Weekly Preview: Bitcoin the Star – Can it Continue?
Rowan Crosby • 2 min read
Welcome to Another Big Week on Markets Guys,
Last week we saw the weekend on a mixed note. CPI pointed towards a slight decline which hit the USD hard and caused the majors to bounce. While at the same time the good old stock market kept on drifting higher.
On the commodity front, both Gold and Crude Oil have been rallying and we have been focused heavily on watching these two in our daily briefs. However, the big story of the week had to be Bitcoin, who took out its record highs at $5000 and then powered onward and upward.
As it stands Bitcoin is trading above $5600 in early trade on Monday. Bitcoin is offering a great opportunity for trades, however, I suggest waiting for a pullback from the highs. Keep a close eye on the forex signals page this week as there are a number of great opportunities popping up in cryptocurrencies, including a current signal out on Litecoin.
The Week Ahead
The main question to ask this week is just how the USD is going to react. After finally turning the corner and turning bullish, we ran into some headwinds over the last 7 days. Poor data on Friday, coupled with an unexpected update via the FOMC minutes, the momentum took a hit.
However, the 93.00 level in the US Dollar Index (DXY) looks to be one that is trying to hold up. I’ll be long from this point onwards until proven otherwise. As such I am bullish on the USD versus most of the other majors.
US Dollar Index (DXY) – 240 min Chart
Top Economic Data this Week
NZD – CPI
AUD – RBA Minutes
GBP – CPI
EUR – German ZEW & CPI
GBP – Average Earnings
USD – Building Permits
AUD – Employment
CHY – GDP
USD – Philly Fed
CAD – CPI & Retails Sales
USD – Existing Home Sales