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Forex Today: Bitcoin Breaks Record High at $109.356

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 has been rising quite strongly for about one week after finding support near $91,000 and has now made a bullish breakout to new record highs, while looking likely to advance further.

  1. The cryptocurrency Bitcoin has made a strong bullish breakout to a new all-time high on the very day President-Elect Trump will be sworn in as President of the USA. Trump is seen as friendly to Bitcoin and crypto. If the price ends today above $106,500 that will signify a valid long-term bullish breakout and will attract trend and momentum traders on the long side. As well as spot Bitcoin, you can buy Bitcoin micro futures (1/10th of a Bitcoin in size), and of course CFDs on Bitcoin at many CFD brokers.
  2. Global stocks are mixed, after having mostly regained ground last Friday. The USA has a public holiday today, but equity index futures will be trading somewhere so it will be interesting to see what happens to the market. The S&P 500 Index remains above its closing price just before Trump won the election last November, at 5,783.
  3. The Bank of Japan is expected to raise its interest rate at its policy meeting next Friday, which will probably give the Yen a boost, calling into question the long-term bullish trend in the USD/JPY.
  4. In the Forex market, the New Zealand Dollar has been the strongest major currency since this week opened, while the US Dollar has been the weakest. Trend traders will remain interested in being short of the EUR/USD currency pair and possibly also the GBP/USD currency pair.
  5. Corn futures rose strongly last Friday to close at a new 1-year high price, which will attract trend and momentum traders on the long side. Buying commodities at a new 6-month high has historically been a very profitable trading strategy.
  6. It is a public holiday in the USA today.
  7. There are no high-impact data releases scheduled for today.

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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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