Cryptocurrencies take a hit as USD bounces back following USTR news
- Cryptocurrencies fall as USD strength kicks in
- Indicators turn bearish on the 4-hour chart
- ETH/USD looks to be heading back to the 200.00 psychological support
The likes of BTC, ETH and XRP have all fallen in tandem after news of a tariff delay on China was announced.
The chart below shows a 4-hour chart of ETH/USD falling 1.49% from 208.35 to 205.94 after the measures were announced. Cryptocurrencies have been threatening a move lower all day after Bitcoin flirted with the 11,120.00 area all morning. Maybe now traders have the catalyst for a break to lower support zones.
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Looking at the chart now, you can see that the RSI indicator broke the 50 mid-line and hangs around the 35 point, while, still sloping in a downward fashion. The MACD is also setting up for a bearish crossover with the histogram hugging the mid-line and the moving averages converging to cross over. From a candlestick perspective, purists will be upset that the hammer rejection candle before this one was not successful but that is the nature of trading, one must look for a confluence of signals for confirmation.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
