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Forex Forecast and Cryptocurrencies Forecast for April 19 - 23, 2021


First, a review of last week’s events:

- EUR/USD. The past week was marked by two important economic events: impressively strong macro-statistics from the USA and a collapse in the yield of 10-year US government bonds.
According to the data published on Thursday April 15, US retail sales jumped by +9.8% in March (against the forecast +5.9% and a fall of -2.7% in February), which is the best indicator for the last 10 months. What is happening on the labor market also shows an active recovery of the country's economy. Thus, the number of initial applications for unemployment benefits fell from 769 thousand to 576 thousand. And this is not just better than the predicted 700 thousand, this is the lowest level since the beginning of the COVID-19 pandemic. Industrial production grew by 2.7%.
All these figures clearly indicate the rapid growth of US GDP in the first quarter of 2021. and allow us to speak with confidence about its continuation in the coming months. Against this background, the collapse in the yield of American Treasuries, the strongest since the beginning of last November, looks surprising. If at the end of March, the yield on 10-year bonds reached a local multi-month maximum of 1.775%, now it has fallen to 1.583%.
Along with bonds, the dollar is weakening. The USD DXY index is trading in the 91.5 zone on Friday, April 16, which is 180 points below this year's high of 93.3. As a result, as predicted by most experts (65%), the EUR/USD pair continued its growth last week, coming close to the important support/resistance level of 1.2000 and ending the five-day period at 1.1980.
This situation suggests that strong economic statistics from the United States can no longer provide serious support to the US currency. And the latter is now more correlated with the yield on Treasury bonds. Apparently, the rate of vaccination against coronavirus has already been taken into account in the USD quotes. And new fiscal stimulus programs and endless printing of new money by the Federal Reserve started working against the dollar. Its weakening has already gone beyond the usual correction, heating up the risk sentiments of investors: in addition to the euro, the currencies of commodity and developing countries are also growing, and the S&P500 index renews its all-time high for the 22nd time this year;

- GBP/USD. The weakening dollar supported the British currency, the fall of the GBP/USD pair stopped, and it even managed to climb 120 points. Thus, its movement over the past four weeks can be defined as lateralin channel 1.3670-1.3920. As for the last chord, the pair placed it in the central zone of this channel, ending the trading session at 1.3840;

- USD/JPY. It was said above about a sharp drop in the yield on 10-year US Treasury bonds. Experts call the coverage of short positions by hedge funds, as well as the return of Japanese buyers to the market, among the possible reasons for this collapse. They were actively getting rid of American bonds at the end of the financial year, but they began to replenish their investment portfolios with them now. This led to an increase in demand for the yen, which, thanks to the negative interest rate, they use to finance such operations.
One of the scenarios pronounced a week ago suggested that the weakening of the dollar and the strengthening of the yen would push the pair USD/JPY towards the support of 108.40. This is exactly what happened: starting from the level of 109.65, the pair dropped to the horizon 108.60 by Thursday, April 15, followed by a small rebound and a finish at 108.80;

- cryptocurrencies. What has been so much anticipated over the past eight weeks has come true: Bitcoin has finally broken through the $60,000 horizon and is now trying to gain a foothold above this important psychological level. The new historical high was the height of $64,800, which the BTC/USD pair reached on Wednesday April 14. However, a correction followed, and the bulls were struggling to prevent the main cryptocurrency from falling below $60,000 for the whole of Friday, April 16.
According to the Forbes rating, thanks to the growth of bitcoin, its creator under the pseudonym Satoshi Nakamoto got into the top 20 richest people in the world. According to various estimates, he owns between 750k and 1.1 million BTC coins, and his fortune has exceeded $60 billion now.
But if Nakamoto became the owner of countless crypto-treasures a long time ago, then the current large investors are only at the beginning of their journey. According to the analytical service Santiment, the so-called "whales" continue to accumulate bitcoins. Analysts found that they have accumulated up to 2.2% of the total cryptocurrency market supply so far, reaching an 11-month high. A similar situation was observed at the beginning of May last year. As the Santiment report says, we are talking about investors controlling 100,000 or more BTC.
Along with the "whales", for the first time since December 2020, miners have also started to accumulate savings, which creates a shortage of supply and contributes to an increase in the price of the main digital asset.
Miners receive income in cryptocurrency, but they pay fiat to service and equipment providers, so they are forced to sell part of the mined coins. The volumes of such sales depend on current market conditions and expectations of the bitcoin price. Starting from March 31, miners started accumulating BTC reserves again. Whereas for four months before that, they reduced their positions, converting bitcoins to fiat. The largest volumes of cryptocurrency, from 17,000 to 24,000 BTC per day, were sold by them in January 2021.
“Miners have switched to accumulating digital assets, because they have enough cash reserves to support their activities, which they raised during the rise of bitcoin from $20,000 to $40,000. Or, most of them are holding coins in anticipation of further appreciation,” Flex Young, CEO of Hong Kong-based Babel Finance, told CoinDesk. The number of bitcoins in miners' wallets has increased to 1.806 million BTC over the past two weeks.
The growth of the BTC/USD pair is facilitated by a weak dollar and a decrease in the yield of long-term US government bonds as well. This increases the attractiveness of cryptocurrency as a hedge against inflation.
The total crypto market capitalization on April 10 finally crossed the $ 2.0 trillion bar, and never fell below it. At the time of this writing, on April 16, it is at $ 2.2 trillion.
At the same time, the share of bitcoin in the total crypto market capitalization continues to decline continuously: if it was 72.65% on January 2, then it was only 52.10% on April 16. As already mentioned, this is most likely due to the fact that speculators are switching to other, more profitable, assets.
As for the Crypto Fear & Greed Index, it rose from 70 to 78 points in a week. Both values are in the overbought zone, but they are still far from critical, and therefore cannot become a serious obstacle to the growth of the BTC/USD pair.


As for the forecast for the coming week, summarizing the views of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. As mentioned in the first part of the review, trillions of dollars of economic support programs not only increase the US national debt, but also begin to put serious pressure on the American currency. Low, close to zero interest rates do not help it either. But at the same time, the head of the FRS says that although the pace of the US economic recovery is impressive, it is not enough to even begin to discuss the curtailment of fiscal stimulus programs. According to Jerome Powell, this requires several more months of such positive results. The economy must “make even more significant progress” towards target levels of employment and inflation.
Of course, such statements are not good for the dollar and contribute to the growth of risk sentiment. But as for the other side of the Atlantic Ocean, there are more and more vigorous statements of EU officials about the imminent termination of lockdowns and the unprecedented growth of the Eurozone economy. According to the consensus forecast of Bloomberg experts, the ECB will slow down the emergency asset purchase (QE) program by July, and at the end of this year will announce its termination in March 2022.
All of the above could lead to the EUR/USD breakout of the 1.2000 resistance and its rise to the January highs in the 1.2300 area. Resistances on this path will be the levels 1.2125 and 1.2185.
However, at the moment such a bullish forecast is supported by only 25% of experts. True, graphical analysis, 100% of trend indicators on H4 and 90% on D1 are on their side. The picture is slightly different among oscillators. Only 65% of oscillators on both time frames are colored green, while the rest are already giving signals that the pair is overbought.
The majority of analysts (50%) have now taken a neutral position, believing that the bulls and the bears will be engaged in “tug-of-war” across the 1.2000 line in the near future. But the victory will still be with the dollar in the future. And, when moving from weekly to monthly forecast, the number of supporters of bears increases from 25% to 70%. In their opinion, the EUR / USD pair will test the support in the 1.1700 zone once again and, if successful, will drop another 100 points lower.
As for the events of the coming week, we should pay attention to Thursday April 22. The next ECB meeting will be held on that day. Any special changes in its monetary policy are not likely to be foreseen. However, the press conference of the management of the European Central Bank is of interest, during which investors can receive positive signals about the intentions of this regulator. If the business activity indicators in Germany and the Eurozone, which will be released the next day, April 23, also turn out to be encouraging, this could support the euro;

- GBP/USD. Problems after the UK's exit from the EU, an impressive trade deficit and the country's budget deficit continue to put pressure on the pound. And even the dollar, which weakened against other currencies, let the GBP/USD pair get just a sideways trend, but never return to sustainable growth.
The British currency may regain its attractiveness, especially if large capital that left it due to Brexit begins to return to the country. The pound is also supported by the successes of vaccination against COVID-19. Therefore, some analysts believe that the long-term uptrend, which began on March 20, 2020, is too early to be buried, and the pair has a chance to continue its movement to the north. 30% of experts vote for the bullish forecast at the moment. However, when switching to forecasting by the end of spring, their number doubles: up to 60%. The nearest resistance levels are 1.3920 and 1.4000.
In the meantime, the overwhelming majority of analysts, supported by graphical analysis on D1, first expect the pair to drop to the lower border of the 1.3670-1.3920 trading channel, and in case of its breakdown, the pair will move to the 1.3600 zone.
Among the events of the coming week that can influence the formation of local trends, we can note the release of statistics on the UK labor market on Tuesday April 20, data on the consumer market on Wednesday April 21, and business activity in the Markit service sector.¬ on Friday April 23. Noteworthy is the speech of the head of the Bank of England Andrew Bailey on April 21 as well;

- USD/JPY. The pair starts the next week within the zone 108.60-109.25. Recall that this is the very narrow trading range from which it could not get out for three whole weeks in March. And it is quite possible that now it will become a serious obstacle on the path of the yen to further strengthening. Graphical analysis completely agrees with this version. According to its forecast on the H4 and D1 timeframes, before continuing to move south, the USD/JPY pair will be squeezed within these limits for several days.
And 70% of analysts are sure that the pair will continue to decline. Support levels are 108.35, 107.50 and 106.00; The remaining 30% expect the pair to bounce up. Resistances are at 109.25 and 110.00, the goal is to overcome the March 31 high of 110.95 and take the height of 111.00;

- cryptocurrencies. The most optimistic forecast for the bitcoin price was given by the authors of the cult animated series The Simpsons. A running line with quotes of financial assets appears on the TV screen in the new 18th episode of season 32. The bitcoin exchange rate is marked with a green sign of infinity.
Of course, such dynamics would greatly delight investors. However, the forecasts of specialists still look much more modest. Although they also strive upward. So, according to the latest report of the Kraken exchange, its analysts, relying on historical data, admitted the growth of bitcoin by 50% in April. Taking into account that the month began at $59,000, the target of the movement could be the $90,000 mark. However, before the rally resumes, the first cryptocurrency can expect a correction of at least $10,000.
As for the second major cryptocurrency, Ethereum, Kraken predicts it could rise to $15,000. Exchange analysts noted the important, in their opinion, support and resistance levels for this altcoin: $1,462 and $2,695. Plotting historical patterns of ETH price movement on logarithmic curves, they concluded that the peak of the bullish cycle is still far away. The experts are confident that the price of Ethereum could rise by 700% from the levels of the end of March and reach a high at $15,238.
A slightly more modest forecast for the price of this altcoin was given by the famous crypto trader and host of the podcast The Wolf Of All Streets Scott Melker. According to him, Ethereum may surpass bitcoin in terms of profitability in 2021, and the price of the coin may rise to $10,000.
He revealed In an interview with Cointelegraph that he has largely switched his strategy from the first cryptocurrency to ETH in recent months. “I don’t understand why this is crazy. In fact, this is just an increase of less than five times the current price. Bitcoin almost tripled last year,” Melker told reporters. “It reminds me of investing in the Internet in the early 1990s.”
Maciej Vitkoviak looked even deeper into the history, revealing to the world a crypto-life hack of almost 40 years ago - an emulator of a vintage computer Commodore-64 from 1982, adapted for mining bitcoins. This developer has created the C64 Bitcoin Miner software specifically for this PC. He demonstrated a hashrate of 0.2 H/s on the VICE emulator, which will allow him to get a block of BTC “in just” ... 337 years and 10 months ?.
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NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

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CryptoNews

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- PayPal's Venmo mobile payment app now allows users to buy, store and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The minimum investment in cryptocurrency is just $1. In addition, you can now share the purchased cryptocurrency with friends through the Venmo social feed.
Thus, PayPal continues to expand the functionality associated with digital assets. As a reminder, more recently, this payment giant has allowed users to buy cryptocurrency through its main platform and use their crypto wallets to pay for purchases in online stores around the world.

- Popular cryptocurrency analyst Willy Woo said that Bitcoin's drawdown on April 18 below $51,000 was triggered by massive power outages in China. Due to the fact that most of the miners were temporarily out of order, the hash rate of the asset began to decline. According to Woo, the situation should stabilize soon, which will lead to further increases in the value of bitcoin.
“This is a power outage in Xinjiang province. It is one of the largest regions in China where the mining power of bitcoin is concentrated. According to the BTC Cambridge Energy Consumption Index, Xinjiang accounts for about 25% of the coin's total hashrate. It becomes clear straight away that the entire cryptocurrency market has dropped significantly precisely because of the Chinese incident,” Woo said.
According to the expert, if his theory is confirmed, then the situation with the hash rate of the asset should stabilize quickly. When the main network starts processing the same number of transactions, the value of the coin will start to rise again.

- An unknown attacker allegedly stole phone numbers and credit card details of Domino's Pizza India customers and put them up for sale for 10 bitcoins (about $550,000 at the time of writing). In parallel, the hacker demanded 50 BTC ($2.75 million) from Domino's to prevent the information from getting publicly available.
Representatives of the management company confirmed the hack but denied the leak. "In accordance with our policy, we do not store financial information or credit card information of our customers, so such information has not been compromised," said Domino's Pizza.

- Candidate for the post of New York City Treasurer Reshma Patel presented an urban development plan based on investments in blockchain businesses and cryptocurrencies.
According to her plan, this should play an important role in the restoration of the city. “My intention to run for office is due to my concerns about the financial health of New York, especially in the aftermath of the COVID-19 pandemic. It is clear that cryptocurrencies have a future in finance and a future in financial planning in New York,” Patel said. Among other things, she plans to invest in funds focused on blockchain, create a working group to explore options for direct investment in technology, and also transfer part of the city's pension fund reserves to digital assets.

- The world-famous American magazine TIME followed the path of Tesla, and in addition to investing in bitcoin, it also began to accept cryptocurrency for subscription payments. To this end, TIME has started to cooperate with the crypto payment platform Crypto.com, offering an additional reward of 10% for those who pay for the service in native Crypto.com CRO tokens.
The service is currently available in the US and Canada, but a global expansion is planned in the coming months. TIME's rapid digital transformation is the result of our commitment to new technologies and working closely with innovative companies like Crypto.com to bring our vision to life, said TIME CTO Bharat Krish.

- Bitcoin trend remains bullish. This is the conclusion reached by analysts of the Santiment resource, who analyzed the frequency of tweets with the phrase "buy the dip" and "bought the dip". With the bitcoin price dipping below $51,000 on April 18, the number of low buy posts hit a weekly record of 2,108 tweets. This allowed Santiment analysts to conclude that this correction is nothing more than a "bump in the road."
This is not the first time Santiment has used Twitter stats to gauge the market. For example, earlier the analysts used the mention of Binance coin (BNB) to determine the peak price of this cryptocurrency.

- Cryptocurrencies like bitcoin need to be considered as alternative investments. This was stated by the deputy governor of the People's Bank of China (PBOC) Li Bo. “Bitcoin and stablecoins are encrypted assets. It is an investment asset, an alternative investment, not a currency. They should play an important role in the future,” explained Li Bo. However, he stressed the associated regulatory uncertainty. According to the official, "current practices" in the form of banning the operation of bitcoin exchanges and holding ICOs will remain in force until the development of new regulation is completed, which should become similar to the regulation of the banking system.

- Former hedge fund manager and host of CNBC's Mad Money Jim Cramer called himself a "renegade" and announced the sale of his assets in the first cryptocurrency. “I know people will be mad at me, but I paid off my mortgage with bitcoin yesterday,” Kramer said on TV. The host did not elaborate on how many coins he sold. But, he said, it was half of his digital gold reserves.
Twitter users likened Kramer's move to Laszlo Hanyecz's famous 10,000 BTC purchase of pizza in May 2010.

- The Swiss giant AXA was the first of the insurance companies of this country to start accepting bitcoin for payment. To accept digital payments, the company entered into a partnership agreement with the cryptocurrency broker Bitcoin Suisse. AXA customers will be able to pay with bitcoin for all of the company's products, with the exception of life insurance. This is due to legal restrictions.
AXA has not ruled out that in the future its products can be purchased using other cryptocurrencies, but for now the company will test working with digital assets using BTC only.


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Forex Forecast and Cryptocurrencies Forecast for April 26 - 30, 2021


First, a review of last week’s events:

- EUR/USD. The US economy is showing impressive growth. Europe, on the other hand, is in a widespread lockdown and, apparently, is experiencing a second recession. The share of those who received at least one COVID-19 vaccine in the EU is 25.1%, while in the United States there are 2.5 times more of them, 63.2%. Can the euro grow in such a situation? Only 25% of experts answered positively to this question last week, and they turned out to be right: the pairEUR / USD reached the level of 1.2080 on Tuesday, April 20.
The majority of analysts (50%) believed that the bulls and the bears would be engaged in “tug of war” across the 1.2000 line. And they also turned out to be not far from the truth: the pair fluctuated up/down in the range of 1.1995-1.2080 from Tuesday until the end of the week. Although, of course, the victory remained with the bulls, since the last chord of the trading session sounded near the high of the last seven weeks at 1.2100.
There are two main reasons for these dynamics. The first one is in America, the second one is on the other side of the Atlantic, in Europe.
On the one hand, the yield on long-term US Treasury bonds continues to fall, and along with it the US currency continues to weaken. The dollar index against a basket of six major currencies (DXY) declined to 91.0, down 230 points from this year's high of 93.3. This fuels the risk sentiment of investors and continues to push the major US stock indexes up. This happens even despite the proposal of US President Joe Biden to almost double (from 20% to 39.6%) the capital gains tax for citizens with income of $1 million or more.
On the other hand, the euro was supported by positive forecasts for the rate of vaccination in Europe, in particular the news that Pfizer will increase the supply of vaccines to the EU by 100 million doses. The yield on German bonds is growing, which are beginning to catch up with their competitors from the United States. Stronger than expected statistics on business activity in the Eurozone helped the bulls on EUR/USD as well. Analysts polled by Reuters expected on average the PMI to decline from 53.2 points to 52.8. However, it rose to 53.7 in April;

- GBP/USD. First, a few words about another pair, GBC/USD, which may appear in the foreseeable future. While in some countries, regulators ban cryptocurrencies (for example, in Turkey), in others they are trying to put them at their service. The Bank for International Settlements (BIS) has recently conducted a survey and it has turned out that of 66 central banks, 52 are thinking about their own digital currency. And one of these reflective regulators is the Bank of England, backed by one of the country's largest financial conglomerates, Barclays.
The digital pound has already received a playful name "Britcoin", which makes those who know what "Brit Milah" smile. For those who are not in the know, let us explain: this is a rite of circumcision among religious Jews. However, if Brit Milah is rooted in the deep past, then Britcoin is the digital future of the UK that has broken away from the EU.
But until the GBC/USD pair has appeared in the list of trading instruments, let us return to its “older sister”, the GBP/USD pair. It went up at the beginning of the week, thanks to the weakening dollar, like EUR/USD. The pair reached a height of 1.4010 on Tuesday, having added 170 points. However, it did not manage to fix above the 1.4000 horizon: the pound lost all its advantage two days later, and the pair dropped to the level of 1.3825. At the very end of the trading week, the pound was helped by strong statistics on business activity in the services sector: the Markit index rose from 56.3 to 60.1 (against the forecast of 59.0) over the month, thanks to which the pair grew slightly and completed the five-day period at 1.3885;

- USD/JPY. Recall that we talked in the previous review about the fact that one of the reasons for the fall in the yield of 10-year US Treasury bonds, and with it the strengthening of the yen against the dollar, may be the return of Japanese buyers to the market. They were actively getting rid of American bonds at the end of the financial year, but they began to replenish their investment portfolios with them now.
The majority of analysts (70%) voted seven days ago for the fact that the growth of the Japanese currency and the decline of the USD/JPY pair will continue, and this forecast turned out to be absolutely correct. The level 107.50 was indicated as a support, which became the local bottom of the week. This was followed by a correction and a finish at 107.85;

- cryptocurrencies. While the task of the bulls on Friday, April 16 was to prevent the BTC/USD pair from falling below $60,000, they are struggling seven days later to gain a foothold in the $50,000 area. After the explosive growth to $64,800, which took place on the eve of the American exchange Coinbase' IPO, we are witnessing an equally rapid collapse now. The price of bitcoin was falling to the level of $47,545 on Friday April 23, showing a 26.6% drop.
It is difficult to single out any one reason for what happened. Prominent analyst Willy Woo said the drawdown was triggered by massive power outages in Xinjiang province, one of the largest regions in China where bitcoin mining is concentrated. According to the BTC Cambridge Energy Consumption Index, Xinjiang accounts for about 25% of the coin's total hashrate. Due to the fact that most of the miners were temporarily out of order, the hash rate of the asset began to decline, and the average transaction fee on the bitcoin network exceeded $50, which has not been the case since 2017.
According to Woo, bitcoin should have returned to growth after the electricity supply situation stabilized. Electricity returned to Xinjiang, but bitcoin continued its decline.
We have repeatedly written that the crypto market is heavily influenced by regulatory risks. And in this case, it is possible that panic has been fueled by the rumors that an investigation may begin in the United States regarding a number of financial institutions on suspicion of money laundering using cryptocurrencies. Additional pressure on the market was made by two news stories. The first is the news that the US Congress has approved the creation of a SEC and CFTC working group to develop cryptocurrency regulation. The second is the plans of US President Joe Biden to raise taxes on capital gains, which could limit investment in digital assets.
The total cryptocurrency market capitalization decreased by 17% over the week, from $2.2 trillion to $1.825 trillion. Meanwhile, bitcoin continues to lose ground. If its share in the total capitalization on January 2 was 72.65%, then it is only 50.70% on April 23. This suggests that investors are looking for more profitable assets for their investments among altcoins, of which there are currently more than 8,000. Just look at the Ethereum quotes. Despite the April 18 crash, this leading altcoin managed to renew its all-time high last week, reaching $2,635. Of course, a wave of sales did not pass it, but the fall in the price of ETH over the week was only about 11%. As for the participation of Ethereum in the total capitalization of the crypto market, its share has grown from 10.79% to 14.49% since the year started.
Summing up the past week, we note that the bitcoin price dropped below the 50-day average, which is quite an alarming factor and may provoke further sales. The BTC dominance index, as already mentioned, is also going down. However, it is still far from the lows of early 2018, when it fell to 32%. Another index, Crypto Fear & Greed Index, dropped from 78 to 55 points during the week and approached the neutral zone.


As for the forecast for the coming week, summarizing the views of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. As expected, the European Central Bank
maintained an ultra-soft policy and did not make any adjustments at its meeting on April 22. And its head Christine Lagarde made every effort to limit further growth of the euro. Investors should have concluded from her speech that the ECB will begin to roll back fiscal stimulus (QE) later than the US Federal Reserve, since the EU economy lags behind the American one. (According to JPMorgan forecasts, the GDP of the Eurozone, after a 1% decline in the first quarter of 2021, is expected to grow by 6% in the second quarter. In the US, the same figures are +5% and +10%).
The ECB is not interested in a strong euro, as it interferes with European exports, and considers the current EUR/USD quotes to be quite high. However, Ms. Lagarde was unable to reverse the pair's downward trend. Moreover, it is very likely that the US Federal Reserve Head Jerome Powell will say the same thing at its upcoming meeting on Wednesday, April 28 as she did: that, although the pace of the US economic recovery is impressive, this is absolutely not enough to start discussing curtailment of fiscal stimulus programs.
The next meeting of the ECB will be held on June 10, and a lot can happen during this time. The euro will be pushed upwards by the increasing rate of vaccination and the economic recovery of the EU. And the bears are unlikely to be able to turn the pair south until the yield on US Treasuries starts to rise again.
Goldman Sachs analysts believe that the four largest countries in the Eurozone will vaccinate 37% of their population by the end of May, and this figure will already be 54% by the end of June. As a result, the bank raised its forecast for EUR/USD from $1.2100 by the end of the year to $1.2500.
The latest Bloomberg consensus estimate, on the contrary, decreased. If the figure called in January was 1.2500, now it is 1.2200. Although this value suggests further strengthening of the euro.
The main event of the coming week will be the meeting of the Open Market Committee of the US Federal Reserve System and the commentary of its management on the future monetary policy. Jerome Powell, as already mentioned, is likely to adhere to a rhetoric similar to Christine Lagarde, which may put another pressure on the yield of American bonds and the USD rate.
Growth of the euro in the coming week is expected by 60% of experts, supported by graphical analysis, 100% of trend indicators and 85% of oscillators onH4 and D1. The remaining 15% of the oscillators give signals that the pair is overbought. Resistance levels are 1.2125, 1.2185, the target is the February 25 high at 1.2245.
It should be noted that when switching to the forecast for May, the picture changes sharply, and here it is already 70% of experts, supported by graphical analysis on D1, who expect the EUR/USD pair to fall below the 1.2000 horizon. Supports are located at 1.1940, 1.1865 and 1.1800 levels. The target of the bears is the low of the end of March around 1.1700.
As for the events of the coming week, apart from the Fed meeting, one should pay attention to the statistics on consumer markets: the USA - on Monday April 26, Germany - on Thursday April 29 and the Eurozone¬ - Friday April 30. In addition, GDP indicators for the first quarter will become known: the USA - April 29, as well as Germany and the Eurozone - April 30;

- GBP/USD. A number of experts believe that successful vaccination of the population will help warm up the UK economy. Quarantine restrictions have been severely relaxed in recent weeks, pubs and restaurants have opened. Macro statistics are encouraging. However, Brexit-related concerns, massive trade deficits and UK budget deficits continue to weigh on the pound. But the dollar is also under pressure. Perhaps that is why the forecast for the GBP/USD pair looks rather contradictory: 45% of experts vote for its movement to the north, 35% to the south and the remaining 20% to the east. The technical analysis readings on H4 look contradictory as well.
On D1, thanks to the uptrend that began 13 months ago, most of the oscillators (65%) and trend indicators (85%) look up. Graphical analysis also indicates that the pair will try again to storm the 1.40000 high, but after that it will go down to the support in the 1.3670-1.3700 zone. The nearest resistance level is 1.3920, the nearest support is 1.3800;

- USD/JPY. The key indicator for this pair was and is the yield on US government bonds. If it continues to decline next week, then the pair USD/JPY will go further down. The nearest support is in the 106.80-107.10 zone, the next one is located near the 200-day moving average of 105.80.
The experts' opinion coincides completely with what was expressed a week earlier. 70% of them believe that the pair will continue to fall. The remaining 30% expect the pair to rebound upward (resistance levels 108.35 and 109.00). There is complete discord among the oscillators on H4, on D1 - 75% are colored red, and 25% give signals that the pair is oversold. Graphical analysis on both time frames shows that at first the pair can rise to the resistance of 108.35, and only then, having bounced off this level, it will sharply go down;
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- cryptocurrencies. According to a number of experts, the drop in the share of bitcoin in the total capitalization of the crypto market is a very alarming factor for investors. Recall that the dominance index of the leading cryptocurrency was 85% at the beginning of 2017, and it decreased to 45% before the collapse. Now this figure is just over 50%. Pessimists argue that the rise in BTC/USD quotes before the listing of Coinbase on the NASDAQ exchange was the last stage of the bullish rally, and we need to prepare for a new "crypto winter" now, which could stretch for several years. This is confirmed by the massive liquidation of BTC futures.
However, as is usually the case, in addition to pessimists, there are also optimists. For example, analysts at Santiment believe that bitcoin's trend remains bullish. They have reached this conclusion having analyzed the frequency of tweets with the phrase "buy the dip" and "bought the dip". With the bitcoin price dipping below $51,000, the number of low buy posts hit a weekly record of 2,108 tweets. This allowed Santiment analysts to conclude that this correction is nothing more than a "bump in the road."
However, two thousand Twitter users are unlikely to seriously affect the market. Much more important is the mood of institutional investors who are not crypto enthusiasts at all. And there is a high probability that they will not be active until there is clarity on the attitude of the leading regulators to the sector. Those of the "whales" who purchased the cryptocurrency in the fall of 2020 may well start fixing profits at the current level: the price around $45,000-50,000 is more than acceptable for them. But new large purchases look quite risky.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

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CryptoNews

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- The Cuban authorities have decided that cryptocurrencies are necessary for building socialism and have included them in the program for the country's economic development until 2026. The document is titled "Guiding Principles of the Party's Economic and Socialist Policy."
The idea of introducing cryptocurrencies into the domestic economy of the country was first voiced in 2019. The authorities announced then that they were going to use the assets for external payments, since operations with the dollar became unavailable for them due to the sanctions imposed by the United States against Cuba. The new set of measures includes support for cryptocurrency initiatives. We are also talking about currency liberalization, which should allow citizens and companies to use any type of assets for settlements.
The Cuban authorities want to build on the experience of Venezuela, which was able to introduce its own cryptocurrency called El Petro and made possible the use of bitcoin and other digital assets. Several national payment platforms have appeared in the country, designed to work with cryptocurrencies.

- Bill Miller, legendary investor and founder of hedge fund Miller Value Partners, said it was no longer possible to ignore bitcoin. According to him, cryptocurrencies are gradually becoming mainstream, which is why they will be fully adopted within a few years. The financier did not rule out that central banks will try to control the situation, but they will still have to give up sooner or later.
“If bitcoin was considered a kind of internal network asset earlier, and the overwhelming majority of citizens were sure that it would soon collapse, everyone is now waiting for a new wave of bullish sentiment to buy as many coins as possible at a bargain price. Investors have everything under control now, because of which exchanges can no longer move the asset to drawdowns or growth so simply,” Miller believes.
The financier recalled that he first invested in BTC in 2014 or 2015 at an average price of $350 per coin. Now such amounts seem so distant past that no investor believes in returning to them.

- Tesla sold part of its bitcoins for $272 million, generating a profit of $101 million from this transaction. This is stated in the report for the first quarter of 2021. According to Elon Musk, the electric car maker sold 10% of its crypto assets solely to test the liquidity of the market.
Recall that the company invested $1.5 billion in BTC just in early February. And according to Tesla's management, the company is satisfied with the liquidity of the market for the first cryptocurrency and will continue to accumulate digital assets, selling part of its electric vehicles for bitcoins.

- The growing interest in cryptocurrencies threatens the South Korean labor market with a shortage of young workers. According to a number of employers, their employees aged between 20 and 30 are distracted by tracking bitcoin price fluctuations or quit their jobs to devote themselves entirely to trading. In this regard, some companies are looking for ways to block access to cryptocurrency exchanges during business hours.
The 20-year-old Chosun interviewee left the credit card company after three years as he earned 3 billion wons ($2.7 million) in cryptocurrency revenues. “I loved the job,” he says, “but I realized that financially it would be wiser to focus on investing, taking into account the income from the time I spend.”

- The creator of the sports media platform Barstool Sports Dave Portnoy announced the investment of a "seven-figure" amount in the first cryptocurrency in August 2020. He did this after he met with the founders of the Gemini exchange, the Winklevoss brothers. Later, the investor sold all his bitcoins at a price of about $11,600. He said that he lost a decent amount on the market drawdown and was disappointed in cryptocurrencies.
And now Dave Portnoy has reacquired digital gold in the amount of... 1 bitcoin. “This is all I could afford at $48,000. 50 thousand, and now I have one bitcoin,” stated the creator of Barstool Sports.

- In 1581, the Russian Tsar Ivan the Terrible killed his son, in anger. And now, 440 years later, one of the residents of Moscow filed a complaint with the police against his son, in anger. He did this after he failed to receive over 100 million rubles (approx. $1.35 million) from the family's cryptocurrency mining farm. The Russian created a mining company in 2017 and appointed his 23-year-old son its CEO, while he continued to periodically invest in the business. In April 2021, the company started having problems and the head of the family fired his son. According to his father's calculations, at least 137 million rubles should have been on the company's account, but he found only 18 million, after which he reported to the police.

- New York-based wine distributor Acker, Merrall & Condit has announced that it has begun accepting digital currencies as payment at its auctions and retail stores. Acker, Merrall & Condit is the world's largest fine wine auction house, founded back in 1820. After the pandemic, the company found itself in the same boat as other retailers as most of its offline stores were closed.
To offset the impact of COVID-19, the organization has placed a bid on its own online auction. Prices for some of the best wines it has to offer are around $1000 a bottle. And according to the company's management, it is very fortunate that now they can be paid for with such cryptocurrencies as Bitcoin, Ethereum, Bitcoin Cash and Dogecoin.

- One of the JPMorgan top managers, Daniel Pinto, announced back in February 2021 that his bank was ready to launch a service for operations with bitcoin if the bank's clients needed it. And this week, the Coin Desk portal reported that the American giant decided to launch a fund focused on BTC. The journalists found out that the JPMorgan bitcoin fund will be available only to private clients and will start operating this summer.
Note that the head of this investment bank, Jamie Dimon, had previously repeatedly criticized BTC, stating that the cryptocurrency is a common fraudulent scheme. Daimon even threatened his traders with firing if they tried to invest in bitcoin. But as you can see, the position of Dimon and the policy of JPMorgan have changed significantly now.

- Ethereum co-founder Vitalik Buterin donated 100 ETH and 100 MKR totaling over $600,000 to a fund to fight the coronavirus pandemic in India. Following Buterin, the former CTO of the Coinbase crypto exchange Balaji Srinivasan joined the campaign, donating 21.7463 ETH (almost $550,000 at the time of payment).

- The creator of the stock-to-flow model, a popular cryptocurrency analyst aka PlanB, believes that the current decline in bitcoin is quite normal and expected, and only confirms the bullish trend. The analyst stressed that one should not expect constant growth, sometimes pullbacks should also occur: “Nothing grows without pullbacks. Bitcoin has already been growing for 6 months in a row. This is similar to the mid-cycle correction we saw in 2013 and 2017.”
At the same time, the expert noted that he even “calmed down to some extent”: the market was too overheated, and now a small “cooling” phase awaits it. In addition, the rate of the first cryptocurrency turned out to be lower currently than the expectations of the S2F model, which means it may well continue to grow.

- The bitcoin rate will reach $200,000 in 2022. This forecast was recently announced by Dan Morehead, CEO of venture capital firm Pantera Capital. According to the businessman, BTC is doomed to further growth, as more and more investors begin to understand that storing capital in cryptocurrency is much more efficient than in traditional instruments.
The value of BTC adds $200 every time 1 million new users register on its network. If such dynamics persist, the price of cryptocurrency in 2022 will approach or even exceed the $200,000 mark.
According to Dan Morehead, the spread of bitcoin is a result of, among other things, the growth in the number of smartphone users. There are now about 3.5 billion people in the world who own such devices, making bitcoin available anywhere and at any time.


#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #forex #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
Super Lottery: NordFX Gives Away 100,000 USD to Traders


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The $100,000 Super Lottery was launched by the brokerage company NordFX among its clients on April 1. The name speaks for itself: 100 cash prizes of $500, $1,000, $2,500 and a super prize of $ 20,000 will be drawn by the year end.

It is quite easy to take part in the lottery and get a chance to win one or even several of these prizes. It is enough to have a Pro account in NordFX (and for those who do not have it - register and open a new one), top it up with $200 and... just trade.

Having made a trading turnover of only 2 lots in Forex currency pairs or gold (or 4 lots in silver), the trader will automatically receive a virtual lottery ticket. The number of lottery tickets for one participant is not limited. The more deposits and the greater the turnover, the more lottery tickets the participant will have, and the greater their chances of becoming a winner of the prize money.

Unlike trader contests, there is no need for a lottery participant to show exceptional trading results. In this case, both experienced professionals and beginners have equal chances of winning. And they can either use the received prize money in further trading, or take it out without any restrictions.

70 prizes of $500 each, 20 prizes of $1,000 each, 10 prizes of $2,500 and 1 super prize of $20,000 will be drawn. The draws will be held on July 1, October 1, 2021 and January 3, 2022.


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.


#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
Forex and Cryptocurrency Forecast for May 03 - 07, 2021


First, a review of last week’s events:

- EUR/USD. The last week of April was marked by three events¬: the Fed meeting, as well as the publication of data on the US and Eurozone GDP.
As for the US Fed, the results of its meeting were predictable. The interest rate was left unchanged at 0.25%. The volume of the quantitative easing program (QE) remained the same, $120 billion monthly. And the head of the regulator Jerome Powell uttered almost word for word what we wrote in the previous forecast: although the pace of the US economic recovery is impressive, this is completely insufficient to talk about curtailing fiscal stimulus programs. So far, everything is rather fragile, the acceleration of inflation, according to Powell, is a temporary factor, and the number of people employed remains 8.5 million lower than in February 2020.
On the other hand, US GDP growth in the first quarter was higher than forecast and amounted to 6.4% (against 4.3% a quarter earlier), showing the best dynamics since 1984. The country's economy needs to add just 1% to reach the pre-crisis high. And, most likely, it will fully recover even before the beginning of July by to this indicator.
Such strong statistics led to an increase in the yield of US Treasuries. But this did not help the dollar much until the end of the week, since European bonds were also growing. Germany's 10-year debt rates have hit their highest since March 2020.
The gap between the US and the EU in terms of the speed of return to pre-crisis indicators may also soon be narrowed. ECB President Christine Lagarde said on April 28 that "a light is already visible at the end of the tunnel as the pace of vaccination in the EU accelerates" and that economic recovery is expected to accelerate in the second half of the year.
As a result of the above, the fight between the bulls and the bears on EUR/USD has been going on with varying success all week. Strong inflationary expectations continue to weigh on the dollar. President Joe Biden continues to flood the economy with colossal amounts of money. Following the $1.9 trillion stimulus already approved by Congress, $2.25 trillion in infrastructure development and $1.8 trillion in social support are awaiting their turn. As a result of such steps by the US administration, the dollar went down and the EUR/USD pair renewed its two-month high on Thursday, April 29, reaching 1.2150.
However, thanks to not the most impressive macro statistics from the EU, the European currency nevertheless lost ground on Friday. An additional impetus to the dollar was given by the auction for the placement of treasury bonds on Friday evening, April 30. The US Treasury Department sold $130.6 billion worth of debt securities there. This withdrawal of liquidity from the financial system provided additional support to the American currency. As a result, the pair completed the five-day period significantly below the start of the week, at the level of 1.2020;

- GBP/USD. When providing last week's forecast for the pair, 45% of experts voted for its move north, 35% to the south and the remaining 20% to the east.
As expected by most of them (45%), the pound was strengthening its positions the first four days, and investors started to hope that the GBP/USD pair would break through the 1.4000 level again and return to steady growth, as it had been since the end of March 2020 until the end of February 2021 However, having reached 1.3975, its movement stalled, the bearish pressure intensified, and it collapsed downward at the very end of the week, as 35% of analysts had expected. Pushed by the results of the auction held by the US Treasury, the pair reached the local bottom at the 1.3800 horizon. This was followed by a couple of small bounces and a finish at 1.3810, which can be considered the Pivot Point of the last 9 weeks. So, those 20% of experts who voted for the sideways trend of the pair were also satisfied;

- USD/JPY. It has already been said that the yield on US government bonds has been the key indicator for this pair. It was growing over the past week. The dollar grew along with it against the yen. As a result, the USD/JPY pair rose above the level of 109.00 and, having added 145 points, completed the trading session at 109.30;

- cryptocurrencies. When making a forecast seven days ago, we wrote that the main task of the bulls last week would be to keep the BTC/USD pair in the $ 50,000 area. And, they succeeded, though with difficulty. Despite the fact that the quotes fell to $47,000 on April 25, they managed to rise again to the $50,000-55,000 zone. Investors and speculators began to actively acquire coins at the bottom, counting on further profits. And if the total capitalization of the crypto market was at the level of $1.750 trillion on April 26, it had already reached $2.110 trillion on the last day of the month.
Although not much, the news background helped the bulls. So, the news portal Coin Desk reported that the American financial giant JPMorgan had finally decided to launch a fund focused on BTC. Reporters found out that this bitcoin fund will start operating this summer.
The launch of Bitcoin-ETF could serve as another support factor. However, the US Securities and Exchange Commission (SEC) postponed its decision on the VanEck application until June. At the moment, a total of 10 applications for launching ETFs have been submitted, and the regulator decided that it needs more time to study them.
So, the main cryptocurrency stayed in the area around $50,000. But it was never able to rise above the 50-day moving average, which has served as sustained support for the BTC/USD pair since October 2020. As the quotes approach this line, which has now become resistance, the activity of buyers begins to fall sharply. And this is a rather alarming sign for investors: the market is in thought, which is confirmed by the Crypto Fear & Greed Index located in the heart of the neutral zone: at the level of 51 points.
We have repeatedly said that in such a situation of uncertainty with the reference cryptocurrency, many investors are turning their attention to altcoins. Bitcoin continues to lose ground. If its share in the total capitalization was 72.65% on January 2, and 50.70% on April 23, then it fell even lower by the end of the month, reaching the level lowest since July 2018: 47.87%.
On the other hand, the attractiveness of Ethereum is constantly growing. CoinMetrics calculates that the hashrate in the Ethereum network has grown by 89% over the past 100 days. And the ETH/USD pair, unlike Bitcoin, continues to update historical highs over and over again, rising to a height of $2,790 on April 29.


As for the forecast for the coming week, summarizing the views of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. The weakening of the dollar, which has become almost the main safe haven asset during the pandemic, is facilitated by the growth of inflation expectations, which exceeded 2.4% and reached a high since 2013. The huge financial injections should lead to a record growth in US GDP, which, accordingly, entails an increase in risk sentiment and investors' attraction to the stock market. According to Dow Jones Market Data, the S&P500 rose 11% during Joe Biden's first 100 days as President of the United States. This was the best result since President Franklin Roosevelt in 1933, and on average, since 1929, stock indices grew by 3.2% annually.
On the other hand, being the most powerful in the world, the US economy will pull up with it the economies of other countries, leveling the gap in the speed of their recovery. The dollar should also be helped by an increase in yields on US Treasury bonds.
So far, giving a forecast for the coming week, 60% of experts expect that the EUR/USD pair will try to go up again. The nearest resistance is 1.2055 and 1.2100, the target is to reach the April 29 high of 1.2150. 70% of oscillators and 75% of trend indicators on D1 agree with this forecast. The remaining 30% of the oscillators are colored neutral grey.
When moving from a weekly to a monthly forecast, the opinion of experts changes radically. Here, 75% of them are waiting for the dollar to strengthen and the pair to drop to the 1.1900 zone, and then another 100 points lower. The target of the bears is to update the March 31 low of 1.1704.
Graphical analysis on D1 indicates the movement of the pair in the trading range of 1.1945-1.2150. At the same time, according to its readings on H4, the pair first faces a decline to the lower border of this channel, and then a rebound upward.
As for the events of the coming week, one should note the publication of ISM business activity data in manufacturing (May 3) and private (May 5) sectors of the United States. We are also waiting for US employment data: the ADP report will be released on Wednesday May 5, and the number of new jobs created outside the agricultural sector (NFP) will be known on Friday May 7.
The European consumer market is likely to delight investors on May 3 and 6. The fall in retail sales in Germany is forecast to narrow from -9.0% to -3.15%. Retail sales in the Eurozone as a whole may, according to forecasts, grow from -2.9% to + 9.4%;

- GBP/USD. The main event for the British currency will be the meeting of the Bank of England on Thursday, May 6, which will be devoted to monetary policy. The interest rate is most likely to remain unchanged at 0.1%. As for QE, the volume of purchases of government bonds may be reduced from ?895 to 875 billion. If this happens, the market will receive a signal about the intention of the British regulator to start tightening its policy.
The bank may also revise its forecasts regarding the speed of economic recovery in the country. There are many reasons for this. Thus, unemployment in Great Britain decreased by 0.1% in the first quarter, from 5.0% to 4.9%. Almost 30 million people have already been vaccinated in the country, of whom more than 2.5 million received two doses of vaccines against COVID-19. Some of the quarantine restrictions have been removed. And all these are positive factors for the pound, which may push the GBP/USD pair up again. This is confirmed by the forecasts of graphical analysis on H4 and D1.
As for the readings of technical indicators, they look rather indistinct on D1 due to the sideways movement of recent weeks. On H4, naturally, most are painted red, although 25% of oscillators signal the pair is oversold.
As for the experts, 60% expect the pair to grow at least to the level of 1.4000. In case it manages to break through it, the next target is 1.4240. The nearest resistance levels are 1.3860, 1.3925 and 1.3975.
The remaining 40% of analysts side with the bears. The main support is in the zone 1.3670-1.3700, then - 1.3600;

- USD/JPY. The experts' opinion coincides completely with what was expressed a week earlier. 70% of them believe that the pair will go south again, below the horizon at 109.00. The next supports are 108.40 and 107.45. The remaining 30% of analysts expect the pair to continue to rise. Resistance is at 110.00, the target is to rise another 100 pips to 111.00.
As for the indicators, 75% of oscillators and 100% of trend indicators on H4, and, respectively, 70% and 95% on D1 are coloured green. The remaining oscillators signal that the pair is overbought. Graphical analysis on both time frames indicates a fall of the pair to the level of 107.45;

- cryptocurrencies. So, as it was said in the first part of the review, the BTC/USD pair did not manage to break above the 50-day moving average on the last day of April. And this looks like a wake-up call for investors. Especially because the fall below this line happened for the first time since the beginning of October last year, when the pair just broke the $10,000 level.
The Bitcoin Dominance Index also fell below 50%, which, attracting institutions, dragged the entire crypto market up with it like a locomotive.
Taken together, both of these factors, according to a number of analysts, strongly resemble the situation in January 2018, which marked the beginning of a protracted crypto winter.
But, along with pessimists, the voices of optimists are usually heard. Thus, the creator of the stock-to-flow model, a popular cryptocurrency analyst known as PlanB, believes that the current decline in bitcoin is quite normal and expected, and only confirms the bullish trend. The analyst stressed that one should not expect constant growth, sometimes pullbacks should also occur: “Nothing grows without pullbacks. Bitcoin has already been growing for 6 months in a row. This is similar to the mid-cycle correction we saw in 2013 and 2017.”
PlanB noted that he even “calmed down to some extent”: the market was too overheated, and now a small “cooling” phase awaits it. In addition, the rate of the first cryptocurrency turned out to be lower currently than the expectations of the S2F model, which means it may well continue to grow.
Dan Morehead, CEO of venture capital firm Pantera Capital, is also positive. According to the businessman, BTC is doomed to further growth, as more and more investors begin to understand that storing capital in cryptocurrency is much more efficient than in traditional instruments.
According to the calculations by the head of Pantera Capital, the value of BTC adds $200 every time 1 million new users register on its network. If such dynamics persist, the price of cryptocurrency in 2022 will approach or even exceed the $200,000 mark.
According to Dan Morehead, the spread of bitcoin is a result of, among other things, the growth in the number of smartphone users. There are now about 3.5 billion people in the world who own such devices, making bitcoin available anywhere and at any time.
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NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
New NordFX Savings Account: Investment Income Plus Trading Income


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The new Savings Account from NordFX represents a unique know-how developed by the company's specialists, based on DeFi technology. This account allows you not only to receive passive income up to 30% per annum, but also to increase your profits through operations in the financial markets. It is just enough to take a trade loan at only 3%.

DeFi (from the English "Decentralized financing") is a term for special applications in cryptocurrency or blockchain, aimed at eliminating financial intermediaries. It is these advantages of DeFi that have formed the basis of the innovative new NordFX Savings Account, allowing its owners to generate profits many times higher than interest on bank deposits. Passive income on their investments is currently about 30% per annum and may vary.

The world's most popular stablecoin, Tether (USDT), the rate of which is secured by real US dollars in a ratio of 1:1, is used as the account currency. The minimum deposit amount for this account is equal to $500. In addition to USDT, deposits are also allowed with USDC and DAI stablecoins, which will be automatically converted to USDT. Withdrawals are also possible in USDT.

The undoubted advantage of this account is the ability to take a trade loan secured by the funds placed in it. The interest on the loan is only 3% per annum and is deducted from the investment income. The loan funds are instantly credited to the balance of the Trader's Cabinet and can be used for trading on terms similar to those of a Zero account.

This feature gives account holders the opportunity to maximize returns on their investments through trading in financial markets.

Investment income is credited to the Savings Account on a daily basis and can be withdrawn at any time without restrictions.


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.


#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
CryptoNews

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- Experts at JPMorgan believe that Ethereum may become more efficient than Bitcoin in the future. Many DeFi application developers are already using the Ethereum blockchain more than the main net.
Experts note that this altcoin is more resistant to external factors. Bitcoin, on the other hand, reacts to almost every major fluctuation in the market, which leads to its correction straight away. Investors in the main cryptocurrency are not very worried about minor jumps, however, with a long negative trend, they start to withdraw assets quickly. During the recent correction, it was Bitcoin that lost most of its capitalization.
“Bitcoin, on the other hand, is very narrow in its application, which is evident from a variety of factors. It is Most often used as an asset for investment. All new major projects are developed on the basis of Ethereum. It has more liquidity, and ETH has recently substantially increased its position in the spot market. Another advantage of Ethereum is its rather large and developed ecosystem,” JPMorgan analysts note.

- Founded in 1744, Sotheby's will auction the work of street art genius Banksy, Love is in the Air. They plan to accept bets in US dollars, bitcoins and ethereums. The work has been initially estimated at $3-5 million. The auction will take place on May 12 and will be the first experience for Sotheby's in selling works of art for cryptocurrency.

- S&P Dow Jones Indices, a division of US financial data provider S&P Global, has launched indices based on Bitcoin, Ethereum and a basket of these cryptocurrencies. The S&P Bitcoin Index received the ticker SPBTC, the S&P Ethereum Index - SPETH, which tracks the dynamics of these two assets, the S&P Crypto Mega Cap Index - SPCMC.
Indices are calculated in points, not in US dollars. According to a S&P spokesman, instead of the actual cost, they reflect price changes, and should compete with counterparts from Bloomberg and Galaxy.
The data is calculated on weekdays and will be available by subscription for service customers. Rebalancing is carried out on a quarterly basis.

- Back in May 2019, crypto enthusiasts noticed an advertisement for the American online trading giant eBay with the words “Virtual Currency. It's happening on eBay. " Later, representatives of the site denied rumors about adding support for cryptocurrencies. And now, two years later, on CNBC, the head of the company, Jamie Iannone, said that eBay is still considering the possibility of accepting payments in digital assets.

- Renowned crypto trader and strategist Mikael van de Poppe has shared a bold prediction for the future of bitcoin. “I am quite confident that we are in a bullish cycle and it is really difficult to rely on a bear market, especially given the inflation of the US dollar,” he said.
“Given the fact that institutional money is flowing in, bitcoin is becoming more widespread. This means that there is now a large demand and a relatively small supply, which will lead to an increase in the price, continues Van de Poppe. - Will Bitcoin get to $300,000 or $500,000? I think so. If we carry out simple calculations, the peak of the BTC rate should be $500,000. Given the data on the top of the cycle, it can be assumed that the average rate will be above $250,000. And it can get to $350,000 - $450,000 within a year.”
“But besides, we will have long sideways,” added the specialist.

- Ethereum continues to rise in price amid the growing popularity of decentralized finance (DeFi) applications designed to replace banks and insurance companies. The price of the leading altcoin surpassed $3,000 on May 3, for the first time in history. As a result, the fortune of Ethereum creator Vitaly Buterin, who owns 333,520 coins, reached $1.09 billion.
Thus, 27-year-old Buterin has become the youngest billionaire in the world who made his fortune on cryptocurrency. His fortune has grown almost 25 times since the beginning of 2020, according to Forbes.

- A startup employee told a story about how the employer demanded that the salary paid in cryptocurrency be returned after its rate increased by 700%.
According to him, the CEO of the company offered him a settlement in cryptocurrency at the signing of the contract in the spring of 2020. The contract contained a clause that the employer could have him being paid in dollars, but the employee refused to do so.
And just recently, he received a message from his employer demanding the return of all the cryptocurrency. “In return, you can bill the company for hours worked in dollars,” the letter read.
The MarketWatch portal, on which the story was published, advised him not to return the cryptocurrency, since the employer would hardly want to pay extra if the rate collapsed.
Although the author does not specify the name of the cryptocurrency, Ethereum fits the description, the rate of which has grown by 790% since August 1.

- Bitcoin is less volatile than stocks of companies such as Apple and Tesla, said the head of the cryptocurrency exchange Binance Changpeng Zhao in an interview with Bloomberg TV. According to Zhao, significant price fluctuations are observed not only in the cryptocurrency, but also in the stock market. At the same time, Bitcoin is less volatile than shares of companies with comparable market capitalization.
According to him, “profit hunters” are often to blame for this. They do not analyze the market but invest money in assets against the backdrop of positive news. “There are always more people driven by herd instinct than those who really do serious research. When negative news appears, they leave the market, when positive news appears, they try to enter again. This causes a lot of volatility,” explained the CEO of Binance.
Earlier, Zhao advised traders who are stressed by every price drop to change their strategy to buy and hold. In his opinion, this is not the best recommendation for professionals, but good advice for beginners.

- Bitcoin is disgusting and contrary to the interests of civilization, said fellow Warren Buffett, 97-year-old billionaire Charles Munger. “Of course, I hate Bitcoin's success. I do not welcome currency, which is created out of thin air and is so useful for kidnappers and extortionists,” Munger emphasized.
At the same time, another critic of cryptocurrency, billionaire Warren Buffett, this time declined to comment on Bitcoin. The legendary investor emphasized that digital money is now supported by "hundreds of thousands against two people." “We have a choice: to make 400 thousand people angry and upset, or to make two happy,” he noted ironically.

- American financial services giant Mastercard has presented the results of its research conducted in 18 countries in various regions of the world. According to its data, 40% of consumers plan to use crypto assets for their payments next year. Among millennials, the figure is even higher, reaching 67%.


#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #forex #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
NordFX Summed Up April Results: TOP 3 Most Successful Traders and IB-Partners


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NordFX Brokerage company has summed up the performance of its clients' trade transactions in April 2021. The services of social trading, PAMM and CopyTrading, as well as the profit received by the company's IB-partners have also been assessed.

The maximum profit in April was received by a client from Malaysia, account No. 1208XXX, whose profit amounted to 20,590 USD. Whereas in previous months, when trading cryptocurrencies, NordFX traders profited mainly from bitcoin transactions, now Bitcoin SV, a coin that appeared as a result of the Bitcoin Cash hardfork, has entered the business. In addition to the BSV/USD pair, transactions with the altcoin Dash (DSH/USD) also helped the Malaysian trader to become the leader. This reflects the trends of recent weeks, when transactions with some altcoins have become more profitable than transactions with the main cryptocurrency.

The second place on the podium is taken by a trader from Thailand, account No. 2009XXX, with a result of18,788 USD, obtained for CAD/JPY and EUR/GBP.

Trader from China, No.1286XXX, who is the third place by the month's results, also traded the Canadian dollar and the British pound. Their profit of 16,523 USD was obtained mainly for USD/CAD and GBP/USD pairs.

CopyTrading is the leader in passive investing services, with the NVI Venture Capital signal, which showed a yield of 193% in just one last week of April with the maximum drawdown of 41.5%. This result is, of course, impressive. However, this is a rather aggressive trading style, so subscribers should not forget about risk management.

Among the IB partners, NordFX TOP-3 is as follows:
- the largest amount of commission, USD 11.714, was accrued to a partner from Sri Lanka, account No.1483xxx;
- next is a partner from Vietnam, account No.1401xxx, who received $6,339;
- and, finally, a partner from India, account No.1527xxx, who received $5.762 as a reward, closes the top three.

And summing up the results of the month, it should be reminded that traders have received another great opportunity to earn money. In April, the $100,000 superlottery started, in which 100 cash prizes of $500, $1,000, $2,500 each and a super prize of $20,000 will be drawn among NordFX clients.

It is very easy to take part in the lottery and get a chance to win one or even several of these prizes. All the details are available on the NordFX website.


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.


#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
Forex and Cryptocurrency Forecast for May 10 - 14, 2021


First, a review of last week’s events:

- EUR/USD. There has been a lot of talk for a long time about how quickly and how well the US economy is recovering. But the head of the Fed, Jerome Powell, warned a week ago that everything is still quite fragile, and the acceleration of inflation is a temporary factor. Apparently, he already knew it then, and now everyone else knows it too: not everything is as rosy as it seemed.
The bulk of US macroeconomic indicators released last week are colored red. The ISM business activity index in the manufacturing sector is 60.7 instead of 65.0 as was forecasted. The ADP report on the employment rate in the private sector is 742K instead of the forecasted 800K. The ISM business activity index in the services sector is 62.7 instead of 64.3. And it is a complete disaster with such an important indicator as the number of new jobs created outside the agricultural sector (NFP): 770K was created in March, 978K was expected in April, but only 266K were actually created, that is, 3.7 times less than the forecast.
Of course, investors had plenty of time to cash in on the recovery of the U.S. economy. And now it seems that the time has come to switch to other regions and, first of all, to the European Union. Moreover, vaccination against coronavirus in Europe is becoming more widespread, EU member states are gradually lifting quarantine restrictions, and the economy is gaining momentum. Unlike the US, retail sales in the Eurozone showed convincing growth, rising from minus 1.5% in March to plus 12.0% in April. And this is against the forecast of 9.6%.
The above has put strong pressure on the dollar and contributed to the strengthening of the European currency. As a result, the forecast given by the majority of experts (60%) came true 100%: the EUR/USD pair went up again and renewed the six-week high on the evening of Friday, May 07, reaching the height of 1.2170. This was followed by a slight rebound and a finish at 1.2165;

- GBP/USD. The forecast has turned out to be absolutely correct in this case as well. This pair has been moving in a side channel 1.3670-1.4000 for 10 weeks. And the majority of experts had voted for the fact that, having rebounced off the central zone of this corridor, the pair would go up and reach its upper border. This is what actually happened. Having started on Monday at 1.3810, the pair reached the height of 1.4000 on Friday, not far from where, at 1.3990, it finished the working week;

- USD/JPY. When making a forecast for the past week, 70% of analysts had pointed to the south. In their opinion, the pair should have dropped below the horizon of 109.00, and the level of 108.40 was called as a support. And that is what happened. True, the bulls made an attempt to repeat the success of a week ago on Monday, but their strength dried up quickly. The pair turned down, reached the local bottom at 108.35 on Friday 07 May, and then put the last chord at 108.60;

- cryptocurrencies. "Bitcoin is disgusting and contrary to the interests of civilization", said Warren Buffett's fellow, 97-year-old billionaire Charles Munger. “Of course, I hate bitcoin's success. I do not welcome currency, which is created out of thin air and is so useful for kidnappers and extortionists,” Munger emphasized.
The 97-year-old investor is now likely be attributed not only to the “sharks” of Wall Street, but also to the “dinosaurs.” Virtual assets go beyond their perception of the world: after all, they are accustomed to dealing with currencies and securities, which have a very real, and not fictitious, basis. Nevertheless, the clink of digital gold is already heard in almost every financial centre on the planet. Financial data provider S&P Dow Jones Indices has even launched indices based on Bitcoin, Ethereum and on the basket with these cryptocurrencies. The S&P Bitcoin Index received the ticker SPBTC, the S&P Ethereum Index - SPETH, and the S&P Crypto Mega Cap Index which tracks the dynamics of these two assets, - SPCMC.
The adoption of cryptocurrencies is growing not only among large institutional investors, but also among the general population. The American financial services giant Mastercard has presented the results of its research conducted in 18 countries in various regions of the world. According to its data, 40% of consumers plan to use crypto assets for their payments next year. Among millennials, the figure is even higher, reaching 67%.
It would seem that all of the above should only benefit digital currencies. But it is not so. Bitcoin is beginning to increasingly correlate with traditional markets. And after bitcoin, altcoins also fall into this bundle. Thus, the crypto market, as well as the stock market, is now heavily dependent on the policies pursued by the White House and the U.S. Federal Reserve. And if fiscal stimulus programs (QE) are cut, the money stream fueling the cryptocurrency market could dry up quickly enough.
Until this happens, the total cryptocurrency market capitalization is showing smooth growth. It grew from $2.110 trillion to $2.375 trillion, that is, by 12.56%, over the past week. At the same time, the capitalization of the altcoin market showed an increase of more than 20%. Bitcoin continues to lose ground. Its Dominance Index was 72.65% on January 2; it reached the level lowest since July 2018, 47.87%, on April 30, but now, over the past seven days, it fell even lower, to 44.24%.
These numbers indicate that the interests of many investors are now focused not on the main cryptocurrency, but on altcoins, which bring significantly higher returns.
The BTC/USD pair made unsuccessful attempts to test $60,000 again over the past week. However, each dash to the north is followed by a rollback to the south. The pair even fell to the level of $52,950 on May 05. But Ethereum, is rewriting one historical maximum after another in the wake of the growing popularity of the DeFi sector, as well as on the eve of the transition to ETH 2.0. Thus, this coin has shown an increase of more than 80% over the past three weeks. And it made its creator, 27-year-old Vitaly Buterin, the youngest billionaire in the world who made his fortune on cryptocurrency. As noted by Forbes, Buterin's fortune has grown by almost 25 times early 2020.
Litecoin keeps pace with Ethereum. We pointed out significant upside potential for this coin back at the beginning of the year. The argument was that, unlike bitcoin, which had already renewed its all-time high, Litecoin was still very far from the $371 high it reached in December 2017. And finally, the LTC/USD pair was again at this top this week, on May 07, showing an increase of 75% just in the last 10 days.


As for the forecast for the coming week, summarizing the views of a number of experts, as well as forecasts made on the basis of a variety of methods of technical and graphical analysis, we can say the following:

- EUR/USD. So, the market is again dominated by buyers of shares and sellers of the dollar. As we already mentioned, the weakening of the dollar, which has become almost the main safe haven asset during the pandemic, is facilitated by the growth of inflation expectations, which exceeded 2.4% and reached a high since 2013. The huge financial injections should lead to a record growth in US GDP, which, accordingly, entails an increase in risk sentiment and investors' attraction to the stock market. S&P500 and Dow Jones indices broke their own records again. The former reached the level of 4,238, the latter - 34,732 points. The euro grew together with them, reaching the height of 1.2170.
However, too fast growth of stock indices and a weakening dollar may induce the US Federal Reserve officials to curtail fiscal stimulus programs quicker. Thus, according to Robert Kaplan, President of the Federal Reserve Bank of Dallas, imbalances in financial markets can lead to the fact that it would be better to raise the issues of folding QE sooner rather than later. Otherwise, the U.S. financial system could be under stress.
As for the opinion of experts for the near future, 60% of them, together with the graphical analysis on D1, expect the correction of the EUR/USD pair to a strong support in the area of 1.2000, and in the event of its breakout, a fall another 100 points lower. The nearest support is 1.2055.
The remaining 40% of analysts, together with the graphical analysis on H4, believe that the pair's uptrend will continue. The nearest target is the February high at 1.2245, the next target is to reach the January 06 high at 1.2350.
The technical analysis readings are as follows: 100% of the trend indicators and 75% of the oscillators on H4 and D1 are colored green at the time of writing this review (Friday night May 07). The remaining 25% of the oscillators give signals that the pair is overbought.
Among the events of the coming week (and there are not so many of them), the publication of data on the US consumer market on Wednesday May 12 and Friday May 14 should be noted. Data on the consumer market in Germany is also due out on May 12;

- GBP/USD. The forecast for this pair for the coming week is exactly the opposite of the previous one. If the majority of experts voted for the rise of the pair from the central part of the 1.3670-1.4000 channel to its upper border a week ago, now 70% of analysts, along with graphical analysis, predict it will return back to its center at 1.3800. The decision of the Bank of England, which kept interest rates and the volume of the quantitative easing (QE) programme unchanged at its May 06 meeting, should contribute to this.
True, the regulator has reduced the rate of asset buybacks and is optimistic about the rate of economic recovery. But demand for the pound is being held back by the decision to hold interest rates until there are clear signs of a recovery in output and an inflation rate of 2%. The only one who voted to cut QE volumes was the chief economist of the Bank of England, Andrew Haldane. But his vote doesn't mean much as he retires in a month.
Only 30% of experts believe that the GBP/USD pair will be able to break out of the 10-week trading range and rise above the level of 1.4000. In this case, it will rush to the February 24 high of 1.4240, and the resistance levels on its way will be the levels of 1.4085 and 1.4180.
As for technical analysis, its readings are very similar to those for the EUR/USD pair: 100% of the trend indicators and 85% of the oscillators on H4 and D1 point north. The remaining 15% of the oscillators give signals that the pair is overbought.
Looking at the economic calendar for the coming week, I recall the movie "The King's Speech", dedicated to the British monarch George VI. It is just that it will the speech ofthe head of the Bank of England, and it will be a whole series, since Andrew Bailey will give speeches on May 11, 12, and 13. However, investors are unlikely to hear anything from him that could seriously affect their mood. Of greater interest are the UK GDP and consumer market data, which will be published on Wednesday May 12;
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- USD/JPY. The indicator readings on both time frames look quite chaotic. Only the trend indicators on H4 clearly point to the south: 85% is colored red here. Graphical analysis depicts a gradual decrease in volatility and consolidation of the pair in the zone 108.35-108.50. But 70% of analysts side with the bears for the third week in a row. Supports are at levels 108.40 and 107.85, the target is 107.45. ¬
The remaining 30% side with the bulls, they expect that the pair will try again to rise above the resistance of 109.00 and gain a foothold in the zone 109.00-109.65;

- cryptocurrencies. As mentioned in the first part of the review, many investors have shifted their attention from the main cryptocurrency to the altcoin market. The BTC/USD pair has not yet managed to break above the 50-day moving average and rise above $60,000. But is this a harbinger of a new crypto winter?
If BTC collapses following the domino effect, other coins may follow. But so far, hopes for the growth of the main cryptocurrency are quite real. Despite the fact that the index of its dominance has decreased from 72.65% to 44.24% since the beginning of the year, its trading volumes are quite high: about $70 billion. The Crypto Fear & Greed Index, although has reached the level of "greed", 64 points, but is still far from being overbought.
In the medium term, the fact that the US Securities and Exchange Commission (SEC) postpones decisions on Bitcoin-ETFs may play against the main cryptocurrency. But many experts are still optimistic. Thus, renowned crypto trader and strategist Mikael van de Poppe has shared a bold prediction for the future of bitcoin. “I am quite confident that we are in a bullish cycle and it is really difficult to rely on a bear market, especially given the inflation of the US dollar,” he said.
“Given the fact that institutional money is flowing in, bitcoin is becoming more widespread. This means that there is now a large demand and a relatively small supply, which will lead to an increase in the price, continues Van de Poppe. - Will Bitcoin get to $300,000 or $500,000? I think so. If we carry out simple calculations, the peak of the BTC rate should be $500,000. Given the data on the top of the cycle, it can be assumed that the average rate will be above $250,000. And it can get to $350,000 - $450,000 within a year.” “But besides, we will have long sideways,” added the specialist cautiously.
Experts at JPMorgan believe that Ethereum may become even more efficient than Bitcoin in the future. They note that this altcoin is more resistant to external factors. Bitcoin, on the other hand, reacts to almost every major fluctuation in the market, which leads to its correction straight away. With a long negative trend, BTC investors begin to withdraw assets quickly.
According to JPMorgan analysts, “Bitcoin is very narrow in its application, which is evident from a variety of factors. It is most often used as an asset for investment. All new major projects are developed on the basis of Ethereum. It has more liquidity. ETH has recently substantially increased its position in the spot market as well. Another advantage of Ethereum is its rather large and developed ecosystem,” they note.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

https://nordfx.com/
 
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