August on Friday, September 30.On a yearly basis, the PCE inflation and the core PCE inflation, which excludes volatile food and energy prices, are forecast to rise to 6.6% and 4.7%, respectively. After the US Bureau of Labor Statistics announced on September 13 that the Core Consumer Price Index (CPI) climbed to 6.3% on a yearly basis in August from 5.9% in July, the US Dollar Index (DXY) gained 1.5% on the day. In response to strengthening inflation, the US central bank raised its policy rate by 75 basis points to the range of 3-3.25% eight days later. Additionally, the Fed’s updated Summary of Economic Projections (SEP) showed that policymakers’ median view of the Fed's policy rate at the end of 2023 rose to 4.6% from 3.8% in June's dot plot. In turn, the DXY extended its rally and reached its highest level since May 2002 at 114.78 earlier in the week.Market implicationsSince the DXY’s upsurge witnessed in the second half of September was fueled by the hot August CPI data, the market reaction to a stronger-than-expected PCE Price Index could remain short-lived. The Fed has already responded to rising price pressures in August and the September CPI data report is likely to have a more significant impact on the market pricing of the next Fed rate decision rather than August PCE prints. According to the CME Group’s FedWatch Tool, the probability of one more 75 bps rate increase in November currently stands at 58.5%. Source: CME GroupMarket participants will pay close attention to the core figures. The 10% decline witnessed in crude oil prices in August is likely to limit the potential increase in the headline PCE inflation. More specifically, the monthly core PCE Price Index will be the key figure to watch because it will not be distorted by base effects. The market expectation is for the monthly core PCE inflation to rise by 0.5% in August following July’s 0.1% increase. A reading above 0.5% could help the dollar outperform its rivals but it is unlikely to trigger a significant bullish rally. Even if that were to be the case, profit-taking ahead of the weekend could cause the currency to erase any potential gains.Core PCE Price Index (MoM) chartOn the other hand, the dollar’s overbought conditions and the absence of a healthy correction suggest that a soft monthly core PCE inflation print between 0% and 0.3% could translate into a powerful reaction. Investors have been struggling to find an excuse to give up on dollar longs and reassess the situation before September inflation and employment data. Ideally, Wall Street’s main indexes would rise sharply in that scenario and result in a deep correction in the DXY.
🔥 SHIBA Volatile Move Ahead: Triangle Analysis

Shiba Inu News: Tokern Burn Program Has Been Launched | What Can We Expect From SHIB Price?

FXStreet News FXStreet News 29.09.2022 16:19
Shiba Inu price shows more weakness within a falling channel. SHIB token burning rate plummets by a whopping 88% in the last 24 hours. Price recovery remains elusive amid concerns that SHIB could drop to $0.00008000. Shiba Inu price seems nowhere close to bringing its year-long downtrend to an end. Although the second-largest cryptocurrency rebounded from support at $0.000007150 in June, its uptrend was rejected at $0.00001801 in mid-August. Since then, price action has been confined in a falling channel, with limited bullish retracements. At the time of writing, SHIB price exchanges hands at $0.00001101 amid increasing downside risk that could see it slide below $0.00001000. SHIB token burn rate retraces as Shiba Inu price hunts for support Shib Super Store has recently indirectly launched a SHIB token burn program via Amazon. The platform spends the commissions it receives from sales made on Amazon to purchase SHIB tokens which are later pulled out of circulation. The affiliate program has burned around 192,169,000 SHIB tokens worth $2,115 at the current market rate. Despite the new indirect Shib Super Store burn program, the cumulative burn rate in the last 24 hours dropped by more than 88%, according to Shibburn. Roughly 7,050,000 SHIB tokens had been deposited in unspendable wallets, compared to 59,638,305 in the previous 24-hour period. Is Shiba Inu price rally waiting for lower support? The falling channel’s upper boundary caps Shiba Inu price’s upside in conjunction with the 100 SMA (Simple Moving Average – blue). Movement north of support provided by the channel’s lower boundary at $0.00001000 may be less impactful due to the low trading volume observed from the leveling OBV (On Balance Volume). Similarly, the Direction Movement Index (DMI) has no bullish or bearish bias. In other words, investors are undecided on the direction Shiba Inu price will take in the short-term. SHIB/USD daily chart If Shiba Inu price continues to move within the falling channel, investors should start acclimatizing to declines below $0.00001000. SHIB may need to collect more liquidity while forming a double-bottom pattern at its previous support – $0.00000715 in June. The IOMAP on-chain model by IntoTheBlock cements the bears’ firm grip on Shiba Inu by highlighting an intense seller congestion zone around $0.00001100. Approximately 14,600 addresses previously purchased 59.88 trillion SHIB tokens in the area. Shiba Inu IOMAP chart As Shiba Inu price tries to reach out for a breakout, investors within the range may sell at their various breakeven points, which would create more selling pressure, ultimately leading to a pullback.
Steen Jakobsen: ECB strategy is praying, hoping and waiting... not exactly action which gives hope for real economy

Forex: Euro To US Dollar - What Can We Expect? On Wednesday EUR/USD Touched 0.9535!

FXStreet News FXStreet News 28.09.2022 15:33
EUR/USD Current Price: 0.9578 Russia has menaced once again to cut gas supply to the EU, fueling natural gas prices. US Treasury yields maintain the upward pressure and trade near multi-year highs. EUR/USD is technically bearish, although extreme oversold conditions start to weigh. The EUR/USD pair reached a fresh multi-year low of 0.9535 on Wednesday, holding nearby as US traders reach their desks. The greenback strengthened during the Asian session after White House economic adviser Brian Deese said that USD vigor reflects the relative strength of the US economy, dismissing the possibility of an adjust to the currency value. Treasury Secretary Janet Yellen suggested that there was little cause for concern with current moves in financial markets. Meanwhile, the poor performance of European equities provided additional support to the safe-haven currency. In addition, concerns related to energy prices in the Union, as natural gas prices soared following a new Russian menace to halt supply, undermined the market sentiment. Major indexes, however, trimmed part of their early losses, putting a temporal cap on the dollar’s demand. Government bond yields keep marching north. In the US, the 10-year Treasury note yielded as much as 4.019% ahead of the opening, while the yield on the 2-year note peaked at 4.316%. Read more: Tim Moe (Goldman Sachs) Comments On USD And Turbulent Times For Markets In General, Ole Hansen (Saxo)Talks Nord Stream | FXMAG.COM On the data front, Germany published the Gfk Consumer Confidence Survey, which plunged in October to -42.5 from -36.8 in the previous month. As for the US, the country has just published the August Goods Trade Balance, which posted a deficit of $87.3 billion, better than anticipated. On the other hand, Wholesale Inventories rose 1.3% in the month. Later in the American session, the country will release August Pending Home Sales, while US Federal Reserve chief Jerome Powell is due to deliver opening remarks in a pre-recorded video at the Community Banking Research Conference. EUR/USD short-term technical outlook The EUR/USD pair trades in the red for the seventh consecutive day, and technical readings show extreme oversold conditions but little hints of a potential bounce. In the daily chart, technical indicators barely decelerated their declines within extreme readings, as the pair continues to develop far below strongly bearish moving averages. In the near term, and according to the 4-hour chart, the risk skews to the downside. The current candle has a long upward wick which indicates sellers are still willing to add on spikes. The Momentum indicator retreats from its midline, and the RSI consolidates around 31, also reflecting bears’ dominance. Finally, the 20 SMA extended its slide below the longer ones and now provides dynamic resistance at around 0.9630. Support levels: 0.9505 0.9470 0.9420 Resistance levels: 0.9590 0.9630 0.9685
China Protests Hit Apple | BlockFi Files For Bankruptcy

Could AAPL Hit $100? Tech Stocks: Apple Stock Price

FXStreet News FXStreet News 28.09.2022 15:33
Apple stock closed higher on Tuesday as markets gave up morning gains. AAPL looked to be forming a bottom. Initial reports from iPhone 14 orders looked strong. Apple (AAPL) stock looks to open lower on Wednesday as reports surface over production of the new iPhone 14. Hopes had been high that the new iPhone would provide a stimulus going into Q3 earnings, but now it appears that may not follow through. Apple stock news We hear reports from Bloomberg this morning that Apple has told suppliers not to try and increase production of the iPhone 14. Now it looks like an additional 5 to 6 million units will not be pushed ahead, and instead flat production of 90 million units seems more likely. Earlier reports had been positive with talk of strong preorders. There were also reports that orders were skewed to higher cost, higher margin models that would have had a positive flow straight down to Apple's bottom line. Now, this report puts that theory into question. As a reminder, we remain with our 12-month price target of $100 for Apple based on this very issue: lower margins and lower demand. Our key point from that deep dive was: "The tech giant faces supply chain headwinds, margin shrinkage and demand destruction in 2023." Apple stock forecast Apple stock looks set to open substantially lower on Wednesday, currently indicating below $147. This level becomes key. $147.25 is the 61.8% Fibonacci retracement of the move from the June lows at $129.04 to the high in August at $176.15. Holding this level is key. A break opens the door to testing the June lows and would seem more likely on a break. Holding could at least allow some calm, and investors would then likely wait for clarification from Apple's earnings on October 26. Earnings are historical, but it will be more important to hear from Apple how they are dealing with the surging US dollar and if they do indeed see a curtailing of demand. This move should also see the bearish divergence from the Relative Strength Index (RSI) come to an end. AAPL 1-day chart
SPDR S&P 500 ETF Trust (SPY) News and Forecast: Turnaround Tuesday or pump and dump?

SPDR S&P 500 ETF Trust (SPY) News and Forecast: Turnaround Tuesday or pump and dump?

FXStreet News FXStreet News 27.09.2022 16:13
SPY attempts to rally on Monday but fails.Tuesday starts on a better note.SPY so far has not broken June lows.Equity markets did attempt a rally on Monday, but the bond market kept yields, high so any move in risk assets was difficult to sustain. The two-year yield did show signs of falling in the early part of Monday's session, and stock markets took the opportunity to recover. However, a weak US 2-year auction caused a turnaround, and yields moved higher. This then dragged equities lower for the afternoon.SPY newsTuesday so far sees a recovery in sterling and a fall for the dollar. Equities are stable in Europe, so hopes are in place for a rally. However, liquidity is declining, which will exacerbate any selling should it resume. The VIX index remains above 30, and Monday saw a massive spike higher in MOVE, which describes bond market volatility. There is a need to show some signs of calm for a rally truly to take hold. Bitcoin is at least going to drag crypto stocks higher, and it appears the correlation between the Nasdaq and Bitcoin is breaking down. SPY forecastFor now, we have not put in place new lows and broken the June levell at $362. Close but no cigar on Monday. That sets up two possibilities. I would be happier to make a new low and then let a relief rally permeate. The macro backdrop is far worse than it was in June, so logic would dictate that markets should be lower. However, the longer we fail to break to new lows, then the stronger the double bottom reversal signal becomes. Already the Relative Strength Index (RSI) has moved into classic oversold territory, although I prefer to use a lower level of 25 to weed out false signals. The RSI is lower than the June lows,however, so we do not have a bullish divergence here. SPY chart, daily
JUST IN: Bitcoin price breaks $20,000, bears hit by pain of $45.5 million liquidations

JUST IN: Bitcoin price breaks $20,000, bears hit by pain of $45.5 million liquidations

FXStreet News FXStreet News 27.09.2022 16:13
Bitcoin price pushed past the $20,000 level as traditional markets continued their steep decline.Amidst fear of a global recession and a negative impact on equities, BTC bears faced $45.5 million liquidation in 24 hours. Analysts have predicted an incoming short squeeze in Bitcoin, and set a bullish target of $25,000. Top analysts have revealed a bullish outlook on Bitcoin as the asset breaks past the $20,000 level. BTC has outperformed traditional markets and yielded 8% gains overnight. $44 million in Bitcoin shorts liquidated in last 24 hoursMichaël van de Poppe, crypto strategist and trader identified the key reason behind the abrupt rally of Bitcoin, Ethereum and Cardano. Poppe argues that record-setting volume of short positions in traditional markets is a bullish signal for cryptocurrencies. Jason Goepfert, a leading financial researcher noted that retail traders have spent $18 billion on put options and accumulated a whopping $46 billion worth of short positions on index futures. Both these numbers are record setting. Poppe believes that a record-setting amount of short positions in the traditional markets is a bullish signal. Retail trader buy-to-open put premiumsPoppe told his 628,000 Twitter followers that a “short squeeze [is] incoming.” Poppe expects Bitcoin to follow suit when traditional assets witness a short squeeze, which occurs when an unusual condition triggers a rapid rise in an asset’s price. An example is when many investors short an asset or a tradable security and the price shoots up despite the massive bet against it, as is happening with the short squeeze in BTC price. Poppe believes $18,500 is a crucial barrier that Bitcoin price needs to hold. Interestingly, based on data from Coinglass, $45.58 million in Bitcoin shorts were liquidated in the last 24 hours. Bitcoin total liquidations Analysts set a $25,000 target for Bitcoin priceAs Bitcoin continues to outperform traditional assets and preserves its uptrend, analysts have revealed a bullish outlook on the asset. The $19,000 level was considered a key psychological level for Bitcoin, the asset needs to sustain above this mark to yield consistent profits for holders. Analysts have identified the $20,500 level as the next major resistance for Bitcoin price. Crypto Faibik, a pseudonymous crypto analyst and trader has set a $25,000 target for Bitcoin price. BTC/USDT Perpetual Futures
Cassava Sciences Stock Forecast: SAVA looks to hold onto most of Thursday's surge

Cassava Sciences Stock Forecast: SAVA looks to hold onto most of Thursday's surge

FXStreet News FXStreet News 23.09.2022 15:47
SAVA advanced 35.7% on Thursday.Shares are down 2.7% on Friday.Cassava Sciences stock is now up 6.5% for the year.Cassava Sciences (SAVA) stock's 35.7% explosion on Thursday is unlikely to be repeated anytime soon, but the premarket activity on Friday demonstrates that this was no fluke. Indeed, based on its chart SAVA looks like a stock on the move despite the overall market negativity consuming 99% of other stocks.Cassava Sciences stock newsWhat a year for Cassava Sciences! SAVA shares were down some 70% in late July but have now returned to the green with Thursday's pile-on. As of Thursday's close at $51.06, the stock has returned 6.5% year to date – a major outlier among riskier growth stocks.The reason for the explosing upward was the US government determining there was not much to allegations from primarily short-sellers that Cassava researchers had tampered with research data collected from clinical trials on its Alzheimer's drug.Reports emerged Thursday that the Securities & Exchange Commission's (SEC) investigation of allegations of research tampering for Cassava's Alzheimer's candidate simufilam came up empty. The SEC reportedly has made a decision to drop the case though the SEC has decided not to release its findings. The SEC began the investigation in November 2021, and this fact has overshadowed SAVA stock for the past 10 months.A separate study by the Journal of Prevention of Alzheimer's Disease in August also found no evidence of research fraud in a study published in that journal by a Cassava Sciences scientist back in 2020. "We do not find convincing evidence of manipulation of data or intent to mislead, and therefore take no action regarding the published paper," the study's author wrote."I'm hopeful that written pronouncements from neutral and independent science experts will help close the chapter of baseless attacks against our science," said CEO Remi Barbier following the journal's review back in August. "At some point it becomes irrational for our detractors to repeat over and over again the same old tired mantra of data manipulation."The fact that two separate investigations have now ended in Cassava's favor join ranks with other recent bullish news. Several insiders at Cassava have reported massive new buys in the past month and are now vindicated upon hearing of the SEC's decision. Directors Sanford Robertson and Richard Barry both made substantial bets on SAVA stock after the August review dismissing the charges appeared.On August 23 Barry bought more than $800,000 worth of SAVA stock at an average price of $23.79. Robertson bought more than 100,000 shares in mid-August for an average cost of $20.69, which cost more than $2 million. Reports of both insider buys led to strong rebounds in the stock price.Cassava Sciences stock forecastSAVA stock launched well above the 100-week moving average on Thursday. That moving average near $42 may serve some type of support function in the coming weeks but is clearly no longer resistance of any kind. Rising to the $51 level is key since this is a resistance level from December 2021 through February of this year. The area above at $62 is the next resistance point. Bulls made a run at $62 in both late November 2021 and early February but could not close above it on the weekly chart below.It would be easy to see the +2% sell-off in Friday's premarket and think the rally is over, but do not be too naive. The price action on Thursday was slow and steady. SAVA built its 35+% advance throughout the session, which saw heavy volumes. Unsupported spikes usually see double digit crashes the following day, but that does not appear to be happening with SAVA on Friday. It would be unsurprising if Cassava stock regroups or trades sideways for a bit, but expect a run at $62 to be in the offing soon enough.SAVA weekly chart
Technical analysis of the leading cryptocurrency, Bitcoin, by Sebastian Seliga (InstaForex) - 27/10/22

Bitcoin Weekly Forecast: BTC makes a bullish comeback amid regulatory tension, but lacks confirmation

FXStreet News FXStreet News 23.09.2022 15:47
Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737. A daily candlestick close below $17,593 will invalidate the bullish thesis for BTC. Bitcoin price has produced three consecutive lower lows since September 7, but at the same time, the Relative Strength Indicator (RSI) has shown a positive rise demonstrating a lack of underlying bearish power. This lack of confirmation indicates a possible reversal is in sight, and BTC has started to climb higher, but it still faces one of the biggest hurdles and only by overcoming it will it confirm a short-term shift in regime favoring bulls. Stablecoins under fire from US watchdogs While technicals are struggling to develop a firm bias, regulators in the US have taken a serious approach in culling algorithmic stablecoins after the recent collapse of Terra/LUNA that sent shockwaves in the crypto ecosystem. The House of Representatives Financial Services Committee (FSC) has targeted stablecoins such as DAI, FRAX and USDD and proposed a bill that could put a two-year ban on these assets. The reason for this bill can be traced back to the collapse of the Terra-LUNA ecosystem in the second quarter of 2022. In this regard, Rep. Warren Davidson stated, There's an outside chance we find a way to get to consensus on a stablecoin bill this year. While there is a war on stablecoins, Tether, one of the largest issuers of stablecoins, came under fire this week as Katharine Polk Failla, a U.S. Judge in New York, ordered the company to produce documents confirming that all the issued USDT is backed with US dollars. Regardless of the regulatory mayhem, BTC is slowly trying to regain momentum and needs to overcome one crucial hurdle to jumpstart its uptrend. Bitcoin price and its technical woes BTC price is in a tight corner, technically speaking. After forming another swing low at $18,804, BTC price has rallied 7% and is currently grappling with the $19,405 to $19,599 resistance box. August’s lows at $19,539 are key to the outlook, as we shall see. There are two things investors should pay attention to: A flip of the $19,539 barrier into a support level. RSI sustaining above the 43 to 46 support box as BTC flips the aforementioned level. If both these conditions are met, then Bitcoin price would be primed for a move higher. In such a case, BTC will face a significant resistance confluence consisting of the $20,737 resistance level combined with the declining trend line connecting the swing highs since May 31. Clearing these hurdles will not be easy, but it will be necessary to open the path to retest and sweep the previous weekly high at $22,850. Beyond this level, market participants should shift their focus to August’s high at $25,200. This level is significant since it contains the midpoint of the $32,427 to $17,593 range at $25,010. A retest of this level could create a local top for Bitcoin price. BTC/USDT 1-day chart IntoTheBlock’s Global In/Out of the Money (GIOM) model supports this rally in Bitcoin price. This indicator shows that the immediate support level, extending from $9,600 to $18,470, is not as strong as the resistance level but is capable of producing a bounce. The immediate hurdle, however, extends from $19,405 to $28,954, where roughly 5.05 million addresses that purchased 3.1 million BTC at an average price of $22,095 are “Out of the Money.” This resistance cluster coincides with the targets mentioned from a technical perspective, adding more credence to the possibility of a bounce. However, investors should note that a move into the said cluster could result in a sell pressure from these underwater holders who would want to break even. BTC GIOM Another interesting metric that promotes this bullish narrative is the on-chain volume, which has been on a steady uptrend. After dipping to 16.39 billion BTC in the first week of July, it has steadily surged to where it currently stands, 41 BTC. This uptick indicates that more investors are interacting with the BTC blockchain, and hence there is an increase in capital inflow, which is a bullish sign depending on the market structure. BTC on-chain volume While things are looking up for Bitcoin price, investors should be prepared for a whipsaw scenario which would include a sweep of the June 18 swing low at $17,593. This move would be a good opportunity to buy if BTC recovers and sustains above this level quickly. However, a daily candlestick close below the said level that flips it into a resistance level will invalidate the bullish thesis. In such a case, Bitcoin price could crash to $15,500, which is the next stable support level. If the selling pressure continues to spike, the big crypto could trigger a sell-off to $13,500 and $11,989, where a macro bottom for the bear market could form.
Tech Stocks: Tesla Stock Price Decreased By 2% On September 21st

Tech Stocks: Tesla Stock Price Decreased By 2% On September 21st

FXStreet News FXStreet News 22.09.2022 15:38
Tesla stock gyrates wildly around the Fed interest rate decision. TSLA eventually closed down over 2% on Wednesday. Tesla is likely to struggle further along with all equities. Tesla (TSLA) swung around pretty wildly as the Fed decision was announced. The gyrations were partly to do with positioning and also lingering hopes for a Fed pivot. Equity markets sold off on the initial 75 bps rate hike. It was more the dot plot showing higher rates in 2023 that caught many by surprise. No Fed pivot in 2023 was not what equity bulls had been hoping for, but the press conference began slightly more dovish with talk of a "pause" and phrases like "data dependent" getting equity bulls' hopes up. The Nasdaq surged into positive territory before finally bowing to the inevitable. Rates are going higher, and equities will have to take some more pain. Tesla stock news All this overshadows any specific Tesla news, of which there is little anyway. Reuters had earlier reported that Tesla was looking to close some showrooms in China, but the company has supposedly denied this. Outside of that, the news was relatively light, an unusual move for Tesla. The attention will now begin to focus on the next set of quarterly earnings, which are due on October 20. Tesla has reported strong sales growth in China, so investors will be looking for clarity on projections there. Delivery lead times have been slashed on the mainland as well, with the Shanghai Giga factory getting upgraded. The question remains how much of this falling delivery time is attributable to falling demand. The last set of data from China appeared to show not much as Tesla nearly tripled its sales growth in China from a year prior. Tesla stock forecast Tesla stock once again failed at the upper resistance at $314 on Wednesday. This was in line with the rally and sharp sell-off of US equities into Wednesday's close. Now we wait to see how much follow-up there is on the sell side. The medium-term outlook is bearish with higher yields now offering a viable alternative to equity investments. In the current climate, safety offered by bonds (especially short-term bonds held to maturity) will likely tempt investors. Below $314 Tesla, therefore, looks bearish with a target of $281 and then $265. TSLA daily chart
Things May Soon Get Better In The Chinese Markets

USD/JPY rebounds following a massive over 500 pips intraday slump, back around mid-141.00s

FXStreet News FXStreet News 22.09.2022 15:38
USD/JPY retreats sharply from a fresh 24-year peak after Japan intervenes in the FX market. The intraday USD corrective pullback from a two-decade high contributes to the steep decline. Rising US bond yields, the Fed-BoJ policy divergence limits any further losses, at least for now. The USD/JPY pair witnessed a dramatic intraday turnaround on Thursday and plunges over 550 pips from the vicinity of the 146.00 mark, or a fresh 24-year high touched this Thursday. The pair maintains its heavily offered tone through the early European session and hits a nearly three-week low in the last hour, though rebounds thereafter. Japanese authorities intervened in the forex market for the first time since 1998 to stem the rapid decline in the domestic currency and trigger a massive sell-off around the USD/JPY pair. The strong intraday rally in the Japanese yen gives the US dollar bulls to take some profits off the table, especially after the recent strong run-up to a two-decade high. This was seen as another factor that aggravated the bearish pressure surrounding the major. That said, a recovery in the risk sentiment, as depicted by a generally positive tone around the equity markets, should keep a lid on any further gains for the safe-haven JPY. Apart from this, a fresh leg up in the US Treasury bond yields, bolstered by a more hawkish stance adopted by the Federal Reserve, supports prospects for the emergence of some USD dip-buying. This, in turn, assists the USD/JPY pair to rebound over 100 pips from the daily low. It is worth recalling that the Fed raised interest rates by another 75 bps on Wednesday and signalled more large rate increases at its upcoming policy meetings. In contrast, the BoJ left its policy settings unchanged and reiterated that it will continue powerful monetary easing. This marks a big divergence in the Fed-BoJ policy outlooks, which has been a key factor behind the yen's slump of over 25% against its American counterpart since the beginning of 2022.
Crypto: What Could Today's Fed's Rhetoric Mean To... SFM (SafeMoon)?

Crypto: What Could Today's Fed's Rhetoric Mean To... SFM (SafeMoon)?

FXStreet News FXStreet News 21.09.2022 16:13
SafeMoon price has sold off roughly 30% in September alone. SFM price is due for a short move up as the RSI has been trading deeply in oversold. Expect to see a possible return to $0.0003200 before price action starts tanking again. SafeMoon (SFM) price has had a rough ride this September. At the beginning of the month SFM price tried to trade above the 55-day Simple Moving Average (SMA), situated at $0.0004227 at the time. Unfortunately, price action failed to vault this hurdle and slid lower towards $0.0002716, the low of May. Since then it has been reluctant to fall all the way to those lows. The reason: the Relative Strength Index (RSI) has been trading in oversold territory for too long and is due for a small turnaround. SFM price due for a small decompression SafeMoon price has not many reasons to rally higher extensively as tail risks are only getting larger and increasing by the day as geopolitics shake up the markets yet again. Since the beginning of September, SFM price action has been in free-fall and does not look to recover anytime soon. As with every asset class in the markets, sooner or later, some paring back of losses is likely to happen – a de-tensioning of the elastic band pulling SafeMoon price down. SFM price will probably be seen popping higher, helped by Fed comments if it sticks to a 75 bps rate hike, and mentions that it is starting to see significant slowdowns in the economy that will help build the case for smaller rate hikes. On the back of that headline, SFM price could rally towards $0.0003200. That would translate into a 7% gain for the trading day, which, seeing its performance in September, would not be that bad. SFM/USD Daily chart Should the Fed come out more hawkish than expected, however, and follow the move of the Riksbank at the beginning of this week, expect to see a massive wave of more dollar strength come into the markets, triggering a deep sell-off of everything against the greenback, including cryptocurrencies. That would see, although the RSI is in oversold territory, SFM price drop towards $0.0002716. In percentages, that means another devaluation of roughly 8% intraday with the risk that more downside will come when price action closes below that level.
Forex: How Could BoJ's Moves Affect USD/JPY (US Dollar To Japanese Yen)?

Forex: How Could BoJ's Moves Affect USD/JPY (US Dollar To Japanese Yen)?

FXStreet News FXStreet News 21.09.2022 16:13
With the rate differential widening, there is little room for USD/JPY slides. The Bank of Japan is widely anticipated to maintain its monetary policy unchanged. USD/JPY is in a consolidative phase near a two-decade high of 144.98. Following the US Federal Reserve’s policy announcement, it will be the turn of the Bank of Japan to decide on its monetary policy. Against the tide, the BOJ is widely anticipated to maintain the status quo, leaving rates at record lows of -0.1% and the yield curve control policy on hold. The latter means the central bank will continue unlimited bond purchases to keep the yield on the 10-year government bond around 0%. Finally, the central bank is expected to confirm the end of its special coronavirus financing program in September, as previously announced. The Japanese central bank´s strategy to maintain inflation at 2% stopped working five months ago. According to official figures, the annual inflation rate rose by 3% in August from 2.6% in the previous month. The Consumer Price Index rose for twelve consecutive months, and while it remains far below that of its major counterparts, the global pressure points to a further upside. As Japan is a net energy importer, the Russian conflict is also causing an increased trade deficit in the country. As a result of this situation, the Japanese yen plunged to a two-decade low against its American rival. However, there are null chances the BOJ will suddenly change course and decide on quantitative tightening. Formal intervention in the making? There is, however, one caveat. Bank of Japan Governor Haruhiko Kuroda has reportedly conducted a foreign exchange check, which somehow opens the door for formal intervention. The central bank meeting could be the perfect time to announce a measure in that direction The imbalance with all other central banks is likely to keep USD/JPY on its way up, although an unexpected tightening could result in the pair plummeting hundreds of pips. Nevertheless, and as long as the rate differential keeps widening, the pair will likely continue to reach record highs. USD/JPY possible reactions The USD/JPY pair has been consolidating gains after reaching 144.98 on September 7, without technical signs of long-term bullish exhaustion. Should policymakers hint at some form of tightening, there’s still little room for the JPY to add. Market players would need action to react to the event rather than promises. The base of the latest range is the 141.50 price zone, a potential bearish target should Japanese policymakers drop the yield curve control or unexpectedly hike rates. A break below the level could trigger large stops and result in USD/JPY nearing the 140.00 figure. Formal intervention could also take its toll on USD/JPY, although the potential slump will depend on the measures announced. The impact of the latter could be short-lived. On the other hand, an on-hold decision could take the pair beyond the aforementioned two-decade high.
Fed September Preview: Terminal rate projection is key

Fed September Preview: Terminal rate projection is key

FXStreet News FXStreet News 20.09.2022 15:34
Fed will announce its monetary policy decisions on Wednesday, September 21.US central bank is widely expected to raise its policy rate by 75 bps.Investors will pay close attention to terminal rate projection in dot plot.The US Federal Reserve is widely expected to hike its policy rate by 75 basis points (bps) to a range of between 3%-3.25% on Wednesday, September 21. The market positioning following the upbeat employment and stronger-than-expected Consumer Price Index (CPI) figures for August, however, suggests that there is a 14% probability of a 100 bps increase. The Fed will also release its updated Summary of Economic Projections (SEP), the so-called dot plot, alongside its policy statement.Source: CME GroupThe US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, has gained over 4% since mid-August and touched its highest level in nearly two decades at 110.78 on September 7 before going into a consolidation phase. Since July’s 75 bps hike, FOMC policymakers reiterated that they will make policy decisions on a meeting-by-meeting basis and reaffirmed their commitment to battle inflation. While speaking at the Jackson Hole Symposium on August 25, FOMC Chairman Jerome Powell noted that the restrictive policy will remain in place for ‘some time’ for them to be able to restore price stability. “These are the unfortunate costs of reducing inflation but failing to restore price stability would mean far greater pain,” Powell said, reminding markets that they will prioritize taming inflation even if their actions were to weigh on economic activity. June Summary of Economic ProjectionsSource: US Federal ReserveNeutral scenarioIn case the Fed raises the policy rate by 75 bps as expected, the dot plot will be scrutinized by investors for fresh clues regarding the policy outlook. June’s SEP showed that the terminal rate in 2023 was expected to be 3.8%. Given the worsening inflation outlook and July’s 75 bps hike, it wouldn’t be surprising to see a much higher estimate for the terminal rate. If the publication reveals that the policy rate is forecast to peak somewhere between 4.5% and 5% next year before starting to decline in 2024, that would suggest that the Fed is likely to continue to frontload rate hikes early next year and stay on hold rather than looking to ease the policy prematurely. In the neutral scenario, the dot plot is likely to reveal a downward revision to the Gross Domestic Product growth for 2022, which stood at 1.7% in June’s projection. Unless the Fed outright forecasts a recession, however, that would signal that the US central bank should be able to stay on its tightening path.Dovish scenarioA 50 bps rate hike, which is extremely unlikely at this point, would be a significant dovish surprise and trigger a long-lasting dollar sell-off. If the Fed opts for a 75 bps hike as expected, a terminal rate forecast below 4.5% could also force the greenback to lose strength against its rivals. An optimistic inflation outlook combined with a recession forecast in 2023 could cause investors to start pricing in a policy shift in the second half of next year.Hawkish scenarioClearly, a 100 bps hike would be a hawkish outcome and fuel another dollar rally in the short term. A terminal rate at or above 5% in 2023 alongside a 75 bps increase in September would also offer an even more aggressive Fed rate hike path than what markets are currently expecting. A significant upward revision to the 2023 PCE inflation forecast with an unchanged growth expectation for the same could also provide a boost to the dollar. SummarySince the most probable outcome of the September FOMC policy meeting is a 75 bps rate hike, the location of the projected terminal rate is likely to drive the market reaction. Around mid-July, markets were optimistic that the Fed could take a dovish turn in the second half of 2023 and the DXY moved in a downtrend for a few weeks until mid-August. With FOMC policymakers arguing that the markets were getting ahead of themselves by expecting rate cuts next year, the selling pressure surrounding the greenback abated. Strong labor market data and dissipating hopes of inflation having peaked this summer reassured markets that the US central bank has no other option than frontloading rate hikes. The DXY rally that started in mid-August suggests that a 75 bps hike with a terminal rate of between 4.5% and 5% next year, as noted in the neutral scenario, is largely priced in. Hence, the dollar could weaken in the short-term amid a ‘buy the rumor sell the fact’ market action. Nevertheless, it will be only a matter of time before investors fail to find a better alternative than the USD in the current market environment, especially when considering the widening policy divergence between the Fed and other major central banks.
Shiba Inu price knows it is time to say its goodbyes to $0.00001

Shiba Inu price knows it is time to say its goodbyes to $0.00001

FXStreet News FXStreet News 20.09.2022 15:34
Shiba Inu price is set to drop another 10% this week.SHIB price is at risk of breaking below the low of past summer.Expect a sharp move lower towards $0.00000655, or 40% devaluation of its current price.Shiba Inu (SHIB) price has briefly been flirting with the possible start of a bull run, but with bulls dropping the ball due to dollar strength in September, has instead suffered a back-to-school moment. Since the beginning of the month, key levels have been given up, with the biggest at $0.00001209. Another leg lower looks to be granted as the Swedish Riksbank sets the market tone with a supersized 100 bp hike, which, should the Fed do the same on Wednesday, trigger a massive sell-off in cryptocurrencies on the back of even more dollar strength.SHIB price at risk of Fed squeezeShiba Inu price is at the mercy of central banks after markets got rattled today with a surprise 100 bps hike from the Swedish Riksbank. Although Sweden and the SEK have little to do with cryptocurrencies the move has put markets on edge before the Fed policy meeting on Wednesday, and a surprise 100 bps hike from the Fed would be a huge game changer for markets. Massive dollar strength would kick in and trigger an avalanche sell-off in equities and cryptocurrencies.SHIB price is thus at risk of dropping 10% in the run up to the Fed meeting on Wednesday evening as markets get more nervous that 100 bps could be on the cards. Depending on how Powell delivers his message, expect to see even more dollar strength coming in, pushing the eurodollar back below parity and triggering another sell-off in equities and cryptocurrencies, which will be enough to pressure a break below $0.00000965. From there, another area opens up that could see a drop unwinding towards $0.00000655, adding another 40% losses in the books for 2022.SHIB/USD Daily chartThe alternative scenario could be that a turnaround occurs should the Fed only deliver a smaller-than-expected rate hike with a dovish message. That would mean a small uptick towards $0.00001209 and a positive return of 11%. That would be as far as the short-term rally would go as the red descending trend line, the historic pivotal level at $0.00001209 and the 55-day Simple Moving Average all reside around that level as caps.
Gold Price Forecast: XAU/USD remains depressed near $1,665 amid sustained USD strength

Gold Price Forecast: XAU/USD remains depressed near $1,665 amid sustained USD strength

FXStreet News FXStreet News 19.09.2022 16:15
Gold meets with a fresh supply and slides back closer to the YTD low set on Friday. Resurgent USD demand turns out to be a key factor exerting downward pressure. The risk-off impulse helps limit losses ahead of key central bank meetings this week. Gold maintains its offered tone through the early North American session and is currently placed near the $1,665 region, just above the daily low. A stronger US dollar is seen weighing on the dollar-denominated commodity, which remains well within the striking distance of its lowest level since April 2020 touched on Friday. Expectations that the Federal Reserve will stick to its aggressive rate-hike path to tame uncomfortably high inflation continue to underpin the greenback. A fall in the near-term inflation expectations for consumer prices in the US to a one-year low in September forced investors to scale back bets for a full 100 bps Fed rate hike move. The US central bank, however, is expected to deliver at least a 75 bps at the end of a two-day monetary policy meeting on Wednesday, which continues to underpin the greenback. This, in turn, remains supportive of elevated US Treasury bond yields. This, along with the prospects for a faster interest rate hike by other major central banks, further contributes to driving flows away from the non-yielding yellow metal. That said, the prevalent risk-off environment, as depicted by a fresh leg down in the equity markets, offers some support to traditional safe-haven assets. This turns out to be the only factor lending some support to gold and limiting the downside, at least for now. Investors also seem reluctant to place aggressive bets and prefer to move to the sidelines ahead of a flurry of central bank meetings this week. The Fed is scheduled to announce its decision on Wednesday, which will play a key role in influencing the near-term USD price dynamics. This will be followed by the Bank of Japan (BoJ), the Swiss National Bank (SNB) and the Bank of England (BoE) on Thursday. This, in turn, should assist investors to determine the next leg of a directional move for gold.
We're past The Ethereum Merge, now we start to think about next Bitcoin halving which may happen quite shortly

Are these altcoins dead? Ethereum, XRP and Cardano price trends show signs of weakness

FXStreet News FXStreet News 19.09.2022 16:15
Ethereum Merge behind us, a phase of Bitcoin dominance has commenced and altcoins have suffered a decline in the past week. The current market cycle is marked by long accumulation and long consolidation phases, analysts consider this worse than a bear market. Ethereum price is on a steep decline, analysts have set a downside target of $1,277 for the altcoin in the ongoing bloodbath. Successful completion of the Merge has paved the way for Ethereum’s 18% dominance. Interestingly, Ethereum, XRP and Cardano, among other altcoins, are showing signs of weakness in their price trends. Analysts believe it is the end of altcoin season and the beginning of Bitcoin’s dominance yet again. Ethereum price continues decline despite successful Merge Ethereum Merge is successfully behind us and the crypto community has turned its eyes to the Cardano Vasil hard fork. The hype surrounding the Ethereum Merge has died down, ETH price is on a steep decline. Analysts have set a bearish target of $1,250 for Ethereum’s price. Traders should be aware of the bearish signals in Ethereum’s price trend. Though trader sentiment was bullish ahead of the Merge, the decline in ETH price has fueled a bearish sentiment among Ethereum holders. Ethereum price decline post Merge Analysts at the YouTube channel Bleeding Crypto identified Ethereum’s loss of support at $1,362 as a key bearish signal for the altcoin. Analysts have anticipated another drop down in Ethereum price, to support at the $1277.30 level. ETH-USDT Perpetual Contract 12-hour chart Analysts at FXStreet are bearish on the Ethereum price trend. For key price levels, check the video below: Bitcoin vs. top 50 altcoins Analysts at crypto intelligence platform IntoTheCryptoverse argue that Bitcoin’s dominance is gaining ground. Ethereum Merge fueled a bullish sentiment among holders, pushing ETH dominance to 18%. Bitcoin therefore needs to outperform Ethereum and the top 50 cryptocurrencies. Altcoin season index is considered an indicator of altcoin price trend reversal and what to expect from cryptocurrencies into 50. The index currently reads 69, and this implies it is not Altcoin season. Analysts argue it is a bear market in the ongoing cycle and Bitcoin dominance is likely to overtake altcoins. When less than 25% altcoins have a 90-day ROI greater than Bitcoin, it is Bitcoin season. Therefore, analysts believe Bitcoin season is about to commence. Altcoin Season Index Ethereum, XRP and Cardano price trends show signs of weakness After month-long altseason, a period in which 75% of the altcoins have a greater 90-day ROI than Bitcoin, altcoins have witnessed a bloodbath. Altcoins in top 30, Ethereum, XRP and Cardano have witnessed double-digit losses overnight. While there is still a high number of altcoins with a 90-day ROI greater than 100% and Luna Classic is the best performer, liquidity has started flowing into Bitcoin. IntoTheCryptoverse’s report on altcoins reveals a change in inflow of capital. The decline below the red region in the Altseason Index reveals more altcoins have started bleeding against Bitcoin again. Analysts have identified a weakness in the Ethereum, XRP and Cardano price trend. Altcoin Season Index
Gold Price Forecast: XAU/USD struggles near 29-month low amid Fed rate hike jitters

Gold Price Forecast: XAU/USD struggles near 29-month low amid Fed rate hike jitters

FXStreet News FXStreet News 16.09.2022 16:41
Gold remains under intense selling pressure for the fourth successive day on Friday. Aggressive Fed rate hike bets boost the USD and drive flows away from the metal. The risk-off impulse offers some support to the XAU/USD amid oversold conditions. Gold continues losing ground for the fourth successive day on Friday and drops to its lowest level since April 2020. The selling pressure now seems to have abated, at least for the time being, allowing the XAU/USD to hold above the $1,650 level. The US dollar catches fresh bids on the last day of the week amid expectations of a hefty rate hike by the Fed and turns out to be a key factor exerting downward pressure on the dollar-denominated gold. In fact, the markets started pricing in the possibility of a full 100 bps rate increase at the upcoming FOMC meeting on September 20-21 following the release of the stronger US CPI earlier this week. Moreover, market players also expect the US central bank to deliver another supersized 75 bps rate hike in November. This remains supportive of elevated US Treasury bond yields, which offer additional support to the greenback and further contribute to driving flows away from the non-yielding yellow metal. That said, the risk-off impulse helps limit losses for the safe-haven gold, at least for now. The market sentiment remains fragile amid worries that the rapid rise in borrowing costs will lead to a deeper global economic downturn. This, along with the economic headwinds stemming from fresh COVID-19 lockdowns in China and the protracted Russia-Ukraine war, has been fueling recession fears. This, in turn, tempers investors' appetite for riskier assets and triggers a sell-off in the equity markets. Apart from this, extremely oversold conditions on the 4-hour chart hold back bearish traders from placing fresh bets around gold. Investors might also prefer to move to the sidelines ahead of next week's key central bank event risks. The Fed is scheduled to announce its decision on Wednesday, which will be followed by the Bank of Japan, Swiss National Bank and the Bank of England meetings on Thursday. Nevertheless, the fundamental backdrop remains tilted firmly in favour of bearish traders and suggests that the path of least resistance for gold is to the downside. Hence, any meaningful recovery attempt might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.
Binance Coin price pops higher against all odds

Binance Coin price pops higher against all odds

FXStreet News FXStreet News 16.09.2022 16:41
Binance Coin price pops over 1% higher while Ethereum’s Merge melt-down taunts most other cryptocurrencies. Although the BNB price might be popping higher, hidden issues lurk under the hood. The forecast remains unchanged for a drop back to $212.50. Binance Coin (BNB) price is popping higher while most other cryptocurrencies are on the back foot, unable to recover from the intraday melt-down on the back of Ethereum’s Merge. More things are likely cooking under the hood, as overall cryptocurrency support is fading. That Elon Musk has other things in the fire and is not able to come out in support of cryptocurrencies has lessened their popular appeal. Now that Matt Damon and Lebron James are demanding their crypto advertisements be pulled, is another telling sign of an industry-wide collapse in the making. BNB price is in dire need of Matt Damon Binance Coin price looks to be fighting back intraday in a challenging market with cryptocurrencies taunted by Ethereum’s price collapse after the Merge and Bitcoin not able to rally away from $20,000. Support is also fading with a very battered equilibrium where the dollar outweighs almost every crypto- and alt currency. You can’t blame Matt Damon and Lebron James for demanding to pull their ads for an industry that has gone from a $3B market capitalization to just $1B in nine months. BNB price thus has a lot going against it, and the little recoveries are rather the last impulses of what appears to be a dying body, ready to go into zombie mode. Should next week continue to be negative, with markets focused on the Fed coming out with a surprise 100 bps rate hike, expect a melt-down with $260 as first support. Next, the area around $230 would be the last level seen before Binance Coin price hits $212.50 – a total 22% decline from where BNB price is currently trading. BNB/USD Daily chart On the other hand, it is possible the recovery currently underway could well extend should price action refrain from making new lows. Traders would get a more secure entry level, away from this week’s low, to build up some long positions going into the weekend. From there, a quick recovery towards $290 is possible as more upside would be limited with the Fed central bank meeting as a key event for next week.
Cardano remains asleep for the last two months and a half

Crypto - Altcoins: What Can We Expect From (ADA) Cardano Price?

FXStreet News FXStreet News 15.09.2022 16:27
Cardano price saw bulls clawing back gains after the sucker-punch price received on Tuesday. ADA price paired back losses and booked over 3% gains. Expect a drop back to the lower end, with pressure building on the support at $0.46 and a possible leg lower to $0.42. Cardano price sees investors focusing on retail numbers out of the US today, as markets try to get their heads around a myriad of moving elements – from the EU measures to tackle the energy crisis, to Japan where the central bank is near to intervening in forex markets. The risk for Cardano price is that a rejection from the monthly pivot could trigger a further drop lower. ADA price could drop 10% if the floor gives way Cardano price is seeing traders and investors struggle with what to do with the fast-moving components rattling the markets. After the big drop on Tuesday, it was quite normal and expected to see some buying, which triggered a neat recovery, but not a full paring back of the incurred losses. Instead, price action took another leg lower this morning during the ASIA PAC session as Asian traders had difficulties with China’s easing measures, and in the meantime, the BoJ (Bank of Japan) is set to trigger a bulk market intervention to support the falling yen. ADA price is thus likely to get caught between the monthly pivot at $0.488 and the floor at $0.460, which looks to be the bottom for this week. Risk to the downside comes with equity markets set up for another slide should retail sales remain strong. That would be perceived as a key number as it will count as confirmation that the Fed will step up its game and tighten even more, with the effect on ADA of triggering a drop to $0.4200. ADA/USD Daily chart Alternatively, sentiment could start to change as the US session kicks in, as equities are mildly on the front foot and could pull cryptocurrencies up along with them. Again watch out for the 55-day Simple Moving Average and the area around $0.5000 where bulls already burnt their fingers once this week, as a sharp rally would be needed to trade clear enough away from the region to see it in the rear view mirror. Rather look for a close near $0.5200 as confirmation to withstand any fades or pullbacks that might occur by Friday.
Twilio Stock Forecast: TWLO's 10% rally on back of layoffs has legs

Twilio Stock Forecast: TWLO's 10% rally on back of layoffs has legs

FXStreet News FXStreet News 15.09.2022 16:27
TWLO stock advanced 10% on Wednesday.Management announced it would cut 11% of the workforce.The effort is part of the company's attempt to cut operating losses.Twilio (TWLO) stock rallied 10% on Wednesday to close at $77.97. The excitement stems from some bad news for workers. The company said it would lay off approximately 11% of its workforce in order to make a more direct attempt to reduce operating losses.With more than 8,500 employees, it is thought that between 900 and 1,000 workers will be let go. The customer service software firm said that most of the cuts would be in the third and fourth quarters but that some might extend into early 2023. This is significant since Twilio is expected to run its first full-year profit in 2023. Analysts have a consensus figure of $0.17 per share in 2023.The firm said that it will take charges of between $70 and $90 million in the third quarter related to the downsizing and that $55 to $70 million will involve cash.Twilio stock forecastTwilio stock rebounded so strongly not just because the market thinks the cuts will help it achieve profitability faster, but TWLO stock was already sitting on long-term support. The region from approximately $64 to $74 is a long-term demand zone from 2018. It again helped TWLO stock find footing during the 2020 covid panic in March of that year. The market was just looking for a reason to rebound. Additionally, there is a divergence between the Relative Strength Index (RSI) and the weekly price chart below. Since about March Twilio stock has been experiencing lower lows. However, at the same time on the RSI it was experiencing higher lows. This divergence pattery typically signals a reversal.TWLO weekly chartLate June and early August both saw range highs that topped out in the supply zone between $98 and $102. That is the first point of resistance. The second resistance zone stems from the supply zone between $108 and $111. Both of these regions are points at which to take profit for any bulls out thereTWLO daily chart
Crude oil gains on the back of hopes in China and OPEC+

XAU/USD: What's Keeping Price Of Gold Away From Rising?

FXStreet News FXStreet News 14.09.2022 16:41
Gold reverses an intraday dip to sub-$1,700 levels, though struggles to gain any meaningful traction. A modest USD weakness offers some support; bets for more aggressive Fed rate hikes continue to cap. Signs of stability in the equity markets also suggest that the path of least resistance is to the downside. Gold shows resilience below the $1,700 mark for the second successive day and attracts some dip-buying on Wednesday. The XAU/USD sticks to a mild positive bias through the early North American session, though seems to struggle to capitalize on the move and remains below the $1,710 level. Following the previous day's stronger US CPI-inspired rally, the US dollar edges lower and turns out to be a key factor offering some support to the dollar-denominated commodity. The modest USD downtick lacks any obvious fundamental catalyst and is more likely to remain limited amid expectations that the Fed will keep raising interest rates at a faster pace to tame inflation. The implied odds for a full 1% rate hike at the September FOMC meeting stands at 34%. Moreover, the markets have also been pricing in another 75 bps rate hike move in November. This, in turn, lifts the yield on the rate-sensitive two-year US government bond to levels last seen in November 2007 and the benchmark 10-year Treasury note holds steady near the YTD peak touched in June. The prospects for a more aggressive policy tightening by the Fed, along with elevated US Treasury bond yields, favours the USD bulls and caps the non-yielding gold. Apart from this, a modest recovery in the risk sentiment - as depicted by signs of stability in the equity markets - further contributes to keeping a lid on any meaningful upside for the safe-haven precious metal. Looking at the broader picture, gold has been oscillating in a familiar band over the past two weeks or so. Given that the XAU/USD, so far, has been struggling to gain any meaningful traction, the range-bound price action might still be categorized as a bearish consolidation phase. This, in turn, suggests that the path of least resistance for the commodity is to the downside.
China Protests Hit Apple | BlockFi Files For Bankruptcy

How Did The US Inflation Print Affect Tech Stocks? Check Apple Stock, Amazon And Other Companies' Reaction

FXStreet News FXStreet News 14.09.2022 16:41
META stock falls over 9% on Tuesday in a market meltdown. Nasdaq is down 5%, and S&P 500 is down 4% by comparison. Meta Platforms underperforms markedly versus main indices. Meta Platforms (META) stock fell sharply on Tuesday as the market digested the US CPI print. A higher than expected number led to a sharp sell-off in equities with all the main indices closing sharply lower. However, tech took the biggest brunt of the selling with Apple and Alphabet down 6%, amazon down 7%, and Meta Platforms down a whopping 9%. Meta Platforms stock news Why the big divergence from big tech? Usually, these are seen as haven plays. All are supposed to be cash generative. The problem is big tech is generally seen as having the most to lose from higher interest rates. This may be true for some but not all. The higher the growth rate of a stock, then the bigger effect a change in interest rates has on its performance. That is why FAANG was such an outsized performer during the Fed juiced says of monetary stimulus post-pandemic. Higher growth rates get discounted by the prevailing rate of interest. If those interest rates are forecast to rise, then the present value calculation gets reduced. Adding to tech pressure and especially for the aforementioned companies is the strength of the US dollar. These are global companies, many of whom generate more than half of their revenues in overseas currencies. When that overseas currency depreciates (think euro, yen, GBP, etc.), then all of a sudden those foreign revenues are worth less in dollar terms. This affects revenues and leads to the hilarious lines we see in corporate earnings reports – "in constant currency". When are currencies ever constant? Adding to the sentiment of Meta stock this morning is news that South Korea has fined it and Alphabet (GOOGL) over violation of privacy laws, according to Reuters. Meta Platforms stock forecast META is just on massive support at around $154. Breaking this, the next level is the pandemic low at $137. The double top at $184 keeps a lid on bulls, and only a break there begins to look interesting for the bearish narrative to end. META stock chart, daily
US Inflation Analysis: Soaring Core CPI smashes Fed pivot narrative, King Dollar back on the throne

US Inflation Analysis: Soaring Core CPI smashes Fed pivot narrative, King Dollar back on the throne

FXStreet News FXStreet News 13.09.2022 16:08
US Core CPI has come out at 0.6% in August, double the early expectations. Dollar gains are set to continue amid Fed's "quiet period" which adds to the uncertainty.Expectations for a 100 bps hike seem exaggerated but are unlikely to stop the dollar. Like Ukraine's tactics, so has the the price at the pump diverted attention from everything else – and everything else is rising in price. The Core Consumer Price Index has shocked markets with a leap of 0.6% in August vs. 0.3% expected and 0.3% last month. That dip in July proved to be a one-off, Sliding gasoline prices have only lowered headline annual inflation, but that is not what matters to Wall Street. Markets had been pricing a "pivot" from the Federal Reserve – a 75 bps hike in September before materially slowing down, "tapering down" rate hikes. That is out of question now, as prices soar. The fact that headline inflation moderated to 8.3% from 8.5% last month may or may not help President Joe Biden, but markets only care about core CPI and the Fed. The dollar soared across the board, with EUR/USD tumbling some 150 pips, GBP/USD nearly 200, while USD/JPY leaped over 250. Stocks went from trending higher to trending lower and gold melted by $30 bucks as 10-year yields march toward 3.50%. The slide in the dollar proved to be a correction, but will it gain more ground from here? Inflation serves as a reset to the market's narrative and more gains are on the cards – yet it is unlikely to be a one-way street. Some profit-taking is likely before the trend resumes. One of the reasons to expect further advances for the world's reserve currency stems from the Federal Reserve's quiet period. Officials refrain from speaking to the public in the ten days leading to their meetings. The next one is on September 21. Such silence is defeating for markets, which hate uncertainty. Nick Timiraos – the Wall Street Journal's reporter with ties at the Fed – is the only one who could break the silence. If he reports that the bank is leaning toward a 100 bps move, the dollar could gain even more ground. Bond markets are reflecting an 84% chance of a 75 bps hike, and only 16% of a 100-bps hike. From here, Timiraos can only push the greenback higher.Assuming the Fed sticks to a third triple-dose hike of 75 bps – which is aggressive in its own right – the greenback would still remain the leader, with dips only serving as buying opportunities. US Retail Sales and the University of Michigan's inflation expectations data are of interest, but only the Fed decision could compete with inflation figures for market moves of such magnitude. King Dollar is alive and kicking.
Zoom Video EPS beat market expectations. Next week's Eurozone CPI and the US GDP releases are going to attract investors' attention

Apple Stock Price Skyrockets! iPhone 14 Is Said To Be The Rocket Propeller!

FXStreet News FXStreet News 13.09.2022 16:08
Apple stock soars as new iPhone 14 boosts demand for the stock. iPhone 14 sales are reportedly strong despite some critics. Apple stock now soaring to near all-time highs. Apple (AAPL) stock began the week strongly when it dragged the main indices higher as the tech and overall market leader powered ahead by nearly 4%. By the close Apple reached $163.43, having briefly traded above $164 earlier on Tuesday. Apple stock news The stock was pushed higher on the back of a positive note from noted Apple analyst Dan Ives at Wedbush. We should also note he is largely bullish on Apple, which has been the consistently correct call. In a note, to the client, Ives said demand is solid and ahead of the iPhone 13. Also, customers appear to be going for the more expensive models – the iPhone Pro and Max models. Higher prices mean higher margins for Apple. "We expect this heavy Pro/Pro Max mix to continue with China also a major sway factor as more consumers in this key region head to the Pro model," Ives added. This will come as welcome news as some people have been openly stating that the new iPhone 14 does not have enough features to differentiate it from the iPhone 13 and so sway customers to switch. Yahoo Entertainment reported on a cheeky meme from Steve Jobs's daughter Eve. Apple stock forecast Regular readers will notice from the lack of a disclaimer at the bottom of this page that I have cut my short position. I did this last week thankfully before the rally got going. My take is more a macro view than stock specific. I cannot see the equity market making new lows now, and this rally looks set up to continue. CPI should decline when it is released today. Oil and commodity prices are much lower. That will further fuel the Fed pivot and soft landing theory, and so equities should keep rallying. It will take a few months of CPI releases before people realize this is not going to drop enough for the Fed to pivot. Apple has performed very nicely from a technical perspective of late. The strong summer rally saw a near-perfect 50% Fibonacci retracement before bouncing above the 50-day and now 200-day moving averages. The next target is now $171.40 to fill the gap. The bullish pivot is the 38.2% Fibonacci retracement and 50-day moving average at $158.32. Apple stock daily
US CPI Preview: Dollar set to climb on low core expectations, three scenarios

US CPI Preview: Dollar set to climb on low core expectations, three scenarios

FXStreet News FXStreet News 13.09.2022 02:28
Economists expect Core CPI – the market-moving figure – to have risen by 0.3% in August. Relatively low expectations open the door to an upside surprise. The Fed is set to raise rates by 75 bps next week, data is critical for following moves. Everybody wants to be ahead of the curve – the Federal Reserve ahead of inflation and market participants ahead of their peers. The dollar is already falling on expectations of easing prices – but this rush could prove premature. I think that low expectations for August's Consumer Price Index report are a recipe for a greenback comeback. One of the comments that triggered the recent dumping of dollars came from US Treasury Secretary Janet Yellen. The former Fed Chair said that she expects lower inflation in August due to the ongoing drop in gasoline prices. Indeed, it is hard to argue that oil squeeze would fuel a negative print in headline CPI. However, Core CPI – everything excluding food and energy prices is what matters to the Fed. The economic calendar is pointing to Core CPI coming out at 0.3% MoM, a repeat of July. While forecasting that the near past will repeat itself seems logical, it is a significant clmb down for economists. It is the lowest estimate in 11 months: Source: FXStreet After three consecutive months of underestimating Core CPI, the consensus overestimated in July – 0.5% expected, actual only 0.3% – and now the pendulum has swung in the other direction. Has it gone too far? That is my argument. The American economy is still steaming hot, gaining 315,000 jobs in August and benefiting from growing demand for services such as leisure and hospitality, in the first full post-pandemic summer season. It is hard to see another month of moderate price rises. A minor beat of 0.4% would show that the Fed still has a long way to go to cool inflation. A 0.4% monthly increase is roughly 5% annualized, far above the bank's 2% target. However, as every tenth matters, we need to consider all scenarios. CPI and USD 1) Higher than expected: Assuming expectations are too low, a beat such as 0.4% or 0.5% on Core CPI would spark dollar buying, raising the chances of a fourth consecutive jumbo-sized interest rate hike and undoing some of the downside correction. Such a counter-move to dollar sales which have been triggered by expectations for softer Fed moves in September. The Fed is set to raise borrowing costs by 75 bps next week, doing it for the third time. In his last speech before the bank's blackout period, Fed Chair Jerome Powell did not push back against market expectations of such a move later in the month. 2) As expected: Core CPI of 0.3% MoM would serve as a second consecutive slowdown in underlying inflation, reflecting under 4% annualized Core CPI. That is still high, justifying the upcoming 75 bps move, but also adding to the case of a slowdown by the bank. A scenario of a 50 bps hike in November would gain more strength. The dollar would likely consolidate recent losses, without going too far. Attention would move to Retail Sales figures coming out later in the week. 3) Below expectations: Any surprising deceleration in Core CPI would hit the dollar hard. A 0.2% monthly increase is something like 2.5% in annualized terms, almost at the Fed's target. Officials would warn that it could be a one-off, but markets would shoot first and think later. It would cast doubt on the Fed's upcoming meeting, sending investors to closely watch Nick Timiraos of the Wall Street Journal, the person who conveyed the previous last-minute change by the Fed back in June. Even in the more likely scenario of the Fed sticking to its plans for September, these drops in inflation would trigger expectations for rate cuts in 2023. In the short term, the dollar would tumble. Final thoughts The CPI release provides the first hard evidence of inflation, which remains the Fed's focus. Surveys of inflation expectations are only opinions, not prices, and the PCE inflation report is due out only later in the month. Market volatility is high and is set to further rise in response to the release – trade with care.
Bitcoin traders play waiting game ahead of CPI data and the Merge

Bitcoin traders play waiting game ahead of CPI data and the Merge

FXStreet News FXStreet News 13.09.2022 02:28
Bitcoin briefly hit the $22,000 level before retreating to the $21,700 level in the recent correction. Bloomberg analysts believe traders are awaiting US inflation data and a successful completion of the Ethereum Merge, before making a move. Analysts predict a comeback in Bitcoin price, identified a bullish engulfing candle in the BTC price chart. Bitcoin price witnessed a slow recovery from its slump as investors waited for the release of CPI data. Analysts believe Bitcoin price could witness a reversal of its downtrend once there is a successful completion of the Merge. Bitcoin price rally cools off ahead of CPI data Bitcoin’s price scaled $22,000 briefly before retracing the $21,700 level. Analysts at Bloomberg believe Bitcon’s price trend can be explained by the anticipation surrounding the release of CPI data and the upcoming Merge. Ethereum’s Merge and the transition to proof-of-stake is a milestone event in the crypto ecosystem. The community is likely to witness a change in the way Ethereum is created and a massive scale up in the ETH blockchain’s adoption. A hard fork is likely, according to Proof-of-Work supporters, this could result in an airdrop of PoW tokens for PoS holders. The Merge and resulting consequences could therefore shift trader’s perspective in the crypto ecosystem. The release of CPI data and the Merge could therefore influence Bitcoin’s price. Inflation figures and the upgrade in the Ethereum ecosystem could result in volatility in Bitcoin price trend. Higher than expected US inflation could harden traders’ expectations and result in a decline in Bitcoin price. Similarly, any roadblock or challenge faced by the Ethereum blockchain could hurt trader sentiment and result in decrease in capital inflow to the crypto ecosystem. Analysts identifies bullish signal in BTC price chart Phoenix Ashes, a pseudonymous crypto analyst evaluated the Bitcoin price chart and noted that there is no bullish divergence in sight. The analyst commented on Bitcoin’s price chart in a recent tweet: BraveNewCoin liquid index for Bitcoin RektProof, a crypto trader argues that Bitcoin price could retrace lower, to the $18,600 level before its rally. The analyst has therefore identified two key areas of interest to open shorts. The $20,000 level and the $26,000 level are the two key points on Bitcoin’s price trend where the analyst expects a correction, therefore an opportunity for a short. Bitcoin Perpetual Futures
Wow! Bitcoin trades at ca. 75% lower level than... a year ago...

Crypto: Not Only Is Bitcoin Ahead Of US Inflation Print, But Also Implementation Of The Ethereum's Merge

FXStreet News FXStreet News 12.09.2022 21:32
Bitcoin traders play waiting game ahead of CPI data and the Merge Bitcoin briefly hit the $22,000 level before retreating to the $21,700 level in the recent correction. Bloomberg analysts believe traders are awaiting US inflation data and a successful completion of the Ethereum Merge, before making a move. Analysts predict a comeback in Bitcoin price, identified a bullish engulfing candle in the BTC price chart. Bitcoin price witnessed a slow recovery from its slump as investors waited for the release of CPI data. Analysts believe Bitcoin price could witness a reversal of its downtrend once there is a successful completion of the Merge. Bitcoin price rally cools off ahead of CPI data Bitcoin’s price scaled $22,000 briefly before retracing the $21,700 level. Analysts at Bloomberg believe Bitcon’s price trend can be explained by the anticipation surrounding the release of CPI data and the upcoming Merge. Ethereum’s Merge and the transition to proof-of-stake is a milestone event in the crypto ecosystem. The community is likely to witness a change in the way Ethereum is created and a massive scale up in the ETH blockchain’s adoption. A hard fork is likely, according to Proof-of-Work supporters, this could result in an airdrop of PoW tokens for PoS holders. The Merge and resulting consequences could therefore shift trader’s perspective in the crypto ecosystem. The release of CPI data and the Merge could therefore influence Bitcoin’s price. Inflation figures and the upgrade in the Ethereum ecosystem could result in volatility in Bitcoin price trend. Higher than expected US inflation could harden traders’ expectations and result in a decline in Bitcoin price. Similarly, any roadblock or challenge faced by the Ethereum blockchain could hurt trader sentiment and result in decrease in capital inflow to the crypto ecosystem. Analysts identifies bullish signal in BTC price chart Phoenix Ashes, a pseudonymous crypto analyst evaluated the Bitcoin price chart and noted that there is no bullish divergence in sight. The analyst commented on Bitcoin’s price chart in a recent tweet: BraveNewCoin liquid index for Bitcoin RektProof, a crypto trader argues that Bitcoin price could retrace lower, to the $18,600 level before its rally. The analyst has therefore identified two key areas of interest to open shorts. The $20,000 level and the $26,000 level are the two key points on Bitcoin’s price trend where the analyst expects a correction, therefore an opportunity for a short. Bitcoin Perpetual Futures  
Cryptocurrency: Bitcoin Price - What Can We Expect From The Leading Crypto? (09.09.22)

Cryptocurrency: Bitcoin Price - What Can We Expect From The Leading Crypto? (09.09.22)

FXStreet News FXStreet News 09.09.2022 15:02
Bitcoin price remains at a critical level from a macro perspective and could still crash another 40%. BTC is primed for a quick recovery rally to $21,874 from a short-term outlook and could give bulls a much-needed break. Transaction history suggests a steep nosedive for the big crypto if these levels are breached. Bitcoin price has not only swept key swing lows, as noted in last week’s articles, but it has also reached its first recovery level target. While the recovery rally was as quick as it was a surprise, investors can hope for a minor retracement to get on the next leg-up. Although the short-term outlook might look bullish depending on the time frame, the larger picture for BTC remains massively bearish with the possibility of another catastrophic crash brewing. Bitcoin price and the macro outlook Bitcoin price, as described in the previous weekly update, continues to fill up the void, extending from $29,563 to $11,989. Very little volume was traded in this area as BTC rallied 145% between October 18, 2020, and December 29, 2020, creating an inefficiency. Hence, the recent dive in Bitcoin price is a corrective move to fill up the imbalance. As Bitcoin price tags the $19,087 to $20,562 support area, there is a remarkable yet obvious bullish reaction since this area coincides with the 2022 Point of Control (POC), or the highest traded volume level, at $20,562 . Investors can expect this bounce to extend a little higher as market participants vie for a recovery rally. However, the larger outlook is bearish, and a breakdown of the $19,087 level will trigger the next leg down. This nosedive could potentially shed 42% of Bitcoin price’s current value and push it down to $11,989 or the $12,000 psychological level, which could very well be the macro bottom for the big crypto and the entire market. Readers should note that this massive downswing is NOT likely to happen over the next two or three weeks but could occur in December 2022 or the first quarter of 2023. BTC/USDT 1-day chart Supporting this downtrend and the critical support areas described above for Bitcoin price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that the immediate support level at $19,230 is weak, and a breakdown could knock BTC down to the next support cluster that extends from $9,435 to $18,196. Here the roughly 4.95 million addresses that purchased 1.7 million BTC at an average price of $11,915 are “Out of the Money.” Interestingly, this level coincides perfectly with the one forecasted from a technical outlook and adds credence to the macro bottom occurring anywhere between $11,989 to $13,500. BTC GIOM On a lower time frame, Bitcoin price looks likely to pull back to $20,000 or $19,511 before making the next move. The rationale for this retracement is to refuel the bullish momentum before the next leg-up to equal highs at $21,874. A sweep of this level is likely to form a local top here, but Bitcoin price might revisit the $22,693 hurdle in a highly optimistic case. BTC/USDT 4-hour chart While Bitcoin price remains in an overall downtrend, a daily and a weekly candlestick close above $25,000 will invalidate the bearish outlook and suggest a premature reversal of the downtrend. In such a case, investors should wait for secondary confirmation like higher lows and higher highs before jumping on the bull run bandwagon that could potentially revisit the $30,0000 psychological level.
Gold Price Forecast: XAU/USD rises to more than one-week high amid heavy USD selling

Gold Price Forecast: XAU/USD rises to more than one-week high amid heavy USD selling

FXStreet News FXStreet News 09.09.2022 15:02
Gold gains strong positive traction on Friday amid aggressive USD long-unwinding trade.Aggressive Fed rate hike bets, elevated US bond yields should help limit the USD losses.The risk-on impulse could further contribute to capping the safe-haven precious metal.Gold attracts fresh buying on the last day of the week and climbs to a nearly two-week high during the early part of the European session. The XAU/USD is currently placed just below the $1,730 level and is looking to build on its recent bounce from the lowest level since July 21 touched last week.The US dollar comes under heavy selling pressure on Friday and retreats further from a two-decade high, which turns out to be a key factor boosting demand for the dollar-denominated commodity. The steep USD downfall to a fresh monthly low could be solely attributed to some long-unwinding and is more likely to remain limited amid hawkish Fed expectations.In fact, the US central bank is anticipated to tighten its monetary policy at a faster pace to tame inflation and the bets were reaffirmed by Fed Chair Jerome Powell on Thursday. Speaking at a Cato Institute conference, Powell reiterated the central bank's strong commitment to bringing inflation down and added that the Fed needs to keep going until it gets the job done.Powell's remarks reaffirmed market bets for a supersized 75 bps rate hike at the next FOMC meeting on September 20-21. This remains supportive of elevated US Treasury bond yields, which should help limit any meaningful USD corrective slide. Moreover, other major central banks, except the Bank of Japan, have also maintained a more hawkish bias.Apart from this, the risk-on impulse - as depicted by a generally positive tone around the equity markets - might further contribute to capping the upside for the safe-haven metal. This, in turn, warrants some caution for aggressive bulls. Nevertheless, gold remains on track to register weekly gains and snap a three-week losing streak.
Ethereum Price: Merge pre-game party prompts all-year highs against Bitcoin

Ethereum Price: Merge pre-game party prompts all-year highs against Bitcoin

FXStreet News FXStreet News 08.09.2022 16:23
Ethereum price hit its all-year high against Bitcoin as the Merge draws close. ETH had a strong run against Bitcoin so far in 2022, fueling the flippening narrative. Analysts predict an Ethereum price rally to $2,500 in the days leading up to the Merge. Ethereum’s Merge is the most highly anticipated event fueling a bullish sentiment among holders. ETH price hit an all-year high against Bitcoin, after steady gains over the last nine months. Ethereum bears were hit by massive liquidations in their bets against the asset’s price gain. Ethereum bears lose $300 million in massive liquidation spreeWithin an hour on Thursday Ethereum bears lost nearly $300 million as open interest was closed out on perpetual contracts, futures and options. This came as a relief to the crypto market and analysts consider it a bullish sign for Ethereum’s price. Ethereum’s unexpected bounce above the $1,600 level triggered a slew of liquidations and stop-loss triggers. Short-term panic was followed by a bullish sentiment among ETH holders as the asset hit an all-year high against Bitcoin. ETH price rally continues, analysts eye $2,500 targetEthereum’s price continued to yield gains since the beginning of 2022. Analysts remain bullish on ETH price in the days leading up to the Merge. After hitting fresh all-year highs against Bitcoin at 0.084, analysts set a $2,500 target for the altcoin. Analysts at JJCycles believe Ethereum is poised to hit the $2,500 target ahead of the Merge. Ethereum price yielded nearly 10% gains overnight. ETH-USDT price chartThe “flippening” narrative that proposes Ethereum’s market capitalization will eclipse Bitcoin’s, has not occurred yet. However Ethereum’s steady gains against Bitcoin since mid-June 2022 are a sign of progress towards the flippening. Analysts at FXStreet identified an opportunity for Ethereum price rally as the Merge draws closer. Bulls could benefit from Ethereum’s price gains in the days leading up to the Merge. For more information and key price targets, check the video below:
Tesla Stock News and Forecast: TSLA triples China deliveries

Tesla Stock News and Forecast: TSLA triples China deliveries

FXStreet News FXStreet News 08.09.2022 16:23
Tesla stock rallies sharply on Wednesday.TSLA closes up over 3% at $283.70.Latest car passenger data from China looks strong.Tesla (TSLA) outperformed on Wednesday as equities staged a slight relief rally following perceived dovish comments from Fed member Lael Brainard. Tesla outperformed as the main indices closed up in the region of 2%. The latest data looks promising but has already been widely rumored so presumably was in the price. Tesla stock newsReuters confirmed what was widely speculated on already – strong delivery numbers from China. Recent headlines have been all about falling delivery times for Tesla models in China. Bears used this as evidence of falling demand, while bulls said no it was due to increased production. Now it has been settled – production has indeed risen sharply. "Tesla sold 76,965 Chinese-made vehicles in August, nearly triple its sales from a month ago, as it quickened deliveries after ramping up output at its Shanghai plant," the Reuters article says. "The US carmaker exported 42,463 Model 3s and Model Ys from China last month, the China Passenger Car Association said. In July, it sold 28,217 vehicles and exported 19,756."Tesla has been increasing production rates and capacities at its Giga Shanghai factory and plans to be able to produce over one million vehicles by the end of the work. We do not have insight as to when this is due for completion. Giga Shanghai currently has a production capacity of about 750k vehicles. One of the recent drawbacks for the stock has been continued ETF outflows. Tesla is one of the biggest holdings in index-tracking ETFs and more notoriously in Cathy Woods ARK Innovation ETF (ARKK). We have touched on this in a previous story, but ARKK saw large outflows in August totaling over $800 million. The largest this year. Outflows mean to return cash to the existing holders the fund manager will need to sell underlying shares. Tesla is the biggest holding in ARKK and will naturally fall under pressure as a result.My short position is a macro view. Tesla is a fantastic product and does have huge growth potential. In the current climate though, it is richly valued and will likely see demand falter as we enter the second half of the year. A strong dollar will also hurt. Tesla has increased its overseas revenue and now accounts for more than half of its total revenues. China amounts to over a quarter. The yuan has been progressively weakening versus the dollar. Source: RefinitivTesla stock forecastThe longer-term bearish trend is evident for all to see. The recent rally saw overbought signals on the Relative Strength Index (RSI) and a bearish double top. Now that has played out, and Tesla has retraced to support around the 50-day moving average. Below $314 is the medium-term bearish pivot. Above and it is time to rethink the bearish narrative. Tesla (TSLA) dailyFor those with a shorter time horizon, intraday or swing trading, we have a nice double bottom at $266. Holding above $280 is the Thursday pivot: above and we can test $296, below and a test of the double bottom at $266 is likely.Tesla stock, 15-minute
Gold Price Forecast: XAU/USD steadies around $1,700 mark, not out of the woods yet

Gold Price Forecast: XAU/USD steadies around $1,700 mark, not out of the woods yet

FXStreet News FXStreet News 07.09.2022 16:34
Gold remains depressed for the third successive day, though the downside seems cushioned.Aggressive Fed rate hike bets lift the USD to a fresh two-decade high and act as a headwind.Retreating US bond yields seem to cap gains for the USD and lend support to the XAU/USD.Gold struggles to capitalize on its modest intraday bounce and attracts fresh selling near the $1,707 region on Wednesday. The XAU/USD remains on the defensive through the early North American session and is currently trading around the $1,700 round-figure mark.Unabated US dollar buying continues for the third successive day, which turns out to be a key factor exerting downward pressure on the dollar-denominated gold. In fact, the USD Index, which measures the greenback's performance against a basket of currencies, hits a fresh two-decade high and remains well supported by hawkish Fed expectations.Tuesday's upbeat US ISM Services PMI reaffirmed market bets that the US central bank will continue to hike interest rates more aggressively to tame inflation. The Fed is widely expected to deliver a supersized 75 bps rate hike at the end of a two-day policy meeting on September 21, which, in turn, continues to act as a tailwind for the greenback.Apart from this, a recovery in global risk sentiment - as depicted by a generally positive tone around the equity markets - further undermines the safe-haven gold. That said, a modest pullback in the US Treasury bond yields is holding back the USD bulls from placing fresh bets and lending some support to the non-yielding metal, for the time being.There isn't any major market-moving economic data due for release from the US on Wednesday, leaving the USD bulls at the mercy of the US bond yields. That said, speeches by Fed officials might influence the USD price dynamics and provide some impetus to gold. Traders will further take cues from the broader risk sentiment to grab short-term opportunities.Nevertheless, the fundamental backdrop remains tilted in favour of bearish traders. This, in turn, suggests that any attempted recovery move could be seen as a selling opportunity and runs the risk of fizzling out rather quickly. Gold still seems vulnerable to retesting the $1,689-$1,688 intermediate support before eventually dropping to the YTD low, around the $1,680 area.
The New York State And Law Banning Almost All New Bitcoin Mining Operations

Shocking! Crypto: Bitcoin Price May Decline To Ca. $16K

FXStreet News FXStreet News 07.09.2022 16:34
Bitcoin price sees bulls fretting over massive losses as $20,000 fades away. BTC price enters an area with over 16% of losses in the prospect. Expect a further decline in the coming weeks and months with no end. Bitcoin (BTC) price has said its goodbyes at $20,000 after a few very choppy trading days. With $20,000 in the middle of the range still at the end of August, it was at the start of September that the beloved psychological level started being mentioned on the topside of the intraday price action. Slowly but surely, Bitcoin price slipped below it, and after yesterday it is time to say goodbye to $20,000 for now, saddling up bulls with massive losses and negative pnl’s to come. Bitcoin revisits 2020 all over again Bitcoin price sees bullish support breaking down as price action tanks 5% into the close of the US session. Bitcoin bulls seem unable to withstand the market turmoil as the European energy crunch pushes equities globally back to the lows of 2022, and dollar strength regains power after a brief pause. With an opening below $19,036 and no real test to the upside on that level, $20,000 looks far off now. BTC price by this move is entering a new area with more downside. There are not many handles to go on, as only one near $18,000 falls in line with the monthly S1. That level is likely to be tested for support, with the base for this new trading area coming in near $16,020, which falls in line with the low of November 06, 2020, and encompasses around a 16% decline. BTC/USD Daily chart Alternatively, a turnaround could still be possible if bulls buy the dip and every price in sight below $19,036. A quick spin around could result in price action back trading above that level and looking to reclaim $20,000. That would make sense as the Relative Strength Index is trading on the oversold boundary and is therefore possibly poised to bounce off and move higher.
Canada’s Economy Showed A Massive Gain In Jobs

Canadian Dollar (CAD): Bank Of Canada Is About To Hike The Interest Rate! What's Expected?

FXStreet News FXStreet News 06.09.2022 15:52
BoC will announce its interest rate decision on Wednesday, September 7. Markets expect BoC to raise its policy rate by 75 bps. CAD needs a hawkish surprise to outperform USD. The Bank of Canada (BoC) is widely expected to hike its policy rate by 75 basis points (bps) to 3.25% from 2.50% following its September policy meeting. In July, the BoC surprised markets with a 100 bps rate hike and acknowledged in its policy statement that it had underestimated inflation since the spring of 2021 mainly because of global factors. Furthermore, the bank noted that its intention to front-load rate increases was due to broadening and persistent inflation. While commenting on the policy outlook in the ensuing press conference, "our aim is to get rates to the top-end or slightly above neutral range quickly,” BoC Governor Tiff Macklem said. According to the BoC’s policy statement, the neutral range is between 2% and 3%. In the meantime, Statistics Canada reported on August 16 that inflation in Canada, as measured by the Consumer Price Index (CPI), declined to 7.6% on a yearly basis in July from 8.1% in June. Hawkish scenario In case the BoC goes against the market expectation again and delivers another 100 bps rate hike, this could trigger a significant reaction and provide a boost to the Canadian dollar. In that scenario, the CAD should easily outperform the euro and the Japanese yen due to the policy divergence between the respective central banks. Against the USD, CAD’s gains could remain limited with investors awaiting the August inflation data from the US before deciding whether to price in a 75 bps Fed rate hike later in the month. It’s worth noting, however, that even if the BoC decides to raise its policy rate by 100 bps, it could refrain from committing to such aggressive rate hikes in the future. Since there will not be a press conference this time around, the language in the policy statement will be scrutinized by investors. Neutral scenario The BoC could opt for a 75 bps hike, as expected, and say in its policy statement that it will adopt a data-dependent approach moving forward while reiterating its commitment to bring inflation back to its 2% target. Such a rate increase would lift the policy rate “slightly above” the upper limit of its neutral range. A neutral tone could make it difficult for the loonie to stay resilient against its American counterpart. Dovish scenario If the bank raises the policy rate by 50 bps, the CAD is likely to face heavy selling pressure. The BoC could acknowledge the slowdown in economic activity alongside softening price pressures and tilt toward a more conservative policy stance. The latest data from Canada revealed that Real Gross Domestic Product (GDP) expanded at an annualized rate of 3.3% in the second quarter. This print followed the 3.1% growth recorded in the first quarter and missed the market expectation of 4.5%. Among the three different scenarios listed above, the dovish is the least likely one. Major central banks remain focused on bringing down inflation at the expense of growth and the BoC is unlikely to react to a single CPI print. Meanwhile, markets are pricing in a terminal rate of nearly 4%. Hence, a 50 bps rate hike would be a very big dovish surprise even if it’s enough to lift the policy rate to the upper limit of the neutral range.
Stock Market: Could Digital World Acquisition Corp (DWAC) Stock Price Plunge To $10?

Stock Market: Could Digital World Acquisition Corp (DWAC) Stock Price Plunge To $10?

FXStreet News FXStreet News 06.09.2022 15:52
Merger between DWAC and Trump Media & Technology Group on the rocks. 1-year extension of merger requires 65% affirmation vote from shareholders. DWAC still under investigation by the SEC. You heard it hear first, folks. Digital World Acquisition Corp (DWAC) shares might soon trade more than 50% lower at $10. That is because $10 was the initial price that shares traded at before DWAC announced its merger with the Trump Media & Technology Group (TMTG). The whole reason DWAC has traded much higher than $10 over the past year is that it was slated to merge with TMTG, the owner of Donald Trump's TRUTH Social app, a sort of social media substitute for the MAGA world. That deal looks to be in limbo however. Reuters is reporting that the largely retail base of investors in DWAC have not voted on their proxy statements to extend the merger agreement by one year. The extension is necessary as the Securities & Exchange Commission is continuing to review the merger and is looking into whether the merger was agreed to prior to DWAC's formation. If so, executives at DWAC would be in serious legal jeopardy. DWAC shares are down more than 21% in Tuesday's premarkat at $19.25. DWAC needs 65% of shareholders to approve the merger extension, but a Reuters source told the news outlet that as of Monday night they were no where close to that figure. Digital World officials are scheduled to announce the vote results on September 6. DWAC stock forecast If the extension fails to get approval, then the chart below serves little point. DWAC is trading at $19.25 in the premarket, well below the low from June 30 at $22. A list minute extension approval would however mean that shares would at least spike to resistance at $32 to $33. DWAC daily chart
Can Ethereum price reach $2,000 again before the Merge update?

Can Ethereum price reach $2,000 again before the Merge update?

FXStreet News FXStreet News 05.09.2022 14:09
Ethereum price shows signs of weakness in the short-term, but a Merge-induced recovery is plausible as the upgrade date approaches.A move to $1,730 and $2,000 seems likely if the buyers step in after a minor pullback to $1,505.A daily candlestick close below $1,420 will invalidate the potential recovery rally for ETH.Ethereum price seems to be following Bitcoin price lower now that the Merge-induced bullish momentum has subsided. However, investors can still be optimistic about a potential recovery rally as the highly anticipated update, scheduled to take place between September 6 and September 15, approaches. On the other hand, actor Bill Murray’s ETH stash, worth $185,000, was stolen by a hacker after raising 119.2 ETH. Not all was lost, however, as Murray’s security team mentioned that it foiled the hackers’ plans to steal the actor’s NFT collection by moving it to a safehouse wallet.Ethereum price will provide an opportunityEthereum price created a range, extending from $2,030 to $1,420 when it crashed 30% between August 14 and August 28. Although Ethereum outperformed BTC, it continues to follow Bitcoin price, which is trending lower.A short-term recovery rally then pushed ETH up to the 70.5% Fibonacci retracement level at $1,621 until bulls exhausted themselves. As a result, ETH is now heading lower, following the big crypto’s footsteps. A break below the 50% Fibonacci retracement level at $1,563 will signal that sellers are in control. In such a case, a minor down move to $1,531 seems plausible. However, if selling pressure continues to grip the market, Ethereum price could visit $1,505 and fill the imbalance extending from $1,471 to $1,454.Institutions or buyers are likely to trigger a quick recovery rally before Merge, hence, the ongoing downtrend could result in a push to $1,725, which is the mean of the 30% crash. This level also coincides closely with the higher time frame resistance level at $1,730. Therefore, a local top could form here.Despite the resistance concluding at around $1,730 investors should keep a lookout for a sudden spike to the $2,000 psychological level due to Merge, which is a high-impact news event for Ether.ETH/USD 4-hour chartOn the other hand, if Ethereum price breaks below and flips the range low at $1,420 into a resistance barrier, it will invalidate the potential recovery rally thesis prior to the Merge. This development could see ETH revisit $1,280 and, in some cases, $1,080.
Reserve Bank of Australia Preview: Is the central bank ready to slow the tightening pace?

Reserve Bank of Australia Preview: Is the central bank ready to slow the tightening pace?

FXStreet News FXStreet News 05.09.2022 14:09
The RBA is expected to hike rates by another 50 bps, but a 25 bps move is not out of the table.Mounting pressure on consumer sentiment and house prices may take its toll on the RBA.AUD/USD is technically bearish, and a below-expected hike may send it to 0.6680.The Reserve Bank of Australia is having a monetary policy meeting and is expected to pull the trigger for another 50 bps and send the cash rate to 2.35%. If that’s the case, it would be the fourth consecutive hike of such an extent. However, Australian policymakers could choose to decelerate the pace of quantitative tightening, given its impact on the housing market.It’s all about inflationThe Australian Consumer Price Index surged at an annualized pace of 6.1% in the second quarter of the year, the highest in more than 30 years, according to the Australian Bureau of Statistics. The RBA joined the tightening train late, and soaring interest rates weighed on consumer sentiment. Home loans plunged by 8.5% in July, the second-largest fall in two decades, driving property prices sharply lower. If Australian policymakers maintain the aggressive pace of hikes, it may be found to be the cause of a recession.The RBA has a triple objective: price stability, full employment and “the economic prosperity and welfare of the people of Australia.”According to the latest available figures, the Australian Unemployment Rate fell to 3.4% in July, its lowest in almost fifty years. However, the participation rate was also down, from 66.8% to 66.4%, resulting in net employment in the same month falling by 40.9K, a sign that hiring may be cooling. AUD/USD possible scenariosAhead of the decision, the American dollar leads the FX board, with AUD/USD is trading just below the 0.6800 figure. The pair has been on a selling spiral ever since 0.7136 in August and seems poised to test the June low at 0.6680. The 61.8% retracement of such a rally is providing strong static resistance at 0.6855, where the pair topped last Friday.Should the RBA slow the pace of tightening and choose to hike by 25 bps, the pair would likely fall towards the aforementioned 0.6680 level. A break below the latter should be the first move towards a steeper slump, eyeing in the upcoming days the 0.6650 figure.On the other hand, market players have already priced in a 50 bps move. If the market mood improves ahead of the release and the greenback eases, the pair could reach the 0.6850/60 region, where sellers should reject the advance.Finally, if the accompanying statement is extremely hawkish, letting market players believe that Australian policymakers are going to tame inflation regardless of its effects on economic growth, the pair has room to break higher and advance towards 0.6900/40.
🔥 SHIBA Volatile Move Ahead: Triangle Analysis

Shiba Inu (SHIB) Price May Go Up By Over 7% Or Plunge By Over 16%!

FXStreet News FXStreet News 02.09.2022 16:43
Shiba Inu price is at a big crossroads with several elements intersecting and aligning. SHIB price could either enter a bear cycle or a bull cycle. Expect to see a possible uptick and bull cycle with gains of as much as 40%. Shiba Inu (SHIB) price action is playing a famous song from the British band ‘The Clash,’ that most people probably know: “Should I stay or Should I go?” The question will probably be on the lips of SHIB bulls as well, as they are at the crossroads between a bull run that holds potentially 7.15% initially, while at least 16.70% of decay looms to the downside. For now bulls have the upper hand as several supportive elements are underpinning price action and preventing it from falling. SHIB price at a crossroads Shiba Inu price is trading around two big technical elements that could be crucial for the price action. First is the pivotal historical level at $0.00001209, which has shown its importance with several daily openings and closes near its level. The second element in play is the 55-day Simple Moving Average, which bulls are trying to claw above. SHIB price thus looks a bit trapped. Overall, a breakout is likely that could fall in favour of bulls. One supportive element is that the Relative Strength Index (RSI) is slightly tilted to the downside. Once bulls can trade north of $0.00001400, expect a rally up to roughly $0.00001500. SHIB/USD Daily chart Shiba Inu price action could drop as much as 16.70% if a fade gets underway. Should price action stay trapped between the 55-day SMA and that pivotal level, expect to see bulls starting to feel the scene and trigger a selloff. Once price action breaks below $0.00001209 firmly, expect an accelerated move towards the$0.00001000 round number marker.
Apple Stock News and Forecast: AAPL trading plan for Friday

Apple Stock News and Forecast: AAPL trading plan for Friday

FXStreet News FXStreet News 02.09.2022 16:43
AAPL stock rallies to the close ahead of employment report.Yield curve continues to steepen, hurting tech stocks.AAPL poised near 50-day moving average.Apple (AAPL) stock rallied into the close on Thursday as investors took some risk off the table ahead of Friday's employment report. Four consecutuve days of losses eventually came to an end as the afernnoon saw a recovery in risk assets.Apple stock newsWe have two major news events for Apple coming up. The first is Friday's employment report, which will determine the path of rate hikes and yields for the next few months. The second is the launch next week of the iPhone 14. We have commented previously that product launches tend to see Apple perform well leading into them but poorly afterwards. As ever the launch will be a must-watch event, and the pricing of the new model will be the most important metric for investrors rather than any new iPhone features.Apple stock forecastThe daily chart is still playing out the move lower, having seen a strong summer gain of over 30% from the June lows. Apple did break above the 200-day moving average, but failed to make a new high and failed at the trendline resistance. We then got the break back below the 200-day moving average and now sit at the 50-day. This is a set up for the next move. Resistance from the 200-day is at $161, but $164 is our medium term pivot, the low of last Friday.Apple daily stock chartAgain here we notice on the 30-minute chart below the correlation with the Nasdaq is nearly 100% as we wait for employment data. A lot of recent volume has taken place around $160, so this is our intraday pivot. Really though the employment report will dictate everything for the remainder of Friday. A high number and equities will suffer as yields rise. In my view the only hope is a weak number, even something in line will not cause yields to drop enough to support an equity rally.AAPL 30-minute chart
AUD/USD remains depressed near multi-week low amid stronger USD, risk-off mood

AUD/USD remains depressed near multi-week low amid stronger USD, risk-off mood

FXStreet News FXStreet News 01.09.2022 16:33
AUD/USD remains depressed near a multi-week low and is pressured by a combination of factors.Hawkish Fed expectations, elevated US bond yields lift the USD back closer to a two-decade high.The risk-on mood further underpins the safe-haven buck and weighs on the risk-sensitive aussie.The AUD/USD pair struggles to capitalize on its intraday bounce from sub-0.6800 levels, or the lowest level since June 18 and remains depressed through the early North American session. The pair is currently placed around the 0.6820 region and seems vulnerable to prolonging the recent descending trend witnessed over the past three weeks or so.The US dollar regains positive traction on Thursday and inches back closer to a 20-year peak touched earlier this week amid hawkish Fed expectations. The markets seem convinced that the US central bank will stick to its aggressive policy tightening path to tame inflation and have been pricing in a 75 bps rate hike move in September. This remains supportive of a further rise in the US Treasury bond yields and continues to underpin the greenback, which, in turn, is seen exerting downward pressure on the AUD/USD pair.In fact, the yield on the 2-year US government bond, which is highly sensitive to Fed rate hike expectations, hits a 15-year high. Apart from this, better-than-expected US Weekly Initial Jobless Claims data and the prevalent risk-off environment offers additional support to the safe-haven buck. The market sentiment remains fragile amid growing worries about a deeper global economic downturn. The fears were further fueled by Thursday's disappointing release of the Caixin/Markit Chinese Manufacturing PMI, which fell to 49.5 in August.Furthermore, economic headwinds from fresh COVID-19 lockdowns temper investors' appetite for perceived riskier assets. This is evident from a generally weaker tone around the equity markets, which further contributes to the offered tone surrounding the risk-sensitive aussie. The fundamental backdrop suggests that the path of least resistance for the AUD/USD pair is to the downside and any attempted recovery could be seen as a selling opportunity. Traders now look to the US ISM Manufacturing PMI for short-term opportunities.The focus, however, remains glued to the closely-watched US monthly employment details, due for release on Friday. The popularly known NFP will provide a fresh insight into the economy's health in the face of rising rates and stubbornly high inflation. This, in turn, will play a key role in influencing the near-term USD price dynamics and help determine the next leg of a directional move for the AUD/USD pair.
Apple Stock Price (APPL) May Be Fluctuating Next Week As iPhone 14 Is Said To Be Revealed

Apple Stock Price (APPL) May Be Fluctuating Next Week As iPhone 14 Is Said To Be Revealed

FXStreet News FXStreet News 01.09.2022 16:33
AAPL stock falls again on Wednesday as the sell-off continues. Equities remain under pressure ahead of the employment report on Friday. AAPL stock also waiting for next week's iPhone 14 release details. Apple (AAPL) stock continued its recent run of poor form as the stock once again closed lower on Wednesday. Apple has now registered three straight days of losses as equity markets come to terms with Fed Chair Jerome Powell utilizing himself last week. The doveish tilt that the market seemed to imply was firmly rebutted by Powell, and the equity market has been under continued selling pressure ever since. Also read: Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues Apple stock news Apple investors are now looking to next week for a catalyst to stem recent losses. September 7 is when most observers expect the iPhone 14 to be released. Details around pricing will be the key aspect, and as ever Wall Street analysts have been coming out with more and more bullish prospects. The latest from Bank of America says a price hike for the iPhone 14 over the iPhone 13 could see a boost to earnings in the region of $0.10 to $0.20 on EPS. It seems demand for iPhones will remain inelastic in the eyes of Wall Street, while clearly, the consumer looks to be shifting to lower-cost goods from what we have seen recently from retailers. iPhones are a luxury good and should see a slowdown in demand based on price hikes and inflationary trends. Margins will come under pressure from rising input costs, and the situation in China looks increasingly bearish. The property sector is beginning to falter alarmingly. The only Apple bullish caveat to add is the potential for massive monetary easing from China. We saw how the loose US policy juiced financial assets during the pandemic, and China may embark on its own financial juicing if the economy continues to decline. We do not think this will be enough to stem earnings compression for Apple though. The strong US dollar is another headwind for a firm that does business globally but reports in dollars. Apple stock forecast Enough of the long-term prognosis. How are we shaping up for some swing trading? Ok, first take a look at the AAPL stock daily chart. The downtrend continues with failure at the 200-day moving average, a continued sell-off from the overbought Relative Strength Index (RSI) and now support from the 50-day moving average. Below $171 looks bearish. AAPL daily chart The AAPL stock 15-minute chart below shows the areas of stability and high volume. Current levels around $158 are seeing stabilization. A move above $162 or below $156 will see further buying or selling pressure, so this range is key to playing a breakout scenario. AAPL 15-minute
US ISM Manufacturing PMI Preview: Slowing growth or recession?

US ISM Manufacturing PMI Preview: Slowing growth or recession?

FXStreet News FXStreet News 31.08.2022 16:27
The ISM Manufacturing PMI is foreseen at 52 in August, reflecting expansion.The ISM Prices Paid Index is expected to contract to 55.5 from 60 in the previous month.The USD retains its strength despite struggling to extend its gains.The US Institute for Supply Management will release the August Manufacturing PMI on Thursday, September 1. The index is expected to have declined from 52.8 in July to 52, hinting at slowing economic progress but signaling expansion.Prices pressure under the spotlightAmong the sub-components of the report, the most interesting forecast is that for Prices Paid as it reflects business sentiment around future inflation. The index is expected to retreat sharply from 60 in the previous month to 55.5. While lower-than-previous figures are usually understood as negative for the dollar, easing price pressures are for sure good news for the US. The US Federal Reserve has pledged to maintain its aggressive quantitative tightening to bring record inflation back to acceptable levels of around 2%, regardless of the damage its policies can do to businesses or households. Chief Jerome Powell acknowledged the negative effects of higher rates but reiterated they would keep draining massive covid-related liquidity.Painful growth already priced inAfter peaking at a record 64.7 in March 2021, the index reflects slowing economic progress, although expansionary territory (more than 50). The deceleration gained pace in the second quarter of 2022, and the index is dangerously approaching the 50 barrier, which separates growth from contraction.If the index comes out above 50, the impact on financial markets could be limited as painful progress is already priced in. Speculative interest, however, should become concerned if it falls below the threshold, as it would help confirm the arrival of a recession in the world’s largest economy.Possible USD reactionsThe American currency is the strongest across the FX board, although there are tepid signs of bullish exhaustion. Nevertheless and as risk aversion continues to lead, the USD may extend its gains should the figure come out much worse than anticipated, pushing investors into safety.An upbeat report, on the other hand, may bring some relief to market players and help high-yielding currencies to recover some ground. In such a scenario, and for the time being, the EUR has more chances of rallying, as it seems to be the strongest dollar’s rival.Sellers seem reluctant to add shorts below parity, although bulls remain on the sidelines. EUR/USD has an immediate resistance at around 1.0050 but would need to advance beyond the next relevant level, at 1.0120, to shrug off the negative stance and be able to extend its advance. A near-term support level is 0.9970, with a break below it exposing the multi-year low at 0.9898.
GameStop Stock News and Forecast: GME stock falls to key support

GameStop Stock News and Forecast: GME stock falls to key support

FXStreet News FXStreet News 31.08.2022 16:27
GME stock continues its slide lower.Ryan Cohan and equity backdrop continue to hinder GME stock.GME stock sees its next key support at $29.GameStop (GME) stock continues to suffer from a combination of factors hindering its performance. By now we are all familiar with the Ryan Cohen RC Ventures scenario in Bed Bath & Beyond (BBBY). This has soured some investors' faith in his long-term plans for GameStop. We have outlined how being chairman of GameStop means the investment here is likely different, but the sentiment is powerful and hard to shift once established.GameStop also will feel the effects now of higher rates being penciled in as investors reprice risk assets using a higher interest rate. Recall from our deep dive series how when calculating discounted cash flows to reach the terminal future value we discount back to the present value using the interest rate and the growth rate. A combination of higher interest rates and lower growth rates is a double blow to the DCF model, meaning equity valuations go lower. GME needs growth.GameStop stock newsNeeding growth is one thing, but getting it may prove difficult. Videogame sales are slowing, according to data out earlier this month. GME entered the NFT marketplace, which has also notably slowed. September 7 is when we get the next earnings report from GameStop, and it will be difficult for management to paint a bullish picture. Revenue growth has already reversed and is now in decline. Revenue from January 2022 to April 2022 went from $2.2 billion to $1.3 billion. Gross profit in the same period went from $378 million to $298 million. Analysts are expecting EPS of $-0.42 and revenue of $1.27 billion. Again if earnings come in line, revenue is flat, while costs are likely to increase due to inflation. Margin pressure is being felt across all industries.GameStop stock forecastA near-perfect double top was accompanied by a bearish divergence from the Relative Strength Index (RSI) and the Money Flow Index (MFI). The stock has now broken the 200-day and 50-day moving averages and support at $32.18. That leaves $29 as the immediate target, and a break there will target $19.44. GME daily chart
ADP Jobs Preview: Three reasons to expect the data to drive the dollar higher

ADP Jobs Preview: Three reasons to expect the data to drive the dollar higher

FXStreet News FXStreet News 30.08.2022 16:17
ADP releases its private-sector labor report after a hiatus, raising expectations for high accuracy.White House comments about cooler job growth lower expectations. Economists project a modest increase of only 200,000 positions, also lowering the bar for an upside surprise. "Some pain" is what Federal Reserve Chair Jerome Powell has promised the American people, a price needed to pay for bringing down inflation – a high bar to stop raising rates and supporting the dollar. And is not even among the reasons to expect ADP's private-sector jobs report to boost the buck. Here are three reasons to expect a big bounce from this release, a critical Nonfarm Payrolls preview.1) Fresh formula means stronger reactionADP is the largest payrolls provider in the US, and its estimates of employment changes have always been eyed by market participants. Since the pandemic broke out, however, the correlation between the firm's figures and official private-sector jobs figures have been weak. They occasionally even missed the border trend and came to be seen as a contrarian indicator. Earlier this summer, the company did some soul-searching and took a two-month hiatus to revise the ways it calculates labor market changes. The data is now based on the company's own data rather than using models that include macro data coming from outside, such as older official statistics. ADP says its new methods are more transparent, real-time and high-frequency. It held a videoconference to explain the changes and observers were impressed. These changes raise expectations for a more accurate report, making it more significant as a hint toward Friday's Nonfarm Payrolls – and as a market mover. It would need to show a loss of jobs to provide any evidence of "pain" – and that is not coming. 2) White House tip-offWhite House spokeswoman Karine Jean-Pierre said on Monday that they expect jobs data to "cool off." It seems like officials are doing some "damage control." Ahead of the June inflation report, the WH noted that data does not reflect falling gasoline prices – and indeed, that figure came above estimates.Is recent history repeating itself? Even if President Joe Biden did not receive official Nonfarm Payrolls data four days in advance, markets have lowered expectations, even below economists' consensus, taken before Jean-Pierre made her comments.A lower bar is easier to pass, raising the chances of a dollar-positive surprise. 3) Already low expectationsThe economic calendar indicates an increase of only 200,000 private-sector jobs in August. That compares with a leap of 528,000 overall positions in July. Has hiring tumbled that much? It seems implausible. Slower hiring makes sense, but not halving, especially without a major crisis. August 2022 was not a pivotal month for US nor global history – the Russia-Ukraine war is in a stalemate and covid is almost forgotten. It is essential to note that official NFP figures beat estimates in six out of seven months in 2022. There is a good chance that economists are being pessimistic about ADP's data as well.Source: FXStreetFinal thoughtsThe closely watched ADP report comes amid a higher bar for the Fed to stop tightening, repeatedly low expectations from economists, and then downbeat comments from the White House. Such low expectations signal a higher chance of a positive surprise supporting the dollar. It is essential to note that ADP's data is released on the last day of the month, and last-minute adjustments by portfolio managers tend to result in higher volatility. Nevertheless, the broader upside dollar trend should continue – with a nudge from the figures.
Ford's EPS is estimated to hit 0.27. Zacks investment research comments on incoming carmaker's earnings report

Tech Stocks: Could Tesla Stock Price Reach $300?

FXStreet News FXStreet News 30.08.2022 16:17
Tesla falls to the first point of support. TSLA should bounce on Tuesday as markets recover. Tesla stock still looking overvalued as the sector rerates. A more or less normal day for stock markets on Monday took place after the sharp sell-off on Friday. Monday's performance was somewhat better than expected or less bad than many feared. Equity markets held up relatively well with the main indices losing less than 1%. Fears of capitulation were short-lived. This should set up a recovery rally for Tuesday and Wednesday and then probably markets will flatline ahead of Friday's employment report. Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries Tesla stock news The good news for bulls was that Monday's price action opened on the lows at $280, retested it in the first half, and then put in place a double bottom on an intraday basis that set Tesla (TSLA) stock higher for the remainder of the session. Overall, it was a pretty boring day. Tesla had a range of about $7 on the day, but there was no follow-through from Friday's sell-off. Is this consolidation just a holding pattern before further falls or a base building for a recovery? Tesla stock forecast TSLA stock longer-term view remains bearish with the series of lower tops identified by our trendline below. As we can see, Tesla is stuck in a high-volume area (grey bars on the right). High-volume areas are stabilization zones, and markets tend to move from one to another. Below $281 and above $314, volume thins out, so we would expect Tesla to move quickly through those zones. The recent Fed hawkish commentary from Powell puts the risk-reward in favor of the downside in my view, so I would be looking for TSLA stock to break $281 and a swift move through light volume until we reach the next high volume zone at $240. However, ahead of Friday, there is likely to be some recovery and then stabilization around $300. TSLA 1-day chart
Bitcoin price could slide to $17,500 as regulators consider tightening rules around leverage

Bitcoin price could slide to $17,500 as regulators consider tightening rules around leverage

FXStreet News FXStreet News 30.08.2022 02:25
Bitcoin price could see a strong recovery bounce if it manages to flip above the recently broken trend line. In such a case, investors can expect a revisit to $20,750 and $22,400. A failure to flip above the broken trend line could send BTC to collect liquidity resting between the July 13 and June 18 swing lows at $18,889 to $17,578, respectively. Bitcoin price is lost in no man’s land after crashing below $22,000 on August 26. This sell-off was followed by a tight consolidation that led to another nosedive that has pushed BTC below its support trend line. A recovery above this level will signal an imminent bounce, but a failure could result in a swift continuation of the downtrend. While the technicals are bearish in the long term and ambiguous in the short-term, crypto adoption seems to be going well as the Monetary Authority of Singapore (MAS) considers implementing new restrictions regarding the use of leverage in cryptocurrency markets. Ravi Menon, the managing director at MAS said that retail investors are oblivious to the risks involved in trading and leverage but also acknowledges that banning cryptocurrencies will not work. Bitcoin price hopes for a recovery Bitcoin price has slipped below the ascending parallel channel formed between August 19 and 25, triggering a 10% crash to $19,513. So far, the sellers seem to be pausing, allowing buyers to step in. If successful, this development could trigger a recovery rally to retest $20,750. Depending on the momentum, however, this move could extend to $22.400. Confirmation of this bullish move will come from BTC recovering above the declining trend line formed by connecting the June 30 and July 13 swing lows. BTC/USD 12-hour chart Regardless of the buyers’ attempts, market makers are likely to target the liquidity resting below the swing lows formed between July 13 and June 18, pitching Bitcoin price lower to try and scrape it up. This would lead to an extension down from $18,889 to $17,578, especially if bulls fail to step in.
Apple's Stock Price Reaction To The Release Of New Products

Apple Stock Price Plunged On Friday! When Is The iPhone 14 Coming Out? iPhone 14 Is Expected To Be Announced Next Week!

FXStreet News FXStreet News 30.08.2022 02:25
AAPL stock falls nearly 4% Friday on global equity sell-off. Jackson Hole hawkish tilt behind sell-off. Apple sends out invites for an event on September 7. Apple (AAPL) stock fell sharply on Friday in line with a global rout in equities. The strongly worded hawkish missive from Fed Chair Powell did the trick and sent equity markets into a risk-off tailspin. Not just equity markets, but all risk assets took a hit as the Nasdaq was the worst performer. Now over the weekend Bitcoin cracked below $20,000. Apple stock news Some conflicting positive and negative news for Apple has appeared over the past few sessions. Susquehanna was quite bullish last week in estimating iPhone 13 production would rise to 100 million from a previous 88 million. Overall Susquehanna looks for about an 8% sales growth versus last year for the iPhone. Meanwhile, Politico reported late last week that the DOJ is in the early stages of making an antitrust complaint against Apple and could bring a lawsuit as early as this year. Finally, September 7 looks like the launch date for the new iPhone 14. Reports claim Apple has sent out media invitations to an event on September 7, which it is widely assumed will be the product launch announcement. Apple stock forecast Equity markets look likely to be in for a tough Autumn after Powell carefully scripted the narrative on Friday. Remember, he had most of the summer to plan out what he wanted to say. So he knew the importance of citing Vockler, and he knew what he wanted to achieve when he used words like "pain" and "below trend growth". The plan was well thought out. He wants equity markets lower to hit demand and so bring inflation down. Whatever Apple does may struggle to overcome such a challenging macro backdrop. Apple does remain above its 200-day moving average but has failed at the trend line and to test previous highs above $179. First, we have a failure, but we need confirmation of a bearish trend now. That will come with a break of the 200-day moving average. Once that is in place, then the target needs to be a break of $129, the June lows. That is needed to maintain food for the bears. September is historically not a great one for Apple, and interestingly neither are product launches much of a catalyst for the share price. Apple stock chart, daily
Bitcoin Weekly Forecast: Can BTC ruin the Merge for ETH?

Bitcoin Weekly Forecast: Can BTC ruin the Merge for ETH?

FXStreet News FXStreet News 12.08.2022 16:47
Bitcoin price shows a distribution on a lower time frame that supports the idea of a correction.Investors should look for the $21,155 level as the short-term target for bears. A flip of the $24,989 resistance level into a support floor on a daily time frame will invalidate the bearish thesis for BTC.Bitcoin price is undergoing a massive rejection at a crucial hurdle for the second time, suggesting the possibility of a reversal. A further look into a lower time frame reveals that this bearish outlook could be possible under certain conditions.However, the crypto markets seem to be enjoying the bullish narrative painted due to the upcoming Merge upgrade to the Ethereum blockchain. As a result, many altcoins have more than doubled over the last month and show signs that more is on its way.If Bitcoin price does undergo a sell-off, this could potentially ruin the party for many of such altcoins, including Ethereum.Bitcoin price holds steady, but for how long?Bitcoin price has stuck to consolidating inside the ascending parallel channel fractal with no signs of a breakout. Things have remained more or less the same since the last weekly forecast but with one key addition - BTC tried shattering the 50% retracement level at $24,948 but failed.The big crypto seems to be getting an overwhelming amount of buying pressure due to the 200-week Simple Moving Average (SMA) and the 30-day Exponential Moving Average (EMA) support cluster at $22,900. Moreover, the Relative Strength Index (RSI) also shows a massive support area between 47 and 51, which explains why BTC price experienced a sudden spike in buying pressure on August 4.This is the second failed attempt to flip the $25,000 hurdle into a support floor. Further adding credence to the increase in bears’ dominance is the August 12 daily candlestick close, which suggests that the buyers were overwhelmed by the sellers.To make things worse, Bitcoin price produced a higher high on July 28 and August 11, while the RSI produced a lower low, suggesting the development of a bearish divergence. In conclusion, the bigger picture for BTC shows us two potential scenarios that could evolveA rally to $29,000 - this narrative gels well with the recent bullish outlook due to Ethereum’s Merge. However, to be fruitful, Bitcoin price needs to convert the $25,000 level – a major thorn in the bulls’ side – into a support floor.The second scenario includes a breakdown of the support cluster consisting of the 200-week SMA and the 30-day EMA at roughly $22,900. In such a case, BTC is more than likely to retest the highest traded volume level at $21,155. This barrier is called the point of control and is obtained from the price data that spans from the last breakdown of the ascending channel on June 10 to date. BTC/USDT 1-day chartLet’s take a closer look at Bitcoin price from a lower time frame and discuss if we can get a clue for one of the aforementioned narratives.BTC distribution hints at things to comeBitcoin price shows an interesting development on the one-hour chart that indicates a potential distribution phase. The Wyckoff distribution phase consists of particular identifiers that will indicate if the underlying asset is in the accumulation or distribution phase.BTC/USDT 1-hour chartAfter a massive rally, the asset, aka BTC, forms a primary supply level (PSY), which in the chart above is seen occuring on July 28. There then follows a minor uptrend that indicates the climax of buying pressure (BC). As the bullish momentum ceases, Bitcoin price slides lower, which is termed an automatic reaction (AR), which in the chart above ends around August 2. This downswing is followed by an upthrust (UT) and a sweep of the AR, giving rise to the first sign of weakness (SOW). However, the distribution’s last leg, where traders could enter a long position, would be a sweep of the UT that produces upthrust after distribution (UTAD). After this move, the asset starts to slowly decline and the sell-off increases as it fails to hold above the AR.Bitcoin price is currently at an opportune moment for sellers and is likely to start its leg down after producing UTAD at $24,722. Interestingly, the 50% retracement level mentioned in the above section at $24,989 is a major hurdle, hence a rejection here makes perfect sense and adds credence to the distribution thesis. Market participants can enter a short position if the Bitcoin price provides a retest of $24,211. The take profit levels include the 30-day EMA at $22,947, which is roughly $300 above the AR at $22,598.Other take-profit levels to consider include the four-hour fair value gap, aka price inefficiency, at $21,440 and the liquidity pool resting below $20,750. The invalidation would occur if Bitcoin price flips the $24,989 hurdle into a support floor on a daily time frame.A further bearish outlook will evolve for Bitcoin price should close the weekly candlestick below the point of control at $21,155. In this case, a breakdown of the ascending parallel channel will have occurred, which would hint at a much more drastic sell-off for BTC. However, investors should not get ahead of themselves and look for a sweep of the range low at $17,585 to stabilize the sell-off and reevaluate.
USD/CAD steadily climbs to daily high, up a little around 1.2775 amid modest USD strength

USD/CAD steadily climbs to daily high, up a little around 1.2775 amid modest USD strength

FXStreet News FXStreet News 12.08.2022 16:47
USD/CAD attracts some dip-buying on Friday amid a modest pickup in the USD demand.The prospects for additional Fed rate hikes, elevated US bond yields benefit the greenback.The recent rally in oil prices could underpin the loonie and keep a lid on any further gains.The USD/CAD pair rebounds a few pips from the daily low and climbs to a fresh intraday peak during the first half of the European session. The pair is seen trading around the 1.2770 region and looking to recover further from a two-month low touched the previous day.The US dollar builds on the overnight bounce from the lowest level since June and gains some positive traction on the last day of the week, which, in turn, offers some support to the USD/CAD pair. The recent comments by several Fed officials indicate that the US central bank would continue to tighten its monetary policy further. The hawkish Fed expectations allow the US Treasury bond yields to hold steady near a multi-week high and provide a modest lift to the greenback. That said, a combination of factors might hold back bulls from placing aggressive bets and keep a lid on any meaningful upside for the USD/CAD pair.Market participants remain divided over the size of the next rate hike by the Fed amid signs of easing inflationary pressure in the US. The US CPI report showed that consumer prices were unchanged in July, while the US Producer Price Index unexpectedly fell in July for the first time in two years. The incoming data suggests that US inflation may have peaked, which, along with the risk-on impulse, might act as a headwind for the safe-haven greenback. Apart from this, this week's rally in crude oil prices could underpin the commodity-linked loonie and further contribute to capping gains for the USD/CAD pair, at least for now.Even from a technical perspective, the post-US CPI fall and acceptance below the 100-day SMA pivotal support favours bearish traders. This makes it prudent to wait for strong follow-through buying before confirming that the USD/CAD pair has formed a bottom and positioning for any further appreciating move. Moving ahead, Friday's US economic docket features the release of the Preliminary Michigan US Consumer Sentiment Index. Apart from this, the US bond yields and the broader risk sentiment would drive the USD demand. This, along with oil price dynamics, should produce short-term opportunities around the USD/CAD pair.
Disney (DIS) stock price reaches highest level since April after overtaking Netflix as streaming leader

Disney (DIS) stock price reaches highest level since April after overtaking Netflix as streaming leader

FXStreet News FXStreet News 12.08.2022 09:41
Disney released fiscal Q3 earnings on August 10. DIS stock jumped nearly 7% afterhours. Disney reported $1.09 in adjusted EPS on $21.5 billion in sales.   Disney (DIS) stock advanced to $120.13, up 6.9%, in the afterhours market on Wednesday after the entertainment conglomerate's parks division led the way toward a solid beat on top and bottom lines. Disney reported fiscal third quarter adjusted earnings per share of $1.09 on revenue of $21.5 billion. Wall Street had expected adjusted EPS of $0.99 on revenue of $21 billion, so both beats were well ahead of expectations. Disney earnings news As families returned to more normal vacation practices after the covid pandemic in the quarter ending in June, Disney's parks division brought in revenue about 70% above the same quarter last year. The division brought in $7.39 billion with all theme parks now open. Management did say the segment's cruise line division still has room to recover though. "Even while the average daily attendance at our domestic parks across the first three quarters of this fiscal year was slightly below 2019, we have delivered significantly higher revenue and operating income over that same time period," CFO Christine McCarthy said. The best figure out of the entire earnings call was 152.1 million. That is the total number of Disney+ subscribers. This figure is up 31% from the 116 million tallied one year ago. Hulu subs rose a much smaller 8% YoY to just over 46 million, and ESPN+ gained 53% more subscribers YoY to just under 23 million. Taken together, Disney is now neck-and-neck with Netflix at just above 221 million subscribers. Disney's figure appears to be slightly ahead, but the streamer double counts households with more than one subscription and also tends to charge a lot less for its services. Management lowered expectations for long-term subscriber growth across its Disney+, Hulu and ESPN+ subscriptions. Previous guidance for 230 million to 260 million total subscribers has been downgraded to 215 million to 245 million by the end of 2024. McCarthy said total annual spending on content company-wide would remain in the low $30 billions for this fiscal year and the next few years. Disney stock forecast Disney stock's recent jump to the $120s in Wednesday's post-market means it has conquered the June 1 range high above $112 and the late April/early May price ledge at $116. Now that $116 level should develop into support. The next price target is $133 from the ledge created in mid-April where that price served as resistance. The 200-day moving average is just below here at $131.20. Disney stock only broke through the 100-day moving average in Wednesday's regular session, so it appears that this slugger is jumping from A-ball to the big leagues in short order. The downtrend in H1 2022 appears to be over if DIS can remain above the 100-day. The Moving Average Convergence Divergence (MACD) shows an uptrend, so this occurence seems likely. For now Disney stock will likely bounce between the 100-day and 200-day until enough accumulation helps it move above $133. Do not expect this to happen too fast. Disney stock is already up 33% since July 14.   Disney daily chart
Wow! BTC May Visit The Land Of Milk And Honey! Could Bitcoin Reach $28K? According To TA...

Wow! BTC May Visit The Land Of Milk And Honey! Could Bitcoin Reach $28K? According To TA...

FXStreet News FXStreet News 12.08.2022 09:41
Bitcoin’s balance on exchanges drops to a four-year low, hinting at a bullish long-term outlook. Bitcoin price needs to break and keep above the 200-day SMA to affirm an impending move to $28,000. Bulls must defend the newly reclaimed $24,000 level to avert potential losses to $22,000. Bitcoin price has struggled to find a solid footing during this crypto winter. Support above $24,000 is becoming elusive amid frequent pullbacks. However, its overall technical picture points to a smooth ride to $28,000. Bitcoin price will need support from micro and fundamental factors to keep the uptrend intact. Bitcoin price regains momentum Bitcoin price is hunting for a way out of the bear market, and one sign it is having some success is the falling amount of BTCs on exchanges. On-chain data by Glassnode elucidates an exchange balance currently around 2,377,195 BTC, down from 2,652,488 BTC on January 1, 2022. Usually, a consistent drop in this metric suggests that investors prefer their coins in other wallets rather than on exchanges where they are more likely to be poised to sell them. It shows that prices will eventually turn around, which is a positive indicator for Bitcoin price. Bitcoin Balance On Exchanges The Moving Average Convergence Divergence (MACD) on the 12-hour chart has reinforced the Bitcoin price move above $24,000. Traders can squeeze in more gains as long as the bullish divergence formed by the 12-day Exponential Moving Average (EMA) and the 26-day EMA stays in place. BTC/USD 12-hour chart A break above the 200-day Simple Moving Average (SMA) at $25,257 will likely weaken the bears more, eliciting the fear of missing out (FOMO). If most of the buyers waiting on the sidelines heed the above buy signal, a breakout to $28,000 will be a matter of when. It will be safer to book early profits at $25,257 if the uncertainty of the bear market is considered. However, bullish traders could wait till $26,000, which is an inflection point likely to determine the approach to $28,000. On the flip side, a hefty buyer congestion zone is expected at $24,000. The ascending trend line will come in handy if declines soar. Fortifying this support is the 50-day SMA on the same 12-hour chart. Bitcoin IOMAP chart Bitcoin price will likely settle for the path with the least resistance, and according to IntoTheBlock’s IOMAP on-chain model, that’s the one heading north. The chart below reveals the presence of minor seller concentration areas to $28,000. On the contrary, robust support zones are in line to cushion Bitcoin price from plunging below $24,000.
Tesla Stock News and Forecast: TSLA stock advances in Wednesday's premarket despite Musk's $7 billion sale

Tesla Stock News and Forecast: TSLA stock advances in Wednesday's premarket despite Musk's $7 billion sale

FXStreet News FXStreet News 10.08.2022 16:31
Founder and CEO Elon Musk has sold $6.9 billion in TSLA stock.Musk said the sale was to prepare for the possibility he will be forced to buy Twitter.Musk offered $43 billion for the social media platform this spring before reneging on the deal.Elon Musk's sale of $6.9 billion in Tesla (TSLA) stock in preparation of a court forcing him to complete his buyout of Twitter (TWTR) does not seem to be hurting the stock price all that much. In fact, TSLA shares have advanced 2.9% to $874.41 in Wednesday's premarket, more than compensating for Tuesday's 2.4% sell-off to $850.Tesla stock newsAccording to regulatory filings, Musk sold 7.92 million shares of Tesla stock on August 5, last Friday. This amounted to approximately $6.9 billion. Musk said the sale was to have cash at the ready in case the Delaware Chancery Court forces him to go through with his takeover of Twitter. Twitter sued Musk after the Tesla CEO walked back his initial buyout offer. Musk has claimed he did so, because Twitter would not supply him with accurate data on the number of bots on the social media platform.“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk wrote.After accumulating a more than 9% stake in Twitter in the first three months of the year, Musk offered to take it private with a $43.4 billion all-cash offer on April 14. The offer at that time was $54.20 per share, but Musk tried hard to renegotiate the deal after TWTR stock fell to the $30s. Twitter stock is trading up 3.4% in Wednesday's premarket at $44.30, showing that the market remains uncertain whether Musk will be forced to acquire Twitter at the agreed upon price.Musk has continued bating Twitter, saying that the platform's stance that less than 5% of its users are bots is a lie. Musk has stated in the past that the figure is closer to 20%. Part of Musk's initial April agreement with Twitter was to pay the company $1 billion if the buyout fails to go through.Tesla stock forecastTesla stock sure looks ready to keep diving despite its premarket activity at the moment. The Moving Average Convergence Divergence (MACD) has reduced its separation from the signal line and appears ready to cross over in a bearish signal.Last week TSLA stock could not break through the $900 to $955 supply zone that acted as resistance in April and May. From a chart-base perspective, TSLA stock should seek support after a failure at resistance. Unfortunately, the only support of note is at the 21-day moving average near $812. TSLA shares already broke through the 9-day moving average on Friday, August 5. Below there is the $780 level that acts as a pivot point between bullish and bearish trends. Longer-term support remains at $620. TSLA daily chart
EUR/USD Forecast: US inflation puts USD in sell-off mode

EUR/USD Forecast: US inflation puts USD in sell-off mode

FXStreet News FXStreet News 10.08.2022 16:31
US inflation contracted by more than anticipated in July, surprising market players.Chances of a Federal Reserve aggressive tightening decreased sharply with the news.EUR/USD trades at its highest in over a month with strong bullish momentum.The EUR/USD pair soared following the release of US inflation data, trading at its highest in over a month, around 1.0340. After pausing for most of the week, financial markets entered risk-on mode, on news prices pressures may have finally reached a top in the US. According to the official release, the annual Consumer Price Index contracted from 9.1% to 8.5%, better than the 8.7% expected. Furthermore, the core reading, which excludes food and energy prices, remained steady at 5.9%, better than the 6.1% expected.Stocks soared with the news in pre-opening trading, with the DJIA adding over 400 points. Government bond yields plunged, while demand for the greenback collapsed, as market participants are now pricing in a less aggressive US Federal Reserve.The scenario is set, and it seems the greenback will remain under selling pressure through the upcoming sessions.EUR/USD short-term technical outlookThe EUR/USD pair approaches 1.0360, the 61.8% retracement of its latest daily slump, with a clear bullish momentum that hints at a bullish breakout. In the daily chart, technical indicators head firmly higher within positive levels, while the pair advanced further above a bullish 20 SMA, which now converges with the 38.2% retracement at 1.0205.In the near term and according to the 4-hour chart, technical indicators head north almost vertically, with the RSI entering overbought levels, in line with the ongoing run. Also, the pair has broken above all of its moving averages and the critical 50% retracement at 1.0280. As long as the pair holds above the latter, the risk will remain skewed to the upside.Support levels: 1.0310 1.0280 1.0240Resistance levels: 1.0360 1.0395 1.0440
US July CPI Preview: What is the base effect and why it matters

US July CPI Preview: What is the base effect and why it matters

FXStreet News FXStreet News 09.08.2022 16:22
Annual CPI in the US is forecast to edge lower to 8.7% in July.The base effect could be misleading when assessing inflation data.Markets are pricing in a nearly-70% chance of a 75 bps Fed rate hike in September.Inflation in the United States, as measured by the Consumer Price Index (CPI), is expected to decline to 8.7% on a yearly basis in July from 9.1% in June. The US Federal Reserve remains committed to continuing to tighten its policy rate to battle inflation and CPI figures could significantly impact the way markets price in the September rate decision.According to the CME Group’s FedWatch Tool, there is now a 69.5% probability of the Fed opting for a 75 basis points (bps) hike at its next meeting, leaving room for further dollar strength on a strong CPI reading for July. What if the annual CPI were to fall to 8.8% in July? Would markets see that as a sign that price pressures are starting to ease?Source: CME Group FedWatch ToolThe base effectLet’s assume that you paid $100 for an item in January 2021 and the price went up to $105 in February due to an unusual circumstance before reaching $110 in January 2022. In that case, annual inflation was 10% in January 2022. Now, if the price were to rise to $115 in February 2022, the annual inflation would come down to 9.5% for that period (reflecting the increase from $105 and $115). That doesn’t mean price pressures are softening. In fact, the $5 monthly increase in February 2022 is quite significant considering that the price rose by a total of $10 in the previous 12 months. However, because there was a big jump in the base number - February 2021 in that case - that is used to calculate the annual figure, the final outcome is lower than what it was in January. How is annual CPI inflation calculated?The Bureau of Labor Statistics (BLS) comes up with a final CPI figure each month after having conducted its Consumer Expenditure Survey. It compares this CPI value to the previous month and the previous year to find the percentage changes.In the table below, CPI values in February 2021 and 2022 were 263.014 and 283.716, respectively. Hence, annual CPI inflation was 7.9% ((283.716 - 263.014) * 100 / 263.014).Let’s take a look at the CPI value for April 2021. It rose to 267.054 from 264.877 in March. In 2022, the CPI value climbed to 289.109 in April from 287.504 in March. Despite that increase, the annual inflation in April 2022 declined to 8.3% from 8.5%. That is how the base effect could distort the data and be misleading at times. Although there still was a considerable increase in prices from March to April in 2022, it was at a relatively softer rate than it was a year ago, translating into a drop in annual inflation.For annual CPI to decline to 8.7% in July from 9.1% in June, the CPI value would need to rise slightly to 296.754 from 296.311 in June. Going back to the question we asked at the beginning of the article, the CPI value would need to rise to 297.027 for the July annual CPI to arrive at 8.8%. To summarize, a CPI print of 8.7% in July would suggest that inflation may have peaked in June. A reading of 8.8%, however, would show that prices continued to rise in July, regardless of the decline in the annual inflation rate. It’s worth noting that investors will also pay close attention to the Core CPI figure, which excludes volatile food and energy prices. Nevertheless, a modest decline in the annual CPI might not be enough to cause investors to scale down their hawkish bets. Markets will look for a yearly inflation rate of below 8.7% or moderation in core inflation to scale down hawkish Fed bets, especially after the impressive July jobs report.
What to watch for in ETH to book 30% gains

What to watch for in ETH to book 30% gains

FXStreet News FXStreet News 09.08.2022 16:22
Ethereum price is booming and is trading further away from its 2022 lows.ETH price still holds over 30% gains and could break above $2,000.Two main elements are present that need to stay intact as confirmation of the rally.Ethereum (ETH) price action is printing a summer rally that started on July 13 and since then has been supported by the green ascending trendline that got identified when price action dipped in search of support near the 55-day Simple Moving Average (SMA) on July 26. The rally coincides with a shift in sentiment where traders could focus on a few elements that point to a possible rate cut at the beginning of 2023 and create the image of a goldilocks scenario. Precaution is needed as several Fed officials are pushing back on this, although the first official Fed rate decision is still forty days away, creating plenty of room for this rally to continue before investors start to fret and worry about what the Fed will do.ETH price has a 40-day window to rally inEthereum price gets plenty of support from the green ascending trend line mentioned in the opening statement above. An additional measure is added as bulls could reclaim $1,688 and now act as a double belt of security with the green ascending trend line. As price action will continue to climb, expect that level to lose its supportive power once that happens, and for now, it offers a great entry for another leg up.ETH price could first jump towards $1,928 with the purple line identified for a pivotal historical level and just a few dollars below the monthly R1, which is on the dot at $2,000. On the one hand, a big psychological level will be working as a magnet to pull price action higher and, in the meantime, will act as an intermediary level to book profits, seeing its relevance. Given the time horizon until the next Fed rate decision, a test at $2,278 would be possible and makes sense as the monthly R2 resistance falls in line with the 200-day SMA for now and will work as a cap on any further upward moves.ETH/USD Daily chartThe risk is that the double support belt does not hold. A break below $1,688 could see ETH spiral out of control and fall like a knife towards $1,400 – to look for support at the 55-day SMA and with $1,243 as the bottom line. That last level and the last line of defence once breached, guarantees new lows for 2022.
Tesla Will Struggle To Recover In The Coming Years

Wow! Tech Stocks: Tesla Stock Price Impresses With Its Performance!

FXStreet News FXStreet News 08.08.2022 16:38
Tesla stock falls 6% on Friday as rally starts to stall. TSLA stock is up 31% in the past month. Elon Musk said a recession is likely to last 18 months but be mild. Tesla stock fell on Friday as commentary from Elon Musk was taken as relatively bearish. The Tesla CEO said that the US looked set for a mild recession, probably in the ballpark of 18 months. Also more noteworthy in our view, Tesla stock is up nearly 32% in the past month and was due for a stall. Regular readers will have noted that your author has been short Tesla for some time. Luckily, I saw the writing on the wall and closed the position some 25% ago in the infancy of the rally. Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries Now it may be time to review the short thesis. This equity rally has been long in duration and percentage now and may be set to stall. The catalyst for the rally, that of falling yields, is reversing after Friday's strong jobs report. That strong report has given the Fed more ammunition to go for 75 basis points again in September. We are likely to see rhetoric turn notably hawkish this week from Fed speakers. Tesla stock news Also of note were other somewhat bearish comments from Elon Musk about the long-awaited Tesla Cybertruck. “Cybertruck pricing, it was unveiled in 2019, and the reservation was $99," Musk said. "A lot has changed since then, so the specs and the pricing will be different.” One has to assume this is a warning that prices will be higher given inflation and supply chain issues, but perhaps the biggest news piece is the imminent Tesla stock split. This is due to take place after August 17, which will be the record date. The Tesla stock split is to be a 3-for-1, so that Tesla shareholders on August 17 will receive an additional two extra shares in the form of a special dividend. Trading on a stock split-adjusted basis is scheduled to begin on August 25. Stock splits are generally seen as beneficial to stock prices simply due to human psychology – we like things that are perceived as cheaper even if in reality they are not. Tesla stock forecast Tesla recently marked its monthly gain of over 30% by flashing overbought on both the Relative Strength Index (RSI) and the Money Flow Index (MFI). It also retraced to the 200-day moving average but has not consolidated above there. The $945-to-$975 zone was an area of major resistance, and TSLA stock price has failed here. Momentum looks to be stalling, and Tesla is nothing if not a momentum play. This week could be interesting with Wednesday's CPI. That will dictate yields and the next Fed move, both of which will be the dominant factors in the next move for Tesla stock. Tesla chart, daily
Crypto: Bitcoin Network Shocks Again! 2,051 Adresess Are Associated With 1K BTC (Or More) Each!

Crypto: Bitcoin Network Shocks Again! 2,051 Adresess Are Associated With 1K BTC (Or More) Each!

FXStreet News FXStreet News 08.08.2022 16:38
Bitcoin price reaffirms a triangle breakout to $28,000 after surpassing $24,000. Whales holding 1,000 and more coins grow to 2,051 from 2,040 in a week. Bitcoin price is required to make a daily close above $24,000 to reinforce the move to $28,000. Bitcoin price kicked off the new week on a positive note, climbing 4.50% to trade at $24,086 at the time of writing. The larger cryptocurrency market appears to have flipped green, led by Avalanche’s 11.30% gains, Polkadot’s 9.20%, Solana’s 7.30% and Ethereum’s 6.50%. As for Bitcoin price, fundamentals are growing stronger by the day, thus becoming the main bear market rally drivers. Bitcoin Whales Return With A Bang There are 2,051 addresses holding 1,000 and above BTC. This number has increased by 0.54% from 2,040 addresses on August 2. A whale is any Bitcoin address containing not less than 1,000 BTC. The actual owners of these wallets remain largely unknown due to the pseudonymous nature of the blockchain network. Bitcoin Supply Distribution Bitcoin price tends to increase in value when whales buy in droves; the opposite also holds water. As observed in the chart above, Bitcoin price has been unable to sustain any bullish reversal attempts from the beginning of the year because whales increasingly sold, adding to the selling pressure. Bitcoin price settled above $24,000 as part of the plan to close the gap to $28,000 if large volume investors keep their buying activities intact. A closer glance at the technical outlook for Bitcoin price shows the possibility of a bullish daily candle forming, which will go a long way to affirm the buyers’ newly reclaimed control. After testing the ascending triangle’s hypotenuse, Bitcoin price retriggered the potential for a 22.36% breakout to $28,000. Including the step above $24,000, the flagship cryptocurrency is already quite close to hitting the upside target. Bitcoin price will only need to move another 15% to brush shoulders with $28,000. BTC/USD Daily Chart Similarly, the Moving Average Convergence Divergence (MACD) position on the daily chart further tips the scale in the bulls’ favor. As long as the MACD keeps moving higher above the mean line, the path with the least resistance will be to the upside. Traders should keenly follow the overlap of the 12-day Exponential Moving Average (EMA) and the 26-day EMA to quickly and accurately time price reversal.
Gold Has A Potential For Further Rally

XAU/USD: What Is The Possible Scenario For Gold Price? How Data Shapes Potential Fed Decision?

FXStreet News FXStreet News 05.08.2022 16:25
Gold witnesses aggressive selling and tumbles to the daily low amid the post-NFP strong USD buying. The upbeat report lifts bets for a 75 bps Fed rate hike in September, which further weighs on the metal. The risk-off impulse could offer some support to the safe-haven XAU/USD and help limit further losses. Gold comes under intense selling pressure during the early North American session and plummets to a fresh daily low, around the $1,765 area in the last hour. The US dollar strengthens across the board on a stronger-than-expected employment report and turns out to be a key factor weighing heavily on the dollar-denominated gold. The headline NFP print showed that the US economy added a whopping 528K jobs in July, smashing expectations by a huge margin. Furthermore, the previous month's reading was also revised higher to 398K from the 372K, while the unemployment rate also surprisingly edged down to 3.5% from 3.6% in June. The upbeat macro data lifts market bets for a larger Fed rate hike move at the September meeting, which further contributes to driving flows away from the non-yielding yellow metal. The odds of a 75 bps hike jumped to 70% from 40% before the jobs report and triggered a sharp spike in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond climbs back closer to the weekly high and exerts additional downward pressure on gold. The prospects for more aggressive policy tightening by the Fed, meanwhile, tempered investors' appetite for riskier assets. This is evident from a fresh leg down in the equity markets, which could lend some support to the safe-haven gold and help limit any deeper losses, at least for the time being. Hence, any subsequent downfall is more likely to find decent support near the weekly low, around the $1,754 area, which coincides with a strong hurdle cleared last week.
Shiba Inu (SHIB) Creates Double Bottom Pattern After Bounce From May Lows | BeInCrypto

Meme Coins: Shiba Inu Price: What Do We Learn From The Technical Picture Of SHIB?

FXStreet News FXStreet News 05.08.2022 16:25
Shiba Inu price could flare up to $0.00001679 if the 200-day SMA hurdle crumbles. A stubborn inverse head-and-shoulders neckline resistance may be the only bump between SHIB and a 39% move. The IOMAP metric reinforces the upside target at $0.00001700, where some investors could empty their bags. Shiba Inu price is on the frontline of ushering in the weekend with a daily bullish candle alongside other crypto assets such as Solana, Binance Coin and Polkadot. SHIB’s trading over the last few days has been somewhat sideways. Conversely, a bullish breakout may be in the offing, especially if the token makes a daily close above $0.00001220. Shiba Inu price’s 39% move depends on the inverse head-and-shoulders pattern Shiba Inu price formed an inverse head-and-shoulders (H&) pattern between May and August, as seen in the chart below. Crucial support at $0.00000740 allowed buyers to regain control against the backdrop of dire losses in May. This buyer congestion zone positively influenced SHIB but only up to $0.00001220. Since the H&S pattern is highly bullish, Shiba Inu price has a good chance of sprinting to $0.00001679 – if it can make a clean break above the neckline. For now, buyers must subdue the overhead selling pressure brought to light by the 200-day Simple Moving Average (SMA) on the 12-hour chart. The Moving Average Convergence Divergence (MACD) in the same timeframe would be required to hold above the mean line as well as keep the buy signal intact, affirming a solid bullish grip. SHIB/USD 12-hour chart On the flip side, the 50-day SMA provides immediate support slightly above an ascending trendline. Therefore, in the event of a bearish reversal, Shiba Inu price may recoil at a higher low, as long as the trend line is not broken. From a fundamental perspective, Shiba Inu may exhaust the uptrend in the region between $0.00001400 and $0.00002100. IntoTheBlock’s IOMAP on-chain metric reveals that around 101,000 addresses previously purchased approximately 445.9 trillion SHIB tokens in the range. Shiba Inu IOMAP chart Traders preparing to make the most out of Shiba Inu price breakout to $0.00001679 should consider taking profit at $0.00001400, with the bullish holding out till $0.00001700. These targets factor in overhead pressure as investors sell at their respective breakeven price points.
Bank Of England Broke Record! What Could Be Ahead Of British Pound (GBP)?

Bank Of England Broke Record! What Could Be Ahead Of British Pound (GBP)?

FXStreet News FXStreet News 04.08.2022 20:32
The Bank of England has raised rates by 50 bps, the highest in 27 years, but as expected. Forecasts of a long recession have heavily weighed on the pound. Governor Bailey's gloomy mood, Brexit and political uncertainty are set to keep the pound depresed. The Old Lady's last hurrah? That is what Bank of England's 50 bps rate hike looks like, one of the last such increases in interest rates, a prelude to a long recession. That is why sterling is suffering, and it has more room to fall. While the hike to 1.75% is the biggest move since 1995, investors fully expected it. Back in June, BOE Governor Andrew Bailey signaled such a move would be high on the agenda. Markets were unaware that one member would vote for a more modest increase of only 25 bps, but there is a more significant reason for the pound to fall. What makes this rate decision a "Super Thursday" is the BOE's quarterly Monetary Policy Report (MPR) – and it includes a "super" bombshell. The BOE forecasts a recession to being in the fourth quarter and last for five – that means throughout 2023. That is a relatively protracted downturn. Forecasting a recession – and inflation to reach 13% – sounds stagflationary and depressing, justifying the big fall in the pound. The bank is being brutally honest, and the pound seems to prefer sweet little lies. Will the pound continue lower? I think there is further room to the downside. First, a gloomy forecast may turn into a self-fulfilling prophecy, causing Brits to hold back on spending and employers to think twice before hiring new workers. Second, Britain's other issues are far from being resolved. Liz Truss, the leading candidate to become UK Prime Minister, is set to enact a tough policy on Brexit, potentially causing additional trade frictions with the EU. She is seen as less fiscally responsive, something that investors dislike as well. But even by focusing solely on BOE policy, abandoning any forward guidance is an admission of uncertainty. Markets hate uncertainty. All in all, sterling's falls are justified, and more could be in store.
Crypto: Altcoins: Could (ADA) Cardano Price Rally!?

Crypto: Altcoins: Could (ADA) Cardano Price Rally!?

FXStreet News FXStreet News 04.08.2022 20:32
Cardano price eyes the $0.72 target as analysts predict a 40% rally in the Ethereum-killer altcoin. Cardano recently witnessed breakout from a falling wedge, and prepares to reclaim mid-2017 resistance. Invalidation of Cardano’s uptrend would come from a break below $0.33. Cardano price prepares for a rebound despite consecutive delays in the Vasil hard fork. Analysts have identified bullish potential in the altcoin, predicting a breakout past resistance at $0.55. Also read: Cardano price gears up for 40% price rally after surpassing key milestone Cardano price prepared to shock holders? Cardano price recouped its losses post the FOMC announcement and recovered from its July 26 lows at $0.45. The Ethereum-killer smart contracts chain is ready for a breakout, eyeing a 40% rally to $0.72. Analysts believe the altcoin is likely to continue its uptrend, and a break past resistance at $0.55 will confirm Cardano’s bullish move. A breakout from a falling wedge is considered indicative of a price rally, according to analysts at rektcapital, who believe an uptrend is imminent, in the case of Cardano. ADA/USD 1-week chart Cardano price can therefore climb as high as $0.72. The bullish scenario is a favorable narrative, alongside a spike in the number of smart contracts on the Cardano chain and rising on-chain activity. rektcapital’s targets for Cardano are $0.51, $0.72. $0.96 and $1.45. The first target is $0.72, 40% above the current Cardano price. If Cardano price plummets below $0.33, rektcapital’s bullish thesis will be invalidated and ADA price will remain at risk of further decline. Cardano Vasil hard fork will see no further delays? Charles Hoskinson, the CEO of Input Output Global (IOG) believes things are moving in the right direction steadily. The Vasil hard fork has been delayed for several weeks in order to ensure a smooth transition for users. Hoskinson addressed concerned ADA holders and explained that unless any new issue crops up, he does not anticipate any further delays. The issues caught by developers in previous tests surprised the team as they occurred late in the production pipeline. Therefore developers deployed an alternative path and postponed the hard fork, aiming for a smooth transition. Vasil hard fork is touted as a “game-changer” for the Cardano network, making it further attractive for smart contract developers. Analysts warn investors against low momentum in ADA In the following video, FXStreet analysts take a deep dive into Cardano price action, analyzing the lack of momentum and recommending key levels of interest.
USD/JPY Price Analysis: Bulls looking to seize control near weekly high, above mid-133.00s

USD/JPY Price Analysis: Bulls looking to seize control near weekly high, above mid-133.00s

FXStreet News FXStreet News 03.08.2022 16:38
USD/JPY gains positive traction for the second straight day and inches closer to the weekly high.The widening US-Japan yields differential, and the risk-on impulse undermine the safe-haven JPY.Bulls now seem to wait for sustained strength beyond the 134.00 mark before placing fresh bets.The USD/JPY pair catches fresh bids near the 132.30-132.25 region and steadily climbs back closer to the weekly high set earlier this Wednesday. The pair is currently trading around the 133.65-133.70 area, up nearly 0.40% for the day and is supported by a combination of factors.A further rise in the US Treasury bond yields, bolstered by the overnight hawkish remarks by several Fed officials, widens the US-Japan rate differential. This, along with the risk-on impulse, undermines the safe-haven Japanese yen and pushes the USD/JPY higher for the second successive day.Looking at the broader picture, the post-FOMC sharp downfall stalled on Tuesday near the 130.40-130.35 confluence support. The mentioned area comprises the 100-day SMA and the 50% Fibonacci retracement level of the April-July rally, which should now act as a pivotal point for the USD/JPY pair.Bullish traders, meanwhile, might wait for some follow-through buying beyond the 134.00 mark before positioning for any further gains. The USD/JPY pair could then climb to the 134.75 intermediate hurdle en-route to the 135.00 psychological mark and the 23.6% Fibo. level, around the 135.15 region.On the flip side, the 38.2% Fibo. level, around the 132.50 area, now seems to protect the immediate downside ahead of the 132.00 round figure and the 131.65-131.60 region. Failure to defend the said support levels could make the USD/JPY pair vulnerable to sliding back below the 131.00 mark.The downward trajectory could further get extended towards the 130.40-130.35 confluence support. A convincing break below the latter would be seen as a fresh trigger for bears and set the stage for an extension of the recent corrective slide from the 24-year peak touched on July 14.USD/JPY daily chart
Ethereum Price Prediction: An honest rally or long squeeze in the making?

Ethereum Price Prediction: An honest rally or long squeeze in the making?

FXStreet News FXStreet News 03.08.2022 16:38
Ethereum price triggers a premature reversal before retesting the $1,543 support level.A long squeeze could be possible, which could push ETH to sweep the $1,354 swing low.A daily candlestick close below the $1,284 support level into a resistance level will invalidate the bullish thesis.Ethereum price shows signs of a premature rally, but if bulls are serious about this move, it could result in a breakout from a significant resistance level and a massive rally.Ethereum price ready for a pullbackEthereum price reversed as it retested the $1,730 resistance level, indicating bullish momentum might be exhausted. While it was forecasted in a previous article that ETH would retest the $1,543 support level, the retracement saw a premature reversal after creating a swing low at $1,598.While this move may appear bullish, it could turn out to be a long squeeze, especially if bulls lack momentum. Hence, if this rally is real, it should either retest the $1,730 hurdle or flip it. Any shortcomings during its journey could prove costly for traders that are positioned long.Assuming bulls manage to do this, ETH could revisit the $2,000 psychological level.The threat of a long squeeze will diminish if Ethereum price fills the inefficiency, aka fair value gap at $1,470. In some cases, the market makers might even knock ETH lower to sweep the July 26 swing low at $1,354 before triggering a run-up.To conclude, investors that went long ETH late are likely to suffer losses more than the ones that opened long positions earlier last week. ETH/USD 4-hour chartRegardless of the short-term bullish outlook and the potential for a long squeeze, a non-stop sell-off that flips the $1,284 support level into a resistance level will invalidate the thesis explained above.In such a case, a revisit to the range’s midpoint at $1,080 seems plausible
US July ISM Services PMI Preview: Inflation component holds the key

US July ISM Services PMI Preview: Inflation component holds the key

FXStreet News FXStreet News 02.08.2022 16:51
ISM will release the July Services PMI report on Wednesday, August 3.Markets have been scaling down hawkish Fed bets since the last FOMC meeting.Inflation component of the PMI survey could impact the dollar's valuation. The dollar has been having a difficult time finding demand amid disappointing macroeconomic data releases and the Fed’s decision to abandon rate guidance. The US Bureau of Economic Analysis’ initial estimate showed that the US economy contracted at an annualized rate of 0.9% in the second quarter and the probability of a 75 basis points (bps) Fed rate hike in September dropped below 20%.On Monday, the Institute for Supply Management (ISM) reported that the business activity in the manufacturing sector continued to expand at a moderate pace with the headline Manufacturing PMI coming in at 52.8. The Prices Paid component of the survey, however, declined to 60 from 78.5 in June, revealing a remarkable easing in price pressures. Consequently, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, fell to its lowest level in a month near 105.00. DXY daily chartDollar bears look for signs of softening inflationOn Wednesday, the ISM will release its Services Report on Business. The headline PMI is forecast to edge lower to 53.5 in July from 55.3 in June while the Prices Paid component is expected to rise to 81.6 from 80.1.Market participants are likely to react to inflation developments rather than the overall state of the service sector unless the headline PMI diverges from the market consensus in a significant way. A Services PMI reading below 50 should escalate inflation fears and cause markets to continue to scale down hawkish bets. On the other hand, an unexpected jump could open the door for a USD rebound but such a reaction should remain short-lived.In case the report unveils a noticeable decline in the Prices Paid component, the dollar could continue to weaken against its peers. According to the CME Group’s FedWatch Tool, markets are pricing in an 81.5% chance of a 50 bps rate hike in September, suggesting that there is more room on the downside for DXY if the data is seen as a factor that would allow the Fed to remain cautious with regards to future rate increases. On the contrary, investors could refrain from betting on further dollar weakness if the Prices Paid component remains elevated above 80. ISM Services PMI, Prices Paid IndexMarkets should pay close attention to the Employment component as well. Ahead of Friday’s jobs report, a print below 50 would point to a contraction in the service sector employment and put additional weight on the USD’s shoulders.To summarize, the only dollar-positive scenario would be with the ISM’s publication revealing that inflation continued to run hot in the service sector in July.
Dogecoin price to provide positional traders a discount to buy DOGE before a 90% rally

Dogecoin price to provide positional traders a discount to buy DOGE before a 90% rally

FXStreet News FXStreet News 02.08.2022 16:51
Dogecoin price retests the POC at $0.066 of the volume profile for the last 100 days.A bounce that emerges after a sweep of the equal highs formed at $0.057 has a high chance of sustaining an explosive move.A daily candlestick close below the $0.048 level will invalidate the bullish thesis. Dogecoin price is at crossroads and shows signs of a steady consolidation above a stable support level. However, there needs to be momentary pain before a long-term and explosive rally originates. Dogecoin price makes precise plansDogecoin price triggered a 71% crash between April 25 and June 18, which was due to the aftereffects of the LUNA-UST debacle and the ripple effects that blew up the Three Arrows Capital. Regardless, DOGE managed to form a bottom and trigger a run-up.The volume profile for this range shows that the highest volume traded level, aka Point of Control (POC) at $0.066, is currently being tagged by DOGE. While this barrier serves as a support level, a breakdown of this level is necessary to collect the sell-side liquidity resting below equal lows formed at $0.057.Interestingly, the aforementioned level also coincides with the demand zone, extending from $0.057 to $0.048, making it a high-probability reversal area.Therefore, this dip is the best opportunity for swing and position traders to buy or long DOGE at this level. The rally that emerges here is likely to shatter through the short-term resistance levels and retest the midpoint of the 71% crash at $0.110.In total, this move would constitute a 90% upswing and is likely where the upside is capped for the Dogecoin price.DOGE/USDT 1-day chartOn the other hand, if the Dogecoin price produces a daily candlestick close below the $0.048 level, it will create a lower low and will invalidate the bullish thesis. This development could see DOGE move down to $0.045 or $0.040 levels.
Teladoc Stock News and Forecast: Time for the doctor as TDOC earnings show it is sick

Teladoc Stock News and Forecast: Time for the doctor as TDOC earnings show it is sick

FXStreet News FXStreet News 28.07.2022 16:25
Teladoc stock falls sharply after the earnings release.TDOC earnings actually beat on revenue.TDOC though was negative in its outlook.Teladoc stock (TDOC) continued its trend for 2022 – that of sharp losses – as it released its earnings after the close on Wednesday. TDOC shares fell about 20% in afterhours trading as the market reacted to a revenue beat but was disappointed with forward guidance. Teladoc was one of the pandemic stocks that drew a lot of attention from retail traders and features strongly among the fabled but now infamous Cathie Wood ARK Invest funds. TDOC stock is one of a multitude of ARK fund's biggest holdings.TDOC stock earningsRevenue came in slightly ahead of Wall Street estimates at $592 million versus the $584 million estimate, but earnings per share (EPS) arrived at a whopping $-19.22 on an impairment charge due to goodwill being written down. The adjusted EPS outside of this was a more sedate $-0.44. The goodwill impairment charge was in the region of $ 3 billion or amounting to $18.78 per TDOC share. "Teladoc Health delivered solid second quarter results with significant progress against our whole person care strategy, including growing momentum in Primary360," said the CEO. Excuse me for nearly choking on my breakfast, but these are far from solid results, and the market reaction seems to agree. As we have droned on here repeatedly, company executives are salesmen designed to sell you their shares. So always take what they say with a large grain of salt, just not perhaps with your cereal.Source: Company filingsAgain a full-year loss of $-62 to $-61 is not exactly solid in my language, but maybe I learned a different version of English from the CEO!Source: Company filingsAt least stock-based compensation is falling! It was the statement that guidance would be at the lower end of the previously given range that set things in motion to the downside however. TDOC stock forecastBased on the correlation we show below, we should be looking at more declines for ARKK based on TDOC collapsing in the afterhours market. So far the move in ARKK ETFs is more sedate as it lost only 2% in the premarket despite the 20% fall for TDOC. TDOC versus ARKK, daily year-to-date % changeExpect TDOC stock to break out of its current range of $37 to $27, which is the consolidation phase from back in June 2017 to February 2018. Breaking below will see TDOC head for the next support consolidation zone from $20 to $15. This is a consolidation zone from summer 2016. TDOC stock chart, weekly
Bitcoin price, FOMC and 75 bps: What happens after the euphoria ends?

Bitcoin price, FOMC and 75 bps: What happens after the euphoria ends?

FXStreet News FXStreet News 28.07.2022 16:25
Bitcoin price shot up from roughly $21,100 to $23,450 in a few hours after the FOMC announcement.Investors need to note that this upthrust was impressive, but it does not seem sustainable.A daily candlestick close above $25,000 will invalidate this bearish outlook. Bitcoin price saw an unusual spike in buying pressure as the US Federal Reserve announced a 75 basis point hike in the Fed Funds rate. Although unsure, one could speculate that this behavior was due to the Fed’s decision meeting the population’s expectations, as well as accompanying commentary which suggested a deterioration in economic conditions and a slowdown in the pace of further hikes.Regardless, this article tries to break down what this recent uptick means for Bitcoin and the crypto ecosystem. Bitcoin price and the FOMC meetingBitcoin price has had a strong correlation with the stock market ever since the COVID crash in March 2020. As a result, events that affect the traditional markets have been playing a significant role in determining BTC’s direction.On July 27, the FOMC meeting announced a bump of 75 basis points, which is the second consecutive interest rate hike. However, what’s interesting is that the last time this decision was made on July 13, BTC suddenly spiked to the downside and created a lower low.The losses were offset quickly as the Bitcoin price recovered and triggered a rally. In hindsight, the swing low formed on July 13 was a local bottom that catalyzed a 28% rally for BTC and roughly 65% for Ethereum price.BTC and ETH vs. USDT chartsSo why did BTC not crash this time?Perhaps the most vivid difference between July 13 and July 27 is the expectations.When the Fed announced the first 75 bps hike, the expectation of the crowd was 50 bps. Since the actual results exceeded expectations, the markets tanked briefly.However, this time around, it was a well-known fact that the Fed was going to hike by 75 bps. Despite the fact that such a big bump in interest rates could risk recession, the results matched expectations, which could be one of the reasons why Bitcoin price triggered a run-up.Another reason could be the commentary that accompanied the rate hike, which suggested the economy was slowing and the pace of rate hikes in the future might accordingly slow too.The current state of Bitcoin priceDespite the bounce off of the FOMC meeting, the future still looks bearish for BTC price. As described previously, Bitcoin price seems to be forming a bear flag on the four-hour chart. This continuation pattern contains a sharp decline, the ‘flagpole’, which formed during June, ending in a ‘flag’ consolidation which formed mostly in July. The pattern forecasts a continuation of the prior downtrend once the price breaks out of the flag.The FOMC-induced rally pushed BTC up to retest the flag highs but is likely to retrace as investors book profits.Assuming Bitcoin price breaks below the base of the flag at $20,603, the theoretical method for forecasting a target suggests a subsequent move down to $11,717. This level is obtained by adding the flagpole’s height to the breakout point.BTC/USDT 4-hour chartWhile investors need to be cautious of this rally, they should also be aware that it also has the potential to extend higher, if certain resistance levels are breached. In this case, if the Bitcoin price produces a daily candlestick close above $25,000 it will invalidate the bear flag scenario, and suggest a potential reversal in the trend leading to higher prices.
US Gross Domestic Product Preview: Would the US avoid a technical recession?

US Gross Domestic Product Preview: Would the US avoid a technical recession?

FXStreet News FXStreet News 27.07.2022 16:20
The US economy is expected to have grown a modest 0.4% in the second quarter.A second consecutive negative reading will indicate the US is in a recession.USD strength or weakness will be directly linked to the market sentiment.The US will publish the preliminary estimate of the second quarter Gross Domestic Product on Thursday, July 28. The economy is expected to have grown at an annualized pace of 0.4%, improving from a 1.6% decline in Q1.Macroeconomic data, however, points to heightened downward risks for the economy, particularly figures linked to the last half of the quarter, as spending retreated sharply. A negative figure will mean the US is in a technical recession, defined as two consecutive quarters with negative GDP readings.Following the first year of the pandemic, global economies bloomed. The US expanded substantially throughout 2021 but lost momentum by the end of the year. Supply-chain issues and bottlenecks were initially blamed for the slowdown, alongside shocking spending that led to higher inflation. Central bankers were expecting the latter to be temporary, realizing too late that they missed big.Nor did they foresee Russia’s decision to invade Ukraine and create a global energy and food crisis would go on to fuel price pressures. Central banks rushed into quantitative tightening, but things are getting no better. Inflation among developed economies keeps reaching multi-decade highs while business activity shrinks.Short-lived hopes?In this scenario, there is a small chance the US economy would expand modestly in the second quarter of the year. Maintaining growth in the third quarter of the year, however, seems unlikely.Treasury Secretary Janet Yellen said the country is not in a recession but in “a period of transition in which growth is slowing.” “A recession is a broad-based contraction that affects many sectors of the economy. We just don’t have that,” she added. And indeed, some sectors of the economy are doing well. Job creation has been robust in the last two years, while business activity decelerated but remains in expansionary territory.A figure signaling growth will indicate the US is skipping a recession, but any number below 1% will bring little relief to those concerned about the economic slowdown. Rather it will just buy a bit more time.USD possible scenariosGenerally speaking, the dollar has more chances of appreciating in a risk-averse environment than falling amid poor local data. The EUR is the greenback’s weakest rival as local turmoil caps demand. Should the dollar surge, selling EUR/USD seems the best choice.The Swiss Franc, the British Pound and the Australian dollar are at the other end of the range. A falling dollar plus resurgent stocks will make AUD/USD the preferred choice, while, in the case stocks fall, eyes should turn to CHF and GBP.
Dogecoin Could Start The Next Impulsive Rally

Meme Coins - DOGE: What Do FXStreet Analysts Think About Dogecoin Price?

FXStreet News FXStreet News 27.07.2022 16:20
Mark Cuban believes Dogecoin is fun, considers it a starter drug for beginners in crypto. A senior cryptocurrency research analyst at Messari argues Dogecoin’s social sentiment and daily transactions are similar to Cardano. Analysts note Dogecoin price remains at risk of decline, a breakout is possible only on a specific condition. Mark Cuban, Dallas Mavericks boss recently commented on what happens to cryptocurrencies when speculators leave. Cuban addressed the state of Dogecoin, the starter drug for crypto. A senior research analyst at Messari identified similarities between Dogecoin and Cardano, sharing his findings. Also read: Dogecoin and Shiba Inu bleed in Pre-FOMC crypto snoozefest Dogecoin is the starter drug of crypto: Dallas Mavericks Boss Billionaire entrepreneur and Dallas Mavericks boss Mark Cuban commented on Dogecoin. Cuban argued that Dogecoin is a tool of speculation and the state of the meme coin is what it would be like, when “all speculators leave.” Cuban spoke about Dogecoin in a recent episode of the Full Send podcast, describing Dogecoin as the “starter drug for crypto.” Cuban chose this title for the meme coin as it is cheap, has a high utility, and can be used for making payments. In 2021, Cuban accepted DOGE as a payment for tickets and merchandise, in addition to cryptocurrencies like Bitcoin and Ethereum, Cuban was quoted on the podcast, When people were buying and trading Dogecoin a lot, we were making thousands of dollars a week, ten thousand a week, here and there. So it was real money for us. But at the same time, once people stopped speculating on it, people lost kind of the vibe for it. Cuban believes speculation was the leading factor for Dogecoin price decline. Analyst believes Dogecoin is similar to Cardano Tom Dunleavy, Senior Cryptocurrency Research Analyst at Messari identified similarities between Dogecoin and Cardano. Dunleavy notes that Dogecoin’s market capitalization exceeded $75 billion during the bull run. Dogecoin’s daily transactions and social sentiment are similar to Cardano. Despite the meme coin’s market capitalization decline from $75 billion to $8.2 billion, Dunleavy argues that DOGE has bucked the trend of other networks. DOGE increased transaction volume and active addresses during the recent market downturn. FXStreet analysts believe Dogecoin price is at a dangerous level and identified key price levels to watch for a shift in the meme coin’s trend. For more information, check the video below:
Fed Preview: Dollar’s fate hinges on Powell’s policy guidance

Fed Preview: Dollar’s fate hinges on Powell’s policy guidance

FXStreet News FXStreet News 26.07.2022 16:39
The US Federal Reserve is set for another 75 bps rate hike on July 27.Fed Chair Powell's pledge to fight persistenly high inflation and policy guidance hold the key. The US dollar is basing to kickstart a fresh rally towards a two-decade high.Despite an imminent technical recession in the US, the Federal Reserve (Fed) is determined to deliver another super-sized rate hike when it concludes its two-day policy meeting on July 27. Fed Chair Jerome Powell’s response to fighting inflation will be closely examined alongside the policy guidance for the September meeting.Inflation peaking, not so farAfter announcing the largest rate hike since 1994 in June, the Fed is set for the second consecutive 75 bps rate hike at its July policy meeting, lifting the federal funds rate range to between 2.25% and 2.5%. In doing so, the world’s most powerful central bank will be effectively ending the pandemic-era support for the US economy.Markets are wagering a roughly 80% chance of another 75 bps rate hike by the Fed this month when compared to a 20% likelihood of a full percentage-point rise, per CME’s Fed Watch Tool. The odds of a 100 bps rate hike at the July meeting had jacked up to over 95% after the US inflation came in hotter than expected in June.Surging gas, food and rent costs catapulted US inflation to a new four-decade peak in June, which arrived at 9.1% YoY, much higher than May’s 8.6% jump. On a monthly basis, prices rose 1.3% from May to June, another substantial increase, after prices had jumped 1% from April to May. The inflation scorcher squashed expectations of peaking consumer prices and bolstered the bets for a 1% hike in rates.At the June post-policy meeting press conference, Powell acknowledged that the rise in the University of Michigan’s five year ahead five-year inflation expectations from 3.0% in May to 3.3% in June was the main reason behind the central bank’s bigger rate hike.However, the June number was revised down to 3.1%, while the Fed’s closely-watched inflation measure fell to 2.8% in July, its lowest in one year. Further, Fed Governor Christopher Waller and Atlanta Fed President Raphael Bostic said that they favor a 75 bps rate hike at the upcoming July meeting. For a potential 100 bps Fed lift-off, Waller said the market is “getting ahead of itself.” These factors, subsequently, watered down expectations for a full percentage point increase.With a 75 bps rate hike fully baked in, all eyes remain on Powell’s commitment to curbing inflation even with an increased risk of tipping the economy into a mild recession.That said, Powell’s rate hike guidance for the September meeting and beyond will hold utmost significance, in absence of any updated projections at the July meeting.Source: CMEGroupThe CME FedWatch Tool now shows the probability of a 75 bps September rate increase at a coin flip level while that of a 50 bps move stands at 49%. Meanwhile, money markets are pricing in an 83.4% chance that the target rate range will climb to between 3.25% and 3.5%, or higher by the end of 2022.Powell could afford to pre-commit a 75 bps rate hike for September, given that the US labor market remains in a healthy condition. The US economy added 372,000 jobs in June, exceeding economists’ estimates for 250,000 jobs. The US unemployment rate held steady at 3.6%, while the labor participation rate ticked slightly down to 62.2%.However, signs of peaking inflation could be the only risk, at the moment, which could dissuade the Fed from committing to larger rate hikes going forward. The Fed is ready to tolerate a weaker growth outlook so long as the inflation monster is controlled.Trading the US dollar with the Fed announcementThe US dollar index is trying to find a base just above the 106.00 level after the recent correction from a two-decade top of 109.29. The benchmark 10-year US Treasury yields are holding near two-month lows, as a recession and a 75 bps July rate hike are fully priced in by the market.Therefore, the dollar, as well as, the yields need Powell to leave doors open towards a bigger than 50 bps rate hike for September to keep its commitment to fighting rising prices. Technically, the dollar gauge (DXY) has been gathering support just above the 61.8% Fibonacci Retracement level of the latest upsurge to over twenty-year highs, which is aligned at 105.90.Hawkish policy guidance from Powell will revive the bullish interest in the dollar, breaking the index from its previous week’s range to recapture the 107.50 barrier. The abovementioned critical 61.8% Fibo support could cave in if the Fed acknowledges signs of peak inflation and/or hints at slowing down on its tightening path in the face of the economic downturn. The next downside cushion for the dollar index aligns at the ascending 50-Daily Moving Average (DMA) at 104.67.US dollar index: Daily chart
Ethereum hits exchanges amidst rising negative sentiment ahead of the Merge

Ethereum hits exchanges amidst rising negative sentiment ahead of the Merge

FXStreet News FXStreet News 26.07.2022 16:39
Ethereum outlook among investors has turned negative based on data from Santiment. There is a spike in inflow of Ethereum to exchanges, increasing the selling pressure. Analysts believe Ethereum remains at risk of decline, as the altcoin posts nearly 10% losses overnight. Ahead of Ethereum’s transition to proof-of-stake, there is a spike in ETH inflow to exchanges. As Ethereum piles up across exchange wallets, analysts note a shift in sentiment among traders. Also read: Ethereum is dirt cheap ahead of the Merge, claims analystEthereum supply on exchanges climbs steadilyIn the weeks leading up to Ethereum’s transition from proof-of-work to proof-of-stake, the altcoin’s supply on exchanges has climbed steadily. 13.78% of Ethereum’s total supply is on exchanges based on data from crypto intelligence platform Santiment. The steadily climbing supply is indicative of an increase in selling pressure on exchanges. With higher Ethereum reserves on exchanges, more ETH is available to sell, putting the altcoin’s price at risk of decline. Ethereum supply on exchanges Sentiment on Ethereum turns negative Based on data from Santiment, weighted social sentiment, a metric that combines the positive/negative commentary, and multiplies by the amount of social volume has turned negative. Typically when weighted social sentiment gets too high, it coincides with a price top and when sentiment is negative it coincides with a bottom. The weighted social sentiment of Ethereum dropped to -0.54, indicating a shift in sentiment from positive to negative, in the weeks leading up to the merge. Weighted social sentiment Analysts predict decline in Ethereum price PostyXBT, a leading crypto analyst, identified that Ethereum’s structure has broken down. The analyst argued that 'bounces are for shorting' vibes are back. Ethereum’s market structure and price trend has changed, and the overall outlook is bearish. ETH Perpetual Futures ContractsMcKenna, a crypto analyst and trader argues that Ethereum is poised for a liquidity grab once the altcoin plummets below $1,460. FXStreet analysts believe that Ethereum could plummet to $1,284 in order to collect liquidity. For more information and specific conditions, check the video below:
USD/JPY: Where Could The Gap Between Fed And BoJ Take This Forex Pair?

USD/JPY: Where Could The Gap Between Fed And BoJ Take This Forex Pair?

FXStreet News FXStreet News 25.07.2022 16:44
A combination of factors weighed on the JPY and assisted USD/JPY to gain traction on Monday. The widening US-Japan yield differential, the risk-on impulse undermined the safe-haven JPY. The USD languished near a two-week low and capping gains as the focus remains on the FOMC. The USD/JPY pair attracts some buying near the 136.00 mark on the first day of a new week and reverses a part of Friday's losses to a two-week low. The pair, for now, seems to have snapped a two-day losing streak, though the intraday uptick lacks bullish conviction. A goodish recovery in the global risk sentiment - as depicted by an intraday rally in the equity markets - undermines the safe-haven Japanese yen. The risk-on flow pushes the US Treasury bond yields higher and widens the US-Japan rate differential. This is seen as another factor weighing on the JPY and extending some support to the USD/JPY pair. That said, the emergence of fresh US dollar selling holds back bulls from placing aggressive bets and keeps a lid on any meaningful gains for the USD/JPY pair. The USD struggles to capitalize/preserve its modest intraday gains and languishes near its lowest level since July 5, which, in turn, is seen as a key factor acting as a headwind for spot prices. The USD downfall, however, remains limited, at least for the time being, amid bets that the Fed will hike interest rates by another 75 bps at the end of its two-day meeting on Wednesday. In contrast, the Bank of Japan stuck to its ultra-easy policy settings last week and reiterated its commitment to continue buying the Japanese Government Bonds (JGB). The big divergence in the monetary policy stance adopted by the two major central banks favours bullish trades and supports prospects for a further near-term appreciating move for the USD/JPY pair. Hence, any meaningful pullback might still be seen as a buying opportunity and is more likely to be short-lived ahead of the key central bank event risk.
Crypto: Under What Condition Could Bitcoin Price Crash?

Crypto: Under What Condition Could Bitcoin Price Crash?

FXStreet News FXStreet News 25.07.2022 16:44
Bitcoin price is currently retesting the $21,710 support confluence. If bears break down the aforementioned level, BTC could crash by 12%. A daily candlestick close below $21,710 will trigger an 11% crash to $19,286. Bitcoin price is undergoing an uptick in sell-side activity that has led to a retracement after nearly a week of an uptrend, starting July 13. Now, BTC has arrived at a level that will decide its fate and perhaps the directional bias for altcoins. While the technicals are painting an ‘on the fence’ picture of the markets, one can guess if it is from the expectations of an interest rate hike that is scheduled to take place on July 27. This behavior makes sense, considering the previous rate hikes have generally caused crypto markets to tank. On July 13, the Fed hiked rates by 75 basis-points, causing BTC to drop 5%, but the short-term loss was eventually offset as Bitcoin price triggered a week-long rally that pushed it from $19,000 to $24,000. Investors, therefore, need to pay close attention to how the markets will react on July 27. BTC/USD vs Interest rate chart Bitcoin price at a make-or-break point Bitcoin price produced a daily candlestick close below the 200-week SMA on July 22. This development indicates that there is a weakness among buyers. Since then, BTC has dropped 4% and is currently hovering around $21,943. Regardless of this downswing, the bulls have another chance to recover due to the presence of the 30-day Exponential Moving Average (EMA) at $22,010 and above the 100 four-hour Simple Moving Average (SMA) at $21,562. With the Feds stepping in to raise the interest rate by another 75 basis points, investors can expect volatility. A brief sweep of the $21,710 should be expected, but a quick recovery should suggest a bullish sentiment. A bounce off the aforementioned level could trigger a run-up to the $25,000 level after a 15% rally. This level is more likely to form a local top than the current one at $24,276. However, traders should keep their minds open for an extension of this move to the $28,000 to $30,000 area in a highly bullish case. BTC/USD 1-day chart On the other hand, if the Bitcoin price breaks below the $21,710 support confluence, there is a good chance BTC could revisit the $19,657 support level. A breakdown of this level could see BTC retest the liquidity pool, extending from $18,638 to $19,286. In some cases, a sweep of the range low at $17,605 is also plausible.
Limiting The Availability Of Elon Musk's App In The App Store Could Be A Significant Blow For Twitter

META Stock Price News! Facebook To Be Similar To TikTok!? Snap Plunged!

FXStreet News FXStreet News 22.07.2022 16:11
Facebook revamps app to look more like TikTok. META stock slides 5.3% to $173.32 in Friday's premarket. Snap stock lost 32% after reporting earnings that missed the mark. Meta Platforms (META) stock is off 5.3% in early trading on Friday after competitor Snap (SNAP) served up Q2 earnings that disastrously missed the mark on Thursday night. Snap stock slid 32% in the premarket a day after announcing post-session results that missed on both GAAP earnings and revenue and were bad enough that management chose not to offer guidance for the third quarter. The market is now wondering if Snap's troubles with social media advertising will also gravitate to the biggest player in the space – Meta Platforms. The owner of Facebook and Instagram reports earnings on July 27, and it appears that the market will head into earnings with lower expectations from the social media giant. This is all too bad since Thursday was the day when Facebook announced a new user interface that critics think will be more attractive to younger users. The new feed design will be more like TikTok in that it will more easily show users popular content from users they do not already follow. The previous earnings call this spring had Facebook losing active users for the first time ever. Facebook stock forecast Afterhours on Thursday META stock already fell briefly through the $172.40 level that acted as resistance in early July. The 100-unit moving average on the 4-hour chart at $166 is a much better bet for support. Longer-term support sits at $158, which worked back during the March 2020 covid sell-off. Either way, expect this stock to feature strong volatility going into earnings on July 27.   META 4-hour chart
Cardano News! Outperforming Ethereum and Solana!? Crypto: What Is Special About Cardano!?

Cardano News! Outperforming Ethereum and Solana!? Crypto: What Is Special About Cardano!?

FXStreet News FXStreet News 22.07.2022 16:11
Cardano powers the transfer of 100s of cryptocurrencies in a single transaction, a feature absent in the Ethereum and the Solana network. As Cardano nears the Vasil hard fork and Ethereum approaches the merge, analysts have racked the two competitors against each other in features and scale. While Ethereum price hit its monthly high of $1,640, analysts are bullish on Cardano and predict a retest of $0.55. As Cardano’s Vasil hard fork and Ethereum’s Merge is fast approaching, the crypto community pitted the two competitors against each other, comparing features and scale. Cardano successfully powers the transfer of 100s of different cryptocurrency assets in a single transaction, a feat that takes 100s of individual transactions on Ethereum or Solana. The development activity on Cardano has remained consistently high over the past two months. Also read: Cardano Vasil hard fork is right on time, developer debunks possibility of delay Cardano v. Ethereum: Features and scale Lucid, a pseudonymous crypto analyst, compared Cardano to its competitors Ethereum and Solana and argued that: On Cardano you can send multiple assets in a single transaction. That means on Cardano you can send 100 Assets to different addresses in one single transaction. This would take 100 separate Transactions on Ethereum or Solana and totally destroys any TPS argument. Cardano, therefore, does in a single transaction what Ethereum or Solana networks would do in a 100. Transferring multiple assets is key to traders on the ADA network and the Cardano community, as assets can be moved around on the ADA network instead of placing trust in a third-party service provider. This feature is critical for users looking to buy multiple NFTs and tokens, efficiently organizing them from the buy wallet to hardware wallets. If a user is intent on emptying a wallet, this feature could come in handy, making the Cardano network preferable to Ethereum. Cardano took first place in development activity Development activity on the Cardano network exceeded Ethereum and competitors Solana. Cardano, Polkadot, Kusama, Ethereum and MIOTA took the lead in development activity in July 2022. Santiment measures Github activity beyond the mere quantity of submissions. Cardano development activity Analysts believe Cardano price could retest $0.55 soon Analysts at FXStreet evaluated the Cardano price trend and noted that the altcoin has bullish potential. ADA price looks ready to retest the $0.55 level in its ongoing uptrend. For more information and critical price targets, check the following video:
Forex: What Will Drive EUR/USD? ECB Announced Rate Hike, But It's Not Everything!

Forex: What Will Drive EUR/USD? ECB Announced Rate Hike, But It's Not Everything!

FXStreet News FXStreet News 21.07.2022 15:36
The ECB has announced a 50 bps rate hike, ditching guidance to fight inflation. EUR/USD has risen in response, but significant uncertainty remains. The focus shifts to the Transmission Protection Instrument (TPI) – the anti-fragmentation tool – and its details. Forward guidance ist kaput. Has Germany secured a big rate hike by agreeing to shore up Italian bonds? That may or may not be the case, but the European Central Bank has undoubtedly delivered a massive package. That is positive for the euro. The old continent is rejuvenating – the ECB announced a 50 bps hike, double the standard 25 bps standard hike. It also differs from the ECB's guidance of a limited move. Forward guidance is irreleevant, wich means one certainty – more volatility in EUR/USD. It also means the ECB prefers doing the right thing, rather than sticking to the vauge notion of credibility. But, where will EUR/USD go next? That depends on the details of the Transmission Protection Instrument (TPI). It has been two years since the ECB presented a new acconym. The last one was the Pandemic Emergency Purchase Program (PEPP) – a flexible bond-buying scheme. The bank stopped expanding the use of PEPP back in March, but continues reinvesting proceeds from maturing bonds to keep soverign bond yields lower. The next line of defense is TPI, and markets are eager to find out how big it is, and what it consists of. The bigger the package is, the lower the chance it is used,.The weaker it is, the lower the euro could go. Even if TPI includes printing fresh euros, I think it would be positive. The question of rising soverign yields has become acute. On the same day of the historic ECB rate hike – the first one in 11 years, or more than 4,000 days – Mario Draghi resigned as Italy's Prime Minister. The eurozone's third-largest economy has a 135% debt-to-GDP ratio and rising chacnes of a populist anti-European government. Draghi's depature is painful for the ECB, as he was the previous president and a succesful one. Overall, the ECB has finally joined the rate hiking club, and has done it with a blast. It now depends on the TPI – that I will call "Operation Save Italy" – to see if the next EUR/USD is another leg higher, or a big downfall.
Crash!? ECB Hikes The Interest Rate, Bitcoin Price Decreases!

Crash!? ECB Hikes The Interest Rate, Bitcoin Price Decreases!

FXStreet News FXStreet News 21.07.2022 15:36
Bitcoin price plummeted to $22,600 level as ECB raises interest rates by 0.5% for the first time in eleven years. Bitcoin, Ethereum and altcoins nearly recouped their losses from the US CPI rate hike, now hit with ECB’s decision. Analysts believe Bitcoin price could nosedive if it fails to climb above 200-week Moving Average. Bitcoin price slipped below $23,000 as the European Central Bank announced its first rate hike in eleven years. Rising inflation was the bank’s primary cause of concern, the move increased pressure on Bitcoin price. Analysts have predicted a steep decline in Bitcoin price, if the asset fails to make a comeback above 200-week Moving Average. Also read: Three reasons why Bitcoin price could witness a short squeeze Bitcoin loses grip on $23,000 with ECB’s rate hike announcement Bitcoin price suffered a decline below $23,000 as bears took over the reins. The European Central Bank’s rate hike announcement is the first of its kind in over a decade as the bank raises concerns of rising inflation. The hike of 50-basis points was higher than expected by analysts. This marks a significant move from the zero-interest rate environment nurtured by the EU since 2016. Experts predicted a 25-basis point hike, however soaring consumer prices over the past few weeks in the Eurozone is considered the cause for a 50-point hike. The ECB issued a statement: The Governing Council judged that it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting. The ECB will work on further normalization of interest rates at the Governing Council’s upcoming meetings. The move away from negative interest rates allowed the council to make a key transition to a meeting-by-meeting approach to interest rate decisions. Ahead of the ECB rate hike announcement, the crypto market witnessed a bloodbath. Bitcoin, Ethereum and cryptocurrencies in the top 30 wiped out their losses from the past week. Investors turned cautious and pulled out of volatile markets, including crypto. It is important to note that the impact may be of a temporary nature as Bitcoin, Ethereum and cryptocurrencies recovered from the US CPI rate hike announcement within 48 hours.   Euro Area Interest Rate Bitcoin price is at risk of further decline Analysts at FXStreet evaluated the Bitcoin price trend and predicted further decline in the asset. If BTC fails to recover above 200-week Moving Average, Bitcoin could continue its downtrend. For more information and key price levels, check this video:
Euro: Although ECB Is Expected To Rise Interest Rate By 25bps, 50bps Move Wouldn't Be That Shocking

Euro: Although ECB Is Expected To Rise Interest Rate By 25bps, 50bps Move Wouldn't Be That Shocking

FXStreet News FXStreet News 20.07.2022 16:47
The ECB has pre-committed to raising rates by 25 bps in its July meeting. A 50 bps rate increase by the ECB would not come as a surprise. The bank’s rate hike guidance and new anti-fragmentation tool are being eyed. Almost a decade ago, Mario Draghi pledged to do ‘whatever it takes’ to save the euro. Ten years later, the situation is no different and the shared currency is in a dire state yet again. Will European Central Bank (ECB) President Christine Lagarde repeat history by responding to a larger rate hike this Thursday? The central bank meets on July 21 to announce the first interest rate hike in eleven years at 1215 GMT. Lagarde’s press conference will follow at 1245 GMT. ECB could opt for a 50 bps rate hike The ECB is on track to raise rates by 25 bps on Thursday, lifting the key deposit rate to -0.25%. A recent story by Reuters suggested that the ECB policymakers are set to discuss a 50 bps rate hike at the meeting. Therefore, a double-dose rate increase to control record-high inflation will not come as a surprise. Money markets are pricing in 40% odds on a half-point rate hike this week while wagering 97 bps of tightening by September after earlier baking in a one-percentage-point increase. I believe that the ECB will deliver a 50 bps lift-off this month, in the wake of rampant inflation, resumption of the Russian gas supply and the fact that the ECB is way behind the curve. It’s also worth noting that front-loading rates now may allow the central bank some room to pause or go slower on rate hikes when a recession hits. The euro area is battling a record-high inflation rate of 8.6% on an annualized basis, reported in June. Lagarde clearly mentioned in the press conference following the June policy meeting that the rate hike path will remain ‘data-dependent’. Meanwhile, the latest European Commission forecasts showed that inflation is seen at 4% in 2023, lower than the current rate but still double than the central bank’s target. Source: FXStreet But Lagarde did walk back on her words and later said there were "clearly conditions in which gradualism would not be appropriate". Despite the well-telegraphed talks of a 25 bps rate hike, the ECB could follow the US Federal Reserve’s (Fed) footsteps in turning against its pre-committed guidance. With inflation control on top of its agenda, the ECB needs to move forward with bigger rate hikes, as it remains the main laggard in the global tightening bandwagon. Even the Swiss National Bank (SNB) surprised markets with a 50 bps rate rise in its last policy meeting. Meanwhile, the Fed is likely to hike rates by 75 bps next week, totaling 250 bps of increases so far. The premise for a quarter-point rate rise could be also ebbing fears over an imminent recession in the bloc, especially after Russia announced on Tuesday that Russia's Nord Stream 1 pipeline will resume gas flows on schedule this week but at reduced levels. The Nord Stream 1 carries more than one-third of Russia's natural gas exports to Europe and it was critical for the pipeline to restart after it went offline for 10 days on July 11 for annual maintenance. However, a big move this week could trigger a renewed explosion in the peripheral bond yields, already when the Italian bond yields are through the roof amid simmering political turmoil in the region. But the risk could be mitigated by the policymakers if they announce a new bond-buying scheme on Thursday. The new transmission protection mechanism will cap member countries' borrowing costs when they are deemed to be out of sync with economic reality. Sources with knowledge of the matter said, “ECB policymakers home in on a deal to make new bond purchases conditional on next generation EU targets and fiscal rules.” "These include the targets set by the Commission for securing money from the European Union Recovery and Resilience Facility as well as the Stability and Growth Pact, when it is reinstated next year after the pandemic break,” the sources added. Trading EURUSD price with the ECB EURUSD price is witnessing a classic short-squeeze in the lead-up to the ECB showdown after the euro succumbed below parity against the US dollar last week. The pair has recovered roughly 300 pips from a two-decade low of 0.9952 but the further upside remains at the mercy of Lagarde & Co. EURUSD could resume its downtrend towards parity on ‘sell the fact’ trading should the central bank deliver the expected 25 bps rate hike. A double-dose lift-off could restore the ECB’s credibility in fighting inflation, offering a temporary boost to the euro. The main currency pair could extend the short-squeeze towards the critical 1.0360-1.0370 supply zone, eyeing 1.0400 the figure. The upside risks to EURUSD price could be limited if Lagarde fails to commit on big moves in the September meeting. Also, the lack of details on the new anti-fragmentation tool could leave EUR bulls in limbo once again.
🔥 SHIBA Volatile Move Ahead: Triangle Analysis

Crypto: Altcoins - Shiba Inu (SHIB) May Shock You! SHIB - Technical Outlook

FXStreet News FXStreet News 20.07.2022 16:47
Shiba Inu price has sustained its recent breakout from a bullish pennant, hinting at an uptrend. Investors should be cautious of the $0.0000139 hurdle before the rally reaches its target at $0.0000154. A daily candlestick close below the $0.0000095 support level will invalidate the bullish thesis for SHIB. Shiba Inu price has managed to maintain its upside momentum after breaking out of a bullish pattern. This development indicates that SHIB is ready to take off to the next significant level. Shiba Inu price makes its move Shiba Inu price is breaking out of a bullish pennant, aka a continuation pattern. The technical formation is made up of a flagpole and a pennant. In this scenario, the 34% explosive move between June 19 and June 25 set up the flagpole and the consolidation that ensued in the form of higher lows and lower highs created a pennant. This pattern, from a theoretical standpoint, forecasts a 34% upswing to $0.0000154, which is obtained by adding the flagpole’s height to the breakout point at $0.0000116. After a successful breakout at $0.0000116 on July 18, SHIB has managed to retest the pennant and move higher. This development is a bullish signal that the trend is favoring bulls. Now, investors can expect Shiba Inu price to continue its ascent to the forecast target at $0.0000154. However, during this climb, SHIB bulls need to overcome the $0.0000139 hurdle. SHIB/USDT 4-hour chart While things are looking up for the meme coin, a reversal in Bitcoin price could harm this bullish sentiment. Under these circumstances, if SHIB produced a daily candlestick close below the $0.0000095 support level, it would invalidate the bullish thesis and potentially trigger a crash to the $0.0000082 barrier.
US Dollar To Japanese Yen: Macro Reality And Technical Outlook | USD/JPY

US Dollar To Japanese Yen: Macro Reality And Technical Outlook | USD/JPY

FXStreet News FXStreet News 19.07.2022 16:39
USD/JPY witnessed selling for the third successive day amid broad-based USD weakness. Weakness below the 137.50-45 confluence would pave the way for a deeper correction. A sustained strength back above the 138.00 mark is needed to negate any negative bias. The USD/JPY pair prolonged its corrective pullback from a 24-year high touched last week and continued losing ground for the third successive day on Tuesday. The downward trajectory dragged spot prices to a three-day low, around the 137.50-137.45 area during the early North American session and was sponsored by the prevalent US dollar selling bias. Investors continue scaling back their bet for a 100 bps Fed rate hike move later this month, which, in turn, was seen as a key factor that exerted downward pressure on the USD/JPY pair. That said, the divergent Fed-Bank of Japan policy stance, along with the risk-on impulse, could undermine the safe-haven Japanese yen and help limit deeper losses. From a technical perspective, the USD/JPY pair was seen flirting with confluence support comprising the 38.2% Fibonacci retracement level of the 134.25-139.39 rally and the 200-period SMA on the 1-hour chart. A convincing break below the said support might prompt aggressive technical selling and drag the pair further below the 137.00 round-figure mark. The latter is closely followed by support marked by the 50% Fibo. level, around the 136.80 region. Some follow-through selling would be seen as a fresh trigger for bearish traders and set the stage for an extension of the downfall. Spot prices could then drop towards the next relevant support near the 61.8% Fibo. level, just ahead of the 136.00 mark. On the flip side, the 138.00 round figure, nearing the 23.6% Fibo. level, now seems to act as an immediate hurdle. A sustained strength beyond would suggest that the corrective slide has run its course and allow the USD/JPY pair to reclaim the 139.00 mark. Bulls might eventually aim back to challenge the YTD peak, around the 139.40 region. USD/JPY 1-hour chart
Crypto: Altcoins - Polygon's MATIC Price Reached $0.90 Yesterday!

Crypto: Altcoins - Polygon's MATIC Price Reached $0.90 Yesterday!

FXStreet News FXStreet News 19.07.2022 16:39
MATIC is pushing towards the $1 resistance with new development updates in the Polygon ecosystem. While MATIC suffered a rapid decline in the first half of 2022 the altcoin quickly recouped its losses, posting 63% gains over the past week. Address activity on the MATIC network exploded, showing a divergence from the altcoin’s price trend. While MATIC witnessed a rapid decline in the first half of 2022, alongside other altcoins, there has since been a spike in on-chain activity on the Polygon network. MATIC has recouped its losses and key metrics on the Polygon network point towards a continuation of the altcoin’s uptrend. MATIC’s big break after months of decline The Polygon Network and its token MATIC has made headlines because of a spike in development activity, a migration of projects from the Terra ecosystem to Ethereum scaling solution and exploding on-chain metrics. After month’s of decline, MATIC recouped its losses and analysts have set $1 as the bullish target for the altcoin. The euphoria that surrounded Polygon hit its peak on July 18, when MATIC price hit $0.90. Crypto data intelligence platform Santiment reported that the rally in MATIC price is consistent with its on-chain activity. Address activity on the Polygon network remained high, and triggered a rally. Initially, there was a buildup in address activity and the metric revealed divergence from the altcoin’s price action. This changed with MATIC's price rally. Following the increase in on-chain activity, MATIC witnessed a break out. Address activity in the Polygon network Whale transactions on the MATIC network have increased steadily, this is considered a good sign for holders on the Polygon network. The increase in activity from large wallet investors was reflected by a spike in the altcoin’s social dominance over the past few days. MATIC Social dominance Analysts predict continuation of MATIC’s uptrend BigCheds, a pseudonymous crypto analyst evaluated the MATIC price trend and identified $1.15 and $1.30 as the next two bullish targets for the altcoin. MATIC-USDT price chart Analysts at FXStreet identified key price levels in the MATIC price trend. To find out where MATIC is headed next, check this video:
Tesla Does Not Say Much Directly About The Demand Situation, Ally Financial Sees A Slowdown In Car Loans

Tesla Stock News and Forecast: TSLA set to report earnings on Wednesday

FXStreet News FXStreet News 18.07.2022 22:43
Tesla stock recovers on Friday, but uncertainty remains high. TSLA to report earnings on Wednesday, July 20. Twitter also to report earnings on Friday. Tesla (TSLA) stock continued its modest recovery on Friday and put in its third straight day of gains as the stock rebounded up to $720. The overall equity market recovered ground, but all focus will be on the upcoming earnings season that steps up a gear this week. Tesla itself will report earnings mid-week on Wednesday, and then Twitter (TWTR) will report on Friday. The Elon Musk/Twitter saga looks likely to continue for some time as the latest reports have him delaying any attempt by Twitter for a quick trial. Tesla stock news News flow is always high with this one. With earnings coming up this week, the noise around Tesla should increase substantially. The saga with Twitter will drag on for some time, especially as it appears Musk is attempting to lengthen the court case with Twitter. Tuesday is the first day of hearings set to decide on whether a quick trial will be in the cards or not, so keep an eye out. All news will likely subsume itself to upcoming earnings on Wednesday. This quarter has seen some unique challenges for Tesla with the Shanghai factory lockdowns the big "what if". Investors will have taken some relief from the recent delivery data. It was only just behind analyst estimates, and so there is hope that this quarter could yet live up to expectations and analyst estimates. Tesla is expected to post earnings per share of $1.83 on revenue of $17.1 billion. Tesla stock forecast Earnings will be the dominant theme, but look at some key levels to watch out for once the stock gets moving in either direction. $620 remains the key support, and Tesla has defended this level quite well on a number of occasions. If that were to break, then a move to $540 would be the first target. However, from the weekly chart below, we can see the worrying volume gap, which does not stabilize until $475. This means the move may accelerate. If the report provides some relief, then we would expect a move up to near $900. The 50-day moving average at $875 and the 200-day moving average at $910 would be natural resistance points and a time for a rethink. The weekend recovery in Bitcoin will also be a welcome boost to the Tesla balance sheet, but overall Tesla remains underwater on its Bitcoin investment. However, it is small in the overall group scheme. Tesla weekly chart
Dogecoin price makes its bullish case, but will DOGE bulls come through?

Dogecoin price makes its bullish case, but will DOGE bulls come through?

FXStreet News FXStreet News 18.07.2022 22:43
Dogecoin price shows a healthy flip of the $0.062 resistance barrier into a support level. Secondary confirmation of this flip will most likely be followed by a 23% rally. If DOGE produces a daily candlestick close below the range low at $0.049, it will invalidate the bullish thesis. Dogecoin price is revealing an interesting development that paints a picture of what will happen next. Investors need to pay close attention to Bitcoin price as it has the power to undo this bullish signal for DOGE. Dogecoin price ready for more gains Dogecoin price has penetrated above the low-time-frame resistance level at $0.062 and turned it into a support floor. If this momentum persists, the $0.049 to $0.078 range’s midpoint will also be flipped into a foothold. These are two major developments that are required for Dogecoin price to trigger a 23% upswing to retest the range high at $0.078. This move will allow DOGE bulls to contest the high-time-frame resistance barrier at $0.082 and potentially flip it. Only if the macro conditions are bullish, especially with Bitcoin price, can investors expect a flip of the $0.082 hurdle into a support barrier. Doing this could further extend the Dogecoin price rally by 13%, bringing the total gain to 40%. DOGE/USDT 1-day chart On the other hand, if Dogecoin price fails to stay above the range’s midpoint at $0.063, it will indicate weakness among buyers. If this downswing produces a daily candlestick close below the range low at $0.049, it will invalidate the bullish thesis. In such a case, Dogecoin price could revisit the $0.041 support level, where buyers will be in a position to attempt another run-up.
USD/CAD? Could Crude Oil Price Fluctuations Somehow Affect This FX Pair? What Could Influence (USD) US Dollar?

USD/CAD? Could Crude Oil Price Fluctuations Somehow Affect This FX Pair? What Could Influence (USD) US Dollar?

FXStreet News FXStreet News 15.07.2022 13:50
USD/CAD extended the overnight pullback from a 20-month high and edged lower on Friday. The overnight less hawkish remarks by Fed officials weighed on the USD and exerted pressure. Bearish sentiment around oil prices could undermine the loonie and help limit the downside. Investors now look forward to important US macro data for short-term trading opportunities. The USD/CAD pair attracted some selling near the 1.3135 region on Friday and retreated further from its highest level since November 2020 touched the previous day. The modest intraday downtick extended through the first half of the European session and dragged spot prices back below the 1.3100 mark, though lacked follow-through. The US dollar extended the overnight pullback from a two-decade high and was pressured by diminishing odds for a more aggressive policy tightening by the Fed. On Thursday, two of the Federal Reserve's most policymakers pushed back against market expectations for a 100 bps rate hike later this month. This led to a further decline in the US Treasury bond yields, which, in turn, acted as a headwind for the USD and exerted some downward pressure on the USD/CAD pair. Apart from this, a slight recovery in the global risk sentiment - as depicted by signs of stability in the equity markets - further dented the greenback's safe-haven status. That said, the worsening global economic outlook could keep a lid on any optimism and continue lending support to the buck. Investors remain concerned that rapidly rising borrowing costs, the ongoing Russia-Ukraine war and fresh COVID-19 curbs in China would pose challenges to global growth. The fears were further fueled by the dismal Chinese Q2 GDP print released earlier this Friday. This comes after Bank of America economists forecast a “mild recession” in the US this year. This, in turn, has raised concerns about the fuel demand outlook and capped the attempted recovery in oil prices from a five-month low touched on Thursday. The bearish sentiment surrounding the black liquid might undermine the commodity-linked loonie and further lend support to the USD/CAD pair. Traders might also be reluctant to place aggressive bets and prefer to wait on the sidelines ahead of key US macro data. Friday's US economic docket features the monthly Retail Sales, the Empire State Manufacturing Index, Industrial Production and Michigan Consumer Sentiment Index. This, along with the US bond yields and the broader market risk sentiment, will influence the USD. Apart from this, oil price dynamics should provide a fresh impetus to the USD/CAD pair.
Crypto: Ethereum Price (ETH/USD) - What Are The Circumstances?

Crypto: Ethereum Price (ETH/USD) - What Are The Circumstances?

FXStreet News FXStreet News 15.07.2022 13:50
Ethereum price nears import price cap and could be set to close the trading week with gains. ETH price closing Friday either above or below a crucial hurdle significant for near-term price action. With US futures pointing to green numbers, expect to see a rally and ETH price pop above the hurdle. Ethereum (ETH) price is set to give a little bit of a blow to short-sellers as ETH price made a miraculous recovery on the back of a bounce from the $1,043 handle. Going into the weekend, it will be crucial to see where price action is closing on Friday. For now, the US equity futures are pointing to a green spur, with cryptocurrencies primed to surf that tailwind and go out the week with a positive bang. ETH price set to print a positive weekly result Ethereum price looks ready to perform a crucial move that could be a big blow for short-sellers, as bulls are trembling to pop and break the along waited barrier at $1,243.59. The moment itself could come out of a cliffhanger movie from Arnold Schwarzenegger or Sylvester Stallone, as the barrier bulls are facing has already triggered three times a bull trap with a drop and squeeze back to $1,014. A daily and weekly close above that level would be so crucial for the weekend trading and setting the tone for next week, where some risk on could be on the docket. ETH price is thus primed to pop above $1,243.89 for a fourth time, in tandem with US equity futures already in the green and showing signs of a rally towards the end of the trading week. That tailwind should help lift morale and see traders inflow into Ethereum. Should the pop stretch to the monthly pivot above $1,300, more upside potential is forecasted for the weekend, with $1,400 as the price target at the 55-day Simple Moving Average as the overall price cap. ETH/USD Daily chart Risk to the downside comes with the exact fourth repetition of what has been unfolding all of July and partial in June already. A false break, close at or below the $1,243.89 hurdle and a pullback that turns into a squeeze and sets bulls back roughly 15%. Even a break lower below $1,014.30 could see a slide towards $830, while giving up the $1,000 crucial psychological level.
Tesla Stock News and Forecast: TSLA stock loses direction as AI head departs

Tesla Stock News and Forecast: TSLA stock loses direction as AI head departs

FXStreet News FXStreet News 14.07.2022 16:29
Tesla stock closes up 1.7% on Wednesday at $711.TSLA stuck in a wide band of $620 to $760. Twitter files suit against Tesla CEO Elon Musk.Tesla (TSLA) remains volatile and directionless, both in terms of stock performance and its autonomous driving unit. The stock has been under pressure for most of 2022 but so far has held the key $620 support. Tesla has been caught in the downdraft from Elon Musk's attempt to buy Twitter (TWTR). As things turn ugly in that sphere, investors are trying to determine how that impacts Tesla. It could be seen as a positive with Elon Musk now less stretched on the acquisition and free to focus more energy on Tesla. Another positive can be taken from the lack of any need to pledge Tesla stock as collateral for the Twitter deal, but the news on Tuesday that Twitter had filed suit sent Twitter shares higher in hopes of potentially pushing the deal through. This, in our view, is highly unlikely. Tesla Stock News: Is Tesla now driverless?As well to the fury surrounding the Twitter lawsuit, it also came to light on Wednesday that Tesla's Head of AI has now formally left the company after a four-month break. Tesla has recently announced a delay to its AI day until September 30, so perhaps this is to announce some development or replacement? Either way, it creates more uncertainty for the stock. Tesla Stock ForecastMy short position in Tesla is more of a macro view rather than a negative take on Tesla itself. Tesla is one of the highest stocks out there in terms of P/E and other multiples. In a combined monetary and fiscal tightening scenario, stocks such as this tend to rerate pretty sharply. I do feel Tesla has some challenges ahead, but these are not unique to Tesla. The automaker will probably navigate them better than legacy automakers who are notoriously terrible at navigating recessions.Tesla has had a free run at the EV sector just as Netflix had a free run at the streaming sector, and look what happened next once the legacy companies entered. Most Wall Street analysts forecast Tesla to have a market share of 15% of the EV or auto market. This is way too high in my opinion. No automaker has ever managed to have such market share to my knowledge. Toyota is currently the world's number 1 with a 10% market share.Technically, $620 remains the key level. A break there should lead to a move to $540, but there is a volume gap until $430 and things could get really ugly if $620 breaks. This current phase looks like a consolidation phase after the move lower. Consolidation phases usually result in a breakout in the direction of the preceding trend, i.e. bearish. Breaking $760 ends this and likely ends my short!Tesla chart, weekly
These two triggers are key to profitably trading Terra’s LUNA price

These two triggers are key to profitably trading Terra’s LUNA price

FXStreet News FXStreet News 14.07.2022 16:29
LUNA price sliced through the previous swing low at $1.60, but recovered quickly hinting at a potential scalp setup.Investors can expect Terra bulls to trigger a 15% run-up if certain conditions are met.A four-hour candlestick close below $1.60 will invalidate this bullish outlook.LUNA price shows an interesting outlook, which suggests an opportunity for traders to scalp the next move. However, certain conditions need to be met for Terra bulls to trigger a run-up.LUNA price ready for a quick bounceLUNA price has dropped 40% after retesting a declining trend line for the third time. This move pushed the altcoin to sweep below the June 18 swing low at $1.60 to produce a lower low at $1.46.There are two things to note here – the pullback collected liquidity resting below the June 18 swing low but managed to produce a four-hour candlestick close above it. This development indicates that the buyers are in control.Therefore, traders can take advantage of the next move, which is likely going to be a swift recovery above the $1.94 hurdle, followed by a bounce. In addition to the first trigger, the Relative Strength Index (RSI) has dipped below 30 – the oversold zone – and is recovering.The last time a series of such events occurred was on June 18 and it caused LUNA price to rally 73% in under ten days.Since the aforementioned triggers are seen again, investors can expect LUNA price to trigger a quick 15% run-up to retest the declining trend line at roughly $2.23.In a highly bullish case, this move could extend the rally to $2.80 to collect the liquidity resting above equal highs. Such a rally would constitute a 45% ascent for LUNA price from the $1.94 level.LUNA/USDT 4-hour chartWhile things might be starting to warm up for Terra bulls, investors need to pay close attention to LUNA price. A four-hour candlestick close below $1.60 will indicate a bearish regime and invalidate this bullish outlook. In such a case, LUNA price might slide lower to find stable support levels.
Meme Coins: There Are Some Threats For Shiba Inu Fans!

Meme Coins: There Are Some Threats For Shiba Inu Fans!

FXStreet News FXStreet News 13.07.2022 16:01
Shytoshi Kusama’s recent announcement shared updates on the development of stablecoin SHI and reward token TREAT. A Shiba Inu community member revealed that malicious actors had created crypto assets that can be mistaken as fake SHI or TREAT. Shiba Inu price is at a make or break point, and analysts predict a drop in the meme coin. Shytoshi Kusama confirmed updates in the development of the algorithmic stablecoin SHI and TREAT. The incoming reward token of the Shiba Inu ecosystem and the stablecoin will launch soon, however, fake crypto tokens that can be mistaken as SHI or TREAT are doing the rounds. Shiba Inu community member warns of fake SHI, TREAT A Shiba Inu community member, identified as Firstword98 on Discord, revealed that malicious actors had created crypto assets that can be easily mistaken as the ones developed by the SHIB team. Shiba Inu’s development team is currently working on stablecoin SHI and reward token TREAT. Projects entirely unrelated to the Shiba Inu ecosystem are doing the rounds, and ShibArmy members may mistake it for SHI or TREAT. Following is the list of tokens with names similar to SHI, TREAT and other Shiba Inu ecosystem tokens. Names of tokens similar to SHI and TREAT ShibArmy members need to take note of the fact that Shiba Inu’s developers have not deployed SHI or TREAT yet; therefore, any claims of airdrops are malicious or fake. Projects hoping to ride on the popularity of the Shiba Inu ecosystem have reportedly started circulating their tokens in hopes of gathering SHIB or other cryptocurrencies in exchange. SHI and TREAT are currently under development, and Shiba Inu will announce the launch of these tokens once they are available for purchase, airdropped or distributed to ShibArmy members. SHIB apparel line could launch soon ShibArmy members are anticipating the SHIB x RICHMOND clothing line. A San Francisco-based streetwear shop Dripto.com announced that the brand would merge streetwear culture with crypto technology. Shiba Inu has been added as a payment method at Dripto.com, and the SHIB tokens can be used to purchase sneakers and apparel. The marketplace added real-world utility to the meme coin earlier this month. Shiba Inu price could make a bullish move if this happens Analysts have evaluated the Shiba Inu price chart and identify signs that indicate a bullish trend reversal in the meme coin. For more information, key price levels and targets, check this video:
The US CPI Hit 9.1%. Euro To US Dollar - Let's Look At Technical Indicators

The US CPI Hit 9.1%. Euro To US Dollar - Let's Look At Technical Indicators

FXStreet News FXStreet News 13.07.2022 16:01
EUR/USD Current Price: 1.0030 The US Consumer Price Index soared by 9.1% YoY in June, a fresh multi-decade high. Market participants rushed away from high-yielding assets, Wall Street is in trouble. EUR/USD continues to pressure parity, risk-off will likely result in a bearish breakout. The EUR/USD pair has once again flirted with parity but managed to bounce and trades at around 1.0030 as US traders come to play. The pair traded as high as 1.0100, but gains were short-lived amid US inflation nasty surprise. The US Consumer Price Index soared by 9.1% YoY in June, much worse than the 8.8% expected. The core reading printed at 5.9%, below the previous 6%, but above the 5.8% expected, signaling price pressures are far from a top. The market did not take well the news, as stocks plunged and the greenback soared. Government bond yields also pushed higher as investors run to price in an even more aggressive US Federal Reserve, if that’s possible. The central bank is expected to hike rates by 75 bps later this month, although the latest CPI figures revived odds for a 100 bps move. It’s also showing that hikes are doing little to take overheated inflation, painting a quite worrisome picture. Across the pond, the German annual Consumer Price Index was confirmed at 7.6% in May, as previously estimated. On a positive note, EU Industrial Production was up 1.6% YoY in May, recovering from a 2.5% decline in the previous month. EUR/USD short-term technical outlook The EUR/USD pair is marginally lower on a daily basis, pressuring a 20-year low of 0.9997. Technical indicators in the mentioned time frame consolidate within extreme oversold levels without signs of changing course. At the same time, the pair develops well below bearish moving averages, reflecting prevalent selling interest. The 4-hour chart shows that the pair met sellers around a firmly bearish 20 SMA, which keeps extending its decline below the longer ones. The Momentum indicator advances modestly within negative levels, while the RSI indicator consolidates around 34, falling short of suggesting further gains ahead. Support levels: 1.0000 0.9960 0.9915 Resistance levels: 1.0070 1.0120 1.0155
Czech Inflation Hits Lower Than Expected Level. Could Czech National Bank Hike Again?

US: Core Inflation - What Is Expected? What If Print Doesn't Meet Expectations?

FXStreet News FXStreet News 12.07.2022 16:47
Economists expect another core inflation rate of 0.6% MoM in June. A drop to 0.5% or below would show the economy is slowing, allowing for fewer rate hikes. Higher-than-projected figures would weigh heavily on stocks. When will the heatwave end? That is question for dwellers of the northern hemisphere in midsummer – and for investors wary of boiling inflation. The US Consumer Price Index (CPI) report for June is a critical data point, focusing on Core CPI. That is the figure the Federal Reserve is watching and I am focusing on in this preview. The central bank has almost no impact on energy and food prices, which are set on global markets and are excluded from Core CPI. However, costs of everything else are impacted by demand that the Fed impact via interest rates. Higher borrowing costs mean saving money makes more sense and taking out loans is dear. Will the Fed raise rates by 50 or 75 basis points in late July? Where is the peak of interest rates, at 3% 3.5% or higher? The answers to these questions depend on whether inflation has already peaked in the US. Looking at yearly price rises, headline inflation at 8.6% is worrying, but it could get even worse. Economists expect an increase to 8.8% as energy prices continued advancing last month. The price at the pump is propelling prices toward double-digit rises: Source: FXStreet However, Core CPI was already high in June 2021, the figure which now falls out of the series. The calendar is pointing to a drop from 6% to 5.8%. If that happens, would it signal the worst is behind us? No. Expectations for the monthly price increase stand at 0.6%, which represents an annual increase of over 7%. Moreover, that was the increase in May, so two consecutive jumps in underlying prices – I stress, this excludes gasoline prices – would mean inflation has not peaked. Core CPI is above its historic norm: Source: FXStreet Market reaction Investors are set to react in a straightforward manner. Higher core inflation means higher interest rates and a stronger dollar. Elevated borrowing costs also make saving money more attractive and investment in risky stocks less so. Here are three scenarios: 1) As expected: If Core CPI MoM meets expectations at 0.6%, it would be positive for the dollar and adverse for stocks. Not only would it show price pressures remain elevated, it would also point extend current trends in markets. I would argue that even a print of 0.5% would keep the greenback bid and under pressure, albeit to a lesser extent. Such a scenario would cement a 75 bps rate hike and would keep long-term rate expectations unchanged. 2) Below estimates: An increase of 0.4% would represent an annualized rise of 5%, below the yearly figure, and thus would point to a drop in inflation – that the peak is behind us. It would send the dollar down and boost stocks. Speculation about a 50 bps hike in July would gain traction, rather than a 75 bps one. It would also trigger speculation that the Fed could settle for a sub-3% terminal rate. 3) Above projections: A surprising increase of 0.7% or higher would already be depressing for stocks and a boon for the dollar. Investors might even begin considering a radical 100 bps rate hike in July, and arguably begin expecting the final interest rate to reach 4%. It would also raise fears of a global recession and trigger safe-haven flows to the dollar, adding fuel to the fire. If I have to bet on one scenario, what would it be? I think we could see a 0.5% increase in Core CPI MoM, initially sending the dollar down and stocks up on the fact that inflation is softer than expected. However, as investors realize that it is a small miss and that a 6% annualized rate of core inflation is still high and more importantly – not necessarily reflecting a peak in inflation. That would eventually send the dollar higher and stocks lower, extending the trend. Final thoughts The CPI report for June is critical for markets and set to trigger more volatility than the Nonfarm Payrolls. Any sign that inflation has peaked would trigger a relief rally in markets, but there are higher chances that underlying inflation remains stubbornly high.
Market

Did Elon Musk Statement (Twitter) Influence DWAC Stock Price?

FXStreet News FXStreet News 12.07.2022 16:47
DWAC stock spiked 20.1% on Monday in response to Elon Musk ending bid for Twitter. The social media SPAC shares have given back 3.8% in Tuesday's premarket. Digital World board members have received subpoenas by federal prosecutors. Digital World Acquisition Corp (DWAC) is giving back on Tuesday some of its massive gains from Monday. Shares dropped 4.8% to $28.02 at the open. The special purpose acquisition company (SPAC) set to merge with Trump Media & Technology Group closed up an incredible 20.1% on Monday after Elon Musk announced that he would be ending his pursuit of a Twitter takeover. DWAC stock news: Rallying on "bullshit"? DWAC stock relevance on recent Elon Musk's news is that the $44 billion buyout attempt of Twitter earlier this year put the bigger social media company in direct competition with the SPAC. This is due to Musk saying he would allow former president Donald Trump back onto the platform after he was kicked off in early 2020 after spearheading an insurrection at the US Capitol. Bringing Trump back to Twitter and thus many of his fans may have made the target of DWAC obsolete. After all, the Trump Media & Technology Group's Truth Social platform was ideated as a forum for conservatives outside of the liberal-owned social media giants. With Musk's acquisition over, although the lawsuit with Twitter in the Delaware Chancery Court should last awhile, DWAC was simply rallying on the idea that Truth Social had gained a renewed purpose. Donald Trump himself, however, did not seem excited about Musk's decision. In a speech shortly after the announcement of Musk walking away from the deal, the former president called Musk a "Bullshit artist". The Tesla founder followed up with the following tweet: It sure seems as if Trump would have rather been on Twitter than on his own Truth Social platform. Was that because the merger now seems less likely to happen? News that a grand jury formed in the Southern District of New York was issuing additional subpoenas to the company and its executives several weeks ago has made the merger seem like more of a dream. The grand jury is said to scrutinize whether or not the officers behind DWAC had already discussed a merger with TMTG before raising funding for DWAC since doing so would constitute a crime. With both a federal grand jury and the Securities & Exchange Commission muddling the water, it would not seem like a good bet when a failure to merge would have DWAC hand back $10 for each share. DWAC stock forecast: Bulls get some hope Having already stated my criticism, there is at least one point of optimism for the DWAC stock bulls out there. Monday's rally was able to drive past the 21-day moving average. This is an achievement that has not been witnessed since Jun 7. It would be hard to imagine this one climbing back to resistance at $37, however, unless the grand jury and the SEC come up empty. Only those events could turn around the reputation of DWAC. DWAC daily chart
What Were (BABA) Alibaba And Tencent Punished For?

What Were (BABA) Alibaba And Tencent Punished For?

FXStreet News FXStreet News 11.07.2022 16:07
Alibaba, Tencent and others were fined by for monopolistic practices. BABA stock is down 3.6% in Monday's premarket. The fines are rather small, but they worry the market after 18 months of scrutiny. Alibaba (BABA) stock is off 3.6% ahead of Monday's open after fines were handed down to the ecommerce giant and other Chinese internet companies for engaging in alleged monopolistic behaviour. Having closed last Friday at $120.90, BABA looks to open on Monday somewhere close to $116.57. Alibaba Stock News: New round of fines unsettles Chinese equities On Sunday, China's State Administration for Market Regulation (SAMR) doled out fines for 28 transactions that it said violated anti-monopoly laws. Alibaba received five of the 28 violations, while Tencent (TCEHY) received an unexpected 12. Companies like SoftBank from Japan and Ping An Healthcare & Technology Company (PANHF) also were hit with fines. The fines themselves are nothing major. Reuters reported that each violation has a maximum value of 500,000 yuan, which is close to $75,000. Although the details of each of Alibaba's violations are somewhat unclear, the biggest focus has been on the company's investment in the Youku Tudou streaming platform. These fines are inconsequential in absolute terms for any of these billion-dollar behemoths, but the focus remains on whether the government will stick to its plan to reduce scrutiny of its many internet giants, a policy that began with the halt to Alibaba subsidiary Ant Group's attempt to IPO in late 2020. On June 17 the People's Bank of China said it was now allowing Ant Group to restart its IPO bid. Alibaba owns about a third of Ant Group. During the first week of March, Alibaba announced its creation of a brand new data subsidiary focused on the enterprise market. Lingyang Intelligent Service sells data as a service through 11 different products focused on manufacturing, marketing and customer management. Alibaba Stock Forecast: Bulls focused on $124, $128, but reversal may be in order For those of you who have watched BABA shares flounder for the better part of 18 months, the last 30 trading sessions have been a delight for the most part. BABA continues making one short-term higher high after another. The actual rally began on May 16, but the 15-day crossed over the 50-day only on June 9. I am using the 15-day moving average here, because BABA stock has been using it as ascending support since May 26. Last week Alibaba stock was able to climb above the stubborn resistance level of $120, which has been an indefatigable obstacle for months now. As FXStreet wrote last week, above $120 are two other clean resistance levels in short order: $124 and $128. These price levels showed their cards in February and March. A move through this zone might take some time before bulls can make a run at the year's high point – January 12's $138.70. Besides $124 and $128 guarding the door, however, divergence on the Relative Strength Index (RSI) forecasts a turn for the worse. As can be seen by the orange lines on the price chart and RSI chart, BABA share price saw a higher high between June 8 and July 8, while the RSI over the same period failed to make a new high. Typically, this a leading indicator that a reversal is about to commence. Be warned! BABA daily chart
The New York State And Law Banning Almost All New Bitcoin Mining Operations

Bitcoin Price Dropping To $10K!? Who And Why Considers Such Scenario?

FXStreet News FXStreet News 11.07.2022 16:07
A majority of investors on Wall Street see the Bitcoin price tumbling to $10,000 in a Bloomberg MLIV survey. Retail crypto investors are more bearish on crypto than institutions and professionals. Kevin O’Leary warned of an impending capitulation event in Bitcoin, arguing we have not seen the bottom yet. There is an increase in skepticism regarding Bitcoin among investors on Wall Street. 60% of the Bloomberg MLIV Pulse survey respondents believe that the Bitcoin price is heading back to $10,000. Shark Tank’s Kevin O’Leary has also publicly stated his believe that BTC price has not hit bottom yet. Wall Street expects Bitcoin price to hit $10,000 level Wall Street expects the Bitcoin crash to get worse, as results from Bloomberg’s MLIV survey revealed that a notable samplet of market participants believe BTC is more likely to hit $10,000 than recover to the $30,000 level. According to 60% of the 950 investors who responded to this survey, Bitcoin price could wipe out its gains and cut its value roughly in half. Bloomberg reported that investors who participated in the survey had expressed a certain degree of skepticism regarding cryptocurrencies. Bloomberg MLIV Survey results Jared Madfes, partner at venture capital firm Tribe Capital, was quoted as saying, It’s very easy to be fearful right now, not only in crypto but generally in the world. [It reflects] people’s inherent fear in the market. Kevin O’Leary waiting for a panic event in crypto In an interview last week, Shark Tank’s Kevin O’Leary shared his views on Bitcoin and crypto. As analysts have predicted, O’Leary was asked whether the Bitcoin price could plummet to $13,000. Mr.Wonderful said, It’s impossible to know where the bottom is. I don’t believe we’ve seen the bottom yet and I have a different view of it. I go back again to other asset classes that I have invested in for decades. In every case [...] bottoms are reached with an event, a panic event as I call it, and you can find it in every asset class. The Shark Tank star argues that the Bitcoin market cap has been cut in half, and this would make investors think we are on our way to the bottom. However, what he is looking for is a big panic event. This event would be characterized by capitulation, massive volume and total panic, which would result into a buying opportunity for the crypto community. Analysts believe Bitcoin price trend remains bearish @PostyXBT, a crypto analyst, evaluated the Bitcoin price trend and noted that nothing has changed in the weekly chart. Bulls have a lot of work to do, and the overall Bitcoin price trend is bearish. The 200-week moving average is still resistance for Bitcoin price. BTC-USDT price chart To identify what’s next for Bitcoin price as it retests the 200-week MA, check this video:
"Fight Against Inflation Is Our Primary Concern..." Central Banks Predicate

USA: Non-farm Payrolls (NFP) Adding 372K, Wages Up. CPI Is Released On July 13th

FXStreet News FXStreet News 08.07.2022 16:08
The US economy has gained 372K jobs in the previous month, showing that hiring remains robust. Wages have risen by 5.1%, pointing to ongoing inflation pressures. The chances of a 75 bps rate hike in July have increased, supporting the dollar. Good news is bad news – for stocks, but not the dollar, and more may be in store. The US has reported another impressive month of job growth, 372,000 in June, on top of only a minor downward revision of 6,000 for May. Expectations stood at around 270,000 and the "whisper number" was 243,000. Job growth is strong. The US might have contracted in the first half of 2022 – a recession – but it is far from feeling that way for American workers. The unemployment rate remained at 3.6% as expected, but the U-6 "real unemployment rate" – taking people too discouraged to look for a job into account – fell to 6.7%. That is another piece of good news. What about wages? Salary increases are well-correlated with core inflation that the Fed is watching. Average earnings grew by 0.3% MoM as expected and 5.1% YoY, 0.1% above estimates. In any case, it substantially exceeds the Federal Reserve's 2% target. The Fed is focused is on fighting inflation – and it is set to remain high according to this jobs report. That means a faster pace of increase is borrowing costs is needed, and perhaps also promises for doing more in the future. What doesn't work with a terminal rate of 3% may work with 3.5%. For the US dollar, this is great news, implying more gains are in store. As usual, the best expression of the response to US data is in USD/JPY, but it is hard to see EUR/USD recovering from its fall toward parity. The next big thing to watch is the Consumer Price Index (CPI) report due out on Wednesday, July 13. Fresh inflation data has become more important than Nonfarm Payrolls. A monthly increase of 0.6% is expected in Core CPI YoY, and any move up or down may make a significant difference.
🔥 SHIBA Volatile Move Ahead: Triangle Analysis

Meme Coins: Shiba Inu News! What Is Robinhood And What Does It Have To Do With SHIB!?

FXStreet News FXStreet News 08.07.2022 16:08
Robinhood transfers now live for Shiba Inu and all other listed crypto assets on the commission-free exchange platform. Shiba Inu price exploded in response to Robinhood’s announcement and acceptance on a revolutionary shopping platform. Analysts argue SHIB price eyes $0.00001396 target after breaking into uptrend. Robinhood enabled Shiba Inu transfers, and opened the gates for the ShibArmy. All listed crypto assets on Robinhood are now enabled for transfers on the commission-free exchange platform. Robinhood welcomes Shiba Inu transfers Robinhood, a commission-free stock trading and crypto investing platform, enabled transfers for all crypto assets listed on its platform. Shiba Inu was listed on Robinhood in April 2022 and the exchange now enabled users to transfer their SHIB in and out of the platform. This is a watershed moment for the ShibArmy and Shiba Inu holders as transfers are key to higher utility of the meme coin. ShibArmy awaited Shiba Inu listing for months ahead of April 2022. The inclusion of Shiba Inu on the commission-free exchange was a part of the platform’s expansion plan. Shiba Inu was listed alongside Polygon, Solana and Compound. The ShibArmy started a petition on Change.org to get the Dogecoin-killer listed on the commission-free exchange. The petition garnered 550,000 signatures in favor of the move and the listing on Robinhood gave a boost to Shiba Inu’s exposure. 78.4 million Shiba Inu tokens were burnt overnight There was a massive Shiba Inu burn over the past 24 hours, as 78.4 million SHIB were burned in less than nine transactions. Shibburn, the portal that tracks Shiba Inu burn revealed that 78,446,020 SHIB were burnt, pulling them out from circulating supply completely. SHIB burn rate climbed in response to the massive burn. A total of 410,372,235,827,873 Shiba Inu tokens have been burned so far. Dripto online marketplace boosts Shiba Inu utility Dripto, a marketplace for resale of products, recently added Shiba Inu as a payment method. Shiba Inu can now be used to buy sneakers, apparel and luxury accessories online. Shiba Inu has been accepted as a payment method at a global enterprise software provider, in addition to the marketplace. SAP signed a partnership with BitPay to allow the acceptance of cryptocurrencies for its solutions. Shiba Inu can now be used for payments at SAP Commerce Cloud. Shiba Inu could evade the threat of a downtrend Analysts at FXStreet evaluated the Shiba Inu price chart and noted that the meme coin could continue its uptrend. Shib Knight, a pseudonymous crypto analyst, set four bullish targets for the meme coin at $0.00001113, $0.00001151, $0.00001174 and $0.00001212. For more information and key levels, check this video:
JUST IN: This is when Ethereum's Merge hard fork will be activated

JUST IN: This is when Ethereum's Merge hard fork will be activated

FXStreet News FXStreet News 07.07.2022 16:35
Ethereum Merge is now imminent, developers successfully completed the Sepolia trial on the public test network. The final trial of the Ethereum Merge will be conducted over the next few weeks, before mainnet transition. Terence Tsao considers Merge transition a success, assures Ethereum holders no further delays are expected. Ethereum Merge is closer to the successful completion of the Sepolia testnet. The final step before Ethereum’s transition to Proof-of-Stake is the Goerli test. Protocol developers assured Ethereum holders of no further delays in the Merge timeline. Ethereum Merge hard fork imminent Ethereum Merge inches closer after the successful completion of the Sepolia test. Developers have successfully completed the penultimate test environment network merge. Sepolia was the second of three public testnets to run through the Merge. After the successful completion of Ropsten and Sepolia, Goerli is the next in line of tests, ahead of Ethereum’s transition from Proof-of-Work to Proof-of-Stake. Ropsten was completed on June 8. The penultimate test’s success was key to the Ethereum Merge timeline. In the Sepolia test, the network went to Proof-of-Stake when Terminal Total Difficulty (TTD) exceeded 17,000,000,000,000,000 at around 17:00 GMT. No significant glitches were reported in the Sepolia test and it was a two-step process. Operators updated their consensus layer and execution layer clients together. Sepolia merge was activated in two phases, the first at an epoch height on the Beacon Chain and the second upon hitting the total difficulty value on the execution layer.Staking on ETH2 crosses $15 billionThe total volume of Ethereum staked with deposit contracts on ETH2 has crossed 13 million ETH. This is a new record high for Ethereum staked after the launch of Beacon Chain in December 2020. The value of total ETH staked is $15 billion. The value of ETH staked has plummeted in response to Ethereum price drop. In December 2021, the value of ETH in the deposit contract was $40 billion, but with a 70% drop since then, it has driven the USD value of ETH2 staked down. Vitalik Buterin comments on Ethereum MergeVitalik Buterin, the co-founder of Ethereum, shared his thoughts on the Ethereum Merge. Buterin believes challenges associated with the mainnet Merge will be different as it will include, “much more third-party infrastructure that isn’t present on the testnets.”Buterin was quoted as saying, So there might be non-critical issues like that that will just pop up in the Merge that we’re not catching with these tests […] There’s a lot of peripherals that are just not getting tested and that’s unavoidable and probably fine.What Ethereum developers thinkTerence Tsao, an Ethereum core developer, shared a summary of the Sepolia Merge on his Twitter handle. Tsao summarized Sepolia Merge in four key points:Merge transition itself was a success 25-30% of the validators went offline shortly after the mergeThe offline validators were due to wrong configsSince then, the offline parties have updated their configs, and validators are upTsao explained that there was no client bug and the hiccups noted during the test will not delay the Ethereum Merge. Testnets enable interested parties to test their setups and their configuration. Its better to identify hiccups now, rather than wait for mainnet Merge. Analysts believe Ethereum price could rallyAkash Girimath, leading crypto analyst at FXStreet, has evaluated the Ethereum price chart and noted that bulls are in control of the altcoin’s trend. Ethereum price could rally to $1,284, and collect the buy-stop liquidity resting above this level. If the uptrend continues, the bullish target for Ethereum price is $1,425. Girimath identified key levels in Ethereum price. For more information, check this video:
Look At RIVN Price! EV: Rivian Automotive Announced Number Of Produced Cars

Look At RIVN Price! EV: Rivian Automotive Announced Number Of Produced Cars

FXStreet News FXStreet News 07.07.2022 16:35
Rivian produced 4,401 vehicles during Q2. RIVN stock rallied 10.4% on this production news. The EV automaker may now meet annual production goals. Rivian (RIVN) stock blasted off in a way it has not been used to since the first heady days following its IPO last November. Just released production data shows that Rivian appears to be moving in the right direction. The EV automaker said it manufactured 4,401 vehicles during the second quarter that ended in June and delivered 4,467 vehicles during the period as well. Shares are up another 1% to $29.95 in Thursday's premarket. Rivian Stock News: Management holds tight to 25k production goal These figures were key to observers as the Rivian management reiterated its guidance that it will produce 25,000 vehicles total for the full year. This will require heavy ramping up of existing production because year-to-date Rivian has produced only around 8,000 units. 25,000 units will require a more than doubling of capacity from the first half of the year. Rivian currently produces the R1T pick-up truck and the R1S SUV, as well as the EDV delivery van that Amazon originally agreed to buy 100,000 units of. As production of the EDV got pushed back earlier this year, Rivian's stock began crashing from its post-IPO heights after Amazon began signing deals with Stellantis to produce electric delivery vehicles. The R1T starts at $67,500, and the R1S has an initial price of $72,500 for the entry-level model. When Rivian decided to raise prices earlier this year due to increased material costs on customers who had already supplied downpayments, enough customers threatened to pull their reservations that Rivian relented. Rivian Stock Forecast: RIVN sees resistance between $30.70 and $34.28 Although RIVN stock continues to see optimism in Thursday's premarket, bulls have their work cut out for them. As can be seen on the daily chart below, a number of resistance bands sit close together above the current price. First, comes $30.70, resisistance from May through July. Then there is the range high from May 31 and June 2 at $32.60. Above that is more resistance from April 22 through May 4 at $34.28. The Moving Average Convergence Divergence (MACD) did just perform a bullish crossover on Wednesday, but now it needs to continue this through the zero threshold to demonstrate that a serious rally is in the works. The 9-day moving average also needs to confirm a rally by crossing above its 21-day counterpart. Long-term support remains at the May 11 low of $19.25.   RIVN daily chart
Altcoins: What Should Cardano (ADA) Investors Bear In Mind?

Altcoins: What Should Cardano (ADA) Investors Bear In Mind?

FXStreet News FXStreet News 06.07.2022 16:08
Cardano price signals a bullish breakout, which could be very short-lived. ADA price will drop back to $0.388 in the coming weeks. As the global economic situation further deteriorates, expect a possible 70% price evaporation. Cardano (ADA) price is trading on Wednesday’s European morning in a pattern many bullish traders have been waiting for. The breakout above a technical bearish element could trigger some gains, as traders must be aware that this will not be a trade to sit in for long and needs to be managed with care. The devil could be in the details, with recession signals now in the bond market and the EUR/USD quickly nearing parity. ADA price could see an investor exodus Cardano price is trading sideways at the time of writing, between $0.687 to the upside and $0.388 to the downside. This morning's opening in the ASIA PAC session broke above the orange descending trend line identified as the short-term backbone of the descent within the overall downtrend. Many bullish traders will be keen to jump on that break but need to be aware of the overall downtrend as a bullish market does not seem to be underway, with several economic indicators deteriorating and the bond market signalling a recession nearby. ADA price could thus still tick that monthly pivot at $0.52, which coincides with the 55-day Simple Moving Average (SMA) that is starting to flatline a little bit, mainly because of that underpinned price action for over a month now. Once market participants pull out their money again on the back of confirmation that the global economy is deteriorating, expect an exodus in ADA price action with a drop towards $0.388. Bulls will get squeezed out of their positions, and a falling knife is bound to happen towards $0.11 once $0.388 breaks and gives way. ADA/USD daily chart If bulls can take over the 55-day SMA and break above it, expect to see another leg up towards $0.687 as bulls will want to cover as much ground as possible. Next, decoupling cryptocurrencies against global markets could attract even more investors who do not know where to put or place their money. That could result in a 40% gain before the Relative Strength Index (RSI) hits are overbought.
What Are The Possible Scenarios Linked To The ADP Release? What Is The Expected Print Of US NFP (Non-farm Payrolls)?

What Are The Possible Scenarios Linked To The ADP Release? What Is The Expected Print Of US NFP (Non-farm Payrolls)?

FXStreet News FXStreet News 06.07.2022 16:08
Private payrolls are forecast to produce 200,000 new positions up from 128,000 in April. Available jobs remain at an all-time record, unemployment claims are historically low. NFP expected to rise 270,000 in June down from 390,000 prior. Fed July rate hikes not expected to be conditional on employment. Markets are suddenly convinced a recession is at hand. Crude oil fell below $100 on Tuesday anticipating collapsing demand if the global economy sides into contraction. Retail Sales and real spending and income in the US were negative in May. Equities are a sea of red this year and Treasury rates have fallen sharply from their post-pandemic highs of just three weeks ago. Only the labor market is keeping the Federal Reserve’s hope for a soft-landing alive. Private payrolls from Automatic Data Processing (ADP) are forecast to add 200,000 jobs in June following May’s disappointing increase of 128,000. The three-month moving average that month was 193,000 less than one-third of the 631,000 average in February. The ADP report on Thursday, one day later than normal because of the US Fourth of July holiday on Monday, is the main lead-in for Nonfarm Payrolls on Friday. The job numbers from ADP, the largest provider of payroll services in the US, are monitored for clues to the national employment figures, even though the directional correlation between the two is weak. In the last year, the ADP and NFP have moved together half the time and in opposition half the time. In June ADP is expected to rise and NFP is forecast to fall. Labor markets The main statistics for the US labor market remain positive, though one forward-looking series, the Purchasing Managers Index (PMI) for Manufacturing from the Institute for Supply Management, has slipped into contraction and several others have weakened. Nonfarm Payrolls have seen the three-month average decrease from 602,000 in February to 408,000 in May and are forecast to continue the trend to 270,000 in June. The four-week moving average for Initial Jobless Claims has risen 36%, from 170,250 on April 1 to 231,750 on June 24. While the increase is substantial, unemployment claims are still far below any historical reference and are only slightly higher than the record low before the pandemic. Initial Jobless Claims FXStreet Job prospects are without comparison. The Job Openings and Labor Turnover Survey (JOLTS) average for February March and Apri was 11.5 million unfilled positions. May’s 11.0 million forecast will keep the all-time monthly record intact. JOLTS FXStreet June’s PMI for manufacturing employment unexpectedly dropped to 47.3 from 49.6, the second month below 50 indicating contraction. A rise to 50.2 had been predicted. The service employment PMI is expected to drop to 49.8 in June from 50.2 in May. For most of the recovery the employment problem has been missing workers. People are not returning to their jobs with anything like the anticipated alacrity. The Labor Force Participation rate was 62.3 in May, more than a point below its 63.4 level in February 2020. While the main statistics remain positive, the NFP and ADP numbers have deteriorated and the most prescient, manufacturing employment PMI, is in contraction. Growth and recession The US economy contracted 1.6% on an annualized basis in the first quarter. Over the past three weeks the Atlanta Fed’s GDPNow model projection for second-quarter growth has fallen into contraction. The July 1 estimate was -2.1% down from -1% on June 30 and 0.9% prior. Those are the first two negative readings for the second quarter. GDPNow Federal Reserve The Federal Open Market Committee (FOMC), the bank's policy-making board, has raised the base rate 125 basis points at the last two meetings. Headline CPI had jumped to 8.6% in May prompting the 75 point increase on June 15, originally planned at 50 points. The governors are expected to add another 75 points at the July 27 meeting, bringing the upper-target to 2.50%. The Fed’s own year-end projection of 3.4%, implies another 100 points of increases in the three remaining meetings after this month. Second quarter GDP will be reported on July 28, one day after the FOMC prospective rate hike. Whether the Fed will be able to continue its anti-inflation rate increases if the US is in a recession, is an open question. Fed officials have barely addressed the issue which now seems increasingly likely. Chair Jerome Powell has noted that a so-called soft-landing, where rate hikes reduce inflation without precipitating a recession, is possible, but difficult. Conclusion: Two scenarios Employment has been replaced by inflation in the Fed policy hierarchy. The ADP number and its far more relevant successor, NFP, are important because the labor market is the last performing sector of the US economy. When hiring falters, a recession is assured. If ADP payrolls come in at or better than forecast, it will relieve concern, for a time at least, that labor markets have succumbed to the general decline. As the odds are even that NFP will miss forecasts regardless of ADP’s results, markets are unlikely to have a strong response. If ADP is weaker than expected, concern will adhere to the NFP report, pressuring Treasury rates and equities, but probably giving the US dollar another boost. Markets are so fraught over the prospects of a global recession, that the US dollar safety trade has resumed with a vengeance.
Cryptocurrency: To Which Level Could (BTC) Bitcoin Price Drop Considering USD Power? | FXStreet

Cryptocurrency: To Which Level Could (BTC) Bitcoin Price Drop Considering USD Power? | FXStreet

FXStreet News FXStreet News 05.07.2022 16:34
Bitcoin price recovers almost 5% at the start of the week. BTC prices could fool traders as the recovery happened with the US markets closed. US dollar strength kicks back in and weighs on BTC price, which could drop to $16,020. Bitcoin price made an excellent recovery move on Monday, with a shy 5% in the books and breaking above the lows of last weekend. This is a tricky setup, as traders might be fooled by the idea that this jump in price action is the start of the rally. The week started with the 4th of July US holiday, which saw the US dollar unmoved and provided cryptocurrencies some room to move in as their main headwind was out of office. During early European hours on Tuesday, USD strength has kicked back into gear after a day at the beach and weighs on the recovery in cryptocurrencies. BTC price is set to drop 20% if the US dollar advances Bitcoin price got underpinned over the weekend with the $19,036 level acting as a supportive measure, making sure that bulls had an anchor to hold on to and start buying at. That resulted in a broad move on Monday that netted near 5% profit for BTC bulls. With the US on holiday on Monday, trading on Tuesday morning saw the US dollar returning to life after a long weekend and started trading where it left off on Friday, coming in stronger. BTC price could see its gains evaporate on the back of that dollar strength, as cash gets reallocated from cryptocurrencies into the safer USD to withstand the current woes and inflation turmoils in global markets. Expect to see a return back to $19,036, with a squeeze on the bulls to cut their losses. That would trigger a spiral selloff, with Bitcoin price at risk of dropping towards $16,020 and losing roughly 20% in the process. BTC/USD daily chart With the US dollar move coming in this early, a pullback could unfold once the US trading session takes over. That would mean that the USD pairs give back its gains, and cryptocurrencies get a free lunch by getting a lift in the price action on the back of that dollar pullback. Translated into BTC price action, that could mean a test against $21,969 and a possible pop higher with prospects of trading towards $23,878.
Tech Stocks: Tesla Stock Price Decreases! News About Changes In The Berlin Factory May Be Quite Surprising!

Tech Stocks: Tesla Stock Price Decreases! News About Changes In The Berlin Factory May Be Quite Surprising!

FXStreet News FXStreet News 05.07.2022 16:34
Tesla stock drops on Tuesday after announcing Giga Berlin shutdown. Tesla is in the midst of laying off more than 3% of its workforce. TSLA delivery data for Q2 fell slightly short of expectations. Tesla (TSLA) stock traded down 4.3% on Tuesday to $652 after the electric vehicle leader missed vehicle delivery data over the weekend and announced it would be halting production at its Berlin factory in order to increase shift capacity and begin manufacturing electric motors in a separate wing. Tesla stock news After ramping up the Gigafactory Berlin to 1,000 vehicles a week, Tesla is stepping back and reevaluating. Shutting down and reorganizing production at the plant will take two weeks, but management says it will allow Tesla to run a third shift and increase production in the longer run. Additionally, the company has been importing its electric motors from Shanghai to install in vehicles built in Berlin, but the factory upgrade will allow local production of electric motors to occur in a newly revamped hall at the 4,500-employee Berlin facility. Gigafactory Berlin still seems to be ahead of schedule compared with the new factory in Austin, Texas, according to Electrek. Part of the problem at the latter plant was that Tesla was installing the new 4680 battery cells instead of the older, more common 2170 cells being used in Berlin. Tesla delivered its delivery figures for the second quarter over the weekend. Deliveries company-wide came in at 254,695. This missed expectations for 256,520 narrowly and demonstrated the difficulty in getting Shanghai production back on track after a shutdown related to covid. Wedbush's Daniel Ives had opined last week that hitting 260,000 deliveries would be greeted as positive by Wall Street. Quite a few investment banks reduced their price targets on TSLA stock last week, but generally they are at 1,000 or above. This makes these delivery numbers more interesting. Could price targets decline further this week? JPMorgan is already out with a client note saying that rising battery metals prices, which in some cases add as much as $10,000 to the price of a vehicle, cannot be added to reservation prices and may lead to poor results in the latter half of the year. Tesla remains in the midst of a lay-off strategy that consists of cutting its "white-collar" employee count by 10% but increasing its hourly worker count. Salaries were recently raised by 6% at the Berlin factory in order to assuage complaints from the union despite CEO Elon Musk suggesting the plant was "burning" money. Tesla stock forecast TSLA stock is now trading inside a wedge structure. The apex where the top and bottom lines intersect is at $675, making that price once to beat for bulls. Longer-term support remains at $620, the swing low from May 24. Since then Tesla stock has experienced two higher lows and three lower highs. A break below $620 could send TSLA to support at $550. Likewise, a break above the descending top line, now at $735, would also lead to a rally. The target above $735 is $792. The Moving Average Convergence Divergence (MACD) is trending higher in optimistic fashion as is the 9-day and 21-day moving average relationship. Tesla (TSLA) chart, daily
Altcoins: Shiba Inu Price Prediction - What's Ahead Of SHIB Price? | Shytoshi Kusama Posted A Mysterious Tweet

Altcoins: Shiba Inu Price Prediction - What's Ahead Of SHIB Price? | Shytoshi Kusama Posted A Mysterious Tweet

FXStreet News FXStreet News 04.07.2022 16:21
Shiba Inu lead developer Shytoshi Kusama teases ShibArmy with a cryptic tweet. Crypto Twitter speculates updates on Shibarium, Shiba Games, ShibaSwap or a new burn mechanism for the Dogecoin-killer. Analysts suspect SHIB could liquidate bulls with its bearish trend reversal. Shiba Inu project leader Shytoshi Kusama reappeared on Twitter with a cryptic tweet, after a fifteen day break. The mysterious disappearance of Shiba Inu’s founder Ryoshi had pushed the spotlight on Shytoshi Kusama, the lead developer. Shiba Inu developer posts mysterious tweet Shytoshi Kusama, the lead developer of Shiba Inu, made a comeback on Twitter with a cryptic tweet, Today I write. Tomorrow I will have a LOT to say #Shibarmy. Kusama addresses the ShibArmy, the community of Shiba Inu coin holders, in his tweet, teasing a major announcement in the project soon. The Shiba Inu ecosystem has a few projects under development. Creator Ryoshi had kickstarted the development of Shibarium, a layer-2 scaling solution, and Shiba Games under his leadership. Since Ryoshi’s disappearance there have been consistent updates in the meme coin’s ecosystem. Before the recent tweet, Kusama affirmed that the development of Shiba Inu projects is going well and the community can expect an exciting announcement within the next few weeks. ShibArmy believes Kusama could reveal a key update on the development of Shibarium or a release date for the layer-2 scaling solution. The Unification Foundation told ShibArmy in a blog post on June 24 that Shibarium’s beta phase will be launched in Q3 2022. Shibarium is key to the Shiba Inu ecosystem and SHIB holders as the launch of the layer-2 solution would power the development of applications in the meme coin’s network. Shibarium’s launch could considerably reduce the transaction costs and time required to process transactions in the Shiba Inu ecosystem. Kusama teases ShibaSwap update? ShibaSwap was launched in July 2021, since Shiba Inu’s decentralized exchange is fast approaching its anniversary, it is likely Kusama could share an update on the DEX. The native decentralized exchange of the Shiba Inu ecosystem has emerged as a staple of SHIB, and provides several functions like token swapping and liquidity pools, staking, governance and a “Shiboshis” non-fungible token (NFT) marketplace. Shiba Inu hits burn milestones, mechanism could change? Shibburn, the portal that offers insights on the burn implementation in Shiba Inu, revealed that SHIB recently crossed the milestone of 410 trillion burned tokens. With the massive burn in Shiba Inu, the ShibArmy expects a change in the burning mechanism to speed up the act of removing SHIB tokens permanently from circulation. Over 41% of the circulating supply of Shiba Inu has been permanently destroyed, while the remainder is in circulation or staked on ShibaSwap. A shift in the burn mechanism could help SHIB pick up pace and destroy more tokens, contributing to a spike in value of Shiba Inu held by the community. Analysts predict Shiba Inu price decline Akash Girimath, a crypto analyst at FXStreet, believes Shiba Inu price could disappoint bulls as the meme coin begins its downtrend. Shiba Inu price recently recouped its losses from the last fourteen days, but it is likely that bears will take over the Dogecoin-killer. Shiba Inu’s fair value gap extends from $0.0000082 to $0.0000093. The analyst believes there is a likelihood of panic selling in Shiba Inu and the meme coin could eventually drop lower to its FVG.
Alibaba Stock Price Went Up By 1.2% On Monday. Will Data Gathered By Alibaba And Tencent Be More Vigilantly Supervised?

Alibaba Stock Price Went Up By 1.2% On Monday. Will Data Gathered By Alibaba And Tencent Be More Vigilantly Supervised?

FXStreet News FXStreet News 04.07.2022 16:21
Alibaba stock advanced 1.2% in Hong Kong on Monday. BABA stock is not trading in the US on Monday due to the July 4 holiday. Alibaba has introduced an enterprise data company, Lingyang Intelligent Service. Alibaba (BABA) stock is not trading on Monday due to the July 4 Independence Day in the United States, but its Hong Kong counterpart (9988.HK) closed up 1.2% at 113.20 Hong Kong dollars to start the week. This is good news for BABA shareholders as a mixed bag of news made the rounds over the weekend. Alibaba Stock News: Major cyber breach fails to overshadow new data offering Chinese media over the weekend exploded with an account of what may be the largest data breach in Chinese history. An anonymous hacker stole identity information from as many as 1 billion Chinese citizens after breaching a Shanghai police server and offered the 23 terabytes of data for sale on a digital forum. The hacker asked for just 10 Bitcoins in exchange, an amount close to $200,000. Various media figures have suggested the data breach may lead to an even more concerted effort to control customer data collected by digital giants like Alibaba and Tencent (TME). These two megacaps are some of the largest providers of cloud services to both governement and private sector institutions in China, and there are rumors that a major cloud provider will be blamed. On a positive note, Alibaba has formally announced the creation of a data company focused on the enterprise market. A new offering, Lingyang Intelligent Service will present corporations with data as a service through 11 different products. Some products are primarily for manufacturers, while others are focused on marketing. Lingyang means "antelope" in Mandarin. News on June 17 emerged that the People's Bank of China is allowing Ant Group to form a financial holding company that would allow it to IPO. Alibaba owns about 33% of the prominent fintech firm that it helped launch. As a major owner, BABA is a proxy for Ant's future IPO, which is expected to be possibly the largest in Chinese history. Alibaba Stock Forecast: $120 remains stubborn resistance We were excited on June 23 and 24 to see BABA stock posting a rare double Rising Window pattern. This pattern of bold green candles gapping up on one another typically forecast that a larger rally is in the works. Last week though saw that rally peter out at $120 once again. $120 has stopped BABA dead in its tracks on at least four occasions since the beginning of March. The 9-day moving average continues leading the 21-day counterpart, a chart event that lasted the whole way through June. BABA stock did not fall far however. Shares continued to bounce around between $110 and $120. This means the ecommerce giant may take another stab at $120. If not though, expect it to resort to finding support once more. Short-term support sits at $102 to $105, and longer-term support is now at $85 from the gradually ascending trend line. From there, our advice from last week's remains the same: "FXStreet thinks that BABA will make a run at $128 next. That is the resistance zone from the first two weeks of February. Right above there is more resistance at $130, which stems from that level acting as stiff support during the winter of 2018 and early 2019." BABA daily stock chart
S&P 500 ETF Trust (SPY) News and Forecast: First half bad, second half...?

S&P 500 ETF Trust (SPY) News and Forecast: First half bad, second half...?

FXStreet News FXStreet News 01.07.2022 16:41
S&P 500 closes down again on Thursday by 0.88%.SPY falls 20% in the first half of the year.Bonds also fall in the first half, making it a terrible year for asset portfolios.The S&P 500 or SPY ETF closed out the half-year in a subdued fashion on Thursday as the anticipated repositioning did not materialize. Long-only investors and mutual funds opted to remain underweight equities. July is historically one of the better months for S&P 500 performance and is the best performing month historically in the third quarter. S&P 500 SPY stock newsAs we can see, this half of the year has been a terrible one for stock and bond portfolios. The Fed has been behind the raging inflation curve and has pivoted way too late to a hawkish policy.Now financial markets are betting on recession, and the latest GDPNOW figure from the Atlanta Fed is not exactly comforting. It is showing expected Q2 GDP falling 1%.Source:atlantafed.orgThe bond market as mentioned is convinced the Fed is hiking into a recession and has been pricing rate cuts for early 2023. Given that the Fed is late to the party, we see that as highly unlikely. They always over-hike and then over-cut. They have largely moved inflation from transitory by their policies and are now likely to engineer a deep recession by hiking for too long. All this means of course that equities and risk assets will again find H2 to be a tough ask. S&P 500 (SPY) stock forecastWe do not expect a huge amount of volatility now as we enter earnings season. We expect this earnings season to be when the penny drops with Wall Street analysts as EPS forecasts will be cut and the S&P 500 will naturally then edge lower. Remember macroeconomics impacts EPS which in turn impacts stock prices. Macro remains poor in most regions and the global economy is slowing markedly. International trade is more expensive, there are more barriers to trade, and energy costs are pricing sticky.Corporate earnings in the US will also be hit by conversion charges of overseas currency earnings into a strong US dollar. There is a strong correlation between lower earnings for corporate America and a strong dollar.Still, SPY has a gap to be filled from $395 to $401. Resistance above is $415 which is key. SPY stock chart, daily
Three factors behind Shiba Inu price that can trigger an important movement

Three factors behind Shiba Inu price that can trigger an important movement

FXStreet News FXStreet News 01.07.2022 16:41
Shiba Inu price posted nearly 5% gains overnight, and started recovery despite crypto bloodbath. Shiba Inu network activity exploded with a 35% increase over the past week. 23.4 million Shiba Inu coins were burnt in three transactions on June 30, fueling a bullish sentiment in the ShibArmy. Shiba Inu price is starting a recovery while the rest of the crypto ecosystem is soaked in a bloodbath. There is a spike in network activity in Shiba-Inu-themed cryptocurrencies Shiba Inu and Dogecoin. ShibArmy is awaiting a massive surge in Shiba Inu price as burn continues. Shiba Inu price rallies as network activity explodes Shiba Inu price is rising as along with competitor Dogecoin it is observing a notable increase in network activity. Based on data from crypto intelligence platform Santiment, over the past ten days, network interaction among Shiba Inu and Dogecoin holders increased 35% and 32% respectively. Shiba Inu network activity At a time when most cryptocurrencies have witnessed a decline in their prices, investors poured capital into the Shiba Inu ecosystem. A surge in network activity is indicative of rising interest in ShibArmy members and investors, fueling a bullish sentiment among traders. Experts believe increased transaction activity could be a temporary setup for a Shiba Inu price rally. The recent liquidity crises post the collapse of Terra LUNA and Three Arrows Capital triggered a slump in cryptocurrencies. 23 million Shiba Inu coins were destroyed in three transactions Shibburn portal reveals that 23.4 million Shiba Inu coins were burned in three recent transactions. In the past 24 hours 357.6 million Shiba Inu tokens were destroyed and the burn rate climbed 119% overnight. The rapid burn of Shiba Inu has pulled trillions of tokens out of circulation and contributed to the rise in value of the remaining 557.9 trillion Shiba Inu coins currently in circulation – over 41% have been permanently removed from the Dogecoin-killer’s supply. Shiba Inu circulating supply Shiba Inu social dominance on the rise In addition to the rising network activity, Shiba Inu coin has witnessed a spike in its social dominance. Based on data from crypto intelligence platform Santiment, social dominance is a metric that equalizes whether the cryptocurrency is being discussed during a hyped time or whether it is being discussed during a less specific time of the day. The social dominance for Shiba Inu recently witnessed a massive spike and this coincides with the recovery in Shiba Inu price. Shiba Inu social dominance Constant engagement of investors in Shiba Inu across social media platforms is a key reason for a Shiba Inu price recovery. Shiba Inu leads the pack on Coinbase Among cryptocurrencies listed on Coinbase’s platform, Shiba Inu ranks among the three cryptos trading at a price higher than their listing price. Shiba Inu price started recovery in the bear market while Bitcoin and Ethereum prices continued to plummet. Most cryptocurrencies in the top 30 by market capitalization have bled and struggled to recover, while Shiba Inu price is making a comeback. Despite being removed from Crypto.com’s Earn program, and other similar setbacks, Shiba Inu price has witnessed a trend reversal. While Crypto.com pulled Shiba Inu out of the list of assets supported for rewards on Crypto Earn, Coinbase Commerce added the meme coin to its platform for instant and free payment settlements to merchants. Shibarium launch draws close Shiba Inu’s layer-2 solution Shibarium is set to release beta phase as early as Q3 2022. Based on the announcement of developers at the Unification Foundation, Shibarium’s beta version could see the light of the day soon. Shibarium and Shiba Games are the two releases planned for the Shiba Inu ecosystem in 2022. Experts believe that the launch of Shibarium could contribute to the recovery of Shiba Inu coin. Unification informed the ShibArmy that the Shibarium Alpha TestNet has been successfully running for a number of weeks and is allowing developers to create the necessary support tools prior to the public Beta TestNet deployment. The primary tool under heavy development is the wallet application, which will also be deployed on L2. Shibarium is being built on and improving well established, battle-tested and robust technology with xFUND, and particularly Oracle of Oracles (OoO). Oracle of Oracles will play a key role in the ecosystem as an Automated Market Maker (AMM). The Shibarium Public Beta TestNet is planned for deployment in Q3 and it will allow parties to fully interact with the network, including the validation process. Shiba Inu price is ready for recovery Analysts at FXStreet have evaluated the Shiba Inu price trend and predicted that after facing headwinds and a brief period of consolidation, SHIB is ready for another leg-up. Shiba Inu price could embark on a 15% rally from its current level and hit its targets of $0.0000119 and $0.0000130. Further uptrend continuation could push Shiba Inu price to retest the $0.0000139 hurdle, the short-term local top for the Dogecoin-killer. Shiba Inu perpetual futures FXStreet analysts believe Shiba Inu’s competitor Dogecoin is primed for a massive rally. For more information and key price levels to watch out for, check this video:
ISM Manufacturing PMI Preview: High inflation component steal the show, boost dollar

ISM Manufacturing PMI Preview: High inflation component steal the show, boost dollar

FXStreet News FXStreet News 30.06.2022 16:27
US ISM Manufacturing PMI is set to show slower growth in June.The inflation component is critical and low expectations may lead to an upside surprise. Risk-aversion ahead of the weekend could compound dollar strength.First Nonfarm Payrolls hint – that is how I used to describe the US ISM Manufacturing Purchasing Managers' Index (PMI). Not this time. While the indicator also provides an insight into the jobs report, the focus this time will undoubtedly be on inflation – the other mandate of the Federal Reserve, and currently the overriding priority. The headline Manufacturing PMI is set to decline from 56.1 point in May to 55 in June, reflecting slower growth and lower expectations from businesses in the industrial sector. Nevertheless, any score above 50 still represents expansion. The dollar would react negatively to the headline only if it tumbles below that 50-point threshold:Stable but eroding growth in the headline ISM Manufacturing PMI:Source: FXStreetThe more important data point is Prices Paid, which is a snapshot of purchasing managers' inflation expectations. The economic calendar is pointing to a slide from 82.2 to 80.5 points. However, with rising prices being on everybody's minds – television sets and gas stations serving as billboards – there is room for an upside swing rather than a downside one.Moreover, the most recent Consumer Confidence survey by the Conference Board showed an uptick in one-year inflation expectations, from 7.5% to 8%. Perhaps the most convincing argument I have for the upside is found by examining recent publications. It seems that economists adapt themselves to recent surprises – either expecting a high Prices Paid figure when the data is elevated in the previous month, or projecting a weak number after a miss. This time, a relatively softer figure is on the cards, but economists might have exaggerated expectations to the downside.Source: FXStreetHigh inflation expectations in the manufacturing sector may lead markets to expect a similar outcome in the services sector PMI released next week. Moreover, the central bank is watching as well. Fed Chair Jerome Powell has mentioned forward-looking inflation expectations figures as critical to his decision-making process. A higher Prices Paid figure means a stronger dollar in anticipation of a faster increase in interest rates. Another reason to expect the greenback to gain ground is the general trend in its favor, boosted by Powell, who said it would be a bigger mistake to allow prices to rise quickly and his hint that he would accept a recession. Final thoughtsInflation, not employment, is what matters in the ISM Manufacturing PMI. Any small beat would extend the uptrend in the dollar, especially as the weekend draws near and end-of-month flows have been cleared.
Polestar Stock News and Forecast: PSNY struggles on debut as stop-start continues

Polestar Stock News and Forecast: PSNY struggles on debut as stop-start continues

FXStreet News FXStreet News 30.06.2022 16:27
PSNY stock rose 16% on its debut last Friday.Polestar follows that with three down days to erase all gains.PSNY stock was brought to the market officially last week when the SPAC deal with Gores Guggenheim (GGPI) was formerly completed. GGPI stockholders had been asked to vote on the deal on June 24, and the results were positive. Polestar was then listed via one of the few SPAC deals this year under the ticker PSNY. Polestar is a Volvo/Geely spin-off and produces electric vehicles. The company follows a similar Scandinavian design ethos as Volvo. PSNY stock history, model line up and Hertz dealPolestar is in some ways akin to BMW's M line and Mercedes' AMG models. Polestar was formed in the 1990s as Flash/Polestar Racing before Volvo bought it out in 2015. Volvo has been owned since the post-Great Financial Crisis era by the Chinese holding firm Geely. Polestar is backed by Volvo and its Chinese backer Geely, which enabled Polestar to launch its first vehicle, the Polestar 1, in 2017. The Polestar 1 was a plug-in hybrid. The Polestar 2 is a fully electric vehicle launched in March 2020 and is a sports sedan model. Polestar will launch an SUV, the Polestar 3, this fall.Polestar made nearly 30,000 cars in 2021 and aims to increase production to nearly 300,000 by 2025. To do this, it will be able to use Volvo and Geely's manufacturing bases in South Carolina and China. SUV models are the most profitable model type for auto manufacturers because they have the highest margins. Polestar has also begun delivering EVs to Hertz (HTZ) as part of a deal for up to 65,000 cars, which Hertz and Polestar agreed to in April. Polestar Competitors: Tesla lords over the EV marketPolestar, for now, competes in the off-shoot auto market in the EV space, so the main overriding industry standard has traditionally been set by Tesla (TSLA). Tesla more or less invented the current EV market and has dominated it for some time. Polestar attempted to lift its image and brand awareness in the US by launching a Superbowl commercial taking a cheeky dig at some of its competitors, such as Tesla and Volkswagen. For now, Polestar remains a standalone from Volvo, but we do wonder how the situation will evolve once Volvo itself is fully electric. Will Volvo and Polestar compete as separate marques within the same parent group? Tesla (TSLA) has been facing challenges of its own as the stock price falls markedly this quarter. The Twitter (TWTR) takeover drags on and talk of job cuts and supply issues as well as China factory shutdowns has hampered Tesla this year (note: the author is short Tesla). Gores Guggenheim stock newsGores Guggenheim was a special purpose acquisition company (SPAC) sponsored by The Gores Group LLC, which was founded by Alec Gores. Gores has a wide breadth of experience in the SPAC industry. Gores Guggenheim traded under the ticker GGPI and launched on the stock market in April 2021 via initial public offering (IPO). GGPI raised $800 million in its IPO. The business combination agreement with Polestar was completed once Polestar was listed on June 24. Polestar stock newsSince the listing, PSNY stock has struggled to hold on to early enthusiasm. Initially, the legacy GGPI stock soared once the vote was carried to list Polestar. That saw the stock rally from below $9 to nearly $13. Polestar (PSNY) stock opened for trading last Friday at $12.98 and pushed up to $13.36 before closing nearly unchanged at $13. That was a worrying sign in itself, and we wrote last week that we expected the stock to suffer from a lack of news flow. However, we did not expect things to turn lower quite so quickly or dramatically. Indeed, Friday's candle has a huge wick, and this is often a turnaround signal as it shows indecision in the market. Since Friday, Polestar (PSNY) has been down every day this week, moving from $13 to back under $10 now. Polestar stock forecastAs we mentioned last week, without a catalyst PSNY shares are likely to drift. Now that the SPAC deal has been completed the notional $10 support level is no more. SPACs are required to keep $10 per share to return to shareholders in the event of no deal. For now, we struggle to see a catalyst with equity markets remaining in cautious and generally risk-averse mode. The lack of a catalyst until the potential launch of Polestar's SUV in the fall could see more declines for PSNY stock.PSNY stock chart, daily
Central Bankers' Panel puts Powell, dollar on top, Lagarde, euro lagging, Bailey, pound behind

Central Bankers' Panel puts Powell, dollar on top, Lagarde, euro lagging, Bailey, pound behind

FXStreet News FXStreet News 29.06.2022 16:41
US Fed Chair Powell prioritizes fighitng inflation, and ready to see negative growth.Eurozone ECB's Lagarde conveys a balanced, wait-and-see approach.UK BOE's Bailey signals inflation is already taking its toll.Football fans will have to wait until the winter to see the World Cup – but forex traders have their dream team playing in a panel already now. The three most influential people in currency markets have all appeared together and they provided a clear ranking of their respective currencies. I see the fall in EUR/USD – and the larger one in GBP/USD – as fully justified. Here is why.King dollar: Federal Reserve Chair Jerome Powell said that the No. 1 goal is to bring price stability, and does not even want to think about the deanchoring of inflation expectations. He added that the US economy is strong and could withstand higher interest rates.Most importantly, he clearly prioritizes crushing inflation. He wants to cool the economy, and only "hopefully" to avoid negative growth. Between the Fed's two mandates of price stability and full employment, Powell clearly focuses on the former. Putting a lid no inflation means higher rates, and hat is positive for the dollar.Mixed euro: European Central Bank Governor Christine Lagarde has maintained a balanced approach, perhaps in line with her role as the host of the panel in Sintra, Portugal. Her words also come after Spain's inflation hit 10% but Germany's retreated to 7.6%, lower than expected. Her message of acting according to data means uncertainty, which helps the euro against the pound, but fails to beat the dollar. Depressed pound: Bank of England Governor Andrew Bailey cast a gloomier message, emphasizing the shock caused by the increase in the cost of living, and saying it already has an effect. That means Brits have less money in their pockets, and that higher prices are already working to cool the economy. While he said the BOE may act "forcefully" against inflation is needed, he seemed reluctant to endorse a hawkish point of view.Did central bankers say something absolutely new? No. Nevertheless, having the three of them in one stage, talking calmly about their struggles and about policy, is impactful. The image of all them together is likely to remain in traders' minds for longer, extending the advantage of the dollar, the lagging of the euro and the weakness of the pound.
Watch out for Ethereum price as technical indicators point to dip below $1,000

Watch out for Ethereum price as technical indicators point to dip below $1,000

FXStreet News FXStreet News 29.06.2022 16:41
Ethereum price sees long holders stuck in a bull trap.ETH price faces headwinds coming from tailwinds that flaring up again at the US closing bell.Expect to see losses mounting up again with a possible retest of this year’s low.Ethereum (ETH) price is revealing a not-that bright picture for bulls this week, both from a technical perspective and because of ballooning tail risks. As bulls could not manage a close above a crucial technical hurdle, price action slipped further to the downside and moved away from the essential historic barrier. More losses are on the table if existing tail risks are compounded by Russian retaliation. This in turn would trigger a massive sell-off in ETH price action.Ethereum price only emerged for a catch of breath Ethereum price is in a bad way both technically and from geopolitical headwinds weighing on price action. From a technical point of view, the bull trap on June 26 has ensnared plenty of bulls trying to get involved in the breakout that turned out to be false and rapidly led to a downside squeeze. The overnight communication from NATO that troop forces will be doubled in Eastern Europe, and the US committing to building a permanent base in Poland, has ramped up the stress and fears of a cold war and possible retaliation from Russia in a panic attack. ETH price is thus set to drop from $1,243.89 back to $883.60 and possibly test a new low for the year. By doing so, $830.93 will come back into play and could be tested for support. That would mean another 30% of losses added to the already battered ETH price action.ETH/USD daily chartAs commodities correct, all sectors have had their ‘bear market’ moment, and by now, investors could start buying the dip. That would mean more cash inflow while price action is still declining but at a much slower pace. This could lead to a slow but sure turnaround and swing back above $1,243.89. As persistent buying continues, the price may ramp up further and could set sail for $1,400 as an intermediary target.
Digital World Acquisition Corp Stock News and Forecast: Is this the end for DWAC?

Digital World Acquisition Corp Stock News and Forecast: Is this the end for DWAC?

FXStreet News FXStreet News 28.06.2022 16:50
Digital World board members have received subpoenas by federal prosecutors.DWAC stock tanked 9.6% to $25.16 on Monday.DWAC is down 51% year-to-date amid failure to complete merger.Digital World Acquisition Corp (DWAC) is in the news again and not for the right reasons. The special purpose acquisition company or SPAC filed an 8-K with the Securities & Exchange Commission (SEC) to announce that a grand jury formed in the Southern District of New York had issued additional subpoenas to the company and its executives. The announcement comes on the heels of earlier filings on June 13 and 16 that all members of DWAC's board had received subpoenas and that the investigation was expanding.The word so far is that the grand jury is scrutinizing whether or not the officers behind DWAC had already discussed a merger with former President Donald Trump's Trump Media & Technology Group (TMTG), which owns social media startup Truth Social, before raising funding for DWAC. Doing so would constitute a crime. Shares of DWAC plunged 9.6% on Monday to $25.16.DWAC stock newsOn Monday the Trump Media & Technology Group released a statement concerning Digital World's latest filing.“TMTG is focused on reclaiming the American people's right to free expression. Every day, our team works tirelessly to sustain Truth Social’s rapid growth, onboard new users, and add new features. We encourage—and will cooperate with—oversight that supports the SEC's important mission of protecting retail investors.”The main news remains DWAC's filing with the SEC from Friday. Here is the important section:As previously disclosed in Digital World’s Form 8-K filed on June 13, 2022, Digital World has been informed that it is the subject of an investigation pursuant to Section 8(e) of the Securities Act, with respect to the Registration Statement relating to its Business Combination. Digital World has also received several document requests and subpoenas from the SEC, seeking various documents and information regarding, among other things, Digital World’s due diligence regarding TMTG, communications regarding and due diligence of potential targets other than TMTG, relationships between and among Digital World (and/or certain of Digital World’s officers and directors) and other entities (including ARC Global Investments II LLC, Digital World’s sponsor, and certain advisors, including Digital World’s underwriter and financial advisor in its initial public offering)."On June 16, 2022, Digital World became aware that a federal grand jury sitting in the Southern District of New York has issued subpoenas to each member of Digital World’s board of directors; the subpoenas seek certain of the same documents demanded in the above-referenced SEC subpoenas, along with requests relating to Digital World’s S-1 filings, communications with or about multiple individuals, and information regarding Rocket One Capital. Additionally, on June 24, 2022, Digital World received a grand jury subpoena with substantially similar requests. These subpoenas, and the underlying investigations by the Department of Justice and the SEC, can be expected to delay effectiveness of the Registration Statement, which could materially delay, materially impede, or prevent the consummation of the Business Combination.There is a lot to digest there, but with both a federal grand jury and the SEC hot on its tail, it sure seems as if the merger with TMTG is unlikely to happen. Grand juries in the US are typically called when an indictment is probable. On June 22 board member Bruce Garelick resigned from DWAC's board, although he said it did not have anything to do with DWAC's policies.DWAC stock forecastAt this point, the chart below does not matter. The news that TMTG's merger with DWAC might not go through would mean that DWAC's price should drop back to $10. That is where shares of the SPAC were sold last year.If the merger does not go through, then that $10 is required to be returned to shareholders. Trading above $10 until this grand jury proceeding is concluded just means that traders are making a gamble that indictments fail or do not halt the merger. I, for one, am not ready to make that bet. Resistance sits at $37, and FXStreet thinks DWAC's share price will remain between $10 and $37 until this government investigation is completed.DWAC daily chart
This is why traders need to be careful trading Polygon’s MATIC price

This is why traders need to be careful trading Polygon’s MATIC price

FXStreet News FXStreet News 28.06.2022 16:50
Polygon price is flip-flopping between a wedge and a fade after receiving a firm rejection to the topside. MATIC could quickly drop another 16% before finding support to bounce off. Expect a further decline, as a stronger dollar could be back anytime now. Polygon (MATIC) traders must have no fun at all seeing the shortness of the relief rally and the soft patch that looked to be underway for the summer. Instead, for MATIC bulls it must almost feel like the holiday flight got cancelled, and the swimming pool has a dead rat floating in it, after the firm rejection from the pivotal level at $0.620. Expect the fade to continue and see MATIC price drop another 16% to 25% in the wake of looking for support. Polygon’s MATIC price set to drop 20% Polygon traders lacked conviction in joining the small rally created in the soft patch when equity markets started to rally and the dollar got busy making its suitcase for the summer. Traders were surprised when – not the 55-day Simple Moving Average but the pivotal level at $0.620 put a cap on any further moves to the upside. Ad to that, $0.513 did not hold as support, and it looks like its relevance has ended. MATIC traders are thus forced to look at lower levels, with $0.450 coming to mind, a smaller level to have marked up as it did its part in the breakout trade earlier last week. Should that level not hold well, there is still the tilted supportive line around $0.410 which do the trick. In the meantime, the Relative Strength Index (RSI) will have dipped below 50 and neared the oversold area, limiting further downturns. MATIC/USD daily chart Should the dollar give way more and, for example, start to trade back above 1.08 or 1.10, cryptocurrencies would have a field day. The $0.620 level would get sliced easily, and likely see MATIC price action rally at a gruesome pace towards $0.960 to start flirting with $1.00. Such a move would pare back all incurred losses from May until now, and even make investors think of a positive close for the year for MATIC if the trend continues.
Alibaba Stock Forecast: Rare double rising window pattern spells bullish trend for BABA

Alibaba Stock Forecast: Rare double rising window pattern spells bullish trend for BABA

FXStreet News FXStreet News 27.06.2022 16:49
Alibaba stock is now trading near its opening price of the year at $120.38. BABA stock is now gaining back ground due to possible Ant Group IPO. BABA is now trading in a region of thick resistance but has featured bullish Rising Window pattern. By moving up more than 2% to $120.20 on Monday, Alibaba (BABA) stock is now even for the year. After dropping precipitously in March, touching a six-year low at $73.28, BABA is now trading around its price on January 3 of $120.38. News on June 17 emerged that the People's Bank of China is allowing Ant Group to form a financial holding company that would allow it to IPO. Alibaba owns about 1/3 of the prominent fintech firm that it helped launch. As a major owner, BABA is a proxy for Ant's hoped-for IPO, which is expected to be the largest of any Chinese company up to now. Alibaba Stock Forecast: Rare double Rising Window pattern spells bullish trend It is not surprising that BABA stock has bounced down off of $120 on a first try. $120 has acted as stiff resistance all year. There is a major signal though that this rally is about to get started and may last awhile. Thursday and Friday of last saw the rare Rising Window pattern. It was doubly rare, because Thursday and Friday performed it back to back. The Rising Window pattern happens when a bullish green candlestick follows another bullish green candlestick with a gap in between. The gap between the Wednesday and Thursday high and low was about $1, but the gap between Thursday and Friday was $5! This is typically a bullish continuation pattern, so traders should expect BABA stock to break through $120 this week. FXStreet thinks that BABA will make a run at $128 next. That is the resistance zone from the first two weeks of February. Right above there is more resistance at $130, which stems from that level acting as stiff support during the winter of 2018 and early 2019. It is hard to guess whether Alibaba stock can break through both those barriers at once. Long-term support remains at $82 and $78, but currently there seems to be a rising support line that is leading to higher and higher lows. Near-term support is at $105. BABA daily stock chart
Everything you need to know about Shiba Inu’s Ryoshi Vision rewards before June 29

Everything you need to know about Shiba Inu’s Ryoshi Vision rewards before June 29

FXStreet News FXStreet News 27.06.2022 16:49
ShibaSwap DEX shared an update on Ryoshi Vision rewards, announcing their distribution within the next 48 to 72 hours from June 26. Shiba Inu coin now ranks in the top 10 cryptocurrencies by trading volume among the 500 largest whales on the Ethereum network. Analysts predicted a breakout in Shiba Inu price over the next few days. ShibaSwap, the native decentralized exchange of the Shiba Inu coin project, announced the distribution of Ryoshi Vision rewards within the next 48 to72 hours from June 26, 2022. ShibArmy will soon receive passive income from the Shiba Inu burn portal. Shiba Inu burn portal rewards will be distributed soon The Shiba Inu burn portal was created in collaboration with the creators of Ryoshi Vision in April 2022. Ryoshi Vision is an ERC20 token, and it was founded to honor the creator of the Shiba Inu ecosystem, “Ryoshi.” While Ryoshi mysteriously disappeared a few weeks ago, Ryoshi Vision strives to fulfill the Shiba Inu creator’s vision. The Shiba Inu burn portal was built to reward holders who burn SHIB with passive income. The rewards would be distributed in the form of RYOSHI tokens, and 0.49% of all transactions would be distributed to owners of burnt SHIB. With the Shiba Inu burn portal launch, a SHIB “BURN Pool” was created to offer rewards for burning the meme coin. Based on data from Shibburn.com, 410.37 trillion Shiba Inu coins have been burnt. The announcement of Ryoshi Vision rewards for burnt Shib showed a massive spike in the number of Shiba Inu coins burnt. Shiba Inu circulating and burnt supply ShibaSwap, the Shiba Inu ecosystem’s native decentralized exchange, announced the launch of Ryoshi Vision rewards within 48 to 72 hours from June 26, 2022. The rewards have been delayed, and ShibArmy had a long wait before any update from ShibaSwap. The team has confirmed that they do not expect any further delay, and the release and another update will be shared upon completion. Ryoshi Vision rewards distribution plan For the first 20 weeks in phase one of reward distribution, every holder of xSHIB (staked SHIB on ShibaSwap) receives an equal quantity. On May 17, 2022, the first phase of rewards distribution to owners of burnt SHIB started; since then reward distribution has been delayed and burnt SHIB holders have waited for the subsequent distribution. According to the distribution plan post-phase one, when phase two begins half of the accumulated rewards would be distributed to RYOSHI WARRIORS: 49% proportional to the owners of the burnt SHIB pool 49% proportional to the ShibaSwap stakers of RYOSHI liquidity pool tokens 1% to the ShibaSwap project wallet 1% to the RYOSHI project wallet The other half of the accumulated rewards would be kept for future distribution cycles. Shiba Inu coin ranks in the top 10 cryptocurrencies among Ethereum whales Based on data from WhaleStats, the Shiba Inu coin now ranks in the top 10 cryptocurrencies by volume among the 500 largest whales on the Ethereum network. Through the recent dips in Shiba Inu price in the bear market, large wallet investors scooped up Shiba Inu coins. Top 100 Ethereum whales hold 512.3 billion Shiba Inu coins, worth $5.9 million. Shiba Inu is the third-largest cryptocurrency holding in the whales’ portfolio after Ethereum and USDC. The meme coin Shiba Inu makes up 15.42% of whales’ portfolios on average. Top 10 cryptocurrencies held by 100 largest Ethereum whales Shiba Inu coin holder count explodes The count of Shiba Inu coin holders has increased consistently as investors continue scooping up the Dogecoin-killer. A total of 1,188,887 wallets hold Shiba Inu coins, climbing toward the 2 million target. The number of wallets holding Shiba Inu increased nearly every day. A rise in the number of wallet holders indicates long-term interest in the ongoing bear market. Shiba Inu coin holders and circulating supply Analysts believe Shiba Inu price could break out Denys Serhiichuk, a leading crypto analyst, evaluated the Shiba Inu price chart and noted that SHIB is approaching local resistance at $0.00001297. The analyst believes a daily candle close near $0.00001200 could confirm a breakout within the next few days. Shiba Inu price is $0.00001165 at press time. SHIB-USDT price chart FXStreet analysts believe Shiba Inu price could rally to $0.00001390 before further consolidation in the meme coin. Analysts believe Shiba Inu price could face challenges on its path to recovery from the recent slump in the crypto market. For more information, watch this video:
In the previous week Ether gained more than the leading cryptocurrency

ETH: End Of Crypto Crash!? Is Ethereum (ETH/USD) Going To Increase By 45%!? | FXStreet

FXStreet News FXStreet News 24.06.2022 16:36
Ethereum price sees momentum building for a pop towards $1,243.89. With several central banks this week signalling near the end of the rate hike cycle, markets are finding equilibrium. Expect that space ETH price to rally higher and could return to $1,688.39. Ethereum (ETH) price is technically set to make a killing with a possible 8% intraday gain in sight and, in the near term, a whopping 45% gain forecast. The sudden change comes after a few central banks signalled that the end of their monetary tightening is near, and comments from Powell make clear that the FED will push the US into a recession deliberately to cut short inflation and, by doing so, could trigger a massive weaker dollar. That opens up massive room for ETH price action to manoeuvre in, return to the base of the triangle at $1,688.39 and book 45% gains. ETH price gearing up for 45% gains Ethereum price opens quite bullish this morning in the ASIA PAC session after bulls faced headwinds this week but look to survive and eke out weekly gains going into the weekend. As grim and dire as last week's outlook, the background is changing this week with different rhetoric as markets assess the new information from central banks. As it stands, the congressional hearing of Powell revealed that the FED is planning to push the US into recession to tame inflation deliberately. ETH price could trade off this information as a recession in the US would mean a weaker dollar, and several other central banks have notified markets that they are near ending their tightening path, which means that money conditions could start to normalize again with cash inflow set to restart for cryptocurrencies. On the back of that, ETH price could jump above $1,243.89 and have the field wide open to rally in, with sight set on the base of the bearish triangle from May at $1,649.37. ETH/USD daily chart The delicate equilibrium currently playing with the situation in Ukraine and Russia could easily break down again with the cut-off from supply chains to the Russian enclave Kaliningrad. That could see a Russian military response and ramp up tensions again on the geopolitical stage. That would come with a wave of risk-off again and smash ETH price back to $1,000 and possibly see it slip back below $900 for support. Do not even rule out a test at $830.93 at the pivotal historic level already marked up.
Important Speeches Of The Day And A Few Data From Canada

Meme Stocks: AMC Entertainment Stock News and Forecast: Has AMC bottomed out yet?

FXStreet News FXStreet News 24.06.2022 16:36
AMC stock continues to just about hold the lows. Signs show that equities may have bottomed out in the short term. AMC remains under pressure as S&P 500 earnings are likely to fall next quarter. AMC stock is holding recent gains despite falling over 4% on Thursday. AMC so far appears to have bottomed out last week along with much of the equity market. AMC stock is just down 1% this week and is up 6% on the month. Whether that is a true bottom remains to be seen, but overall we remain bearish on equities until earnings estimates fall, likely after Q2 earnings. AMC Stock News: Lightyear disappoints The Toy Story spin-off Lightyear has disappointed critics, takings and your author. Having watched the film earlier this week, it is a far cry from the high watermark set by all the other Toy Story films. Word of mouth seems to be hurting takings, which are still dominated by Top Gun: Maverick and the latest Jurassic Park installment. Disney (DIS) stock also lost ground after the Lightyear figures, which were shy of projections. AMC CEO Adam Aron hits the front of the LA Times AMC CEO Adam Aron has wisely engaged on Twitter with his AMC apes. This week he thanked them for a front page article in the LA Times covering the AMC story so far. AMC stock sees new hedge fund taunts The power of AMC apes has been questioned now that markets have turned bearish and meme stocks in general are getting badly hit across the board. This week the nemesis of AMC apes, hedge funds, saw one of their members openly taunt the AMC base on CNBC. Hedge Fund manager Cliff Asness of AQR Capital Management disclosed a short position in AMC and said on CNBC: "I dare all the meme stock maniacs to try to hurt us"...It's terrible on everything we care about," he said. "It is super expensive, super unprofitable and super high beta and volatility."..."Let them come. It's 12 basis points. They're crazy people, and I will not notice them, but they can have their fun." This time 12 months ago that would have been enough to see a massive reaction from AMC traders, but so far the stock has failed to ignite. JPMorgan had a report out earlier this week that retail traders are finally capitulating, so perhaps that is truly the case. AMC stock price target Last week B. Riley Securities moved their price target to $11, and now the average consensus among Wall Street analysts is a sell rating with an average $9.24 price target. AMC stock forecast We tend to agree with the negative thesis. While the stock market may bottom out later this year in the face of a recession, AMC faces a tough journey. Cinema attendances held up reasonably well during the Great Financial Crisis in 2008 onwards, and cinemas are often cited as recession-proof. But that may not transfer through to stock performance. From 2008 to 2010 Cinemark (CINE) fell about 60%, more or less in line with the broader market with the S&P down 50%. In times of recession cinema attendance holding up was largely down to escapism. Now with the rise of streaming, there is an alternative. AMC chart, daily
EUR/USD Forecast: Tolling recession bells push the dollar higher

EUR/USD Forecast: Tolling recession bells push the dollar higher

FXStreet News FXStreet News 23.06.2022 16:35
EUR/USD Current Price: 1.0503The EU S&P Global flash PMIs reflected a sharp economic slowdown at the end of Q2.US Federal Reserve chief Jerome Powell will repeat his testimony before Congress.EUR/USD is struggling to retain the 1.0500 threshold and is poised to extend its slump.Risk-off returned on Thursday, pushing EUR/USD towards the 1.0500 price zone, where it currently trades ahead of the US opening. Comments from US Federal Reserve Chair Jerome Powell on Wednesday fueled recession concerns. Testifying before Congress, Powell acknowledged that hiking rates too fast lifts the risk of recession, yet at the same time, reaffirmed that policymakers believe the current pace of hikes remains appropriate. Chief Powell will testify again on Thursday before a different commission, but he is not expected to add much new to what he already said.Further fueling the dismal market's mood, macroeconomic data hinted at an economic slowdown in the EU. The flash S&P Global PMIs for June painted a gloomy picture as EU economic growth deteriorated to a 16-month low, reflecting a stalling of demand growth. The manufacturing PMI contracted to 52, while the services index shank to 52.8 from 56.1 in May.The picture was pretty much the same in Germany, as the report showed the economy lost momentum at the end of the second quarter while adding that "firms' expectations towards future activity slumped to their lowest since the first wave of the COVID pandemic over two years ago, with manufacturers growing increasingly pessimistic about the outlook." Germany's flash Manufacturing PMI printed at 52, while the services index came in at 52.4.At the same time, German Economy Minister Robert Habeck announced the country would move to stage two of its three-stage gas plan amid reduced Russian flows. Ever since the war began in Ukraine, fuel shortages have been Europe's main concern. This particular phase does not mean state intervention, scheduled for the next one.Demand for government bonds amid growth fears pushed yields lower, with the yield on the 10-year Treasury note currently at 3.10%. Meanwhile, European stocks are struggling to advance while Wall Street's futures hover around their opening levels.The US has just published Initial Jobless Claims for the week ended June 17, which rose to 229K, while the Q1 Current Account posted a deficit of $ 291.4 billion, both missing the market's expectations. S&P Global will publish June US flash PMIs later in the day.EUR/USD short-term technical outlookThe EUR/USD pair is trading near a daily low of 1.0482, and technical readings in the daily chart point to another leg lower. The pair met sellers around a firmly bearish 20 SMA late on Wednesday, with the indicator currently at around 1.0600. Meanwhile, the Momentum and the RSI indicators head firmly south within negative levels, reflecting growing selling interest.In the near term, and according to the 4-hour chart, the pair is neutral-to-bearish. It is currently developing below all of its moving averages, with the 100 SMA now aiming to cross below the 200 SMA. Technical indicators, in the meantime, seesaw around their midlines without clear directional strength. The pair has been meeting intraday buyers at around the 1.0480 price zone, now the level to beat to confirm additional declines.Support levels: 1.0480 1.0430 1.0785Resistance levels: 1.0555 1.0600 1.0640
How $1 extra gain could trigger a 35% profitable rally in Solana

How $1 extra gain could trigger a 35% profitable rally in Solana

FXStreet News FXStreet News 23.06.2022 16:35
Solana price has bulls drilling on an ascending long-term trend line.SOL price is expected to rally 35% towards $50 once bulls can jump above the trend line.Traders could be in for an upside surprise as cryptocurrencies are diverging from the ruling US dollar.Solana (SOL) price is on the brink of jumping a whopping 35%, as the only element that stands between the bulls and those gains is the longer-term ascending orange trend line, currently playing hard to break. On Tuesday, a false break above triggered a squeeze and bull trap. On Thursday bulls are back knocking on the door of the same trend line, looking to pop above it with just one extra $1 to cross at the time of writing. Breaking above this level could trigger a massive buy-frenzy, with bulls trying to be part of this bullish breakout, and price action running up towards $50.SOL price could see a buying frenzySolana price is on the cusp of giving bears a knee jerk reaction as bulls are drumming at the gates from the orange ascending trend line. A Black Friday sale springs to mind, as a breakout above that long-term trend line would spark massive buying momentum, with bulls jumping on every price in sight to be part of the rally towards $50. With that buy-side demand overweighting the offers, expect to see some bears closing out their positions and possibly bringing SOL price to the edge of the current downtrend.SOL price thus only needs an extra $1 to jump to $37.70 and pop back above the orange ascending trend line. This indicator formed a bull trap earlier this week, but the current market diversion between cryptocurrencies and global markets could avoid a repetition of this pattern and see a solid rally into the $40s. If this sentiment continues towards the weekend, the 55-day Simple Moving Average at $50 comes into play as the first cap to the upside, muting price action for further gains.SOL/USD daily chartA simple repetition of Tuesday could hurt bulls in their attempt and see them trapped yet again. With investors fed up, losing money on trades that go nowhere and only return losses, it is feasible to see a scenario where bulls leave the scene and trigger an initial drop back to $30 and subsequent $25 in a tiered path to the downside. That would result in a roughly 27% drop and back to the lows of 2022.
How a sell-off in US commodities provides headwinds for Terra’s LUNA 2.0 price

How a sell-off in US commodities provides headwinds for Terra’s LUNA 2.0 price

FXStreet News FXStreet News 22.06.2022 16:48
Terra price takes a beating as commodities sell-off with oil touching down on $100, Iron ore tanking 10% in two days.LUNA price sees investors pulling further cash out of cryptocurrencies.Although dollar strength remains balanced, the new round of risk-off is hurting LUNA yet again.Terra (LUNA) price is coming under scrutiny as the last asset class set to fall from recession fears and inflation persistence rolls over. After the stock markets entered a bear cycle and bonds already took a beating, the last castle standing is the commodity super cycle. As prices have risen higher, demand has been fading, resulting in an oversupply in certain commodities, making the elevated prices unjustified and triggering a sell-off in the asset class, which is spilling over to a flight into cash, with cryptocurrencies seeing another exodus of investors.LUNA price set to tank 35%Terra price sees bears drilling on $1.937 after LUNA price was able to pop back above the level following the completion of its bearish triangle from last week. After almost every asset class had its correction, the last one left standing was commodities, which were rallying in their super cycle. Now sentiment is turning, however, as elevated prices have become unsustainable for specific production processes and have thus started to see demand fading while stockpiles rise. LUNA price is undergoing another exodus of cash, linked to the correction in commodities, with copper, WTI crude oil and iron ore all selling off multiple percentage points as demand starts to fade, but inflation remains elevated. The commodity sell-off is another indication a recession could be around the corner. With that flight into cash, a liquidity drought is at hand in Terra price, which could see a break below the 50% Fibonacci level at $1.7662 and a drop to $1.3494 follow, near the 61.8% Fibonacci level, losing 35% in total.LUNA/USD daily chartThe upside potential for LUNA price comes from risks to the dollar as most commodities are quoted in dollar prices. The intrinsic value of the dollar is at risk should there be a recession. The US is the world’s largest economy but it is still, nevertheless, vulnerable due to its high debt and large number of households holding credit card debt, which becomes heavier in a recession with higher rates and repayments due. So luckily, the absent dollar strength is not triggering a falling knife, and could see a possible pop back towards $2.6987, which is the 23.6% Fibonacci level.
AMC Stock News and Forecast: Have meme stocks bottomed out?

AMC Stock News and Forecast: Have meme stocks bottomed out?

FXStreet News FXStreet News 22.06.2022 16:48
AMC stock failed to catch a bid on Tuesday despite broad market gains.AMC shares did however gain over 6% on Friday.Latest Lightyear film fails to reach infinity for AMC.AMC stock held its ground in a lackluster session for the former meme stock king on Tuesday. Curious, given the advance in broader markets. AMC settled for a loss of 0.2% to close Tuesday at $12.50. The long weekend due to the Juneteenth holiday should have presumably helped box office takings. With Tuesday appearing to be a risk-on day, the underperformance of AMC could ring some alarm bells in the ape community.Lightyear to infinity and belowLightyear, the latest Disney Pixar release, has underwhelmed, both in terms of attendance and in maintaining the high standard of the Toy Story movies. It is often unusual to talk about cinema attendances when they have had such little impact on AMC stock in the recent past. There is no escaping from that, even if usually, it is the latest short interest numbers that garner the most attention from the AMC apes or the latest diversion into alternative assets, from gold to crypto to AMC popcorn. I speak from experience having only watched the movie on Monday. Box office takings were down versus expectations. US takings for the Buzz Lightyear film came in at $50 million despite a widespread opening. Adding on international taking brings it up to circa $85 million but the expectation was nearer $100 million-plus.Jurassic World Dominion and Top Gun Maverick continue to hold the top spots in box office takings. Disney stock fell 1% on Tuesday and is down 2% on Wednesday, coincidence, I think not!Adam Aron losing grip on AMC apesAdam Aron, the AMC CEO, lost a compensation vote at the last AMC shareholder meeting. That is an interesting twist, as AMC apes had been very supportive of Aron. Nearly 87 million votes were cast against the AMC CEO with only 52 million backing the pay proposal for AMC executives. The vote is non-binding so it carries merely symbolic importance. Fear not for the AMC boss, as he still gets to have his cake and eat it.Last week, Aron attempted to address a favourite theory of the AMC apes, that of hidden or fake shares being used to short AMC. Did the apes turn on him then and vote against his pay deal? Well, hardly it was mostly institutional holders holding the block votes.AMC stock trend: Have meme stocks bottomed out?While the narrative has shifted toward not if but when the US economy will enter a recession there may be signs of life Jim but not as we know it in the previously hammered meme stock or high-risk equity space. The classic stick to beat was the ARKK ETF which looks like it may have put in a double bottom, chart below. The chart below ARKK is the China Internet ETF KWEB which has indeed bottomed out back in the middle of March. So is it time to once again launch back into meme stocks and squeeze those shorts?ARKK chart, dailyKWEB ETF daily chartAMC stock forecastAMC stock is showing signs of a nascent uptrend. That's my word of the day out there! There is some hope for beaten-down meme stockholders. While AMC shares did not rally on Tuesday other meme names did with GameStop (GME) up 4% and EV stocks also pushing higher. Our view remains negative but we are on watch for a risk-on rally.AMC stock daily chart
ETH/USD May Scare Many! Market Crash: Can 1 ETH To USD Reach $750!?

ETH/USD May Scare Many! Market Crash: Can 1 ETH To USD Reach $750!?

FXStreet News FXStreet News 21.06.2022 16:34
Ethereum collateral position set a new record as 71,863.47 ETH were liquidated on June 18. Independent market analyst told his followers that latest Ethereum price rally would make for a clean fakeout. Analysts believe Ethereum price could plummet to $750 in the bear market, an 85% drop from all-time high. Ethereum price has rebounded from its recent slump, outperforming Bitcoin. Experts believe the recent rebound could end up being a “clean fakeout” as liquidations hit large Ethereum collateral positions. Some analysts are projecting a bearish outlook on Ethereum price. Largest Ethereum collateral position liquidated Based on data from Dune Analytics, a crypto data intelligence platform, the wallet with code 0x2291F52bddc937b5B840d15E551e1DA8C80c2B3c liquidated a 71,863.47 ETH collateral position on Liquity at $927.13, at 19:39 GMT on June 18. This set the largest single liquidation record for Liquity. Liquity is a decentralized borrowing protocol that allows users to draw loans at 0% interest against an Ethereum collateral. Loans are paid out in LUSD, a USD-pegged stablecoin on Liquity protocol. The chart below represents the hourly total value locked (TVL) change over the past week on Liquity and the largest ETH liquidation is represented on June 18. Hourly TVL Change (7 days) Liquity Ethereum price gained 30% in two days, outpaced Bitcoin After its massive recent slump, Ethereum price has bounced back, rallying 30% within 48 hours. Experts noted that this ETH recovery has outpaced Bitcoin as the altcoin made a comeback above $1,100 within two days. Experts noted that Ethereum is currently the best-performing asset in the top five cryptocurrencies by market capitalization. Ethereum started a short-term uptrend after dropping to the support zone at $880 on June 19 and climbed above $1,100 moving into a short-term bullish zone. The altcoin now faces major resistance near the $1,150 and $1,160 levels. ETH-USD price chart Analyst calls “clean fakeout” in Ethereum price PostyXBT, a crypto trader and analyst, told his 79,900 followers to be careful of the recent rebound in Ethereum price. The analyst argued that the move “would make for a clean fakeout.” The analyst was quoted in a tweet: [Ethereum]... stopped out on the reclaim of the level. It looks like an opportunity to flip long towards $1250 but $btc still hasn't reclaimed it's like for like level. Would make for a clean fake out. Be careful. Justin Bennett, co-founder of Cryptocademy, supports this fakeout prediction. Bennett noted that fakeouts to one side of the pattern trigger extended moves in the opposite direction. He considers $900 and $780 as support levels for Ethereum price. Ethereum price could drop to $750 for this reason Wendy O, the host of the O show and a leading crypto analyst, believes Ethereum price could plummet to a $750 low. Wendy argues that the current price of Ethereum is close to the beginning of 2021. Typically in bear markets, Bitcoin and Ethereum prices can drop up to 85%. If this holds true, an 85% drawdown from Ethereum’s all-time high of $4,800 would lead to $750 and this is the level that Wendy is watching out for. Wendy told NextAdvisor, Ethereum hit an all-time high in November 2021 at roughly $4,800, so an 85% correction would lead to around $750. However, it’s not going to be a straight shot down. Key investment strategy before next Ethereum bull run Analysts at FXStreet have recommended dollar cost averaging (DCA) as the ideal investment strategy before Ethereum’s next bull run. They consider $900 the bottom for Ethereum price and recommended $500 investments when price hit $1,000 and again when it hit $1,100. For more information, watch this video:
The Cost Of Living Crisis Is Dampening Demand And Threatens Big Companies Like Apple

Elon Musk Firing People!? Will (TSLA) Tesla Stock Price Plunge!? | FXStreet

FXStreet News FXStreet News 21.06.2022 16:34
TSLA stock is up 3% to $670 in Tuesday's premarket. Musk announces plan to cut 3% to 3.5% of total headcount. Tesla being sued for recent mass layoffs in US. Tesla (TSLA) CEO Elon Musk announced at the Qatar Economic Forum on Tuesday morning that his market-leading EV manufacturer was planning to lay off as much as 3.5% of its workforce immediately, including 10% of salaried workers. This is actually a reduction in scope by Musk, who said earlier in June that he had a "super bad feeling" about the economy not long after JPMorgan CEO Jamie Dimon said a "hurricane" was on its way toward the US economy. At that time an internal memo from Musk called for a 10% reduction in headcount. TSLA stock is up 3% to $670 in Tuesday's premarket on the news. Tesla Stock News: Layoffs appear short-lived At the Qatar forum in an interview with Bloomberg's News' Editor-in-Chief John Micklethwait, Elon Musk said the 10% of job cuts were meant only for salaried workers, as opposed to hourly manufacturing workers, because the salaried workforce had grown too quickly. “A year from now, I think our headcount will be higher," Musk added. Tesla, headquartered in Austin, Texas, now has around 100,000 employees, so this would mean that approximately 3,000 to 4,000 employees would be terminated overall. The company is already facing lawsuits for terminating 500 employees at its Nevada gigafactory earlier this month. Two employees, John Lynch and Daxton Hartsfield, have brought suit, arguing that Musk's company violated the 60-day notification period required for mass layoffs under the Worker Adjustment & Retraining Notification Act. "It's pretty shocking that Tesla would just blatantly violate federal labor law by laying off so many workers without providing the required notice," said attorney for the workers Shannon Liss-Riordan in an interview with Reuters. Musk downplayed the lawsuit when asked about it in Qatar, calling it "trivial". It is uncertain how, if at all, these layoffs would affect overseas workers. Tesla's gigafactory in Shanghai has only just gotten back in gear with exports resuming in May. Tesla exported over 22,000 vehicles from its Chinese factory in May after covid lockdowns in March and April forced it to only export 60 units. News from its factory outside Berlin is that the EV maker is being forced to raise salaries to attract talent from other automakers. Birgit Dietze, a representative for the IG Metall regional union, said that Tesla's hiring is behind schedule as it plans to hire 12,000 employees by the end of the year. This has forced Tesla to raise starting salaries by as much as 20% in order to reach hiring goals. Dietze said this will difference in pay between early hire and late hires will cause consternation at upcoming collective bargaining talks. Tesla Stock Forecast: $700 is the barrier to beat With TSLA shares rising as Elon Musk seeks to control costs, $620 remains the key support for now. Its strength comes from February 24's steep loss that held up there, but it also worked back in August 2021. Breaking through $700 turns this resistance level back into support and places TSLA stock back in neutral territory. The 20-day moving average sits nearby $700 and should also provide some resistance. If Tesla stock fails to conquer $700, then shares will likely descend back to support at $620. From there, based on the descending lower trend line, TSLA is destined for either $600 or more likely $550. That last price held strong in March and May of 2021. It is important to remember that the 20-day is way below the 50-day moving average, and that means TSLA share price is definitely still in a downtrend. Do not expect it to end until Tesla breaks and holds $700 for at least a week. Above $700 lies further resistance at $756. Breaking through the last swing high close of $775 and closing above it will spell a new bull market for the EV leader. Tesla stock daily chart
Ethereum price dips toes below $1,000, bulls quickly push back

Ethereum price dips toes below $1,000, bulls quickly push back

FXStreet News FXStreet News 20.06.2022 16:37
Ethereum price dips beyond the new area for recovery.ETH price will drop 50% before finding key support to halt the descent.Expect an L-shaped to W-shaped recovery, as current tail risks will linger for some time.Ethereum price dipped below the psychological $1,000 mark during the weekend, as bears continued to dominate price action on Saturday. The market took a turn on Sunday, though, as the whole crypto ecosystem was able to bounce back and several coins recovered key levels, with Bitcoin leading the way back above $20,000. ETH price was even able to recover above $1,100, where it is trading at the time of this update (Monday, 10 GMT). The celebration of Juneteenth in the United States on Monday will likely keep markets under calm waters for most of the day but, despite the recent bounce, ETH bears are likely to continue to push for another break below $1,000. Now the question is, where will Ethereum bottom out?Ethereum (ETH) price has lost too much intrinsic value this week to make a decent recovery to $1,404, from where it could rally back to $1,600. Instead, investors will need to take it on the chin and see another 50% price discount as ETH price could crash to $570 once it breaches $1,000. That could come quickly as a break below $1,000 will trigger doubt amongst investors and bite into the credibility of the second-biggest cryptocurrency.ETH price could see a rapid descent as investors lose faithEthereum price was set to outpace at one point Bitcoin price action as media jumped all over the second-largest cryptocurrency only a few months ago. How quickly the image of Ethereum faded from brightest to worst performer in the class. Ethereum price is seeing cash flee by the minute, and with that, its decline is almost unstoppable. ETH price is holding on by a few threads, and once $1,000 is broken to the downside, expect those threads to give way. ETH price will tank in a falling knife price action and half in price around $570 to come to a halt, losing a lot of its feathers. If that discount is enough, it remains to be seen, but even then, a quick turnaround will not be a given and instead see a spun-out lateral move until signs are there that more funds are being poured into cryptocurrencies and demand picks up.ETH/USD weekly chartShould there be a turnaround, expect it to be on the back of the headline release with, for example, a breakthrough on peace talks with Russia or a retreat of Russian troops. That would give a sigh of relief through the markets and trigger a quick recovery with ETH price spun around quickly to $1,404 and following up to $1,688. With that, a new high for June would be printed.
USD/JPY Price Analysis: Bulls have the upper hand, gearing up for a move beyond 136.00

USD/JPY Price Analysis: Bulls have the upper hand, gearing up for a move beyond 136.00

FXStreet News FXStreet News 20.06.2022 16:37
USD/JPY lacked any firm direction on Monday and seesawed between tepid gains/minor losses.Bulls need to wait for sustained strength beyond the 135.50-60 area before placing fresh bets.Break below the 134.00 mark might prompt aggressive selling and expose last week’s swing low.The USD/JPY pair struggled to capitalize on Friday's dovish Bank of Japan-inspired strong move up and witnessed subdued/range-bound price action on the first day of a new week. Spot prices seesawed between tepid gains/minor losses through the early North American session and now seem to have stabilized in neutral territory, around the 135.00 psychological mark.The recent sharp pullback in the US Treasury bond yields prompted some US dollar selling and turned out to be a key factor that acted as a headwind for the USD/JPY pair. That said, a generally positive tone around the equity markets, along with the Fed-BoJ monetary policy divergence, undermined the safe-haven Japanese yen and extended some support to spot prices.From a technical perspective, the intraday pullback from the vicinity of mid-135.00s constitutes the formation of a bearish double-top on short-term charts. The lack of follow-through selling, however, warrants some caution before positioning for any meaningful downside. Moreover, oscillators on 4-hourly/daily charts are still holding in the bullish territory.The mixed technical setup makes it prudent to wait for a sustained move in either direction before positioning for the near-term trajectory. A convincing break through the 135.45-135.50 resistance zone would be seen as a fresh trigger for bullish traders and allow the USD/JPY pair to reclaim the 136.00 round-figure mark for the first time since 1998.The subsequent move up has the potential to lift spot prices towards a nearly two-week-old ascending trend-line resistance, currently near mid-136.00s.On the flip side, the daily swing low, around mid-134.00s now seems to protect the immediate downside for the USD/JPY pair ahead of the 134.30-134.20 horizontal support. This is closely followed by the 134.00 round figure, which if broken decisively would validate the double-top bearish pattern and prompt aggressive long-unwinding trade.The USD/JPY pair might then turn vulnerable to break below the 133.00 mark and test the next relevant support near the 132.45 region before dropping to the 132.00 handle. The corrective decline could eventually drag spot prices back towards the 131.50-131.30 horizontal resistance breakpoint. The latter should act as a strong near-term base for the major.USD/JPY 4-hour chart
Is Crypto Crash Still There!? Why does Bitcoin (1 BTC To USD) continue to decline despite the rise in "buy the dip" sentiment?  | InstaForex

Crypto Prices: Will LUNA Price Drop Significantly!? Bitcoin And ETH Are Not Only Ones Which Have Decreased! | FXStreet

FXStreet News FXStreet News 17.06.2022 13:40
Terra price action reveals a playbook trade setup. LUNA price is set to fall at least another 16% towards base support. Expect a possible slaughter in the coming weeks as cash volumes keep diminishing. Terra (LUNA) price action is starting to reveal its next playbook move and it could not be more clear-cut with the formation of a bearish triangle pattern. Expect to see pressure mounting further on the base, triggering a possible break to the downside. Given global headwinds are not set to fade anytime soon, expect to see further drops in price action towards possibly just a few cents from the initial offering price. LUNA price screams sell Terra price is set to tank another leg lower and could well be on track towards a quotation of just a few cents. As the plane called Terra is trying to make a soft landing, it is just a matter of time before the fuel (the cash) runs dry. With households and retail traders seeing less and less disposable income because of higher prices eating into their household budgets, less money is available to allocate towards cryptocurrency investments. LUNA price is thus possibly in for a hard landing, as to make matters worse, now a bearish triangle is forming that screams that the pain game and the overall descent are far from over. Expect to see more pressure mounting on $1.9370, with the intermediary red tilted trend line over the top to provide a cap. Once bulls forfeit their positions at $1.94, expect to see bears piercing through that level and possibly running price action to the downside towards $1.50 or $1.00 before restarting a new distribution phase with some sideways price action and possibly another bearish formation to prelude the next leg lower. LUNA/USD daily chart Should a turnaround be triggered by a relief headline, on the other hand, or some data released that points to the fact that inflation is starting to drop, expect a bullish knee-jerk reaction with a break above the red descending trend line. From there, the price could quickly rally towards $3.50 and pop 45% higher as bulls jump on the buy signal. Depending on the longevity or game-changer aspect of the headline, $3.80 could also be tested.
Sidus Space Stock News and Forecast: SIDU stock to the moon

Sidus Space Stock News and Forecast: SIDU stock to the moon

FXStreet News FXStreet News 17.06.2022 13:40
SIDU stock soars on news of NASA contract.SIDU is a space as a service company based in Cape Canaveral, Florida.SIDU launched via SPAC on the stock market in December 2021.Sidus Space (SIDU) stock is heading to the moon, to borrow a phrase from the wildly successful but now nearly extinct AMC Apes. Some of you reading may take offense to that. They are not extinct but definitely under pressure as stock markets continue their journey south this year. Former retail darlings are few and far between, and the kind of super spikes we saw in meme stocks are becoming rarer sights. Redbox (RDBX) is the latest one, which is working quite well as a short squeeze. The reason though for the sharp move higher in Sidus Space stock is just more a case of some strong fundamental news. SIDU closed up 63% on Thursday following on from a gain of 225% on Wednesday. So why the rocket launch?SIDU stock newsSimply put, the award of a potentially lucrative contract from NASA has the potential to transform the fortunes of SIDU. The company announced on Wednesday that it was selected as a teammate on the latest $3.5 billion NASA extravehicular activity services contract. Sidus Space describes itself as a "space as a service" company. SIDU has designed and manufactured many components for both flight and ground use in space-related activities. Sidus Space wants to "Bring Space Down to Earth" and offers companies low-cost satellite services.The Extravehicular Activity Services Program (xEVAS) is expected to include the design and manufacture of a new spacesuit and related hardware. The xEVAS program includes the design and development of an extravehicular activity capability. The program will service the NASA International Space Station's Artemis Program and other commercial space missions. The xEVAS contract could be worth up to $3.5 billion through 2034. The contract was awarded to Collins Aerospace and Axios Space. Sidus Space is a teammate of Collins Aerospace for the duration of the xEVAS program. Collins Aerospace is a division of Raytheon Technologies (RTX). Carol Craig, CEO of Sidus Space, said, “We are proud to be part of the Collins xEVAS team in development and manufacturing of the next generation space suits to support ISS and Artemis, allowing humans to walk and explore the moon."In plain english, as we understand it, SIDUS Space is a subcontractor for Collins and will work on stuff for space suits and maybe moonwalks and related space vehicle access.SIDU stock moved from $1.44 to $9.22 between Tuesday's close and Thursday's high. SIDU stock forecastSIDU does not have a chart for technical analysis, but it is interesting to see the huge spikes. SIDU daily chart
What will happen to Terra’s LUNA 2.0 price after claims that Terraform Labs was behind UST collapse

What will happen to Terra’s LUNA 2.0 price after claims that Terraform Labs was behind UST collapse

FXStreet News FXStreet News 16.06.2022 16:58
Analysts have investigated the Terra LUNA crash from May 2022 and suspect it could be an inside job. The US SEC and South Korean watchdogs continue their investigations as a firm discovers a wallet that is implicated in UST de-pegging. LUNA 2.0 price struggles to recover; analysts expect Terra’s new chain token to make a comeback. As financial watchdogs launched an investigation into the collapse of Terraform Lab’s sister tokens, LUNC(previously LUNA) and UST, new findings implicate the firm, implying the de-peg was an inside job. A wallet associated with the de-peg of TerraUSD likely belongs to Terraform Labs. Terra LUNA crash, an inside job?Following the colossal crash of LUNC(previously LUNA) and UST, regulators and financial watchdogs have launched an investigation of Terraform Labs, and co-founder Do Kwon. The US Securities and Exchange Commission (SEC) and South Korean authorities have pursued their investigation, and new findings could aid the process. An investigation by Uppsala Security, Decentralized Solutions for Cyberspace Security Technology, revealed that Terraform Labs managed the wallet behind the attack. A wallet associated with the de-pegging of algorithmic stablecoin UST has been identified and labeled as “Wallet A.” The firm suspects that said wallet has a link to Terraform Labs, and that the wipeout of nearly $40 billion in market value after the LUNA-UST collapse was an inside job. The firm revealed that one address implicated in the initial run-up to UST decline and considered responsible for de-pegging was owned or controlled by Terraform Labs (TFL) or the Luna Foundation Guard (LFG), or related parties. Further, the investigation revealed accounts that were linked to the incident, some addresses on Binance and Coinbase that transferred TerraUSD (UST), USDC, and USDT between each other.Uppsala Security traced the flow of funds from UST to MIM and MIM to USDT. Starting November 2021, wallets controlled by Terraform Labs swapped billions of dollars worth of UST into MIM and eventually into USDT. The cyberspace security tech firm studied how funds were transferred to exchange accounts, some of which were controlled or owned by Terraform Labs founders and the firm. The firm is yet to identify the final details concerning the use of the funds within the exchanges or crypto trading firms; they have identified potential leads for further investigation. The following were identified as wallets of interest:Wallet A: 0x8d47f08ebc5554504742f547eb721a43d4947d0aWallet A(T): terra1yl8l5dzz4jhnzzh6jxq6pdezd2z4qgmgrdt82kBinance user account Memo: 104721486 (terra1ncjg4a59x2pgvqy9qjyqprlj8lrwshm0wleht5)Binance user account Memo: 100055002 (terra1ncjg4a59x2pgvqy9qjyqprlj8lrwshm0wleht5)Depositors: terra13s4gwzxv6dycfctvddfuy6r3zm7d6zklynzzj5 (LUNC DAO)terra1t0an4m6t47rp3mj57rdfzw6dpd3lw8erxjppgwInterchange Wallet A: 0xa046a8660e66d178ee07ec97c585eeb6aa18c26cExchange Wallet A: 0x21ec2dbb3bfd2210a84bbc924466a70becddd572Uppsala is examining the actions taken by these wallets until the day of the Terra LUNA crash and the connection between these addresses through on-chain data. LUNA 2.0 price could make a comeback soonAnalysts at FXStreet have evaluated the LUNA 2.0 price trend and predicted a comeback in the token’s price. Analysts identified a key level to watch before LUNA witnesses a bullish breakout. If LUNA 2.0 price hits $3.5, it will confirm a bullish breakout and an uptrend in the token of the new Terra chain. For more information, watch this video:
Digital World Acquisition Corp Stock Forecast: DWAC rallies 9.3% on statement about working with SEC

Digital World Acquisition Corp Stock Forecast: DWAC rallies 9.3% on statement about working with SEC

FXStreet News FXStreet News 15.06.2022 16:46
DWAC rises 9.3% in Wednesday premarket.Digital World Acquisition Corp says it is cooperating with SEC.Trump social media company may fail to merge with SPAC.Digital World Acquisition Corp (DWAC) stock has decided to rally a surprising 9.3% in Wednesday's premarket a day after shares plummeted 28.2% on news that the Securities & Exchange Commission (SEC) was expanding its probe into DWAC's proposed merger with former President Donald Trump's Trump Media & Technology Group, which owns the Truth Social media platform. The SEC wants to know if DWAC, a special purpose acquisition vehicle (SPAC), had begun negotiations with TMTG before DWAC went public, because doing so would be illegal. Wednesday's premarket rally appears to be in response to Digital World Acquisition releasing a statement that it is cooperating with the SEC."Digital Word appreciates that the Securities and Exchange Commission (the "SEC") is tasked with protecting investors and is working to provide the SEC staff with information, pursuant to previously disclosed subpoena requests, so that the SEC has what it needs to conduct and conclude its investigation. The Digital World team continues to diligently work towards completing the Business Combination, which includes approximately $1.25 billion of net proceeds to TMTG at close, assuming no redemptions by Digital World stockholders, in order for investors to have the opportunity to participate in the Business Combination," the DWAC statement reads.The filing from Monday shed light on a new subpoena not covered before on a filing from May 31. The more recent subpoena appears to show the SEC more closesly scrutinizing the merger.This subpoena seeks additional documents and information with respect to, among other things, communications regarding and due diligence of potential targets other than TMTG, relationships between and among Digital World (and/or certain of Digital World’s officers and directors) and other entities (including ARC Global Investments II LLC (the “Sponsor”) and certain advisors, including Digital World’s underwriter and financial advisor in its initial public offering), the holders of ownership interests in the Sponsor, certain elements of the transaction history for equity in the Sponsor, and certain forward-looking information about TMTG referenced in the Registration Statement. Any resolution of the investigation could result in the imposition of significant penalties, injunctions, prohibitions on the conduct of Digital World’s business, damage to its reputation and other sanctions against Digital World. In addition, the Section 8(e) order of examination of the Registration Statement can be expected to delay effectiveness of the Registration Statement, which could materially delay, materially impede, or prevent the consummation of the Business Combination.That last part is key. Preventing "the consummation of the business combination" would mean an end to the merger and mean DWAC was once again worth the initial investment – i.e. $10. DWAC Stock Forecast: We're going to $10, folksThe chance of the merger not happening is fairly high, maybe as high as 50%. The SEC has rarely scrutinized SPACs during the past three years they have been popular. Even if the merger does go through though, do not expect a quick turnaround. As we wrote back on February 17: At its current price, DWAC is priced at $3.2 billion. The closing of the merger, however, means that a 30-day clock begins. When the 30 days post merger is up, then separate shares allotted to insiders, underwriters and private investors who invested in the SPAC's separate PIPE deal (Private Investment in Public Equity) before the merger closed can begin trading their shares. This means that the current 37.2 million or so shares available to trade will grow overnight to more than 170 million."On top of that there are some 40 million "earnout" shares that get minted to company insiders and owners like the Trump family if the share price remains above $15, $20 and $30 a share in the month after the merger. The math is complicated, and the share count could change for a host of reasons, but one prominent forecast making the rounds estimates there will be over 193 million shares post-merger. This does not even include warrants that could add an additional 15 million shares in September.At least one short-seller thinks DWAC is primed to drop post-merger and issued a $36 price target. That target seemed quite low back at the start of the year but now is above the current share price close on Tuesday. Support at $35 to $37 has broken down, and with little if any support underneath there, investors or traders should expect this one to head back toward $10. The $35 to $37 range should now be seen as resistance.DWAC daily chart
Market Crash: Are Ethereum (ETH) And Bitcoin (BTC/USD) Price "Very Close To Their Bottom"!? | FXStreet

Market Crash: Are Ethereum (ETH) And Bitcoin (BTC/USD) Price "Very Close To Their Bottom"!? | FXStreet

FXStreet News FXStreet News 15.06.2022 16:46
Analyst who predicted the bear market of 2018 believes Bitcoin and Ethereum prices are very close to their bottom. Kevin O’Leary of Shark Tank detailed his crypto holdings include Ethereum and scaling solution MATIC. Analysts argue that a drop below $1,070 could push Ethereum prices lower. The cryptocurrency analyst known for accurately predicting crypto bear markets believes Ethereum is close to printing cycle lows. Analysts believe Ethereum price could continue to plummet lower. Ethereum price could hit bottom soon? The crypto strategist Smart Contracter accurately called the bottom of Bitcoin and Ethereum during the 2018 bear market. The analyst is now back with his prediction for the two largest cryptocurrencies and believes BTC and ETH are close to their cycle low. The analyst told his 208,000 followers on Twitter that Ethereum has gone through a capitulation phase and is now trading at a level that offers strong support. Smart Contracter is quoted in his recent tweet: BTC and ETH are both at their weekly respective 200-week moving averages. Bottom is very, very close in my opinion, maybe marginal new lows on lower timeframes but this is the spot to start accumulating in my opinion. This is pure unadulterated capitulation. ETH-USD price chart Kevin O’Leary is bullish on Ethereum Kevin O’Leary, a Canadian entrepreneur and investor at Shark Tank, recently revealed the cryptocurrencies in his portfolio. O’Leary has shared his investment strategy when the crypto market is hit by massive volatility. The Shark Tank star and billionaire investor abide by the general rules of portfolio theory when allocating capital to cryptocurrencies. In an interview with the Bankless podcast, O’Leary shared the rules of capital allocation in his portfolio, implying a bullish outlook on Ethereum, one of the cryptocurrencies he holds. Ethereum price drop below $1,070 could push the altcoin to new low Analysts have evaluated the Ethereum price trend and argue that $1,070 is major support for ETH, and a drop below this level could put a lot of pressure on bulls. The altcoin’s price could slide to support at $1,000 in the near term. ETH-USD price chart Ethereum price could enter the three-digit territory FXStreet analysts believe Ethereum price could decline and plummet lower, entering the three-digit territory. For more information, watch this video:
This is how low Bitcoin price can go

This is how low Bitcoin price can go

FXStreet News FXStreet News 14.06.2022 16:37
Bitcoin price got slaughtered, with its most significant decline for 2022.BTC price saw bears pierce through critical support levels and breaking the backbone of any bullish resistance.Expect to see a further drop as the earliest support is sub $20,000.Bitcoin (BTC) price is in a tight spot, and subject to some ferocious moves in markets where every asset class has seen outflows of money. Unfortunately, risk assets like cryptocurrencies and stocks have sold off more than bonds and commodities, with only one victory in the forex market: the US dollar. Apart from some dip-buying, which is not likely to be a match for the current bearish pressures dominating markets, price action is likely to simply run further down as the predominant themes are unlikely to fade anytime soon.Bitcoin’s pain has only just begunBitcoin price fell on Monday after dollar strength continued from where it had left off on Friday. The squeeze could not have come at a worse moment as just when people were starting to forget about the Terra LUNA debacle, a new scandal hit the wires after a crypto broker had to report that a blocked order created a backlog and made it unable for traders to exchange cryptocurrencies for dollars. This sparked mayhem and panic in the asset class, with questions quickly raised about whether another LUNA scenario was unfolding or if a default was at hand. BTC price saw two strong fundamental drivers, therefore, pushing price action to the downside, and broke below $24,000. With the close below the monthly S1, the only possible trade now is a rejection after a retrace back into that S1, and then a drop back to the downside in search of support. The nearest support is $19,036.23, meaning the $20,000 barrier could give way. BTC/USD daily chartOn the other hand, in the event of a rebound and bulls jumping in at the current low levels, a close back above the monthly S1 and $24,000 could quickly open up more room to the upside. That would mean a return back to $28,695.13 and, with that, an erasing of the move from the past weekend. Should the FED and the BOE help soothe markets by changing their tone on inflation and proving they are doing an excellent job in taming it, expect to see a possible return to $30,000 by next week.
Fed June Preview: In the world we live in, a 50 bps hike is a dovish surprise

Fed June Preview: In the world we live in, a 50 bps hike is a dovish surprise

FXStreet News FXStreet News 14.06.2022 16:37
The FOMC is expected to go off-script and hike by 75 bps in June.Markets fully price in another 75 bps rate increase in July.Investors will keep a close eye on FOMC Chairman Jerome Powell's comments on recession risks. The Reuters estimate shows that the US Federal Reserve is expected to hike its policy rate by 50 basis points to the range of 1.25%-1.5% in June. According to the latest market developments, however, such a decision would be seen as a dovish surprise.Following the May inflation report, which revealed that the annual Consumer Price Index (CPI) climbed to a fresh multi-decade high of 8.6%, investors expect the US central bank to do what would be seen as unthinkable a few months ago - raising the policy rate by 75 bps. Goldman Sachs, TD Securities and Nomura are a few of the major financial institutions that announced on Tuesday that they revised their Fed forecasts to include 75 bps hikes in June and July. Reflecting the impact of rising hawkish bets on markets, the 2-year US Treasury bond yield rose nearly 10% on Monday and the benchmark 10-year US T-bond yield gained more than 6%. In turn, the US Dollar Index advanced to its highest level since December 2002 above 105.00. DXY daily chartDovish scenarioAt this point, the initial market reaction to a 50 bps rate hike should trigger a dollar sell-off. In case the Fed opts for a 75 bps hike in June but rules out such action for July, the greenback could find it difficult to preserve its bullish momentum.Another dovish scenario would be for the Fed to commit to two 75 bps rate hikes in the next two meetings and intend to take a break in September to assess the market conditions. FOMC Chairman Jerome Powell’s comments on the economic outlook will also be scrutinized by market participants. In case Powell acknowledges heightened risks of the US economy tipping into recession next year, investors could see that as a sign that the Fed might abandon its aggressive tightening stance.Hawkish scenarioIf the Fed hikes its policy rate by 75 bps in June and confirms another 75 bps hike in July, there could be a ‘buy the rumor sell the fact’ reaction initially. Nevertheless, such a decision should allow the dollar to continue to outperform its rivals in the medium term, especially the euro due to widening policy divergence with the European Central Bank (ECB). In case the policy statement reveals that policymakers discussed a 100 bps rate hike at this meeting or that they are willing to put that option on the table at the next meeting, it wouldn’t be surprising to see US yields and the DXY stretch higher.Finally, if the Fed pledges to raise rates by at least 50 bps from September to bring inflation under control, there would be no reason for markets to start betting against the dollar.
WTI dips but remains well supported near-$120 despite risk-off conditions, China lockdown worries

WTI dips but remains well supported near-$120 despite risk-off conditions, China lockdown worries

FXStreet News FXStreet News 13.06.2022 16:40
WTI is a little lower but still trading near $120, weighed slightly amid risk-off conditions and China lockdown worries. Weak US data, a surprisingly hawkish Fed and tough restrictions in China could combine to send WTI towards its 21DMA. Though still a little lower on the day, oil prices pared the bulk of earlier session losses on Monday, despite steep downside in global risk assets as investors fretted about last Friday’s hotter than expected US inflation and its implications for Fed monetary policymaking, as well as increasing signs that the US economy might be headed for recession. Front-month WTI futures were last trading a few cents in the red in the $120 per barrel area, having bounced from earlier session lows near $118. Traders cited China Covid-19 developments, after Beijing and Shanghai both moved to reimpose restrictions as Covid-19 infections rose once again, as weighing on the price action, as well as the market’s risk-off mode that has seen the US dollar strengthen. A strong buck means USD-denominated commodities are more expensive for international buyers. But the bounce from mid-session lows suggests that appetite to buy the dip remains strong, for now. Indeed, global oil markets are still very tight as demand in the northern hemisphere rises towards its summer peak and OPEC+ supply woes show no signs of abating, with Russian output still languishing in the face of strict Western sanctions and as smaller (mainly African) producers struggle amid a lack of investment and amid instability. Meanwhile, the prospect of a return by the US and Iran to compliance with the 2015 nuclear pact which could set the stage for well over 1 million barrels per day in Iranian exports to return to global markets appeared to have been dealt a death blow last week. Amid a spat with global nuclear watchdog the International Atomic Energy Agency (IAEA), Iran is set to remove nearly all equipment that had been used by the organisation to monitor its nuclear activities. But traders should be aware that amid the risk that 1) the China lockdown worsens, threatening oil demand in the country, 2) further US data this week points to a recession and 3) the Fed on Wednesday delivers a hawkish surprise as inflation continues to surprise to the upside, oil might be in for a rough time. A test of the 21-Day Moving Average in the mid-$115s seems a solid possibility.
Terra's LUNA 2.0 price reveals a triple top pattern that can trigger a brutal crash

Terra's LUNA 2.0 price reveals a triple top pattern that can trigger a brutal crash

FXStreet News FXStreet News 13.06.2022 16:40
Terra price jumped higher in the ASIA PAC session only to fully erase its gains.LUNA price is set to break below the weekend's lows and slip further.With no normalisation in sight, expect current headwinds to be too strong for LUNA price to fight against.Terra (LUNA) price is yet again in trouble as a triple top that formed this morning proved to be another failed attempt by bulls to save the altcoin. With a firm rejection in the ASIA PAC session this morning, bears seized the opportunity to go short and drive price action to the downside. Now a test looks set to take place at the low of June 09 and the $2-marker, seeing LUNA price shed another 30% of its value.LUNA price is no match for market woesTerra price sees bulls packing their bags after what looked to be a promising recovery turned out to be only an illusion. Just like the FYRE festival, a lot looked promising, but as reality kicks in, it is biting big time. Traders are cutting their positions and triggering a sell-off after the rejection in the early ASIA PAC session, which created a triple top and made LUNA price turn the other way.LUNA price is, with this turnaround, set to tank another 30% towards $2.00 and could even drop further if this sentiment continues throughout the week. The penny dropped amongst traders after they realised that one of the biggest central banks in global markets, the ECB, underimpressed massively in its communication to tame inflation. This created a chain reaction that ended in the US dollar rallying aggressively, and its impact rolling through markets and triggering sell-offs in bonds, stocks and cryptocurrencies, with LUNA price already down 20% and thus set to add another 30% of losses on top of that.LUNA/USD daily chartAlternatively, as this is a new trading week, Monday could merely see a continuation of the pressure from last week optimistically turning 180 degrees by this evening when the US session kicks in. A turnaround would see a jump towards $3.53, possibly breaking the triple top, and searching for $4.00 to squeeze bears out of their positions, and in total, constituting a massive 70% gain up for grabs.
Will Terra (LUNA) Price Drop!? Is It Somehow Caused By ECB (European Central Bank)? | FXStreet

Will Terra (LUNA) Price Drop!? Is It Somehow Caused By ECB (European Central Bank)? | FXStreet

FXStreet News FXStreet News 10.06.2022 16:51
Terra price drops massively as external pressures mount on its price action. LUNA price is set to dip towards $2.00 in a rapid correction. Expect a possible complete pairing back towards a few cents as the question remains what to do with stablecoins going forward. Terra (LUNA) price action is on the cusp of making a massive correction after the playing field changed on Thursday after the ECB massively dropped the ball. The repercussions of that central bank miscommunication have triggered a massive move in the dollar that will not only weigh on the LUNA/USD spot price, but will also turn on the screws for Terra to maintain its peg against the dollar. With several headlines on Thursday out of Congress with questions on a regulatory crackdown on stablecoins, the last days of this second version for LUNA look to be counting down. LUNA price last trading days are counting down Terra price could be in for a bit of pain as two significant external factors could cause a massive headwind, or rather even a massive hurricane, for that matter. On Thursday, the ECB dropped the ball by committing to the most minor rate hike in global markets, while other major central banks are committing to longer, more extensive and faster rate hikes to tame inflation. The most significant side effect of this mishap was that the euro tanked massively and, in turn, made the dollar more expensive across the board. LUNA price has not yet repriced its own intrinsic value against that stronger dollar, and then there is still the issue of its peg to the strong dollar, which will force the hand for Terra to buy more assets to support that peg, and which may prove difficult with stocks on the back foot losing value. As more headlines appear regarding regulatory crackdown, LUNA price looks set to cave in on the pressure and is set to fall back to $2.00, a 35% decline. If the dollar strengthens further and makes new lows, expect to see a further drop towards possibly just a few cents as investors turn their back on the stablecoin for good. LUNA/USD 4H-chart A jump to the upside, towards $3.80 or $4.00, on the other hand, could come about if, later this afternoon, the US inflation numbers are a surprise to the downside. That would mean that the FED is excellently taming inflation, and less severe action is needed. That would, in turn, trigger a jump in equities, creating a double supporting tailwind for LUNA price with both the risk-on from equities and the weaker dollar as driving forces. A rally all the way up to $6.00 could be possible, but then markets would need to pump price action up.
US CPI reverses to new four-decade high in May threatening GDP

US CPI reverses to new four-decade high in May threatening GDP

FXStreet News FXStreet News 10.06.2022 16:51
CPI jumps to 8.6% for the year, core CPI to 6.0%, both beating forecasts.Oil, gasoline and food costs add to consumer pain, real wages cut 3%.Equites plunge, Treasury yields and the US dollar rise.A consumer recession crept a bit closer in May as US inflation accelerated to its fastest pace in more than 40 years and real wages declined for the 15th consecutive month. The Consumer Price Index (CPI) reversed its April decline, climbing to 8.6% for the year in May, outstripping the forecast that it would be unchanged from April’s 8.3%. Core inflation, which excludes food and energy prices, rose 6.0%, beating its 5.9% projection, though below April’s 6.2% pace. The monthly gains of 1.0% for overall CPI and 0.6% for core were also higher than their respective 0.7% and 0.5% estimates. CPIFXStreetConsumer purchasing power took another hit in May as real wages, which correct for inflation, dropped 0.6% and are 3.0% lower for the year. Basic expenses for American households, food, shelter and transportation were notably higher. Prices for all forms of energy rose 3.9% in May and are up a remarkable 34.6% for the year. The national average for a gallon of regular gasoline jumped 10.6% from the first week of the month to the last.Shelter costs, which include home and rental prices, climbed 0.6% in May, the largest one month gain in 18 years. Last month's 5.5% annual increase in shelter expenses was the most since February 1991. In probably what is most difficult and most evident to the consumer, food costs jumped 1.2% in May and are 10.1% higher over the last year. The relentless increase in prices and the concomitant contraction of purchasing power, directly threaten the consumer base of the US economy. Sooner or later, and logically sooner is fast approaching, American households will be forced to pull back on discretionary spending as food, energy and shelter costs drain family budgets. With the economy expanding at just 0.9% in the second quarter, according to the Atlanta Fed’s latest estimate, a small drop in consumption could drive GDP into contraction, ensuring a recession in the first half of the year.Markets responded in expected fashion with the Dow shedding almost 600 points in early New York trading, the S&P 500 tumbling 1.94% and the NASDAQ falling 2.32%. Treasury yields continued their two-week ascent. The 10-year note added 6.9% basis points to 3.111%, just below its March 4 top at 3.13% and the 2-year climbed 12.8 points to 2.945%.The dollar was higher in all major pairs, with the USD/JPY holding steady above 134.00 and the EUR/USD falling back below 1.0600.
Renowned technical analyst affirms Bitcoin price is about to rally

Renowned technical analyst affirms Bitcoin price is about to rally

FXStreet News FXStreet News 09.06.2022 16:41
Benjamin Cowen has predicted a Bitcoin price rally, the analyst argues that the asset could rebound to the $40,000 level. Cowen believes the 200-day simple moving average is an effective indicator for predicting a Bitcoin price rally.Analysts evaluated the possibility of Bitcoin price rebounding from the 200-day moving average. Bitcoin price could rebound from its recent slump and make a comeback assuming it does not get rejected at a key level, Benjamin Cowen, a leading analyst with a bullish outlook on Bitcoin price, has said. Bitcoin price could climb to 200-day moving average levelBenjamin Cowen, CEO of Into The Cryptoverse and a leading cryptocurrency analyst recently told his 748,000 YouTube subscribers that Bitcoin price could recover from its recent drop. The analyst has identified the 200-day simple moving average (SMA) as an effective indicator of Bitcoin’s price trend. Cowen argues that when Bitcoin price breaks below its 200-day moving average it doesn’t necessarily mean it will enter a protracted bear trend. Normally there is a relief rally back up to the 200 SMA which it then breaks above and carries on climbing. It is only on those occasions when it retests the SMA and gets rejected that it continues falling. Bitcoin price continues to hold bullish potential, therefore, according to Cowen who expects Bitcoin’s price to return to the level of the SMA at $41,700. He also sees $40,000 as a significant level and critical milestone for Bitcoin. By mid-June 2022, the analyst expects Bitcoin price to make a comeback to the $40,000 level. Soon after it should reach the 200-day moving average which is at about $41,700, but it is falling swiftly. BTC-USD price chartTwo key Bitcoin price levels, 50-week and 200-week moving averagesRekt Capital, a pseudonymous cryptocurrency analyst has identified two key levels for Bitcoin price. The analyst has identified a curious relationship between the 50-week EMA (blue) and 200-week MA (orange). BTC-USD price chartRekt argues that after the BTC price has broken below its 50 WEMA and then retested the EMA but failed to break above it again, it usually marks the beginning of a sell-off down to the 200 WEMA. At that level, however, it eventually finds a floor and begins a new bull run. Historically, this has happened on three previous occasions and this year could be the fourth instance of that phenomenon. In 2015, Bitcoin price was rejected from the 50-week EMA and rebounded from the 200-week moving average. The first attempt to rebound was a solid one, however a macro price reversal followed. The second instance was in 2018-19 when Bitcoin price witnessed a lengthy consolidation period after getting rejected from the 50-week EMA. Bitcoin rebounded and retested the 200-week moving average before starting a new bull run. Similar to previous years, in 2020 Bitcoin price tested the 50-week exponential moving average before lifting off into a bull run. Much like previous years, in 2022 Bitcoin price consolidated below the 50 WEMA and then crashed towards the 200-week moving average. Based on the repetitive or cyclical nature of the Bitcoin price trend, the same pattern could repeat itself and the analyst argues the asset could begin a bull run soon. FXStreet analysts have identified an upcoming price rally in Tron and predicted an explosive breakout in the altcoin.
Alibaba Stock Forecast: BABA confirms rally is on with 14.7% spike

Alibaba Stock Forecast: BABA confirms rally is on with 14.7% spike

FXStreet News FXStreet News 09.06.2022 16:41
BABA shares exploded 14.7% on Wednesday to close at $119.62.Chinese regulators approved the newest video game titles since July 2021.Most Chinese tech ADRs rallied on the news, viewing it as a sign of reduced scrutiny.Alibaba (BABA) stock had its biggest day on Wednesday since March 16. News that Chinese regulators had green-lighted 60 new online games all at once sent the entire Chinese tech sector off to the races. Having been beaten down for the better part of 18 months, BABA shares played catch-up. BABA closed at $119.62 after trading as high as $121.06 in the session. BABA stock has lost 1.7% in Thursday's premarket to trade at $117.63 on news that China's top regulator is refuting reporting from both Reuters and Bloomberg that authorities have been mulling a revival of Ant Group's IPO. Alibaba owns a major stake in Ant Group.Pardon me while I brush my shoulders off. Just Tuesday, when Alibaba stock was trading near $104, I wrote: "Above here is further resistance at $119.60. Both levels will supply likely take profit points for bullish traders." As the King James Bible says, "And it came to pass."Alibaba Stock News: Apparently video game approval is a big dealWhat launched Alibaba stock into the stratosphere was a government regulatory change that barely affects its business. China's National Press & Publication Administration approved 60 online games on Tuesday night, the largest approval of games in nearly a year. The last major approval came in July 2021.The Chinese tech sector, however, took the announcement as more evidence that Beijing's tech crackdown that began in November 2020 is now ending. Just earlier this week the government ended its data security investigation of Didi Global (DIDI) and two other companies.Since beginning with the shelving of Ant Group's IPO at the end of 2020, billions of dollars in market cap value have been wiped out of the Chinese tech sector. The Ant Group issue began due to regulators' unhappiness with Alibaba founder Jack Ma's critical comments but quickly morphed into a sector-wide review of monopolistic practices and consumer data collection practices.In April, Chinese authorities announced a change of stance and said they were even willing to provide support to the homegrown tech industry including economic stimulus measures. These attitudes have changed as covid lockdowns in China dealt a severe broadside to industrial output. Now that lockdowns have ceased, China reported a 16.9% growth in exports YoY in May. The government appears set on fighting forecasts of a coming global recession, and China's central bank recently reduced interest rates in stark contrast to nearly all developed economies.Alibaba Stock Forecast: Consolidation to be followed by run at $128Now that BABA stock has resoundingly broken out of the three-month, iron grip of a symmetrical wedge structure, expect further upside. At the moment, BABA has already dashed through resistance at $110 and greeted resistance at $119.60. The most likely outcome is consolidation between $110 and $119.60 before bulls make another move higher. This is especially likely since Chinese ADRs are now being talked about more commonly by institutional investors who have already crowded into oil stocks and are looking for alpha elsewhere.$110 will likely now provide support for the time being. Bulls will attempt a try later this month at the resistance zone that surrounds $128. This area was hard to penetrate in late March and early April. Above there, the year-to-date high on January 12 of $138.63 serves as the final boss before Alibaba can resolutely put the last 18 months of poor sentiment behind it.BABA daily chart
All ECB Members Agreed That It Was Important To Keep Raising The Rate

1 EUR To USD: Even A Teaser Of (ECB) European Central Bank's Tightening May Help EUR/USD | FXStreet

FXStreet News FXStreet News 08.06.2022 16:31
The ECB is likely to keep key rates unchanged while hinting at a July lift-off. Details on the pace of the rate increases will rock the euro. The ECB is set to confirm an end of its QE program in Q3, economic projections closely eyed. The European Central Bank’s (ECB) June 9 monetary policy decision is likely to be a highly significant one, as the central bank is seen signaling its first-rate hike in over a decade. Increasing signs of inflation broadening out in the old continent have compelled the ECB to prepare for a lift-off sooner than previously expected. ECB rate hike forecasts hold the key The ECB is unanimously expected to hold its benchmark deposit rate at -0.50% when it meets this Thursday to decide on its monetary policy. Although the central bank could announce an end of its regular asset purchase programme (APP) on July 1. Despite being the laggards of the central banks to embark on the tightening cycle, ECB President Christine Lagarde has well telegraphed the upcoming rate hike track. A clear signal for a July lift-off will be on the table, which will likely move the current deposit rate for the first time since 2014. It will be the first increase in the rates since 2011. The specifics on the pace of the central bank’s tightening path, combined with the central bank’s growth and inflation forecasts will be closely examined. Last week's Eurozone inflation print hit a new all-time high at 8.1% YoY in May and core CPI accelerated 3.8% on an annualized basis. As inflationary pressures broaden, markets will be more inclined to know if Lagarde and Company debated a 50 basis points (bps) rate hike for July or a smaller 25 bps hike, leaving room for rapid or double-dose rate hikes in the coming months. Heading into the ECB decision, money markets are pricing in over 130 bps hikes by year-end, with a 50 bps move at a single meeting fully priced in by October. Meanwhile, the central bank’s economic projections will be watched out for, given that a July rate hike is already baked in. Amidst looming recession risks, in the face of higher energy costs and supply chain crisis, a downgrade to the euro area growth estimates will not go down well with the EUR market should the ECB up its inflation forecasts. Trading EUR/USD with the ECB Risks remain skewed to the downside for EUR/USD in the run-up to the ECB showdown, as the main currency pair has confirmed a rising wedge breakdown on the daily chart on Wednesday. EUR/USD: Daily chart Meanwhile, the US dollar keeps the upper hand amid the renewed upside in the Treasury yields ahead of Friday’s inflation data. Against this backdrop, EUR/USD could fall towards 1.0600 on the ‘sell the fact, buy the rumor’ trading should the ECB confirm the much-priced July rate hike. Any hints on a probable double-dose lift-off could briefly power EUR bulls, which could be offset by any cautious remarks from the ECB Chief or by the growth forecast downgrade. The upside in the major is likely to remain capped at around 1.0750. In case of a major hawkish surprise, hinting at aggressive ECB tightening, the previous week’s high near 1.0800 could be tested.
We May Say (XAUUSD) Gold Price Is Its Best, But Fed, ECB And US CPI May Hold It Back | FXStreet

We May Say (XAUUSD) Gold Price Is Its Best, But Fed, ECB And US CPI May Hold It Back | FXStreet

FXStreet News FXStreet News 08.06.2022 16:31
Gold Price reversed an intraday dip to the $1,845 area amid the prevalent cautious mood. Expectations for more aggressive central banks and a stronger USD should cap the upside. The market focus remains glued to the ECB meeting on Thursday and the US CPI on Friday. Gold Price struggled to capitalize on the previous day's goodish bounce from the $1,837 area - levels just below the very important 200-day SMA - and edged lower on Wednesday. The early downtick, however, was bought into near the $1,845 region amid the prevalent cautious mood, which tends to benefit the traditional safe-haven precious metal. The XAUUSD was last seen trading just above the $1,850 level, nearly unchanged for the day heading into the North American session. Gold Price benefits from worsening global economic outlook The market sentiment remains fragile amid concerns that a more aggressive move by major central banks to constrain inflation could pose challenges to global economic growth. Adding to this, the World Bank slashed its 2022 global growth forecast on Tuesday to 2.9% and tempered investors' appetite for perceived riskier assets. This was evident from a generally weaker tone around the equity markets, which could drive some haven flow towards the XAUUSD. Despite the supporting factors, any meaningful upside still seems elusive, warranting caution before placing aggressive bullish bets.   Rate hike bets, stronger US dollar to cap Gold Price Investors remain concerned that the global supply chain disruption caused by the Russia-Ukraine war could push consumer prices even higher. This might force the Federal Reserve to tighten its monetary policy at a faster pace, which, in turn, could trigger a fresh leg up in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond has shot back above the 3.0% threshold and helped revive the USD demand. The European Central Bank (ECB) is also expected to join its global peers and hike interest rates to tamp down inflation. This might further contribute to capping the non-yielding yellow metal ahead of the key ECB monetary policy meeting on Thursday and the US consumer inflation figures on Friday. Previewing the upcoming US Consumer Price Index (CPI) data, "there are signs of easing price pressures," FXStreet Analyst Yohay Elam said. "Most importantly, wages advanced by only 0.3% in both April and May, a total of 0.6%, while expectations imply an accumulated gain of 1.1% in Core CPI. Such a mismatch cannot be ruled out, but seems unlikely." In case inflation figures come in softer than expected, investors could see that as a development that could allow the Fed to pause rate hikes in September. In that scenario, US T-bond yields could retreat and help gold gain traction. Gold Price technical outlook Gold Price, so far, has managed to defend a technically significant 200-day SMA support, which is currently pegged near the $1,842-$1,841 region. This area should now act as a pivotal point, which if broken decisively could drag the XAUUSD towards the $1,830 intermediate support en-route to the $1,810-$1,808 area and the $1,800 round-figure mark. On the flip side, momentum beyond the $1,857-$1,857 region is likely to confront resistance near the $1,870 supply zone. Sustained strength beyond would negate any near-term bearish bias and lift the XAUUSD to the next relevant hurdle near the $1,885-$1,886 area. The momentum could further get extended and allow bulls to aim back to reclaim the $1,900 mark for the first time since early May.
Three reasons why investors remain bullish on Shiba Inu price

Three reasons why investors remain bullish on Shiba Inu price

FXStreet News FXStreet News 07.06.2022 16:37
Ethereum whale addresses hold over $500 million in Shiba Inu, and continue to hold the Dogecoin-killer despite the recent price slump. 228.1 million Shiba Inu tokens have been burned overnight, pushing the burn rate over 100% higher. Analysts identify descending triangle patterns in Shiba Inu coin, believe a trend reversal is possible in a potential upper border breakout.Shiba Inu has become one of the most widely held cryptocurrencies in the portfolios of large Ethereum whales. Analysts continue to remain bullish on the meme coin despite the recent slump in Shiba Inu price. Bitstamp, Europe’s largest crypto exchange listed Shiba Inu Bitstamp, a Luxembourg-based cryptocurrency exchange, considered the largest in Europe, recently announced the listing of Shiba Inu coin. Bitstamp users can now trad the Dogecoin-killer coin against USD and the euro on the exchange platform. The exchange proposed listing Shiba Inu in December 2021, however, following technical issues, it was postponed. Bitstamp believes in Shiba Inu’s success story and has offered the meme coin on its interface, transfers started on June 6 and order books are available in limit-only mode starting today, June 7. Limit orders in Shiba Inu are being matched the same day. The exchange plans to offer full trading in Shiba Inu as soon as there is a sufficient level of liquidity in the meme token. The listing is a key milestone for Shiba Inu, as Bitstamp is popular in the crypto community as an exchange with a conservative listing policy and strict regulatory compliance. Shiba Inu coin listing details on BitstampLeash lock rewards update for Shiba Inu coinWith the latest Bitstamp listing, ShibArmy, the community of Shiba Inu coin holders, has more than one reason to be bullish. The team behind Shiba Inu provided the community a quick update on the reward distribution for using the LEASH LOCKER feature in SHIB’s metaverse platform Shib.io. Despite the recent disappearance of Ryoshi, the founder of Shiba Inu, the project continues to publish updates for SHIB holders. Shytoshi Kusama, the lead project manager, has taken charge of the development team and Shiba Inu projects like ShibaSwap, the native decentralized exchange. Shibarmy members who locked LEASH for a small time frame can now unlock their assets and claim rewards. The recent update explains that rewards holders will receive 3% of the funds from Land Event Sales in the metaverse, in exchange for their locked LEASH tokens. Depending on the total LEASH and time locked, distribution will be proportional and rewards will be offered in BONE. While the developers behind Shiba Inu expected to sell all land in the metaverse before distributing rewards, they acknowledged that there are plots currently available for purchase. To cut the wait for rewards short, the team has constructed a new contract to pursue the distribution of 3% BONE to participants who locked their LEASH during the first early access events. The updated contract offers BONE rewards without waiting for the metaverse Shib.io land plots to sell out. Once locking rewards come to an end for all users, they will be made available after a 90-day waiting period. This has been implemented to be fair to all investors who locked their LEASH, the Doge-killer token. The team informed that this is a one-time reward distribution mechanism and will take into account sales up to July 2. To be considered for receiving rewards, a holder needs to have locked LEASH, bid at least once on a land plot or minted land(s) per wallet. 228.1 million Shiba Inu coins burned overnightThe Shiba Inu burn rate increased by 113% overnight as 228.10 million SHIB were burned. Based on data from the Shibburn portal, 410.36 trillion Shiba Inu coins have been destroyed till date.Multiple projects that support Shiba Inu came forward to destroy a total of 1.1 billion SHIB, sending it to dead wallets where the meme coin is locked permanently. This occurred in a total of 97 transactions over the weekend. Burn implementation has turned ShibArmy bullish as the quantity of the token in circulation reduces drastically. In addition to the recent Bitstamp listing and Leash rewards update, this has acted as a key catalyst for Shiba Inu coin price. Ethereum whales continue Shiba Inu accumulationBased on data from blockchain explorers, the 100 largest Ethereum whale addresses have continued their accumulation of Shiba Inu coin. The 100 largest wallet addresses on the Ethereum blockchain hold a combined $500 million in Shiba Inu and refrained from shedding their holdings through the recent price slump. The Terra LUNA crash wiped out billions in market value from the crypto ecosystem and resulted in a bloodbath that hit meme coins like Dogecoi and Shiba Inu. Drop in Shiba Inu price failed to deter the whales from adding this meme coin to their portfolio and maintaining SHIB as one of the largest non-Ethereum holdings in their wallet. Shiba Inu price could witness trend reversal soonCryptocurrency analyst Arman Shriniyan believes Shiba Inu price could see a trend reversal soon. The analyst observed a descending triangle formation in the Shiba Inu coin chart. This is considered a bearish sign, however, Shiba Inu price could witness a trend reversal if price breaks through the upper border of the pattern. The analyst has predicted a breakout in Shiba Inu price within the next 10-12 days. SHIB-USDT price chartFXStreet analysts believe Shiba Inu price could validate the bearish outlook if the meme coin plummets 26%. A downswing could confirm a bearish trend in Shiba Inu price. For more information watch this video:
Alibaba Stock Forecast: BABA closes in on $100 psychological level

Alibaba Stock Forecast: BABA closes in on $100 psychological level

FXStreet News FXStreet News 07.06.2022 16:37
Alibaba benefits from renewed confidence in China stocks.BABA stock rose 6.2% on Monday but lost $100 footing.Chinese regulators have closed their investigation into Didi Global.Alibaba (BABA) stock had many admirers on Monday to start the week. Shares of China's largest e-commerce provider charged ahead by 6.2% after news emerged during the Hong Kong session that Chinese regulators were ending their high-profile investigation of Didi Global.Though Alibaba's planned IPO of former subsidiary Ant Global is what initially launched the great Chinese ADR sell-off in late 2020, Didi Global became the poster child of a tempestuous Chinese regulatory hierarchy after state officers began a combative probe into Didi's data collection practices just days after the company listed for the first time in the US. Didi quickly descended from its $14 IPO price to trade below $2 when it announced in May that it would comply with state direction and delist its US shares.Didi, along with two other Chinese companies listed in the US, is expected to face a major fine and must hand the state 1% ownership. The end of the investigation, however, seemingly also brings to an end the 18-month tech crackdown that has cost Chinese investors at least $1 trillion in share value. Though BABA shares traded as high as $102.42 on Monday, they could not maintain their perch atop the ever-important $100 psychological level and instead closed at $99.01. In Tuesday's premarket, BABA stock is once again advancing – at the time of writing it is up 1.4% at $100.37. $100 has acted as both resistance and support in the past six months, and yesterday was no different. Alibaba Stock Forecast: First target is $110BABA stock price has been trading within a symmetrical wedge structure (blue) since March 15. Before that the top line of the formation began back on November 18, 2021, and until February 24 strong support was found at $110. Alibaba stock attempted to break through the $100 barrier in late April and early May but gave up after four sessions. Now the top line of the wedge sits at $101. This will make the area even more difficult to power through. If BABA shares can close above the April 29 high of $103.51, then this will signal a new bear rally. The first bull target is $110, as mentioned previously. This level acted as first support, and then resistance, from December 2021 through this April consistently.Above here is further resistance at $119.60. Both levels will supply likely take profit points for bullish traders. Support should sit somewhere between $83 and $84 on the ascending bottom line of the wedge.BABA daily chart
Tech Stocks: (AMZN) Amazon Stock Price: How 20-1 Split Is Going To Change This Price? | FXStreet

Tech Stocks: (AMZN) Amazon Stock Price: How 20-1 Split Is Going To Change This Price? | FXStreet

FXStreet News FXStreet News 06.06.2022 16:01
On Monday Amazon will give investors 20 shares for every one they owned on Friday, June 3. The new split-adjusted shares are trading at $123.33 in Monday's premarket. Typically, share splits cause a rally in price action.   Amazon (AMZN) is set to trade in the low $120s for the first time since 2010. That is because the king of ecommerce, starting Monday, June 6, will begin trading at its new price based on a 20-for-1 share split. After closing up at $2,447 on Friday, AMZN stock is already exchanging hands at $123.33, which is about 0.8% higher than Friday's split-adjusted closing price of $122.35. Data from Bank of America states that on average S&P 500 companies that have share splits gain 25% over the following 12 months as their share prices become more attractive to retail buyers scared about high share prices. Amazon Stock News: Anti-trust bill worries big tech Besides the impending stock split, an impending bill being discussed in US congress has most of big tech up in arms. The American Innovation & Choice Online Act (AICOA) would stop big tech from "self-preferencing." This means that Amazon could not use its dominance in ecommerce, persay, to push third-party sellers to use Amazon Web Services for their separate web hosting needs. Google could not use its search engine to favour its own Gmail service ahead of other email providers. Amazon and Google parent Alphabet are the two biggest opponents to the bill, but observers say it also specifically targets business strategies used by Apple (AAPL) and Facebook parent Meta Platforms (FB). The bill was spearheaded by Senator Amy Klobuchar (D-Minnseota) and House Representative David Cicilline (D-RI) but is said to have ample Republican support as well. A story in The Financial Times on Monday claims that Congressional offices are being bombarded by lobbyists for Silicon Valley's largest corporations. Yelp is an outlier and believes AICOA would make the tech landscape more competitive for smaller entrants. FT quoted Yelp's Senior Vice-President of Public Policy Luther Lowe as saying, “The internet giants are in Yolo [you only live once] mode — they are desperate and are doing whatever they can to change the trajectory." Zoe Lofgren (D-CA) has come out against the bill as well, saying it targets certain big tech platforms implicitly, which is against prior precedent. Amazon Stock Forecast: Daily and weekly charts in disagreement Amazon's daily chart is showing optimistic signs for short-term gains. The 9-day moving average has overtaken the 21-day moving average on Friday. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has been turning higher with the MACD line crossing above the signal line. If these two lines reach the zero bound, then it becomes an even better signal of continued advancing price. $126 is the target for bulls at the moment, but $146 will come into view if retail investors decide to get in on the excitement. The new support lines come from a consolidation area between April and June of 2020, as seen on the weekly chart below. Current price action near $122.50 is at the top of the consolidation zone, and Amazon stock might have support there. The bottom of the zone, at $112.95, should provide support as well. Falling support could also lead price action to drop to $101.95 in the event that inflation grows worse or prophecies of a recession are made real over the next several months. Notice how the MACD on the weekly chart remains bearish, unlike the daily.
Memecoins: Holding DOGE? How Can It Affect Dogecoin Price (DOGE/USD) | FXStreet

Memecoins: Holding DOGE? How Can It Affect Dogecoin Price (DOGE/USD) | FXStreet

FXStreet News FXStreet News 06.06.2022 16:00
Dogecoin price is struggling to break out but shows a decent probability of a bullish move. Investors should expect a volatile 18% move as on-chain metrics also suggest the same. A four-hour candlestick close below $0.076 will invalidate the bullish thesis. Dogecoin price continues to coil up, hinting that a volatile move is on its way soon. Adding evidence from on-chain metrics leans the scales favoring bulls. Dogecoin price and bullish narratives Dogecoin price shows a descending triangle formation by connecting the four lower highs and three equal lows formed since May 12 using trend lines. This technical formation forecasts an 18% move obtained by adding the distance between the first swing high and the swing low to the breakout point. While a descending triangle has a bearish bias, the recent recovery actually suggests a potential for bullish recovery. Adding credence to this outlook is that price has flipped the $0.082 resistance barrier into a support floor. Investors need to wait for a decisive four-hour candlestick close above $0.087 to confirm a bullish breakout. Once this development occurs, the theoretical target lies at $0.100, obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.087. Despite a bullish breakout, DOGE needs to overcome the $0.093 hurdle to reach its theoretical target. In some cases, this move could extend to $0.101. Supporting this bullish outlook for Dogecoin price is the increase in the number of addresses holding DOGE for more than a year. The count of these market participants has increased from 1.74 million on May 8 to 2.49M as of June 5. This 43% spike in long-term investors indicates that these buyers are confident in the bullish performance of the Dogecoin price. Regardless of the bullish technicals and on-chain metrics, a correction or sell-off in Bitcoin price could stop or hinder bulls’ plans dead in their tracks. Investors need to be cautious about a sudden reversal in Dogecoin price that produces a four-hour candlestick close below $0.076. Such a move would constitute a bearish breakout from the descending triangle and invalidate the bullish thesis. In such a case, the theoretical forecasts reveal an 18% crash to the $0.062 support floor.  
(PLTR) Palantir Stock Price: On Thursday It Lost Almost 10%! As Q1 Earnings Disappointed, PLTR Fell Ca. 17% In May | FXStreet

(PLTR) Palantir Stock Price: On Thursday It Lost Almost 10%! As Q1 Earnings Disappointed, PLTR Fell Ca. 17% In May | FXStreet

FXStreet News FXStreet News 03.06.2022 16:33
PLTR stock ended Thursday up 9.9% at $9.30. Palantir stock fell almost 17% in May due to dismal Q1 results. A recent contract with US Space Systems Command adds $54 million in revenue. Palantir (PLTR) stock experienced a welcome reprieve from May's glum share price descent on Thursday with the big data company's share price closing up 9.9% at $9.30. The rally appeared on account of Palantir securing a follow-on contract with the US Space Systems Command (SSC) worth $53.9 million. Shares have retreated 1.3% in Friday's premarket to $9.18. Palantir Stock News: US government contracts just keep on coming Investors on Thursday decided to put May's disgraceful 16.5% slide behind them as Palantir announced a nine-month continuation contract with the SSC's Battle Management Command, Control and Communications division (BMC3) agreeing to continue last year's $121.5 million contract through March 2023. The nine-month contract for nearly $54 million demonstrates how much big US government agencies are interested in continuing their expensive contractual relationships with Palantir. This constant barrage of government contracts is placing Palantir in league with the largest US defense contractors. Palantir said the contract extension "ensures the continuous delivery of Palantir’s data and decisions platform to support national security objectives." The company provides institutions with a wide variety of data systems in specialized and personalized software as a service (SaaS) platform. The current contract will aid "mission areas within the Air Force, Space Force, and NORAD-NORTHCOM to integrate, clean, share, and leverage data to help make decisions on personnel management, strategic and operational planning, cross-space situational awareness, and collaboration across combatant commands", according to a statement from management. Palantir stock market spike was helped by a continuation of the current bear market rally that saw all three major indices move substantially higher. Palantir Stock Forecast: $10 is the price to beat Palantir stock bulls must be quite excited with the near 10% move on Thursday, but resistance at $10 looms ever closer. PLTR stock has been in a parallel descending price channel since October of 2021. Breaking through $10 on the daily chart below would upend that seven-month tyranny and give bulls a shot at an extended rally. Breaking through the target would give longs a shot at the $14.85 high from April 5. A sign that this may be in the cards is that the 9-day moving average just caught up with the 21-day moving average on Thursday. Where the two moving averages crossed – $8.36 – might now provide some support. If not, then PLTR could sell off to the May 12 low at $6.45 in the event of a broad market downturn. With Jamie Dimon and some other influential bankers and CEOs predicting a bad turn in the second half of the year, this remains a real possibility. PLTR stock still deserves a buy, however, for the moment if it breaks the $10 resistance level. PLTR daily chart
LUNA 2.0 price recovers as Do Kwon may not go to prison

LUNA 2.0 price recovers as Do Kwon may not go to prison

FXStreet News FXStreet News 03.06.2022 16:33
LUNA 2.0 price has made a comeback from its recent slump and started a recovery overnight. Do Kwon could face civil penalties, fines from regulators and lawsuits, instead of prison time. Analysts identify rising channel formation in LUNA 2.0 price chart, predict a continuation of Terra’s uptrend. LUNA 2.0 price started its recovery after the bloodbath as Korean authorities revealed prison time may be unlikely for Do Kwon. The Terraform Labs CEO could instead be hit by fines and penalties from regulators and lawsuits from investors, on account of the colossal UST and LUNC (previously LUNA) crash. LUNA 2.0 price initiates recovery LUNA 2.0 price has bounced back, posting over 3% gains overnight. Since its debut on May 28, LUNA price witnessed wild swings across exchange platforms Kraken, OKX and Binance. Despite the volatility in LUNA 2.0 price, the new Terra token has started its recovery. The volatility in Terra’s new token and the lack of liquidity were the two key factors driving LUNA price lower. However, LUNA 2.0 is on track to recover. @FatManTerra, a whistleblower from the Terra community forum recently told his 62,600 followers,Feel free to make money on LUNA 2 - I have a bunch of LUNA 2 - I'm not stopping you - all I'm doing is posting information about the Terra project that I believe the public (and investigators) deserve to know.The whistleblower holds the new Terra token and believes in LUNA 2.0, while raising questions and concerns on the colossal crash of TerraUSD (UST) and LUNC (previously LUNA). Do Kwon may not face jail time, hit by penaltiesThe Terra community demanded prison time for Do Kwon, after UST’s de-peg and the crash of sister tokens LUNA and TerraUSD. Discord and Reddit forums were filled with outrage from LUNC and UST holders asking for justice and jail time for Do Kwon. South Korean authorities have continued their investigation into Do Kwon’s activities. The 30-year-old South Korean was the founder of the algorithmic stablecoin project that imploded and wiped out nearly $40 billion in market value. In the United States, Federal prosecutors and ex-senior counsel for the Securities & Exchange Commission told CNBC that it may be challenging to press criminal charges on Do Kwon. Proving intent to defraud is a challenge, however, Do Kwon is likely to face civil penalties, fines from regulators and authorities and lawsuits from investors. The collapse of UST was Kwon’s second failed attempt at launching an algorithmic stablecoin, his first attempt resulted in losses in the range of tens of millions of dollars, in Basis Cash. Do Kwon could be hit by penalties like injunctions, disgorgement (returning gains), or fines based on the amount of the loss. This could imply Kwon pays fines in tens of billions of dollars that were wiped out in the de-peg and the market crash that followed. Kwon has a complicated history with the US SEC as the Terraform Labs CEO has dodged a few subpoenas and filed a motion opposing the regulatory body.Binance, Kraken, FTX supported LUNA 2.0, Terra revival planWhile experts argue that success of LUNA 2.0 means there is a chance for institutional and retail investors to recoup their losses, there was no backstop from the Federal Deposit Insurance Corporation (FDIC). The only chance at redemption for holders of LUNC and UST is LUNA 2.0 airdrop. Lightspeed Venture Partners, Coinbase Ventures, Three Arrows Capital and Jump Crypto, the major backers of Terraform Labs, bought into LUNA 2.0. Changpeng Zhao (CZ), CEO of the world’s largest cryptocurrency exchange and Jesse Powell, CEO of Kraken have also put their weight behind LUNA 2.0. Jump Crypto finally completed the ongoing investigation in the UST de-peg and revealed insights of the crash. Retail investors were left holding massive bags of UST while large depositors and Terraform Labs withdrew liquidity from the UST/3CRV pool on May 7. Positions of Anchor Depositors from 5/6 to 5/9Quinten Francois, a crypto investor and advisor, turned to Twitter to ask his 78,500 followers if Terra has a chance of regaining trust and becoming a success after LUNA 2.0 crossed nearly $7 billion in fully diluted valuation. Nearly 69% respondents believe it is unlikely for Terra to regain trust in the crypto community with LUNA 2.0. LUNA 2.0 poll Analysts predict uptrend in LUNA 2.0 priceCryptocurrency analysts at PUMPMaps have evaluated the LUNA 2.0 price trend and noted that the token has broken the triangle up. LUNA 2.0 price is forming a rising channel. Terra price may correct from the upper border of the channel, it is likely to continue its uptrend.LUNA/USDT chartAkash Girimath, leading cryptocurrency analyst at FXStreet, believes it is a good bet to buy LUNA 2.0 token after its airdrop. For more information on LUNA 2.0 bullish potential watch this video:
What are Canary Network and Songbird Network? Songbird Crypto Token and more explained by ByBit

Altcoins: Terra's Luna 2.0 Price - Confusion Around LUNA's Successor May Affect Price Of This Crypto | FXStreet

FXStreet News FXStreet News 02.06.2022 16:53
LUNA 2.0 price plummets as skepticism increases, raises concerns of a crash similar to LUNA (now LUNA Classic) fiasco. The controversial Terra token not offered for trading across Korean exchanges, but some investors are still bullish on LUNA 2.0. LUNA 2.0 price posted 9% losses, analysts have a bearish outlook on the Terra token. Despite LUNA 2.0 price drop, some investors in the crypto community remain bullish on Terra’s new token. Other experts raised concerns about a potential colossal crash of LUNA 2.0, similar to what happened with the LUNA Classic and UST. LUNA 2.0 price nosedives, witnesses massive volatility LUNA 2.0 price dropped 9% overnight, and Terra’s new token continues to witness extreme volatility. There is growing skepticism over LUNA 2.0’s sustainability as investors expect a similar outcome as LUNA Classic (previously known as LUNA) and TerraUSD (UST) crash. The rising volatility in LUNA 2.0 has rekindled concerns among analysts and investors. Korean cryptocurrency exchanges have not offered any trading services supporting Terra’s new token, LUNA 2.0 in response to these concerns. A Seoul-based economist said, Financial authorities cannot protect investors in the cryptocurrency industry, as there are no regulations or laws to do so. It is more like gambling that comes with an inherent risk. LUNA 2.0 token can be traded on major overseas exchanges like Binance, OKX, Kraken, Bybit. Cryptocurrency exchanges support LUNA 2.0 listing Jesse Powell, CEO of Kraken, defended LUNA 2.0 listing citing client demand. Powell revealed that switching cost for users is low and people tend to want all cryptocurrencies on one platform for their capital efficiency, synergies and convenience. Powell believes withdrawing support for one cryptocurrency could cost the exchange an entire account. Powell further emphasized that listing a cryptocurrency does not mean the exchange endorses it. Binance CEO Changpeng Zhao (CZ) recently voiced skepticism around the relaunch of the Terra blockchain and LUNA 2.0. Nevertheless, Binance is actively supporting Terra’s airdrop and Do Kwon’s revival plan, and LUNA 2.0 is listed for trade on the exchange’s platform. South Korean authorities investigate Do Kwon and Terraform Labs Despite the launch of Terra’s LUNA 2.0, South Korean authorities have continued an investigation into Terraform Labs, and CEO Do Kwon. Authorities are investigating potential price manipulation across multiple cryptocurrency exchange platforms and the listing process of LUNA. Former Terra employees reveal Do Kwon was behind the failed stablecoin project Basis Cash. The algorithmic stablecoin was launched in 2020 and quickly flamed out, plummeting from $1 to $0.30 in January 2021. Despite LUNA 2.0 price volatility, experts are bullish @DarkCryptoLord, a leading cryptocurrency analyst and trader, believes LUNA 2.0 price offers a profit making opportunity. The analyst believes the setup is ideal for a quick trade. @MartiniGuyYT, crypto YouTuber and founder of Crypto Saving Expert, told his 133,000 subscribers that he bought a small bag of LUNA 2.0 token to “play the game” and the analyst is keen on making scalp trades with the ongoing price swings. Akash Girimath, crypto analyst at FXStreet, believes it is a good bet to buy LUNA 2.0 token after the airdrop. Despite the price volatility and wild swings, the analyst has identified a bullish setup in the LUNA 2.0 chart. For more information, watch this video:
What Kind Of Print Of NFP Would Be Better For Gold Price (XAU/USD)? | FXStreet

What Kind Of Print Of NFP Would Be Better For Gold Price (XAU/USD)? | FXStreet

FXStreet News FXStreet News 02.06.2022 16:53
Nonfarm Payrolls in US is forecast to increase by 325,000 in May. Gold is likely to react more significantly to a disappointing jobs report than an upbeat one. Gold's movement has no apparent connection with NFP deviation four hours after the release. Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAU/USD pair's reaction to the previous 22 NFP prints*. We present our findings as the US Bureau of Labor Statistics (BLS) gets ready to release the May jobs report on Friday, June 3. Expectations are for a 325,000 rise in Nonfarm Payrolls following the 428,000 increase in April. *We omitted the NFP data for March 2021, which was published on the first Friday of April, due to lack of volatility amid Easter Friday. Methodology We plotted gold price’s reaction to the NFP release at 15 minutes, one hour and four hours intervals after the release. Then we compared the gold price reaction to the deviation between the actual NFP release result and the expected result. We used the FXStreet Economic Calendar for data on deviation as it assigns a deviation point to each macroeconomic data release to show how big the divergence was between the actual print and the market consensus. For instance, the August (2021) NFP data missed the market expectation of 750,000 by a wide margin and the deviation was -1.49. On the other hand, February’s (2021) NFP print of 536,000 against the market expectation of 182,000 was a positive surprise with the deviation posting 1.76 for that particular release. A better-than-expected NFP print is seen as a USD-positive development and vice versa. Finally, we calculated the correlation coefficient (r) to figure out at which time frame gold had the strongest correlation with an NFP surprise. When r approaches -1, it suggests there is a significant negative correlation, while a significant positive correlation is identified when r moves toward 1. Since gold is defined as XAU/USD, an upbeat NFP reading should cause it to edge lower and point to a negative correlation. Results There were 12 negative and 10 positive NFP surprises in the previous 22 releases, excluding data for March 2021. On average, the deviation was -0.86 on disappointing prints and 0.6 on strong figures. 15 minutes after the release, gold moved up by $3.97 on average if the NFP reading fell short of market consensus. On the flip side, gold declined by $1.44 on average on positive surprises. This finding suggests that investors’ immediate reaction is likely to be more significant to a disappointing print. However, the correlation coefficients we calculated for the different time frames mentioned above don’t even come close to being significant. The strongest negative correlation is seen 15 minutes after the releases with the r standing at -0.48. One hour after the release, the correlation weakens with the r rising to -0.31 and there is virtually no correlation to speak of four hours after the release with the r approaching 0. Several factors could be coming into play to weaken gold’s correlation with NFP surprises. A few hours after the NFP release on Friday, investors could look to book their profits toward the London fix, causing gold to reverse its direction after the initial reaction. Additionally, FOMC policymakers made it clear that they will remain focused on taming inflation and that they are not concerned about the labour market, possibly causing the market reaction to the headline NFP to remain short-lived.
US ADP Employment Change May Preview: The labor market recedes from center stage

US ADP Employment Change May Preview: The labor market recedes from center stage

FXStreet News FXStreet News 01.06.2022 16:40
Job growth is predicted to be 300,000 up from 247,000 in April.Fourth quarter ADP average was 582,000, first was 530,000.NFP forecast for 320,000 in May, down from 428,000.Market sensitivity to the labor market has retreated.American job growth is expected to have continued its shift lower in the second quarter despite a record number of unfilled positions and even as market concerns have deserted employment for inflation. Private payrolls from Automatic Data Processing (ADP), the world’s largest paycheck service provider, are forecast to rise to 300,000 in May following 247,000 new hires in April. The ADP figure will be released on Thursday, one day later than usual due to Monday’s Memorial Day holiday in the US. Coming as it does right before Washington’s Employment Situation Report, commonly called Nonfarm Payrolls, or just payrolls for its central statistics, the ADP report has long been looked to for clues to the national job numbers even though the monthly directional correlation is relatively weak. In the last year, the ADP and NFP have moved in tandem seven times and in opposition five times. For May ADP is forecast to rise and NFP is expected to fall. Labor marketThe most salient fact of the US job market is the historic number of unfilled positions, a surplus of work, and scarcity of employees that has lasted for more than a year. The Job Openings and Labor Turnover Survey (JOLTS), from the Bureau of Labor Statistics (BLS), has been above the prior all-time record of 7.574 million in November 2018 for 13 months. Since October, US employers have been looking for an average of 11.245 million workers each month. For the last year, the economy has averaged 42% more openings than at any previous time in its history.JOLTSFXStreetThe difficulty in finding workers has been cited by purchasing managers as the main factor behind the decline in the employment indexes. The manufacturing index has fallen from 54.5 in January to 50.9 in April. While the services index has dropped from 57.0 in November to 49.5 in April, the second month of contraction in the last six. Lack of opportunity is not what ails the American economy. Inflation and the economic outlookThe explosion in US inflation has become the dominating condition of the US economy and the chief rationale of Federal Reserve policy. After ignoring the burgeoning price increases for nearly a year, the Fed reversed course and is expected to hike the fed funds rate 300 basis points or more this year. CPIFXStreetMarkets will not know if the US economy is in a technical recession until the end of July when second quarter GDP is reported. The data will come just after the Fed enacts its third 0.5% rate increase in a row on July 27. One reason for the sudden Fed alacrity is that a recession could halt its rate program. How will the governors justify rate increases in a contracting economy? It is not a question Fed Chair Jerome Powell has addressed. The key to US growth is consumer spending, the well-known 70% base of economic activity. Though Retail Sales and Personal Spending, the two chief measures of consumption, have remained relatively strong, they are uncorrected for price increases. Real personal spending, adjusted for inflation, from the Bureau of Labor Statistics (BLS) tells a very different story. It has been flat for the past four months. Consumers have maintained their spending even as purchasing power has been declining for more than a year, by drawing on their financial resources. The US saving rate fell to 4.4% in April, the lowest since 2008, according to a Commerce Department report on Tuesday.How long will American families mortgage their future to maintain their immediate spending is unknown. An assumption with rising probability is that after losing to inflation for more than a year, and with the cost of necessities increasing much faster than overall inflation, American families are nearing their breaking point. That decision to economize will not be forced by unemployment but by unchecked inflation. Market responseUnemployment in the US is 3.6%, just one-tenth of a point from its all-time record. The problem for employers and the economy is not the unemployment rate but the labor participation rate. People have not returned to the standard labor market in anything like the numbers needed to fill the vast number of outstanding jobs. The prospective slowdown in ADP and perhaps NFP in May will be seen by traders as a product of labor scarcity rather than a weakening economy. Market reaction will be limited or nonexistent to the ADP numbers, partially due to their poor correlation to NFP and partially to the diminution of labor concerns, supplanted by inflation.
What's Up (GGPI) Gores Guggenheim Stock? What Does GGPI Have To Do With Volvo And Polestar? | FXStreet

What's Up (GGPI) Gores Guggenheim Stock? What Does GGPI Have To Do With Volvo And Polestar? | FXStreet

FXStreet News FXStreet News 01.06.2022 16:40
GGPI stock is still flat around the $10 cash level. SPAC stocks hold $10 in cash to return in the event of a failed deal. GGPI is due to take EV maker Polestar public. SPAC stocks are not what they used to be, and certainly a prime example of that is Gores Guggenheim (GGPI). While it did receive some meme-like attention in the past, it never soared to the heights of other more notable SPACs such as Lucid (LCID) and Virgin Galactic (SPCE). Perhaps the lack of visibility in the US was a contributing factor, but regardless 2022 has not been kind to SPAC stocks. All have been tarred with the same negative outlook. Perhaps harsh on GGPI, but considering I am long, I do have some confirmation bias. GGPI stock news June 22 was recently announced as the date when GGPI holders will get to vote on approval of the merger deal to take Polestar public via SPAC. GGPI holders can vote in advance of June 22. As a brief overview, Polestar is an electric vehicle manufacturer owned by Volvo and Volvo's parent Geely. My investment thesis is based on the fact that Polestar will piggyback on Volvo's manufacturing and service networks. This will eliminate the need for large investments and capex. It will also mean a quick route to market for Polestar. Also one of the main reasons for my continued investment has been the backstop at $10. SPACs are required to hold cash to the tune of $10 per share to return to shareholders in the event the deal does not complete, so for now there is little downside. However, the EV sector has been facing headwinds from supply chain issues, inflation and lockdowns in China. Polestar recently reduced its delivery guidance for 2022 from 65,000 to 50,000. In April Hertz announced it has placed a major order with Polestar for electric vehicles. The car hire company ordered 65,000 vehicles over five years. Hertz hopes to have Polestar vehicles available this spring in Europe and later in the year in the US. GGPI stock chart There is not a huge amount of new information to see here. $10 is support, but the stock is trending gradually lower and the death cross looks imminent. This is not exactly comforting to my long thesis, but this chart is early stage and is not showing significant trends or levels just yet. So we live in hope!
What will happen to Shiba Inu price after founder Ryoshi steps down

What will happen to Shiba Inu price after founder Ryoshi steps down

FXStreet News FXStreet News 31.05.2022 16:48
SHIB price at a crucial point to potentially break the downtrend.Shiba Inu founder Ryoshi retreats from the community and steps down after erasing all social media accounts.Ryoshi’s move may puzzle markets and could delay the bullish breakout.Shiba Inu (SHIB) traders must be on edge after the broad media picked up the last tweet and mic drop from Shiba Inu founder Ryoshi just moments before he erased all his social media accounts. With his stepping-down, traders will be questioning whether it is just the founder leaving the cryptocurrency to stand on its own two legs or there are more details to come given how the Luna debacle is still not far away in the back of their minds. SHIB price has retreated onto the back foot as a result and this could dampen hopes for a bullish breakout anytime soon as trust will need to be rebuilt over time.SHIB price breakout delayed as uncertainty sneaks inShiba Inu price sees its price action relatively contained after the last tweet from its fonder Ryoshi: “ I am just some guy of no consequence tapping at a keyboard, and I am replaceable. I am Ryoshi’. Although the pseudonymous founder already warned several times that he had no intentions of staying on indefinitely, the news has put traders on edge, questioning if this is the right time to buy or if something else is going on within the meme coin itself that could trigger future losses. Investors only just now started to shrug off the Terra Luna debacle. The timing is undoubtedly peculiar as the global trust in cryptocurrencies and alt currencies has not yet peaked back to levels from 2021.SHIB price technically was set to break above the red descending trend line and reclaim the historic pivotal level at $0.00001209. Now, however, the breakout is likely to be delayed and not materialise until a later stage as price action will now first look back for support around $0.00000965 or a higher level, depending on where the new monthly support levels will be appearing as of Wednesday, as a new trading month is just around the corner when they will be recalculated. In a couple of days, expect the bullish breakout to follow with price action reclaiming $0.00001209 and possibly $0.00001708 once traders are fully trusting and the news about the founder stepping down, has faded to the background.SHIB/USD daily chartAs mentioned in the previous paragraphs, the question remains if something else is cooking underneath the bonnet. Is there a similar risk at hand as with Tera Luna? Admittedly, SHIB price is not a stable coin and thus behaves entirely differently but traders may still suspect something is wrong. In a case where investors’ trust is dented, price action could break below $0.00000965 and sell off further in a sort of vote-of-no-confidence by traders who will bring price action down to $0.00000655.
3 Pharmaceutical Stocks to Protect your Portfolio: ABBV, BMY, MRK

3 Pharmaceutical Stocks to Protect your Portfolio: ABBV, BMY, MRK

FXStreet News FXStreet News 31.05.2022 16:48
While the S&P 500 has lost more than 13% year to date, pharma stocks are up 6%.BMY, MRK and ABBV have all beaten the pharma index so far this year.All three pharmaceutical stocks are relatively cheap and sport sizable dividends.All the top most-favored growth stocks of the last two years have been humbled in 2022. Since the pandemic began, retail investors piled into names like Upstart, Affirm, Sea Limited, Shopify and Snowflake. Although every single ticker is unique and unlike any other, investors who front-loaded growth have seen the value of their portfolios drop by as much as 80% in the first half of 2022's horrific market sell-off. The blame can be laid at expanding inflation, the covid supply crunch or the Fed's hefty interest rate hikes (or, more likely, all three), but nonetheless the fallout seems likely to continue. In the current scenario many investors are looking to preserve capital rather than make risky long-term bets that growth stocks return and similar multiples as before.At this point, nearly everyone knows that energy has been the best performing sector in the first half of this year, and oil stocks have made some of the best trades due to Russia's invasion of Ukraine and the ensuing oil price spike. Many observers appear to have missed out on the pharmaceutical industry though. The Nasdaq US Benchmark Pharmaceuticals Index has gained nearly 6% year to date, while the S&P 500 has lost more than 13%.S&P 500 vs. Nasdaq Pharmaceutical index YTDWhat is more, is that quite a few of the largest and safest pharmaceutical stocks have outperformed their index by a hefty margin. Below you can see how three of the best and biggest players in the industry have performed so far this year. While the benchmark index sits just below a 6% gain for the year, AbbView (ABBV) has garnered a 10.8% increase in valuation, Merck (MRK) has advanced 21.1%, and Bristol-Myers Squibb (BMY) has added 23% to its market cap. As a method of capital preservation, these three pharma stocks seem your best bet for waiting out the current market capitulation.Daily Chart of Pharmaceuticals index vs. MRK, BMY, ABBVWhile oil stocks have already made their advance, share prices in that industry are fickle. A severe drop in the price of oil is likely if the war in Ukraine comes to a halt this summer or fall. Pharma stocks on the other hand are only looking up. They are cheap, provide sizable dividends and act as safe havens during market downturns.AbbVie Stock Analysis and ForecastAbbVie (ABBV) has only been around since 2013 when parent Abbott Laboratories (ABT) decided to spin off its main pharmaceutical business. At that time some turned up their noses at the new stock, seeing as its drug Humira was about to lose its patent protection. For the next decade though, AbbVie went on an acquisition spree that has padded its top line and made it one of the largest drug manufacturers in the world.Even with a market cap of $265 billion though, AbbVie looks cheap on a number of metrics. Over the past half decade, despite growing revenue by 17.6% on average and operating cash flow by 25%, ABBV stock trades for just a 10.4 forward EV/EBITDA multiple. The sector at large averages 13.3 on this scale. Its forward price/sales ratio at 4.5 is also below its sector.It sports a 3.76% dividend, nearly thrice what the S&P 500 offers. On top of that, management has been growing the dividend at a 13.2% annualized growth rate over the past five years. With a rather high 78% payout ratio, it may seem like ABBV cannot possibly keep its dividend growing at this rate. However, AbbVie has managed to grow EBITDA (earnings before interest, taxes, depreciation and amortization) at a greater than 22% rate over the past five years, so substantial payout growth makes for a solid bet.ABBV stock has been in a downtrend since April 7. May has seen some consolidation and the closing of the gap formed on April 29. The 9-day and 20-day moving averages have overlapped during the past week and a half. If ABBV shares close below $147, then support seems strong at $140, which is where we recommend picking up shares. Closing above $157 will signal renewed interest, but resistance at $159.50 should be quite strong.ABBV daily chartBristol Myers Squibb Stock Analysis and ForecastBristol Myers Squibb (BMY) is the result of more than 130 years of acquisitions. Today the pharma giant has laboratories and operations in more than a dozen locations in the US, as well as the UK, Spain, Belgium and Japan. In 2019 BMY completed its largest acquisition yet with the $74 billion takeover of Celgene. It is known for its diabetes drugs and especially its cancer treatment Opdivo.Its EV/EBITDA multiple is 9, and its forward price/sales is 3.5, which is even cheaper than AbbVie. These low multiples are usually reserved for stale companies with bleak prospects, but Bristol Myers has grown revenue by more than 21% on average over the past five years and operating cash flow by more than 59% annualized in that span. On the dividend front, the 2.84% yield is more than twice the S&P 500 overage. The company has grown its dividend by 7% on average over the last half decade.Forecasting the next six months is hard with this one, since it has already advanced more than 20% year to date. The daily chart below shows what some might at first glance think looks like a triple top. In fact though, BMY shares have butted up against the $78.12 resistance level seven times since entering this bullish rectangle on April 7.Bullish rectangles are bullish continuation patterns where triple bottom and triple tops have failed on their confirmations. A close look at the chart shows that the last three candles to touch $78.12 have made attempts beyond above it. At the same time the last three low candles have not even reached the support at $74.86. This is another sign that BMY stock will soon break through its top line and travel until it finds more suitable resistance. The length of this bullish rectangle will determine how large the next run-up is, but we see at least $85 as the next level to overtake.BMY daily chartMerck & Co. Stock Analysis and ForecastMerck & Co. (MRK) is yet another diversified drugmaker with major products aimed at diabetes, cancer, autoimmune disorders and most recently an antiretroviral pill for treating Covid-19. Like its counterparts in this article, Merck has prospered by a heavy focus on research and via an active acquisition strategy. Over the past decade, Merck bought out Idenix Pharmaceuticals, OncoEthix, Cubist Pharmaceuticals, Afferent Pharmaceuticals, Calporta, Tilos Therapeutics, Rigontec and Peloton Therapeutics, just to name a few.Merck has grown slower than its competitors over the past five years but has remained robustly profitable. Revenues have grown on average about 7% per year, and operating cash flows have neared 10% growth annually. MRK’s EV/EBITDA comes in at just under 11, and it trades for a cheap four times forward sales. The dividend is what makes this one valuable. At 3%, the yield has grown at nearly a 10% clip annually over the past five years.MRK stock just hit a new all-time high on May 23, so $94.80 remains the target for bulls to beat. There is no reason to think that will remain the high of the year. The company and industry is cheap and has benefitted from the weakness in other sectors. MRK stock looks to have found support at $91. If it breaks below this level, then it will likely stop quickly at $88.77, a former resistance line. The 9-day moving average is solidly above the 20-day moving average, showing that MRK stock is trending in a healthy upward trajectory. Look to buy when the price meets the 20-day moving average around $91.MRK daily chart
Can Price Of Gold Reach $1900 Soon? Lower Yields And Weaker US Dollar (USD) Makes Dollar Go Higher | FXStreet

Can Price Of Gold Reach $1900 Soon? Lower Yields And Weaker US Dollar (USD) Makes Dollar Go Higher | FXStreet

FXStreet News FXStreet News 30.05.2022 16:41
Gold Price traded with upside on Monday as the US dollar continued to fade despite holiday-thinned trading conditions. XAUUSD was last changing hands near $1,860 and eyeing recent highs having found decent support at its 21 and 200 DMAs. Should market participants continue to pare Fed tightening bets, gold could reclaim $1,900, even if risk appetite also rebounds. Gold Price (XAU/USD) is trading with an upside bias in quiet, US holiday-thinned trade and eyeing a test of last week’s highs around $1,870 per troy ounce. At current levels around $1,860, XAUUSD is about 0.4% higher, having found support earlier in the session at the 21-Day Moving Average (at $1,849.25) and amid continued technical buying after spot prices found solid support at the 200 DMA (at $1,840) last week. US Economic Data Gold’s advances on Monday come despite a positive tone to global macro trade and are being driven by a continued weakening to fresh monthly lows in the US dollar. In wake of US Consumer Price Inflation data released earlier in the month and Core PCE inflation data released last week, market participants have become less worried about inflation in the US and, as a result, Fed tightening bets have seen a modest pullback (i.e. for H2 2022 and 2023). Read next: Altcoins: Tether (USDT), What Is It? - A Deeper Look Into The Tether Blockchain| FXMAG.COM US Bonds And US Dollar (USD) Helps XAUUSD US bond markets are closed on Monday, but price action in gold and USD markets suggests that yields will probably open the week lower, a continuation of the weakening trend that has, in tandem with the recent weakening of the US dollar, boosted XAUUSD by over 4.0% from sub-$1,790 mid-month lows. US data will be in focus this week with various tier one releases including the May ISM Manufacturing PMI survey and official May labour market report all out later in the week. Read next: Altcoins: Cardano (ADA) What Is It? - A Deeper Look Into Cardano (ADA) | FXMAG.COM Inflation Analysts argued that should the trends of easing US inflation fears, easing Fed tightening bets and subsequently, more downside in US yields and the buck continue, that could be a bullish medium-term driver for gold, even if it also boosts risk appetite (i.e. US equities). With XAUUSD having found such strong support at its 21 and 200 DMAs, the outlook for further upside towards the 50 DMA near $1,900 looks good. Follow FXMAG.COM on Google News