EURUSD: Life after Parity
Recently, for the first time in two decades, the euro reached parity with the US dollar…
Rally Is Not Over For Risk Assets
Information is not investment advice
What is happening?
In December 2021, the main question on global markets was: “When will the FED increase the key rate?” Traders and investors were transferring their capitals into USDs, waiting for the great dump worldwide. Today, many of the “growth stocks” lost more than 50% from their highs. Since November, Bitcoin has plunged by 40%. The US indices are once again trading around the bottom border of the rising global channel.
Will this bearish trend continue, or have we already found the bottom for the next couple of months?
FBS analysts’ opinion
We believe that market members have overestimated tapering risks, and right now is the perfect moment to look for long traders in risk assets.
For example, according to the Fear & Greed index, Bitcoin has already found its global support. If you look at the picture below, you will realize Bitcoin reverses every time the crypto market’s F&G index hits 10.
The Crypto market’s Fear & Greed index
Technical analysis
BTC/USD daily chart
The price has reached a powerful range between $39 000 and $41 000. We can notice that the price has always reacted to these levels, so there is no doubt that the pullback will happen this time. The target for this movement is $45 600. Unfortunately, if bears can drag Bitcoin under $39000, the price will head towards $30 000.
US500 daily chart
The US500 bounced off the bottom line of the global ascending channel again. The 100-day moving average is still an insurmountable barrier for sellers. We expect the US500 to renew its all-time high by mid-February. As soon as the price breaks through 4810, it will head towards 4870.
US100 daily chart
The US100 index has also bounced off the global trend line. The triple bottom pattern has appeared on the chart. As soon the price breaks through 16 600, it will reach 17 300.
Similar
Earnings Season Forecast is Surprising
The second earnings season of 2022 has almost begun. From banks and tech stocks to cars and the retail sector: in this outlook, we covered the most promising releases of this summer and made several projections on the companies’ prospects.
Indices and Stocks in the Red
The stock market has reversed, and now it’s going lower and lower…
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
