Bitcoin
Market risk, BoE decision, gold, Nasdaq, Bitcoin
Markets next week: Markets at risk, BoE decision, gold, Nasdaq, Bitcoin
- Risk markets remain resilient and positive US earnings support the move higher.
- American dollar clearance post NFPs it may not last.
- USD/JPY breaking lower, helped by ‘officer’ Yen shopping.
- Bitcoin rises 9% higher on Friday for no apparent reason.
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A busy week for a number of markets with the US dollar hit on Wednesday FOMC meeting and Friday’s weak NFP release, while in the US equity space, heavy earnings releases from Amazon, Block, Apple and Coinbase kept traders busy. The world’s second-largest company gave the market a considerable boost, announcing earnings beats across the board, an improved dividend and the biggest corporate buyback ever, worth $110 billion. Apple shares jumped about 9% on Thursday before giving back some gains on Friday.
The technology heavy Nasdaq ended the week in positive territory and at the highest level in more than two weeks. A bear flag formation can be seen on the charts, but a break above trend resistance cannot be ruled out.
Nasdaq Daily Price Chart
Economic data and the calendar of events will be relatively calm next week. However, the Bank of England’s latest decision (see British pound report below) and some Fed speakers will keep traders busy.
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The Japanese yen rose sharply against the US dollar during the week, driven by strong rumors of official intervention. After peaking just above 160.00, USD/JPY tested previous support at 151.92 on Friday. The Japanese yen has gained across the board this week and is likely to continue this trend in the coming weeks.
USD/JPY Daily Price Chart
Gold ended the week lower, but the precious metal failed to break the previous support level around $2,280/oz. Lower US Treasury yields should be boosting gold, but that is not happening now. The CCI indicator suggests that gold is oversold.
Daily Gold Price Chart
Bitcoin rose sharply on Friday due to little news. The CCI indicator shows that BTC/USD was heavily oversold on Wednesday and this coincided with Bitcoin’s upward movement. A breakout and open above the $65K level leaves $69K as the next target.
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Chart of the Week – Bitcoin
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Technical and Fundamental Forecasts – w/c May 6
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