Cryptocurrency rally accelerates into the new year

OctaFx Analyst Team OctaFX

The price of cryptocurrencies continued to roar during the weekend as investors increased their bets about higher demand. Bitcoin soared to more than $34,000, pushing its market capitalisation to more than $600 billion. Ethereum rose to above $1,000 while Bitcoin Cash soared to $420. In total, the value of cryptocurrencies rose to above $890 billion, according to data by Coin Market Cap.

The Australian dollar rose in early trading after relatively strong manufacturing PMI data from Australia and China. In a report, Markit said that the country’s manufacturing PMI increased from 55 in November to 55.7 in December. While this reading was slightly below the consensus estimates of 56, it was above 50, which is a positive sign for the industry. Meanwhile, in China, data by Caixin showed that the manufacturing PMI fell from 54.9 to 53.9.

The British pound rose in early trading as traders remained optimistic about the future of the British economy after the country completed its separation from the European Union. Still, there are some significant worries about the rising number of coronavirus cases even as the country continues to deliver vaccination shots. Later today, the pair will react to the latest manufacturing PMI data by Markit and mortgage approvals by the Bank of England.

EUR/USD

The EUR/USD pair soared by more than 1% to a high of 1.2260. This price was slightly lower than the 2020 high of 1.2311. On the daily chart, the price is higher than the 25-day and 50-day exponential moving average. Similarly, oscillators like the Relative Strength Index (RSI) have continued to rise. Therefore, the path of least resistance for the pair is higher.

GBP/USD

The GBP/USD pair rose to an intraday high of 1.3690, which is the highest it has been in more than two years. On the daily chart, it is above the short and faster-moving average. It is also slightly below the upper side of the ascending channel shown in red. As the EUR/USD, oscillators like the Relative Strength Index and MACD have continued to rise, the pair will possibly rise again today.

ETH/USD

The ETH/USD pair soared to a three-year high of 1,000 as the demand for digital currencies continued to rise. On the daily chart, the price is along the upper side of the Bollinger Bands, which is a bullish sign. It is also above all moving averages while the oscillators have continued to rise. Therefore, the pair will likely continue ascending today, although a pullback is also possible.

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OctaFx Analyst Team

OctaFX

OctaFX is a market-leading forex broker, providing personalised forex brokerage services to customers in over 100 countries worldwide.

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