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Forex Today: Bitcoin threatening a major bullish breakout

Forex Today: Bitcoin threatening a major bullish breakout

Bitcoin appears close to making a major bullish breakout above the $31,000 area.

➡️ Bitcoin closed yesterday below what appears to be a very crucial round number at $31k, but the price action remains bullish, suggesting a major bullish breakout may be underway.

➡️ Asian stocks lower on poor Chinese PMI data, with the Hang Seng Index and Nikkei 225 Index both lower on the day.

➡️ The Japanese yen remains the weakest major currency in the long term. Friday saw the USD/JPY currency pair make a new 7-month high above 145 yen, but it is now stuck below that level as the threat of intervention by the Bank of Japan to push the rate lower remains . Trend traders will remain interested in staying against the Japanese Yen, which also hit a multi-year low on Friday against the euro.

➡️ In the Forex market, the New Zealand dollar was the strongest major currency during the Asian session, while the Japanese yen was the weakest. The US dollar is continuing to rise weakly today after last week's rally, with the dollar index starting to suggest that it may soon establish a new long-term uptrend technically, but its chart pattern is still strongly indicative of consolidation .

➡️ OPEC announced further production cuts by Russia and Saudi Arabia, but this did not produce any significant increase in the price of crude oil.

➡️ Cocoa futures continue to rise to new multi-year highs, attracting trend traders to the Long side. The move is driven by strong demand and poor harvests in parts of Africa.

➡️ Today there will be a release of the most recent FOMC meeting minutes, which will be important as it could convince traders that the Fed will make a second rate hike after July. If so, this will likely boost the US dollar and the US 2-year Treasury yield.

 

Credit by DailyForex.com

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