Forex And Cryptocurrency Forecast For December 14 - 18

In general, everything happened like that. The pair continued to move eastward, gradually reducing the amplitude of oscillations to the range of 103.85-104.55 and forming a medium-term “pennant” figure with the main support around 103.65. As for the end of the trading session, the finish was set at 104.00 this time;

Cryptocurrencies

Financial conglomerate Wells Fargo, one of the "big four" US banks, has published a new investment report, in which a separate page under the heading "Bitcoin - 2020's best performing and most volatile asset" is devoted to the cryptocurrency market. The authors do not directly encourage clients to invest in digital assets, but generally maintain an optimistic tone regarding their prospects. “Over the past 12 years, they have grown from literally nothing to a $560 billion market cap,” writes Wells Fargo. "Hobbies don't usually last 12 years."

The bank notes that bitcoin is up 170% over the year but warns about its high volatility. “Investing in cryptocurrencies today is akin to living in the early days of the 1850s gold rush, which involved more speculation than investing”, the bank's analysts think. And yet they add that cryptocurrencies attract a lot of attention, but not necessarily a lot of investment. (Here the title of William Shakespeare's play immediately comes to mind: "Much Ado About Nothing"). 
It is difficult to disagree with this: the total cryptocurrency market capitalization now is far from even its own high at the beginning of January 2018, $830 billion. And this is in a world where, according to billionaire Paul Tudor Jones, "there is a $90 trillion stock market, and God knows how many trillions are in fiat currency."

The crypto market went down another $50 billion last week: starting from $575 billion, it dropped to $525 billion. Optimists call the clear bearish trend a seasonal correction and associate it with the end of the year and the desire of investors to fix profits after such an impressive leap up. Recall that the BTC/USD pair was never able to overcome the $20,000 mark. And analysts estimated that it will be able to gain a foothold above this iconic level by the end of December, as 30% probability. The likelihood of its fall to the $15,000-15,700 zone is estimated at the same 30%.

In the meantime, the bears were able to lower quotations to $17,600, and they did it twice: on December 9 and 11. And also twice, at the time of these failures, buyers came to the rescue of bitcoin. However, they did not manage to radically reverse the trend, and as of Friday evening, December 11, bitcoin is trading in the zone of a strong support/resistance level of $18,000.

It should be noted that the Crypto Fear & Greed Index declined very slightly in seven days, from 92 to 89, still signaling the pair BTC/USD is strongly overbought, which could portend an even deeper correction.

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 dollar is weakening. It has conceded more than 550 points to the European currency in the last month and a half alone. Finally, the pair moved to a sideways movement in the range of 1.2060-1.2165 last week. And although most oscillators (75%) and trend indicators (95%) are still green on D1, the market is waiting for a downward correction.

If you look at the statistics of a number of leading UK brokers, about 65% of their traders hold short positions. 55% of analysts agree with them as well as graphical analysis on H4 and D1, predicting a decline of the pair to the zone 1.1965-1.2010. Both a sharp drop in demand for risky assets and a "hard" Brexit can push it south.

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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 ...

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