EURUSD pair trend Tuesday, February 2

EURUSD Tuesday, February 2

The short-term trend of the Euro against the US Dollar is neutral and the EURUSD fluctuates in the range of 1.2052-1-1888. From the sellers' point of view, the break of the support of $ 1,2052 could revive the correction that started from $ 1,2348. In this case, the short-term trend of EURUSD will fall to $ 1.1887 at the correction of 61.8% Fibonacci. However, in the eyes of buyers, if the EURUSD crosses above the resistance level of $ 1,2188, it can be prepared to hit the price level of $ 1,2348 again.

Economic calendar Tuesday, February 2

Economic calendar Tuesday, February 2

An overview of the cryptocurrency market today

An overview of the cryptocurrency market today

After a sharp drop that caused Bitcoin to hit $ 32,000 again, the asset improved and rose to close to $ 34,000. However, the dominance of bitcoin continues to decline following the dominance of some alternative coins over the currency, including Ripple.

Touch the $ 34,000 level

The market's top cryptocurrency hit a sharp uptrend in bitcoin on Friday after changing the biography of Tesla CEO Ilan Mask's Twitter account.

The asset reacted sharply to the move, adding about $ 7,000 in just a few hours. However, the highly volatile nature of the market has once again manifested itself with the same intensity as the Bitcoin reform.

Although the currency seemed to have calmed down to around $ 34,000, a sudden drop of more than $ 2,000 yesterday pushed it to its daily low of $ 32,000 (on Bitstamp). However, BTC was able to offset the loss to a large extent and is now trading at less than $ 34,000.

From a technical point of view, the first lines of resistance will be $ 34,000, $ 34,450 and $ 35,000 if Bitcoin continues to grow. In contrast, support levels of $ 32,500, $ 32,000 and $ 31,200 will help the currency if prices fall.

Most replacement coins have been relatively stable over the past few days with prices falling or rising slightly. Atrium fell less than 3 percent to $ 1,315. China Link (3.5%), Polkadat (3%) and Cardano (2-%) are examples of the top 10 currencies on the market that are seen in red today.

In contrast, Bitcoin Cash (1.3%), Bainance Coin (3%) and Stellar (3%) have seen some price increases.

However, Ripple still performed best. After several weeks of unfavorable price movements due to allegations made by the US Securities and Exchange Commission, the price of XRP has risen sharply in the past few days.

In the last 24 hours alone, the Ripple native token has grown 50%, reaching $ 0.67, up 160% from Friday. While some believe that the dramatic increase is due to Ripple's response to the SEC, others speculate that a similarly priced pump has occurred with GameStop and Dogecoin.
PancakeSwap (34%), Dogecoin (30%), Flow (30%), Siacoin (18%), The Graph (17%), Compound (15%), Ampleforth (12%) and EOS (10%) Growth has been observed in 24-hour timeframes.

The rise in the price of altcoins led by Ripple has reduced the dominance of bitcoins by 62%. This figure shows a decrease of about 3% since Friday.

Finally, the total market value of cryptocurrencies remains above the $ 1 trillion mark.

Fundamental analysis of the Forex market and the European stock market

Fundamental analysis of the Forex market and the European stock market

Global stock indices have grown along with future US stock indices. However, the recent performance of small traders in the US stock market has worried everyone. In China, the Chinese government is battling a liquidity crisis in its financial system. The most significant price movement in the market is related to silver price fluctuations (XAGUSD). The price of silver has reached the $ 30 range for the first time since 2013. The reason for the rise in silver prices is what is happening on Reddit, and it seems that small investors have entered the silver market as a group.
In Europe, the Stoxx Europe 600 stock index has grown by 1%. Shares of companies related to the silver market recorded the highest growth. The MSCI Asia-Pacific Index is also up 1.7 percent, its biggest gain in three weeks. In the Forex market, we are seeing a strengthening of the British pound. It is said that in the UK, all people eligible for the corona vaccine have received the vaccine. The market is waiting for the official confirmation of this news.
Meanwhile, the future price of silver has increased by 12%. On Friday, the largest tradable silver fund faced an investment of $ 944 million. BlackRock is a tradable silver fund. In the United States, ten Republicans have proposed an alternative to Biden's bailout package. The volume of this financial package is $ 600 billion.

Fundamental analysis of the US dollar

Fundamental analysis of the US dollar

Why does the US dollar index not fall?
While we have seen a steady decline in the US dollar index over the past ten months, last week's fluctuations have shown how the US dollar will strengthen. Investors are flocking to US Treasury securities as volatility intensifies and risk aversion flows across markets. Last week, the VIX index recorded its highest overnight jump in three years. The index reflects the fear of US stock market investors.
Risk aversion supported Treasury bills and the US dollar. Also, from the beginning of 2021, we are witnessing the formation of a price floor in the US dollar index. The US dollar index is looking for a price floor as the Dow Jones, S&P 500 and NASDAQ stock indices have risen during this period. The reason for the US dollar index floor is changes in the rate of return on treasury bonds. The market has long focused on changes in Treasury bond yields. Biden's new financial package has boosted Treasury yields. Rising Treasury yields and the Federal Reserve's gradual exit from expansionary monetary policy could benefit the US dollar. That is why the US dollar index has been able to maintain its position for now.
It is unclear whether Biden's $ 1.9 trillion financial package will be approved by mid-March. The size of this package may also change. This means that investors may be disappointed in the medium term. Meanwhile, the entry of micro-investors into the shares of companies that have recently been sold by mutual funds (Short Sell or borrowing sales) has caused a heavy loss to investment funds, which may cause them to go bankrupt. Bankruptcy of large investment funds could turn into a new financial crisis in the United States. This week, US dollar traders need to look at US economic indicators in addition to GME and AMC stock fluctuations.

Weekly Gold Analysis Monday, February 1

Weekly Gold Analysis

Kitco's weekly assessment shows that as financial markets fluctuate, small investors are optimistic about the future of the gold market. However, market traders believe that traders should not focus on gold and should instead focus on silver. Last week, the price of silver rose by nearly 7%. Most of last week's silver gains were made on Thursdays and Fridays.
This week, 16 Wall Street activists took part in the weekly Kitco News review. Fifty-six percent of respondents predict that the global gold ounce trend will be bullish. Another 19 percent predict a downward trend and another 25 percent predict a market without a trend. The focus of market participants on silver price movements has also reduced the participation of small investors (Main Street). Less than 1,000 people took part in the Kitco online poll this week. 62% were in favor of the uptrend, 21% were in favor of the downtrend and 18% were in favor of the neutral trend.
Last week, small investors and market traders expected the price of an ounce of global gold to rise. However, the market has ended without significant change.

Fundamental analysis of the euro area economy

Fundamental analysis of the euro area economy

The European Central Bank (ECB) held a meeting last week without any changes in monetary policy. However, members of the European Central Bank are expected to prepare the market for monetary policy changes in the coming weeks. At present, the European Central Bank deposit rate is negative 0.5 percent and it is clear that there is no room for further interest rate cuts. In terms of the market, the chance of interest rates falling to minus 0.6 percent by the end of 2021 is almost 70 percent. However, if the European Central Bank officials point to a reduction in interest rates in the coming days, the euro will weaken. However, the downward movement of the EURUSD pair may be limited.
From a fundamental analysis point of view, lower interest rates could not have a significant positive effect on the euro area economy. In addition, the European Central Bank has focused on the fluctuations of the EURUSD currency pair. If the euro strengthens, the eurozone's economic recovery will be hampered. But a weakening euro could support the eurozone's export-oriented economy. The fact of the matter is that the European Central Bank is a long way from intensifying monetary expansionary policies, and the market knows this. In addition, the European Central Bank opposes the strengthening of the euro. Therefore, perhaps any change in interest rate expectations will have a limited effect on the EURUSD pair.
As interest rate expectations do not have a significant impact on the market, euro area economic data is expected to have a similar effect. However, new euro area GDP data will be released this week. Below are the inflation data. At the end of the week, the final assessment of PMI, unemployment rate and retail index will be published.

Economic calendar Monday, February 1

Economic calendar Monday, February 1

 

An overview of the cryptocurrency market

An overview of the cryptocurrency market

On January 29, the price of Bitcoin (BTC) reached $ 38,500 for a short time before a sharp correction and reached $ 35,000.

This sharp resistance defeat in the price of Bitcoin is largely attributed to Ilan Mask and the change of his Twitter profile to Bitcoin. Dodge Quinn, on the other hand, continues its hype on Twitter and among traders. The DOGE price adjusted to 41% after reaching a record high of $ 0.078, before returning to $ 0.045.
These developments are related to the creation of the Wall Street Bets Index (WSB) in the FTX exchange. It tracks the prices of Nokia (NOK), BlackBerry (BB), AMC Theaters (AMC), GameStop (GME), Silver (SLV), DOGE and FTX tokens using their weighted average price.

Bitcoin price stability despite the sale of miners
Despite recent fluctuations, corporate investors are still showing more interest in bitcoin and are even willing to pay premiums for using bitcoin CME futures contracts.

Even the selling pressure created by bitcoin miners, at levels that have been unprecedented since the price increase to $ 14,000 in July 2019 (July 98), has not met the growing demand for this currency. Unlike previous years, mass sales by miners have not had a negative impact on the long-term price of BTC.

The growing interest of organizations and the advent of DeFi are the main reasons for the growth of bitcoin prices. As the Chinese New Year approaches, the main support level to watch out for is $ 34,000, while the resumption of the currency's uptrend will face resistance at $ 38,000.

The expiration of $ 4.9 billion in BTC futures on January 29 also did not seem to have much of an impact on the market, as Robinhood last week's move attracted more people to the cryptocurrency industry.

Altcoins growth signals
While Bitcoin is struggling to stay above $ 34,000, DOGE has found its way into the top 10 currencies in the market, and a number of Altcoins have seen bullish failures.

Ripple (XRP) and Stellar (XLM) have both grown by almost 9% in the last 24 hours, while Voyager Token (VGX) continues to climb higher. The currency is currently trading at $ 1.77 with 70% growth.

Atrium is trading with a 3.51% increase in 24-hour timeframe at $ 1344. Polkadat, despite a 0.93% price increase, still shows a 9.01% decline on a weekly basis. The currency is currently trading at 16.51%.

The total market value of cryptocurrencies is currently $ 1.01 trillion and the bitcoin dominance rate is 63.5%.

Review of the Dow Jones index-January 30

Review of the Dow Jones index-January 30

 

The support and resistance ranges of the Dow Jones index are shown in the figure. If either fails, the next targets (both support and resistance) will be available.

Be Different ...

Hamid Rahathagh