Bitcoin dropped by over $1,200 in an hour, before finding support at the S3 pivot

Regarding the weekly time frame, the NAS100 has charted a higher trough, followed by a higher peak. This is an uptrend. The index has pulled back over the past weeks but now finds itself at resistance turned support.

ISM Manufacturing data was released yesterday, printing at 47.7. A value under 50 shows contraction, whilst values above 50 are expansionary. There is concern over one component of the data - ISM Manufacturing Prices. This ticked higher at 51.3. This is a big jump from the previous 44.5 and is much higher than the 45.5 expected.

Copper has charted a series of higher troughs (HT), followed by higher peaks (HP). This puts the base metal into uptrend. Copper has found support at the 50% retracement, and may chart the next higher trough (HT?) in the series.

Overnight, Australian CPI y/y showed signs of moderation, printing at 7.4%, lower than the expected 8.1% and the previous 8.4%. GDP was also softer at 0.5% q/q - 0.8% q/q was expected. After the release, the spread between the AU and US 2-year notes declined (red rectangle). This suggests that the RBA is less hawkish than the Fed. Markets still expects the RBA to lift rates next week, even if…

FXCM’s CHN50 basket is in uptrend. It has charted a higher trough followed by a higher peak. The current down-leg appears corrective, retracing to the previous up-leg’s 76.4% Fibonacci level. CHN50 could find support at this level and chart the next higher trough in the series. Its RSI remains on the bullish side of 50, but is near dropping below (black ellipse). The longer it stays above 50, the greater…

FXCM’s CFD for Brent, UKOil, and its WTI CFD, USOIL, have both moved into their bullish channel on the H4 time frame. Oil is responding to forecasts for China’s growth.

Join FXCM senior market specialists, Russ and Nik, as they discuss the themes driving the markets for this week. In this podcast, the two analysts discuss the Fed minutes that were released last week and how they differed from Fed Chair Powell’s press conference. Core PCE also came in ahead of expectations, with inflation being a primary driver. Join the discussion for these and more.

The GER30 weekly has charted a higher trough, followed by a higher peak. This is an uptrend. Its RSI remains on the bullish side of 50.

FXCM’s dollar basket is trading in its bullish channel between the upper blue and red bands. This is in the daily timeframe. Its stochastic is trading above 80. This denotes a strong underlying upwards momentum.

The daily NAS100 (left) has a weak bias. It is trading in its bearish channel between the lower blue and red bands. Also, its underlying momentum is to the downside; its stochastic has dropped below 20. The longer it stays there, the greater the prospects for lower prices.