• Bitcoin has risen lately but seems to have past the oversold zone at the 4 hour candle timeframe
• The 2.5 to 1 reward vs risk here, along with the fact that Bitcoin may be exhausted at the top of the range, makes a short position consideration legit
• Entry Price for the Bitcoin short position: $21299
• Stop Loss: $22004 (risk 3.31%)
• Take Profit: $19533 (target a gain of 8.29%)
• Reward vs Risk for this Bitcoin short position: 2.5 to 1

Bitcoin Trade Idea Chart

Bitcoin Technical Analysis and Trade Idea Video:

Always trade Bitcoin at your own risk only.

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— Paolo Ardoino (@paoloardoino) July 9, 2022

This article was written by ForexLive at www.forexlive.com.

Sri Lankan President Rajapakse and Prime Minister Wickremesinghe were forced to flee today after enormous anti-government protests. Huge crowds stormed official government buildings and took over the President’s home. Videos showed protestors swimming in his pool.

The Prime Minister’s home was set on fire.

The speaker of the legislature is trying to pull together an all-party government to stabilize the situation. He said President Rajapakse will step down on July 13.

The officials were moved to safe locations in anticipation of today’s protests, which were a sharp escalation of recent demonstrations. The catalyst has been a fuel shortage in the country.

The heavily-indebted country of 22 million has more than $15 billion in dollar-denominated debt and $45 billion overall. It has failed to make payments for oil and gasoline deliveries and that caused severe rationing from the government.

High commodity prices, rising rates and the strong US dollar are a toxic mix for heavily-indebted countries, especially those with large current account deficits. Here’s a ranking of some of the most-vulnerable spots:

Aside from the potential turmoil in these countries, it’s an open question whether similar crisis‘ trigger a broader global growth slowdown. The names at the top of this list are insignificant for global demand but as you go down the list, names like Pakistan, Egypt and Brazil stand out. The one I think that’s inevitably heading towards trouble is Turkey because of its chaotic monetary policy and large current account deficit. Time will tell.

This article was written by Adam Button at www.forexlive.com.

• Prior -0.2% m/m
• CPI 2.5% y/y vs 2.4% expected
• Prior y/y 2.1%
• PPI +6.1% vs +6.0% expected
• Prior PPI +6.4% y/y

China is in a good position to add some stimulus as inflation runs lower than most parts of the world. That’s exactly what reports suggest they do as 2023 infrastructure spending may be pulled forward.

This article was written by Adam Button at www.forexlive.com.

MUFG Research is holding two trades in its portfolio this week, adding EUR/USD shorts and maintaining a long position in USD/CAD as it tests the highs of the year.

The new EUR/USD trade is from spot with a target of 0.97 and a stop at 1.04. That would be a quick move through parity, perhaps running stops.

„We are recommending a short EUR/USD trade idea to reflect our stronger conviction that the pair will soon break below parity,“ MUFG notes.

We are maintaining a long USD/CAD trade idea to reflect the increasing risk that the CAD will weaken further in the near-term on the back of intensifying fears over a sharper slowdown in global growth.

The target in trade was 1.3400 with a stop at 1.2600.

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.

This article was written by Adam Button at www.forexlive.com.