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Forex Today: Bitcoin Threatens New Bullish Breakout

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Bitcoin threatens to make a new record high as it threatens to break above last week’s high above $93,000, which suggests that it could reach $100,000 soon.

  1. The cryptocurrency Bitcoin has consolidated since making a record high above $93,000 a few days ago, but the price action right now indicates a further bullish breakout is looking likely to happen. The obvious target is the big round number at $100,000. Trend and momentum traders will be interested in staying long of Bitcoin, which can be traded as spot Bitcoin, as CFDs, as futures (there is a micro future on the CME which is sized at only 10% of a coin), or as options.
  2. In the Forex market, the US Dollar is consolidating but remains strong after last week’s technically significant bullish breakout. The US Dollar Index has reached a new 1-year high price. Like Bitcoin, the Dollar has also been driven higher by the Trump victory. The USD/CAD currency pair is trading at a 4-year high above $1.4000. Despite the US Dollar’s strength, we are seeing most other currencies make minor gains against it so far this week.
  3. The Bank of Japan’s Governor Ueda made public remarks a few hours ago to the effect that the Bank of Japan will be data-driven in its approach to the timing of its next rate hike.
  4. Stock markets are mixed. Major US Indices such as the NASDAQ 100 and the S&P 500 are seeing minor recoveries during today’s Asian session, and Asian indices have also made some gains on signs of Chinese policy support for stock markets.
  5. It is likely to be a relatively quiet day in the Forex market as it is a Monday and there are no high-impact data or policy releases expected which might move the market.

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Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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