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Weak US CPI data drives bullish surge in XRPUSD market.

Written by Baxia Markets | Jun 12, 2024 1:18:45 PM

XRPUSD Technical Analysis: Bullish Momentum Amidst Weak US CPI Data

In the 1-hour timeframe, XRPUSD exhibits bullish momentum following disappointing US CPI data. The market reacted strongly as CPI figures came in 3.3% lower than forecast and previous levels.

Key Technical Observations:

  1. EMA 50 Breakout: XRPUSD surged above the EMA 50 in a single candlestick, indicating a bullish breakout. The price is now heading towards the EMA 200, a significant long-term moving average.

  2. Ichimoku Cloud Edge: Currently, XRPUSD is trading on the edge of the Ichimoku cloud, signaling a potential shift in market sentiment. The Tenkan Sen crossing above the Kijun Sen suggests a bearish pullback.

  3. Bullish Candlestick Formation: The recent bullish candlestick formed a bullish belt, characterized by no wick at the bottom and a short wick at the top. This pattern indicates strong bullish appetite among traders.

  4. RSI and MACD Signals: The RSI has breached the 60% level, indicating strong bullish momentum, while the MACD signal line crossing above the 0 line adds further confirmation to the bullish sentiment.

Short to Medium-Term Outlook:

In the short to medium term, XRPUSD remains bullish, supported by technical indicators and market dynamics. Traders should monitor key levels such as the EMA 200 and Ichimoku cloud edge for potential reversals or continuation of the bullish trend.

 

Fundamental Analysis:

 

The weaker-than-expected CPI data increases the likelihood of a rate cut, which could further support crypto asset prices, including XRPUSD. Traders should stay updated on economic releases and central bank policies for insights into future market movements.

Overall, XRPUSD shows strong bullish momentum in the near term, with potential for further upside movement based on technical and fundamental factors. Traders are advised to implement risk management strategies and closely monitor market developments for optimal trading decisions.


Key Economic Releases to Watch Today

EUR, German CPI (YoY) 

Actual 2.4% vs Forecast 2.4% vs Previous 2.2%    

EUR, German CPI (MoM)

Actual 0.1% vs Forecast 0.1% vs Previous 0.5%   

USD,  Core CPI

Forecast 0.3% vs Previous 0.3%

USD, CPI (YoY) 

Forecast 3.4% vs Previous 3.4%

USD, CPI (MoM)

Forecast 0.1% vs Previous 0.3%

 

 

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