Daily market recap for 12.06.2018
Bitcoin continues to have a hard time as well as the other crypto coins as the price continues its movement down with acceleration. After the opening of the gap for some time, the price moved into a range. After that at some point in the US session, the price moved rapidly down. The price has reached the bottom from 06.04.2018 where the last time it bottomed and turned positive. Price has moved under 6500 and it may stay there for some time because the downside pressure remains bias. Currently, I think that as it has reached the bottom now from 04.06, I think it will bottom again for a move up to cover the gap. For this to happen we need to see a confirmation - Doji candle or Bullish ingulfing one or a sharp change in sentiment. This may be delayed of course as the price still needs to reach the bottom from 06.02.2018 or to try to test it as this is the second bottom to test if the price manages to breach the one from 06.04.2018. The big problem will be if the triangle formation starts to play out with a big acceleration to levels that some may think its impossible to drop to. This, of course, will create panic in the market participants and selling will reach bigger momentum.
The Euro manages to hold above as on the bottom we have 1.17323, Price is in a small range for now as for today we have the FED rate decision and press conference. Bets are that again they will hike. With how much? Let's not get too much into the Casino rhetoric. The market has already placed their bets in the FOREX and Equities markets and everyone will expect the events later on today. We all know the drill - USD goes up to the roof, Gold down and Stocks up. We will see what happens of course. The wisest thing to do will be to execute your trades after the dust settles as rhetoric may shift the first impressions that have been laid out after the rate numbers. Overall we are going to see a whip-saw and 50 to 100 pips movement everywhere. So it is good to ask: What happens after the FEDs raise the rates?