Forex Signals Brief for May 21: Crypto Bounces Back
It has been a busy 24 hours to say the least as the crypto market has bounced back from the big sell off of the prior day.
US Wrap
It has been a busy 24 hours to say the least as the crypto market has bounced back from the big sell off of the prior day.
What it appears like is a huge sell order smashed BTC and took the price all the way down to 30,000. This in turn dragged the entire sector lower, with most crypto’s performing worse in actual fact.
Since that point, we’ve seen a sharp recovery with Bitcoin now back above $40,000, but that level is becoming very important.
Elsewhere, stocks recovered on the back of a slightly better jobs number yesterday, although the Philly Fed remained very soft. While GOLD looks like it is inching its ways higher, helping in part by a softer USD.
The Data Agenda
The main data today will be out of the UK, which boasts a host of releases. The main ones of interest will be manufacturing PMI and retail sales, so keep an eye on the GBP/USD.
In the US, we get existing home sales and this is important given that a lot of money is flowing into real assets thanks to massive inflation and a USD that is becoming more worthless by the day.
Forex Signal Update
The FX Leaders Team had a strong session, closing three winners from three trades as we focused on the majors.
XRP – Active Signal
XRP has bounced back alongside the entire sector. We saw strong support at $1.00 and that will clearly be the level to watch should we saw more weakness in the sector.
LTC – Active Signal
LTC has found good support at $200 and we are long from under that level.
Cryptocurrency Update
Bitcoin is clearly the one we must watch at the moment and particularly this $40,000.
We saw what can happen when one large player decides its time to liquidate and given that so much of Bitcoin is controlled by China, it is hard to suggest it is either decentralised or a true store of value.
Be cautious if that key level drops.
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