Daily Analysis | 18 December 2017
On Friday Bitcoin broke the 17000US Dollars barrier and reached a new all-time high during today’s Asian morning. Despite arguments that there is no clear fundamental reasoning, most analysts tend to agree that the anticipation of the CME Bitcoin futures market opening on Sunday pushed the cryptocurrency higher on Friday and was the driver of any value increase during today’s Asian morning. As mentioned in a previous analysis, the accommodation of Bitcoin by Cboe and CME could signal a possible entering of large institutional investors. Among the arguments for and against bitcoin, Deutsche Bank’s Chief Economist Peter Hooper stated that “it is here to stay” however the bigger it becomes the more regulatory interest it will attract.
Bitcoin rose on Friday to break the 17000 (S1) (at the time resistance line now turned to support line) and continued to rise during the Asian morning finding resistance at 19123, just before the 19500 (R1) resistance level. Should the cryptocurrency continue to rise it could break the aforementioned resistance line and aim for the 21000 (R2) resistance zone. On the other hand, should the bears take the driver’s seat it could break the 17000 (S1) support hurdle and aim for the 15580 (R2) support level.
- Support: 17000 (S1), 15580 (S2), 12000 (S3)
- Resistance: 19500 (R1), 21000 (R2), 23000 (R3)
Media reports suggested that Republicans are quite confident that the planned tax reform will be voted into a law. Confidence rose after key dissentient Republican Senators issued positive statements about voting the tax reform. Republican Party officials stated that the vote could take place as soon as tomorrow, Tuesday and be signed by president Trump by Friday.
USD/JPY rose during the European day and continued to trade in a sideways manner between the 112.00 (S1) support line and the 113.15 (R1) resistance level. Should there be favorable reports about the US tax reform the pair could break the 113.15 (R1) resistance level and aim for the 113.80 (R2) resistance zone. Should the bears take the driver’s seat the pair could break the 112.00 (S1) support zone and aim for the 111.70 (S2) support level.
- Support: 112.00 (S1), 111.70 (S2), 110.75 (S3)
- Resistance: 113.15 (R1), 113.80 (R2), 114.80 (R3)
In Today’s highlights
We get Eurozone’s final inflation figure for November
As for the rest of the week
On Tuesday RBA’s last meeting’s minutes will be released and Germany’s Ifo Business climate for December are due. On Wednesday Riks Bank’s interest rate decision is expected while we get New Zealand’s GDP figures. On Thursday BoJ will announce its interest rate decision and we get the final US GDP figure for Q3 as well as the US CPI rate for November. On Friday we get the final UK GDP figure for Q3 as well as US Durable Goods Orders data.
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