FxPro: Appetite for the risk caused the total growth from Oil to Bitcoin

EURUSD stays close to 1.1250 in anticipation of the further signals. The Swiss franc decline has been accelerating since last week. Oil rewrites 6-months highs. Bitcoin rushed above the important resistance at $5300.

EURUSD The most important currency pair on the Forex market stay near 1.1250 in anticipation of further signals. Among the macroeconomic publications can be singled out another portion of disappointing U.S. data. Existing home sales decreased by 4.9% against an expected drop by 3.8%. Last week also marked the fall of Building permits and Housing starts, contrary to expectations of growth. Today, the New Home Sales are in the markets’ focus. Weak statistics can bring the pressure back to the dollar because of fears that the weakness of the housing market is evidence of a weakening of economic activity.

USDCHF The Swiss franc has been falling over the last month, increasing the decline since the beginning of last week. USDCHF is growing for the fifth week in a row to January 2017 highs, adding 2.6%. The franc was under pressure because of increased traction in risky assets. Moreover, the Swiss currency suffered from the worsening of the eurozone. The third factor is that the pair went beyond the established trading range, that triggered the stop orders and increased the pair growth. The impact of these factors can put in the sight of market players levels near 1.03, which the pair reached at the end of 2016.

Brent Oil adds about 3% this week, rewriting almost 6 months. Brent this morning has touched $74.00 per barrel, and the American WTI has exceeded $66 on fears around possible oil deficit after supply worries around Iran and Venezuela. The relative strength index is near the maximum levels since October last year, when oil prices were near their peak levels. High values RSI increases worries about further growth, increasing the chances of corrective rollback after the growth stops.

Bitcoin Over the past day, Bitcoin has confirmed that the technical analysis works pretty well in the crypto market. The course of the benchmark cryptocurrency has jumped to $5600 on Tuesday morning (+ 6.7%) After a breakout of resistance on $5300. In the case of growth momentum, the goal for Bulls could be the area $6000-$6100. However, it is necessary to remember, that the price is influenced by many factors, therefore abrupt jumps quite can be replaced with no less unpredictable failures.

Alexander Kuptsikevich, the FxPro analyst