Forex Signals Brief for Jul 27: Can Bitcoin Hold onto its Gains? - Forex News by FX Leaders
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Forex Signals Brief for Jul 27: Can Bitcoin Hold onto its Gains?

Posted Tuesday, July 27, 2021 by
Rowan Crosby • 2 min read

US Wrap

As we move towards the next FOMC meeting, all the focus so far this week has certainly been on Bitcoin.

Yesterday, we saw a huge run in BTC after unofficial reports that Amazon was looking to adopt it as a payment option. As the day rolled on, that report was shut down and it appears that it was never the case.

Similarly, Bitcoin experienced a significant short-squeeze clearly helped by the news. Price ran as highs as $40,000, before retracing around 50% of those gains.

The other story of note was the DOJ is now looking into Tether, the company behind the stable coin USDT, for possible bank fraud. This has been an ongoing story and we will need to watch this one in the coming weeks.

Nevertheless, the entire crypto sector was green yesterday and we saw strong moves across the board.

Elsewhere, GOLD dropped under the $1800 level, while equity markets continued to tick higher, as we move closer to Wednesday’s FOMC.

The Data Agenda

Markets will be focused on the FOMC for the next day or so and I wouldn’t expect anything big to happen until after the statement from Jerome Powell.

We do have consumer confidence and core durable goods orders, but I suspect everyone is getting ready for tomorrow.

 

Forex Signal Update

The FX Leaders Team hit 4 winners from 7 trades, to start the new trading week in positive fashion.

 

XRP – Active Signal

XRP has fallen back after price spiked on some exchanges yesterday. For now, price is still above the $0.60 level.

 

EUR/USD – Active Signal

The EUR/USD has been grinding lower and following this downtrend almost perfectly. We are short here on the current bounce, however, we should expect to see volatility in the majors tomorrow.

 

Cryptocurrency Update

BTC tagged the $40,000 level yesterday, but never really looked like threatening it.

For the time being, price is retracing its gains, with a lot of headlines to digest at the moment.

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