Forex Signals Brief for May 17: Elon Continue’s to Hit Bitcoin - Forex News by FX Leaders
BTC is Weak

Forex Signals Brief for May 17: Elon Continue’s to Hit Bitcoin

Posted Monday, May 17, 2021 by
Rowan Crosby • 2 min read

US Wrap

Equity markets bounced back on Friday, however, the action continues to be in the crypto space and especially Bitcoin.

To start the new trading week, Elon Musk responded to a Twitter comment, that suggested Telsa will be selling down their entire BTC holding, by next quarter. Musk replied with the word, ‘indeed.’

Crypto markets were well and truly in the green on Sunday and that quickly changed with Bitcoin dumping and dragging the entire sector down. This battle that is happening with the crypto sector and Elon Musk is an interesting one to say the least, and I suspect things are just heating up.


The Data Agenda

The economic calendar is looking very thin to say the least this week, with only a few data points of interest and some central bank minutes.

While we get the minutes from both the FOMC and RBA, both central banks are making it clear they are holding steady, despite the big jump in inflation that we are all witnessing.

Otherwise, we will be focused on a number of global events and in particular the US election audit in Maricopa county and the conflict in the Middle East.


Forex Signal Update

The FX Leaders Team hit 5 winners from 12 trades last week for a 42% strike rate, however, we currently have 7 open signals.


XRP – Active Signal

XRP was booming on Sunday and price was as high as the $1.60 level, before the Musk Tweet rocked the entire sector. As we can see on the charts, price is holding in this triangle formation and we will have support at $1.30. We also continue to monitor the SEC lawsuit this week.


EUR/USD – Active Signal

The EUR/USD rebounded to close out the week, however, we can see that there is resistance above.


Cryptocurrency Update

Clearly, at the moment, the main focus in crypto markets are BTC and DOGE/USD.

For whatever reason, Elon Musk is at the centre of both and it looks like many former Bitcoin maxis are keen on Doge as well.

As I’ve been saying for many months, the crypto sector is on the verge of widespread regulation. We must look to utility, not memes. In the short term, there will be good trading opportunities in both, but long term, the value likely lies elsewhere.

Looking at Bitcoin technicals and we have now reached a key support level at $44,000. A break here could see another 10% drop very quickly.

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