That is helping to fuel a continued surge since overnight trading, with ETH/USD now up to test the April high at $3,729 earlier. But much like the story was for Bitcoin earlier this year, is this going to be another case of buy the rumour, sell the fact?

Of course, Bitcoin has recovered from that minor setback in late January to rally strongly to fresh record highs since. But Ether might not be that fortunate considering its secondary status to Bitcoin itself. We’ll see though.

As for the ETF applications itself, this week will see decisions for VanEck and Ark Invest. They are both due on Thursday and Friday respectively.

The optimism here is also pushing the likes of Bitcoin higher, with price there contesting the $71,000 mark with the high earlier today nearly clipping $72,000.

This article was written by Justin Low at www.forexlive.com.

The USD has been
generally under pressure since the benign US CPI report last week as the
hawkish expectations subsided and the market switched its focus from inflation
back to growth. This triggered a positive risk sentiment with risk assets like
stocks and bitcoin gaining ground. Such an environment is generally negative
for the greenback and positive for commodity currencies like the NZD.

NZDUSD Technical
Analysis – Daily Timeframe

On the daily
chart, we can see that NZDUSD broke above the trendline
following the US CPI report and consolidated around the highs. This has opened
the door for a rally into the 0.6217 swing level and should give the buyers
more conviction.

NZDUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour
chart, we can see that from a risk management perspective, the buyers will have
a much better risk to reward setup around the upward trendline where they will
also find the 50% Fibonacci
retracement level for confluence.
The sellers, on the other hand, will want to see the price breaking lower to
invalidate the bullish setup and position for a drop into the 0.60 handle.

NZDUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour
chart, we can see that we’ve been stuck in a range between the 0.6095 support
and 0.6140 resistance. A break to the downside should see the sellers extending
the drop into the trendline around the 0.6070 level. On the other hand, a breakout
to the upside is unlikely today without a strong catalyst as we have the upper
limit of the average
daily range right at the resistance.

Upcoming
Catalysts

Tomorrow we have the RBNZ policy decision where the central
bank is expected to keep everything unchanged. On Thursday, we will get the
latest US PMIs and Jobless Claims figures.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• But inflation should only return to BOE’s target on a sustained basis in early 2025
• UK economy set for a soft landing, following the shallow recession in H2 2023
• Sees UK GDP at +0.7% after stronger than expected Q1 data (previous forecast was +0.5%)
• Sees UK GDP at +1.5% in 2025 (unchanged)

Traders are currently seeing two rate cuts for the BOE, with the first one currently baked in for August. But a move in June might be brought into consideration, subject to the UK CPI report tomorrow.

This article was written by Justin Low at www.forexlive.com.

The USD has been
generally under pressure since the benign US CPI report last week as the
hawkish expectations subsided and the market switched its focus from inflation
back to growth. This triggered a positive risk sentiment with risk assets like
stocks and bitcoin gaining ground.

Such an
environment is generally negative for the greenback and positive for commodity
currencies like the AUD which should also be supported by the positive
developments in China and the RBA likely on hold into 2025.

AUDUSD Technical
Analysis – Daily Timeframe

On the daily
chart, we can see that AUDUSD last week finally broke above the key resistance
zone around the 0.6650 level. The price pulled back soon after into the resistance-turned-support
in what could end up being a “break and retest” pattern.

AUDUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour
chart, we can see that the price is consolidating at the support zone where we
can also find the confluence
of the trendline
and the 50% Fibonacci
retracement level. This is where the buyers are stepping in with a defined
risk below the trendline to position for a rally into the 0.6870 high. The
sellers, on the other hand, will want to see the price breaking lower to regain
control and push the pair into the 0.6579 level.

AUDUSD
Technical Analysis – 1 hour Timeframe

On the 1 hour
chart, we can see that the recent price action has been mostly rangebound as
the market awaits new catalysts to push it in either direction. From a risk
management perspective, the best spot for the buyers to go long would be right
at the support zone as they will have a defined risk just below the trendline
and a great risk to reward setup to target the 0.6870 high. The sellers should
wait for a break below the trendline before considering new short positions.

Upcoming
Catalysts

This week is basically empty on the data front with the only
highlights being the Australian and US PMIs on Thursday.

This article was written by Giuseppe Dellamotta at www.forexlive.com.