Forex Signals Brief for Apr 22: Crypto in the Red
Rowan Crosby • 2 min read
US equity markets have bounced back across the board, however, crypto markets continue to be under pressure at the moment.
The Bank of Canada held its policy meeting yesterday and left rates on hold at 0.25 per cent. However, it decided to taper its bond purchases to $C3 billion a week from $C4 billion as was broadly expected. The BOC painted quite an upbeat picture which lead to some downside in the USD/CAD. What will be interesting is whether this is a trend across other central banks.
Meanwhile, the precious metals space is starting to gather some steam with both GOLD and SILVER breaking to the upside. Other metals including Copper are already very bullish and we might just be on the precipice of a move higher.
The crypto space was arguably the real lagger yesterday with BTC knocking on the door of recent lows and the other major coins all in the red. There was a report about more potential legislation for digital assets and this continues to be a theme we are hearing at the moment.
The Data Agenda
On the back of the bullish outlook from the BOC, we turn our attention to the ECB who release their latest update on monetary policy.
As has been the case for many years, the outlook for Europe is still not strong, so we are not expecting such an optimistic tone. Given Germany has just passed more heavy-handed legislation around curfews and lockdowns, the outlook in the short-term remains poor for the Eurozone.
Forex Signal Update
We have five open signals at the moment, so look to the forex signals page for all the latest developments.
EUR/USD – Active Signal
The EUR/USD is still griding up this trendline at the moment, but with the ECB ahead, this is one forex pair we need to watch closely today.
LTC – Active Signal
LTC is getting dragged down by broader crypto weakness, but hasn’t turned bearish just yet.
As mentioned, BTC remains under pressure at the moment and it is really putting a brake on the rest of the sector.
For the time being, we can clearly see that the $54,000 level is now the support that is under pressure. If that level drops expect a move to $50,000 and more crypto selling.