On the daily chart below for the
Nasdaq, we can see that after a brief fall below the range created just beneath
the key 12274 resistance, the price rallied back strongly
and it’s now back again at the resistance. The latest rally was helped by
better than expected data in the US
GDP report
and the beat in Jobless
Claims after several weeks of misses.

The bad news though is that the ISM
Manufacturing PMI yesterday beat forecasts and the inflation and
employment sub-indexes returned back into expansion. As long as employment
remains strong with a falling inflation the stock market can rise, but it’s
harder to do so when inflation remains persistently high as well as that may
force the Fed to keep hiking rates.

On the 4 hour chart below, we can
see that the buyers may still be targeting new higher highs with the big bullish
flag pointing to a 13000 extension. The latest bounce from the 50% Fibonacci
retracement level had no pullbacks and given that the price is
back at the key resistance and the ISM data yesterday is not that bullish, we
may see a pullback here and probably again some consolidation.

On the 1 hour chart below, we can
see the recent fakeout highlighted by the orange circle and then the rally back
towards the top of the range. This week is packed with top tier economic
events like the ISM PMIs, the FOMC and the NFP, so we may see another breakout
but the direction will be given by the data. More inflationary pressures should
be negative for the market, while strong labour market data with easing
inflationary pressures should be positive.

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

• Some further tightening may be required to meet that objective
• We will do what is necessary to bring inflation back to target
• We are not on a pre-set course
• Paying attention to consumption, inflation, jobs, global economic developments
• Australian dollar had responded to change in rates outlook since April pause

That last point is subtle but perhaps it warrants more attention.

If the RBA had paused today and the Fed hikes tomorrow, it would result in the widest spread between Australia and US interest rates ever in favour of the latter. The prospect of that could lead to an even weaker aussie, which would not help with the inflation battle, and make that a tougher job for the RBA.

AUD/USD remains little changed amid the above remarks, still holding at 1% gains around 0.6695 currently.

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

Bitcoin fell
all day yesterday, losing around 6% to $27.6K, raising the question of whether
we are seeing the start of a prolonged decline.

Bitcoin
closed below its 50-day moving average on Monday. The price stays below that
curve and is stuck at $28.0K after rising 1.3% to today. If it
can’t quickly surpass it again, Bitcoin’s fall below $27K will pave the way for
a move to $22K, where the 200-day passes, which became a turning point in
March.

Twitter
analyst Bluntz, who predicted a bear market bottom for BTC in 2018, expects Bitcoin
to fall to $25K. In his view, the first cryptocurrency is unlikely to break
$30,000 soon. BTC has completed a 5-wave and is now in a corrective A-B-C
formation.

News background

Cryptocurrencies
will outperform other asset classes amid the continued devaluation of fiat
currencies and the ongoing banking crisis, Real Vision CEO Raul Pal said
following the bankruptcy of First Republic Bank (FRB).

Peter
Brandt, tech analyst and head of Factor LLC, believes Bitcoin will soon
overtake all other cryptocurrencies and „bury all the imposters“. He
pointed to the chart of the BTC dominance index, which he believes is poised for
a breakout after two years of consolidation.

According to
Santiment’s research, crypto asset prices in April were „very broadly
dispersed“ and barely correlated with each other.

This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.

This article was written by FxPro FXPro at www.forexlive.com.