forexbrokr

Dovish Super Mario Drops the Euro, While Bitcoin Holds up as Mt Gox Pokes its Head up Once Again

Hey guys,

After reading some blogs on the #teamaustralia timeline, I was inspired to go through and clean up my Steemit feed. I don’t know about yours, but mine is a dead set mess, full of random garbage that I followed when I first signed up.

The shitty thing is, that unlike with Twitter and their army of 3rd party apps that allow you to easily bulk follow/unfollow the garbage all from the 1 page, Steemit makes you go through the profiles 1 by 1. Absolute agony.

I only follow 500 or so accounts and I feel like this is going to take me weeks. But being able to actually use my home news feed will hopefully be worth the short term pain.

If anyone has a better Steemit unfollowing solution for me, please leave a comment for me below!

😎.

Market Overview

I want to focus today’s blog on crypto and forex. I haven’t featured crypto in any of my intraday focus blogs and with today’s news headlines making some waves, today is the day.

With yesterday’s gold zone not even looking like holding, I’m going to go down the forex trading route instead.

I tweeted the updated gold chart earlier, so I may as well just briefly share it with my thoughts here:

XAU/USD Hourly Updated

We’ll that’ll teach me for talking about magnetic pull toward higher time frame resistance, rather than waiting for an actual bounce out of higher time frame support. Bleh, next.

Anyway, onto forex makets and last nights big mover was EUR/USD. The move came on the back of the ECB and Super Mario Draghi failing to inspire the bulls and giving a dovish account of things in his part of the world.

Draghi was more cautious than anything, but with the US economy doing its thing, the markets took this as dovish. With EUR/USD making up such a large percentage of the USDX, we in turn saw a further rip there.

Finally just in terms of major data releases, we had US jobless claims overnight at their lowest since 1969. Yes, you read that date correctly. A staggering result when you stop and think about it. Traders’ eyes now move between forex markets and the GDP number.

And now we wait.

Cryptocurrencies Markets

Starting with crypto markets and THE story of the day being 16,000 bitcoins, worth about $141 million USD, tied to the now-defunct bitcoin exchange Mt Gox, being moved.

This of course fuelled speculation that they were about to possibly be dumped on the market like last time and that the Bitcoin price would tank.

I have been talking about a pullback back into this blue daily zone before buying:

BTC/USD Daily

So this could have been the help needed to get there. But it doesn’t look like we’re going to get there:

BTC/USD Hourly

You can see the strength in Bitcoin today which may suggest that the coins aren’t going to be dumped at market like last time and that instead this was an OTC deal.

I have no idea why they didn’t do this before, but meh, they can do what they want.

Onward and upward from here?

Forex Markets

As I spoke about above in the market overview, the fact that Draghi’s dovish tone tanked EUR/USD, we then saw the USDX continue to rip.

I like looking at things the other way around so I’ll start with the USDX chart:

USDX Hourly

With USDX ripping to resistance earlier in the week, we had a clear resistance zone. A zone that you can see in the chart above that has turned to support on one of the cleanest retests I’ve seen in a long time. A thing of beauty.

Now moving onto EUR/USD: