The following monthly chart of EUR/USD shows that the Euro has risen to a resistance level (1.2500) at the upper edge of a downtrending channel that began during the 2007/08 financial crisis.
Its next resistance sits at 1.3055, a major Fibonacci resistance level taken from the 2000 lows to the peak prior to to the financial crisis. Fibonacci support sits below at 1.2134.
Momentum is in uptrend on this timeframe and still rising, but has yet to match the all-time high set in March of 2011.
It was interesting to see how cryptos were spiking after our oh-so-important, oh-so-vital Federal Government shut its doors. It didn’t last, though, and we’re already seeing an about-face.
UNRELATED PREFACE – – Mille grazie for the wonderful feedback from the prior post about the comments section. Your feedback was super-helpful (particular Tyler’s). Rest assured, almost NOTHING is going to change about the comments system. I honestly just have two or three tiny “housekeeping” tweaks I want to do. Really the only “change’ I was thinking about wasn’t even a change, but simply to offer a alternate means to look at the comments are a continuous stream, as opposed to being beneath a post. But the existing manner would still absolutely be intact! Again, thank you. Now, on to my late night random thoughts……….
The recent selloff in Bitcoin garnered a lot of media attention. I enjoy an objective viewpoint (unlike equities, in which I am shamelessly bearishly biased), because I don’t trade cryptos, so allow me to offer an observation about the following chart……..
Earlier this month, I did a post defining what I considered important support levels for BitCoin. In part, i said:
$14,000 (green tint) – a break here would end the series of “higher lows” in place
$13,000 (magenta tint) – a failure here would snap the lowest levels of the year so far (and the Big Round Number thing always affects traders’ nerves)
$10,600 (yellow tint) – this, I think, would send prices swiftly back into the quadruple-digits, since obviously the “besting” of the big price plunge we saw in December would renew the terror that there’s really nothing holding the beast up.
As you can see, we blasted through those first two levels. It has found support at the crucial lowest level (propped up, I suspect, by masses who know all too well what’s going to happen if it fails). (more…)
Well, as equities continue their insane, unprecedented, history-making melt-up……
Only the Lord knows where these will be when I post this hours from now (I’m trying to store up a few posts while I’m still conscious), but what the heck – – as of this moment, Bitcoin has cracked below its first important support level at $14k……….(UPDATE: I’m in Bratislava, Slovakia now, and I see it’s still below $14k, so there ya go).
Since last night’s USD/JPY drop didn’t amount to a hill of beans (quite the opposite – -ES and NQ are both green now, naturally), let’s turn our attention to the one space that typically has interesting action; cryptos. Specifically, Bitcoin.
As we all know, two big exchanges launched Bitcoin futures last month, one December 10 and 17. Interestingly, the 17th was (so far, at least) the lifetime high for the instrument. After trading at about $20,600, it lost about half its value, only to recover most of that loss based on well-founded BTFD mentality as well as a big positive push by Peter Thiel.