As days go by, the cryptocurrency market keeps losing huge amounts of Money as a lack of fundamental support resulted in a slow but steady decline in the value of all major cryptocurrency pairs.
Not only that, but investors caution went ahead as Ethereum network upgrade was also uncertain on functionality post, resulting on a hard fork that increased sell-off, putting on danger the currency’s position as second largest currency by market capital once again.
On the lack of fundamental strength, we saw how Bitcoin and other crypto assets had lost more than 3% during trading hours on Monday; At least Bitcoin has recovered slightly from intra-day lows. Now, the BTCUSD pair is trading at $3583.7, going down by 2.04
% on the day.
Even if Bitcoin did manage to stay above the $3500 mark barely, it still gives a safe breath, as the pair continues to trade bordering critical support level, with a break below that could force the pair down to $3000 price levels.
The BTC market is fighting with its best to push the pair above $3800 level and aiming to hit $4000 if they make it past the previous level, but it still needs to show some level of sustained action for any semblance of hope among investors that the pair has managed to find a bottom.
China Markets Goes Down
China’s foreign trade showed an impressive outcome in December, with numbers that surpassed $57 Billion. A maximum for last three years, which are good news for the Chinese currency as it has to do with an increased inflow into the economy.
Although taking a deep look on the statistics, it shows a drop in Chinese exports and imports, which is not only a sign of a slowdown in the well known second world economy, but it also means that a symptom of the global slowdown could go on.
Chinese markets lost about 1%, with S&P 500 futures being down by almost 1% on Monday morning due to fears that trade disputes between China and the U.S. would cause a severe slowdown of key economic regions.
A weaker volume of imports as a significant part of imports to China is not for final consumption, but subsequent production could precede a further decline in exports, treating to turn into an even greater slowdown of the Chinese economy.
Now, global markets have their eyes on China’s data. Since it is the second largest world economy with trading partners all around the world, its data often covers a huge range of companies.
S&P 500 Index Futures Forecast, January 14
It is expected for S&P 500 Index Futures to open lower, basing on the pre-market trade. The market has pressure by weak trading balance data from China and other factors, like nervousness ahead of the start of earnings season and increasing concerns over the U.S. government shutdown. Now it is underpinning the index, with hope for a trade deal between the two largest world economies.
With the main trend going up, according to daily swing charts, having a trade through 2599.50 or above, would signal a resumption of the uptrend and changing the main trend to down on a move through 2438.50.
Having its current price at 2574.75, as said above, the nearest resistance is the minor top at 2599.50, followed by a downtrending Gann angle at 2606.25 and becoming a potential trigger point for an acceleration to the upside with the next target angle coming in at around 2648.50.
In another situation, on the downside, the first target can be seen in the Fibonacci level at 2547.50, which is followed by a short-term uptrending Gann angle at 2534.50. The longer-term uptrending Gann angle comes in at 2508.75 and having the main 50% level at 2503.25 following closely.
Gold Price Futures Forecast, January 14
A weak U.S. Dollar is the primary supporter of trading activities on Gold futures this Monday, which are currently trading higher. Trading data from China that came weaker than expected is working as the catalyst behind the strength.
This news drove down the demand for risky assets, spurring a drop in U.S. Treasury yields due to safe-haven buying. Now lower Treasury yields made the U.S. Dollar a less-desirable asset, which besides it had the Fed says in its minutes that it would consider taking a break from its tightening cycle if the global economy continued to go weak.
With the current price action early on Monday, the direction of the February Comex gold futures contract the rest of the session, with two possible scenarios.
A sustained move over $1289.20 would indicate the presence of buyers and possibly create enough upside momentum to make buyers run at $1300.40 and create a trigger point for a potential acceleration to the upside with $1312.30 being the next major target.
On the other lookout, a failure to hold $1289.20 will signal the presence of sellers, being followed by the major 50% level at $1285.70. If it takes out this level, it could trigger an acceleration to the downside with $1278.10 as the next target.
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