AUDUSD falls back to the 100 hour MA
The AUDUSD is mired in an up and down trading day today
The initial move was lower. The price move in the Asian session took the price down toward the 100 hour MA (blue line) and found willing buyers against that level.
The subsequent move to the upside saw a move up toward the high from yesterday at 0.7071, and stalled against that level (see red numbered circles).
The last move to the downside has now reached back down toward the rising 100 hour MA again at a higher 0.70106 level. A break below that level would tilt the technical bias back to the downside with the 200 hour MA at 0.69644 as the next downside target.
Earlier this week, the 200 hour MA based the pair (along with the 100 hour MA). A move below that 200 hour MA level will increase the bearish bias more.
Conversely, if the 100 hour moving average holds support again, the buyers remain in play, but they still have work to do to prove that they can take back more control.
Helping the modest risk off sentiment is the continued hammering of the US stock market. The NASDAQ index is now down -2.72% while the S&P has moved into bear market
Bear Market
A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.
A bear market is defined as a financial market in which prices are falling or are expected to decline. This designation is most commonly used in the stock market, though can also be applied to other markets as well, including real estate, foreign exchange, commodities, etc.A bear market differs from periodic declines in assets by virtue of its duration, not frequency. For example, a bear market will typically see extended periods during which large numbers of stock share prices are falling over months, or possibly even years.Bear Markets ExplainedLike any asset, movements are driven by speculation and by extension levels of optimism in markets. In the case of bear markets, investor confidence is weak and a driver of assets in a downward direction. Of course, there are multiple factors at work with any sustained or directional push of asset prices. This influences speculation, psychological effects, and other external stimuli. Oftentimes, bear markets do not have a clear start or end point, nor do they use any specific metrics in their analysis or identification. Rather, the case of the stock market can help define a bear market. For example, if stock prices fall by 20%, typically after a rise of 20% and before a second 20% rise, then it can be surmised that a bear market is in effect.Moreover, bear markets are notoriously difficult to forecast, though there are also several different factors that exist that can help usher a bear market as well. Bear markets commonly take place when the economy is shrinking or during periods of weakness, turmoil, or uncertainty.This is supported by weak gross domestic product (GDP) readings and a sustained rise in unemployment or declines in corporate profits. Investor confidence is also a notable determinant, which tends to have a sustained fall during a bear market period.
Read this Term
Bitcoin
Bitcoin
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Read this Term Crude oil is down $0.58 more -0.53% at $109.36. The price of gold is back to unchanged at $1840. It traded as high as $1849.52 as low as $1832.49 In the US debt market, yields are starting to react to the sharply lower stocks:
2 year 2.565%, -4.5 basis points 5 year 2.792%, -4.6 basis points 10 year 2.73%, -5.4 basis points 30 year 2.99%, -6.0 basis points The crosscurrents in the debt market are huge as Fed officials are caught between a rock and a hard place. With employment still tight, and prices continued move higher, the Fed is becoming increasingly behind the curve in fighting inflation. The problem with that is the stock markets are not loving it at all. Moreover, economic forces like supply chain issues from China lockdown, and higher oil prices from the Ukraine war are problems that are outside of the Fed's control.
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