Central banks and politics could cause turmoil, but no longer can spur growth. Growth is far worse than what the numbers show, recession at risk of materializing.
The AUD/USD pair is seen consolidating the latest uptick to near 0.7150 region over the last hours, as the bulls await the Australian employment numbers for the next push higher.
Boosted by the strong start to the day in Wall Street, the USD/JPY pair rose to its highest level of 2019 at 110 but failed to preserve its momentum as the greenback came under a renewed selling pressure in the last hour.
China's economic growth last year dropped to its lowest rate in a generation and though there were a number of reasons for that performance the Chinese economy has been slowing steadily for the last five years.
The ECB Governing Council is expected to acknowledge the slowdown of the Eurozone economy that goes beyond its expectations at the beginning of 2019. The IMF lowered its global economic outlook for advanced economies because of downward revisions to growth in the Eurozone.
SPECIAL YEARLY FORECAST
The European Union began 2018 in reasonable economic condition. Growth in the fourth quarter of 2017 had reached 2.8% annually, matching the best since the financial crisis.
A new day begins in Europe and the crypto market rises in the same place in which it awoke yesterday. However, it was not a quiet day at all. Yesterday I remarked in my article that it was possible that there were bearish rejections and so it was.
Litecoin has not been able to come out of the resistance channel following the selloff in the second week of January 2019. The declines found refuge at the 38.2% Fib retracement level taken between the last high at $41.59 and a low at $22.63.
Ripple’s XRP is still locked in the confines of a channel we explored in an earlier published price analysis. There was an attempt to correct above the trendline resistance, however, the bulls were unable to sustain the trend after hitting a snag at $0.3240.
This year 2019 is going to be an essential one for Bitcoin without no doubt. After more than ten months of continuous falls, the next twelve months will be decisive for the long-term future of Bitcoin.
ECB monetary policy decision and Markit PMIs to take center stage this week
The EUR/USD pair aims to close the week to the downside but within familiar levels, hovering around the 1.1400 level, not far from a weekly low of 1.1366. The common currency took a dive after a German report showed that the country's growth was the slowest in 5 years in 2018, just 1.5% up.
EUR/USD is treading water in the mid-1.1300s as uncertainty about US-Chinese relations, global growth, and also Brexit continue weighing on investors' minds.
The Technical Confluences Indicator shows that the pair faces a wall of resistance at around 1.1405 which is a dense cluster of potent resistance lines including the Fibonacci 38.2% one-week, the Simple Moving Average 200-4h, the Fibonacci 161.8% one-day, the Pivot Point one-day Resistance 2, and the Fibonacci 38.2% one-month.
The next noteworthy cap is close: 1.1440 where we see the convergence of the Fibonacci 23.6% one-month, the Fibonacci 61.8% one-week, the SMA 100-4h, the Bollinger Band one-day Middle, and the PP one-day R3.
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