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Forex Today: Bitcoin Keeps Coiling Below Record High

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 below last week’s high just 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. Stocks markets are mixed to higher, with several major indices gaining ground over the past day, notably the NASDAQ 100, the S&P 500, the Japanese Nikkei 225, and the Australian ASX 200.
  3. In the Forex market, the US Dollar lost some ground yesterday after reaching a new 1-year high price last week. Like Bitcoin, the Dollar had also been driven higher by the Trump victory. Riskier assets have been rebounding. Since today’s Tokyo open, the strongest major currency has been the Australian Dollar, while the Swiss Franc has been the weakest.
  4. The Reserve Bank of Australia released the minutes of its most recent policy meeting. The minutes contained no surprises, reinforcing the general analysis that the Bank is in no hurry to cut interest rates. This may be helping the Aussie’s relative strength today.
  5. There will be releases today of the following high-impact economic data:
    • UK Monetary Policy Report Hearings
    • Canadian CPI (inflation), which is expected to have risen by 0.3% last month

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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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