Home / Forex & Currency Exchange News / Euro dips after Catalan vote, Bitcoin tumbles

Euro dips after Catalan vote, Bitcoin tumbles

Article by ForexTime

The Euro sharply depreciated against the Dollar during early trading on Friday after pro-independence parties in Catalonia triumphed in Thursday’s regional elections.

With three pro-independence parties winning a combined 70 seats of the 135 available, concerns are once again heightened that tensions between Barcelona and Madrid could escalate. Although political uncertainty in Spain has the ability to punish the Euro short-term, losses are likely to be limited by the growing optimism over Europe’s economic recovery.

Taking a look at the technical picture, the EURUSD remains supported above 1.1850 on the daily charts. Prices are trading above the 50 SMA while the MACD has also crossed to the upside. A weekly close above 1.1850 could signal a further incline towards 1.1920 and higher. Alternatively, a failure of prices to keep above the 1.1850 pivotal level may reopen a path back towards 1.1730.

WTI Crude losing steam?

WTI Crude was under pressure during Friday’s trading session, with prices dipping below $58.00 as investors booked profits ahead of the upcoming New Year’s break.

Oil prices have been supported by supply disruptions and optimism over OPEC’s production cuts rebalancing markets but the question is, for how long? While the OPEC-led group may be commended for their efforts to limit production, U.S Shale remains a threat to higher oil prices. It must be kept in mind that, with WTI Crude oil trading around $58.00, shale producers are currently profitable – a factor that could ultimately increase oil production. A situation where activity in the shale industry rises further next year has the potential to limit oil’s upside gains.

Commodity spotlight – Gold

Gold prices hit a two-week high at $1269 in thin pre-holiday liquidity on Friday amid a softer US Dollar. With investors sitting on their hands and simply observing the markets ahead of the upcoming Christmas holiday break, Gold could remain range bound. Taking a look at the technical picture, the yellow metal still remains at risk of further downside losses despite the impressive appreciation witnessed this week. There is a suspicion that Gold is in the process of a technical bounce, with resistance found at $1267. A failure of prices to keep above this level may trigger a drop to $1250. Alternatively, a daily close above $1267 could encourage an appreciation towards $1280.

Bitcoin tumbles…

It has certainly been a volatile trading week for Bitcoin, which plunged 20% during Friday’s trading session, with prices briefly dipping below $13000 before recovering towards $14000. The aggressively bearish price action witnessed this week may prompt investors to start questioning if Bitcoin will recover from the selloff or remain depressed moving into the New Year. From a technical standpoint, Bitcoin is at risk of dropping further if prices fail to keep above $13000. Sustained weakness below this level could encourage a decline back towards $11000.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

Large Speculators and the House of Pain

Large Speculators and the House of Pain

By The Gold Report Source: Michael J. Ballanger for Streetwise Reports   02/18/2018 Every bottom in gold is characterized by massive long liquidation by the Large Specs, precious metals analyst Michael Ballanger states. This week’s COT report once again confirms that the Large Speculators are arguably the stupidest group of gold traders in existence. To be […]

Leave a Reply

Your email address will not be published. Required fields are marked *

css.php