Forex Signals Brief for Nov 20: The Bitcoin Slide Gathers Steam
Rowan Crosby • 2 min read
It’s a shortened week for US traders, but that hasn’t stopped many of them putting the sword into Bitcoin and a number of the other cryptocurrencies. BTC is now below $5,000 and it looks like there will be more selling ahead.
At the same time, we are also seeing continued selling on equity markets and the USD. While oil markets are crashing, natural gas is flying and gold has been pretty solid.
All in all, markets are very active at the moment and for traders that is a real positive and volatility means there is opportunity around.
Today, we have a relatively light day of news. With building permits from the US being the only top-tier news announcement. As has been the case recently, keep looking for news headlines on Brexit and China as there is still plenty of opportunity here.
Forex Signal Update
The FX Leaders Team, finished with 1 winner from 2 signals, taking a nice profit in gold as it continues to rally.
DAX – As markets around the world fall, the DAX is now right back on support. This will be an important day to see if price can rebound. So far Asian markets are deep in the red.
NZD/USD – Active Signal
The NZD/USD has seen a nice run-up recently on the back of some USD weakness. There are still lingering concerns around the US-China trade war and that has been impacting the commodity currencies. This pullback looks like a nice opportunity to go with the momentum in the short-term however.
USD/CAD – Active Signal
The USD/CAD has been in a nice little uptrend as we can see on the chart. We have to remember the impact that the falling oil price might have on the CAD, so we are looking to go with the trend for the time being. We have a little wider stop and profit target than usual on this trade.
Bitcoin and the other major cryptocurrencies have continued the momentum to the downside as we suggested might be the case.
Analysts are now calling for Bitcoin to hit $2,500, as retail investors have begun to pack it in and are no longer buying the dip. The music it seems has stopped.
The other major cryptocurrencies including Ethereum and Ripples XRP are fairing no better and are also getting hit hard on their technical selling.
Pushing above $5,000 and holding would be a big win for BTC, but I suspect there might be more investors piling in to sell should we move back to that round number.