Today we are going to share a complete analysis of the online broker NordFX, both for the Forex market and cryptocurrencies.
The Forex market constantly generates movements that can be used for short-term trading. Next, we are going to share the analysis of the main currencies from NordFX analysts.
EUR / USD
The Fed’s balance sheet has not been growing for several months and the Treasury has accumulated more than 1.7 trillion dollars in its vaults. As a result, we are seeing a slowdown in the recovery of the US economy, which will likely still force the government and the Fed to take further steps to stimulate it.
Otherwise, instead of a V-shaped rebound, a W-shaped recession will become a reality and Donald Trump will ultimately lose his already slim chances for re-election.
50% of experts believe that the next stage of pumping liquidity into the economy and other fiscal stimulus measures will not take long. Therefore, the dollar will continue to fall and the EUR / USD will continue to grow. The closest targets are 1.1840, 1.1900, and 1.2000.
20% of the analysts expect the continuation of the lateral trend of the pair within 1.1700 – 1.1910, and the remaining 30% believe that in the coming weeks it will return to the 1.1450 zone.
Aside from half the experts, the chart analysis is looking north, as well as 80% of the oscillators and 85% of the trend indicators on D1. The remaining 20% of the oscillators give signals that the pair is overbought.
We are awaiting data on the US consumer market, which will be released on Wednesday, August 12 and Friday, August 14. The consumer price index is forecast to remain stable, retail sales could show a decline in July from 7.5% to 1.7%. In addition, on Friday the preliminary data of the GDP of the Eurozone for the second quarter will be released.
GBP / USD
Aside from the weak dollar, the Bank of England’s refusal to cut interest rates and increase the asset purchase program works in the pound’s favor.
UK GDP data for the second quarter will be released on Wednesday 12th August, which is forecast to contract by 20.2%. By comparison, the eurozone economy fell 12% over the same period and the United States fell 9.5%. And investors assumed that such a difficult situation could force the regulator to take additional stimulus measures.
However, the firm stance of the Bank’s management should allay their fears and help the UK currency not only stay afloat, but also push it higher against the dollar.
This is exactly what 60% of experts believe right now, supported by 90% of oscillators and trend indicators on D1. The resistance levels are 1.3185, 1.3200 and 1.3285.
40% of analysts have taken the opposite position. Support levels are 1.2980, 1.2900, 1.2765, and 1.2670. As for the graphical analysis, it draws a continuation of the pair’s lateral movement in the range of 1.2980 – 1.3185 on H4, followed by a decrease to 1.2900.
USD / JPY
50% of experts, supported by the graphical analysis of H4, believe that in the next few days the pair will try again to test the 106.40 level and, if successful, go up another 100 points. Intermediate resistance is at 106.65. 20% of analysts are in favor of the sideways movement, with the remaining 30% expecting the pair to drop first to support at 105.30 and then to 104.75. The ultimate goal is the July 31 low at 104.18.
Now a word about indicators. While its readings for EUR / USD and GBP / USD on H4 showed complete chaos and relative order on D1, the opposite is true for the Japanese yen. It is almost impossible to bring the indicator signals on D1 to any denominator.
But in H4 65% of the oscillators and 80% of the trend indicators are painted green. However, the number of oscillators that indicate that the pair is overbought is also quite large: 25%. And 10% of them have taken a neutral position, painted gray.
Bloomberg experts confirmed the Bitcoin price forecast at $ 20,000 for the end of this year.
After a 60% drop in 2014, the value of the coin increased several times over the next three years. The decrease in 2018 was around 75%. Bitcoin had previously approached $ 20,000 and even touched the corresponding barrier, but it quickly slipped.
In today’s reality, Bitcoin has every chance of gaining ground at highs.
The value of the cryptocurrency can also be affected by macroeconomic factors, including the low rate policy of the US Federal Reserve.Many large countries are trying to get out of the crisis as soon as possible and therefore allow the reduction of the fiat. In the context of such fluctuations, Bitcoin has a chance to top investor preferences.
Crypto influencers forecasts
The well-known TV host analyst Max Keizer, expect a rapid rise in BTC / USD to $ 28,000, also confirmed his prognosis. According to him, Bitcoin will not have noticeable resistance levels before this mark.
The December 2017 high in the region of $ 20,000 will not be either. “Then a brief setback and a $ 100,000 assault with renewed energy,” Keizer continued with his forecast, although he did not mention a time frame for it.
Morgan Creek Digital co-founder Anthony Pompliano predicts that the first cryptocurrency will reach $ 100,000 in December 2020. Another popular crypto analyst, PlanB, indicated a longer term. Based on the Stock-to-Flow (S2F) model, he calculated that Bitcoin would rise to the specified mark only by the end of 2021.
This analysis of the Forex market and cryptocurrencies comes to us courtesy of the NordFX broker.