Risk on Mood Ahead of the Phase-One Deal, Bitcoin above $8,000

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

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Risk on Mood Ahead of the Phase-One Deal, Bitcoin Consolidates above $8,000

January 14, 2020

Asian indices edged up higher in the first trading day of the week ahead of the signing of the phase-one deal in Washington late in the week and as geopolitical risks ease.

The Nikkei 225 was closed for a holiday. The Hang Seng index is 0.92% higher at 28,902. The Singapore FTSE Straits Times is 0.04% lower at 3,254 while the Shanghai Composite finished 0.12% higher at 3,095.  

European equities edged higher in the European trading session. The DAX index is 0.06% higher at 13,491. CAC40 is 0.06 higher at 6,056 while the FTSE MIB in Milan is 0.05 per cent lower at 24,008. In London, the FTSE 100 is 0.51% higher at 7,626. 

In commodities markets, the crude oil price is 0.22% higher at $59.17 as traders digest the geopolitical risks in the Middle East. Brent oil is 0.12% higher at $65.06 per barrel. Gold price gives up 0.52% at 1,554 as investors continue to sell safe-haven assets. The gold outlook is bullish despite the recent correction. The immediate resistance stands at 1,611 the recent high, while the support stands at 1,447 the recent low.       

phase-one deal
BTCUSD Daily Chart

In cryptocurrencies markets, the bitcoin is 1.28% higher at $8,076, hitting the daily low at $8,061 and the daily high at $8,185. Bitcoin has cancelled the recent bullish momentum as the crypto pair breached below the 100-day moving. Support for BTCUSD stands now at $7,000, while the next support level holds at 6,628 recent low.

On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 2.14% lower at 143.15 with capitalization now at 15.72 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 117.09 the previous week low, Litecoin (LTCUSD) is trading 1.79% lower at 49.82. The crypto market capitalization is $216.58 billion.

In the Lookout: The People’s Bank of China (PBOC) has set the Yuan reference rate at 6.9263 versus yesterday’s fix at 6.9351.

Trading Perspective: In forex, the US dollar index trades 0.01 per cent higher at 97.35, the AUDUSD is 0.26% higher at 0.6917 against the US dollar. NZDUSD trades 0.18% higher at 0.6646. USDCHF is 0.09% higher at 0.9731.

phase-one deal
AUDUSD Daily Chart

GBPUSD trades 0.23% lower at 1.3028 as we are getting closer to the Brexit deadline on January 31st, 2020. Immediate support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, first resistance will be met at 1.3511 recent high.

EURUSD trades 0.10% higher at 1.1128 as the pair’s short term momentum is neutral now. First resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1112 today’s low and then at 1.10.

USDJPY is trading 0.17% higher at 109.61, having hit the daily low at 109.49 and the daily high at 109.63. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 109.69 recent high.

USDCAD trades 0.01% lower at 1.3047, as the Canadian dollar pressured by weaker crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st

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