Bitcoin prices rebound as investors rush to buy the dips
Cryptocurrencies rebounded today after crashing during the weekend. According to CoinMarketCap, Bitcoin prices have jumped by more than 8% in the past 24 hours. Ethereum rose by more than 8% while other altcoins like Binance Coin, Ripple, and Cardano rose by more than 5%. Cryptocurrency prices have been relatively volatile in the past few weeks after Elon Musk announced that Tesla would stop accepting Bitcoin. Concerns about high interest rates as US inflation rose and the labor market tightened. Further, investors have worried about the ongoing crackdown of finance companies in China.
The New Zealand dollar was little changed after the relatively strong retail sales numbers. According to the country’s statistics agency, retail sales rose by 2.5% in the fourth quarter after falling by 2.7% in the fourth quarter, The core retail sales rose by 3.2% after falling by 2.9%. This performance was mostly because of electronics spending, which rose by more than 8%. It was offset by a sharp decline in fuel retailing. The New Zealand dollar will be in the spotlight this week as the Reserve Bank of New Zealand (RBZD) is set to deliver its interest rate decision on Wednesday. The statistics agency will also deliver the latest trade numbers.
The price of crude oil rose sharply today as investors reacted to the latest hitch on Iran’s nuclear talks. This happened after Iran’s speaker of parliament said that the three-month monitoring deal between Tehran and the UN had expired. Just last week, the European Union warned that failure to extend the deal would slow talks between the US and the country. Joe Biden’s administration has remained committed to have a strong deal to prevent the country from developing nuclear weapons. However, Iran has been skeptical of any deal since it can be undone by a new president. A deal would lead to more than 1 million barrels of crude oil to global supplies.
The NZD/USD pair is trading at 0.7174. On the four-hour chart, the pair is slightly above the intraday low of 0.7150. It has also moved below the 25-day and 15-day exponential moving averages (EMA). The pair has also formed a head and shoulders pattern, which is usually a bearish sign. The signal and main lines of the MACD are also below the neutral line while the price is between the 61.8% and 50% Fibonacci retracement level. Therefore, the pair may break out lower ahead of the RBNZ decision.
The EUR/GBP pair rose to an intraday high of 0.8650 in a relatively quiet day for European markets. On the four-hour chart, the pair managed to retest the upper side of the ascending channel that is shown in pink. The pair has also moved above the 25-day and 15-day exponential moving averages. It is also slightly above the 38.2% Fibonacci retracement level while the Relative Strength Index (RSI) has moved to 61. Therefore, the pair may keep rising as bulls target the 23.6% retracement at 0.8660.
The EUR/USD pair rose to an intraday high of 1.2200 after it tested the lower side of the ascending channel. The ascending trend is being supported by the 25-day and 15-day moving averages. It is also slightly below the year-to-date high of 1.2242 while the Relative Strength Index (RSI) has moved to the neutral level of 56. The pair may keep rising during the American session as bulls target the upper resistance at 1.2242.