Dollar under pressure as crypto momentum accelerates

Frank Walbaum

Important News this week

Dollar under pressure as crypto momentum accelerates

The US Dollar remains under pressure, supporting risk assets and keeping the broader market backdrop constructive. Equities are mixed, however, with technology stocks losing momentum while consumer stocks perform better. Chinese technology shares are moving higher, adding another positive signal for global risk sentiment.

Crypto remains particularly strong. Bitcoin and Ethereum are now posting their third consecutive strong day, with both approaching their 50-MA on the weekly chart. A break above these technical levels could release additional upside momentum and potentially attract fresh buyers.
Oil is holding relatively firm, although its upside remains limited despite the weaker Dollar. The lack of a stronger reaction could suggest that demand expectations or geopolitical risk are currently keeping the market cautious. The Japanese Yen has also turned weaker again against most major currencies since yesterday, with JPY pairs moving higher.

Market talk

The market is showing an interesting rotation: technology is losing some momentum while consumer and Chinese tech stocks are performing better. At the same time, crypto is showing much stronger breadth and momentum than equities, with BTC and ETH approaching important weekly resistance.

The next key signal will be whether the 50-MA break can be confirmed. If Bitcoin and Ethereum move clearly above these levels while the Dollar remains weak, risk appetite could strengthen further. A Dollar recovery, however, could quickly put pressure on both crypto and metals.

Tendencies in the markets

Equities mixed, USD weak, BTC strong, ETH strong, oil sideways, metals strong, JPY weak.

Author

Frank Walbaum

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