Forex Signals Brief for May 18: Crypto Remains Under Pressure

US Wrap

Equity markets finished the session in the red and once again the attention was firmly on crypto and also precious metals.

The BTC demise appears to be gaining steam as Elon Musk has continued to mount pressure on the world’s largest crypto. For the time being, there is support at the $44,000 level, however, price is sitting on a knife-edge.

The other big mover yesterday was the precious metals market, with both GOLD and SILVER in particular starting to look very strong. Silver broke out above the $28 level, which has been a strong resistance level for some time. This will clearly be a trade to watch in the days and weeks ahead as we know there are widespread shortages of physical bullion and many institutions are net short in a big way. A falling USD will only help the cause as well.

The Data Agenda

The economic calendar is again relatively quiet, however, the UK employment data will be one worth watching.

The UK data lags by a month, but we should see a sharp rebound of 50K jobs for March.

In the US, building permits is a number worth noting. As we know, inflation is running hot across the globe and there is huge demand for property and also building supplies such as lumber.

Forex Signal Update

The FX Leaders Team have six signals open, and we closed the one winner yesterday from two trades.

XRP – Active Signal

XRP appears to be decoupling from Bitcoin to some degree. While BTC has fallen sharply in the past 7 days, XRP remains steady.

EUR/USD – Active Signal

The EUR/USD is holding up for now as we see weakness in the Greenback. However, we remain short with our longer-term signal.

Cryptocurrency Update

As mentioned earlier, we are witnessing some significant selling across the entire sector at the moment as Bitcoin attempts to hold onto the $44,000 level. Price is already well off its highs of over $60,000.

Interestingly, the pipeline hack last week saw the ransom paid in Bitcoin. This might be another story worth paying attention to in the days ahead.