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Ethereum’s short-term range forecasts $4,000 but with a warning for eager ETH bulls

381395   March 31, 2024 20:29   FXStreet   Market News  

• Ethereum price trades inside the $3,054 to $4,095 range on the four-hour chart.
• A sweep of the sell-side liquidity seems likely before ETH attempts to move $4,000.
• In some cases, ETH could sweep the rang high at $4,095.

Ethereum (ETH) price looks ready for an ascent, at least from a breakout traders’ perspective. But this isn’t always the case as market makers or smart money tends to collect liquidity in the opposite direction first. So, eager ETH bulls need to exercise patience. 

Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts

Ethereum price likely to trap impatient traders

Ethereum price set up a range, extending from $3,054 to $4,095 during its 25% descent between March 11 and 20. Currently ETH is has triggered a quick ascent above the aforementioned range’s midpoint at $3,574. 

While this volatile move might be alluring to trade, investors need to exercise caution. In crypto, the initial breakout is often undone by quick corrections. The aim of such a move is to collect the liquidity below key levels. In this case, ETH has produced higher highs since forming the range low on March 20. 

Hence, a breakout above $3,574 and $3,658 is likely to be short-lived, i.e., a correction might ensue soon. A sweep of $3,461 could be a good place to enter longs, provided Bitcoin (BTC) is also done with its short-term liquidity collection. In such a case, ETH is most likely to rally higher, overcome the $3,658 hurdle and eye a retest of the $4,000 psychological level. Resting, $95 above this level is the range high at $4,095, which could also be tagged if the selling pressure is high. 

Also read: Crypto traders bet $2.4M on spot Ether ETF approval results

ETH/USDT 4-hour chart

On the contrary, if Bitcoin price fails to recover after short-term liquidity run, it will most likely take altcoins down with it. In such a case, Ethereum price could sweep the range low at $3,054. A flip of the said level into a resistance level would invalidate the bullish thesis for ETH and confirm the resumption of the downtrend.

This development could lead to Ethereum price crashing nearly 2% and tagging the $3,000 psychological level.

Read more: Vitalik Buterin wants rollups to hit stage one decentralization by year-end

Weekly Market Outlook (01-05 April)

381394   March 31, 2024 18:09   Forexlive Latest News   Market News  

UPCOMING EVENTS:

• Monday: China
  Caixin Manufacturing PMI, US ISM Manufacturing PMI, BoC Business Outlook
  Survey.
• Tuesday: RBA
  Minutes, Switzerland Retail Sales, Switzerland Manufacturing PMI, German
  Inflation data, US Job Openings.
• Wednesday: China
  Caixin Services PMI, Eurozone CPI and Unemployment Rate, US ADP, Canada
  Services PMI, US ISM Services PMI.
• Thursday:
  Switzerland CPI, Eurozone PPI, US Challenger Job Cuts, US Jobless Claims.
• Friday:
  Eurozone Retail Sales, Canada Jobs data, US NFP.

Monday

The US ISM Manufacturing PMI is expected
at 48.4 vs. 47.8 prior. The recent S&P
Global US Manufacturing PMI beat expectations
rising for the third consecutive month highlighting a pickup in activity in the
Manufacturing sector in Q1 2024. The commentary in the report was generally
upbeat, but there were also some worrying signals on the inflation part saying
that “A steepening rise in costs, combined with strengthened pricing power
amid the recent upturn in demand, meant inflationary pressures gathered
pace again in March. Costs have increased on the back of further wage growth
and rising fuel prices, pushing overall selling price inflation for goods
and services up to its highest for nearly a year.

Tuesday

The US Job Openings are expected at 8.790M
vs. 8.863M prior. This will be the first major US labour market report of
the week and, although it’s old (February data), it’s generally a market
moving release. The last
report we got a miss with negative
revisions to the prior readings highlighting a resilient although weakening
labour market. The market will also focus on the hiring and quit rates as they
both fell below the pre-pandemic trend.

Wednesday

The Eurozone CPI Y/Y is expected at 2.6%
vs. 2.6% prior, while the Core Y/Y measure is seen at 3.0% vs. 3.1% prior. The
market is fully pricing the first rate cut in June and given the consensus
within the ECB itself, we will likely need a huge miss in the data to see
the market pricing in an April move. We got a miss in the French CPI
readings last Friday and we will get the German figures the day before, which
should guide the expectations for the Eurozone CPI. We will also see the latest
Unemployment Rate which is expected to remain unchanged at the record low of
6.4%.

The US ISM Services PMI is expected at
52.6 vs. 52.6 prior. The recent S&P
Global US Services PMI missed expectations
slightly falling to a three-month low although the commentary in the report was
generally good saying that “Service providers reported a slower pace of
expansion linked in part to ongoing cost of living pressures. However,
service providers have also become increasingly optimistic about the outlook,
with confidence striking a 22-month high in March.” The most important
data to watch will be the price and employment sub-indexes.

Thursday

The Switzerland CPI Y/Y is expected at
1.4% vs. 1.2% prior, while the M/M measure is seen at 0.3% vs. 0.6% prior. As a
reminder, the SNB
decided to cut rates by 25 bps at the March
meeting given the steady easing in inflation and the rate being well within
the 0-2% target since last summer. Further easing in the data should see
the market fully pricing in another rate cut in June from the current 60%
probability.

The US Jobless Claims continue to be one
of the most important releases every week as it’s a timelier indicator on the
state of the labour market. This is because disinflation to the Fed’s target is
more likely with a weakening labour market. A resilient labour market though
will make the achievement of the target much more difficult. Initial Claims
keep on hovering around cycle lows, while Continuing Claims remain firm around
the 1800K level. There’s no consensus at the time of writing although the last
week we saw Initial Claims beating
expectations at 210K vs. 212K expected and Continuing Claims rising slightly to
1820K from the prior positively revised 1790K figure.

Friday

The US NFP report is expected to show 200K
jobs added in March vs. 275K in February
with the Unemployment Rate seen unchanged at 3.9%. The Average Hourly Earnings
Y/Y is expected at 4.1% vs. 4.3% prior, while the M/M measure is seen at 0.3%
vs. 0.1% prior. The general expectation into the report is positive
given the strong Jobless Claims and the Present Situation Index, which might
further be consolidated by the employment components in the ISM PMIs. Fed Chair
Powell said that an “unexpected” weakening in the labour market could warrant a
policy response but that will likely require the Sahm Rule to be triggered,
which would need the Unemployment Rate to jump to 4.4%.

The Canadian Labour Market report is
expected to show 25K jobs added in March vs. 40.7K in February
with the Unemployment Rate ticking higher to 5.9% vs. 5.8% prior. The market
will be particularly focused on the wage growth data as that’s what the BoC is
most concerned with.

Decentraland price consolidation could lead to a breakout rally beyond $1

381392   March 31, 2024 18:02   FXStreet   Market News  

• Decentraland price has formed an Adam and Eve setup on the weekly chart.
• A decisive breakout from the neckline at $0.788 forecasts a 64% upswing to $1.292.
• A weekly candlestick close below $0.542 will invalidate the bullish thesis for MANA.

Decentraland (MANA) price consolidation seems to be entering the last stage as it prepares for a breakout. If successful, this move could yield double-digit gains for long-term and patient MANA holders. 

Also read: Avalanche price could rise 20% on gaming narrative ahead of GDC conference

Decentraland price sets the stage for a climb

Decentraland price has been consolidating below the $0.788 resistance level for 575 days and is currently approaching key levels. During its nearly two-year consolidation, MANA created an Adam and Even setup, which is a bottom reversal pattern. 

This technical formation contains two bottoms—the first one has a sharp v-shaped recovery, and the second one is rounded. The pattern forecasts a 64% rally to $1.292 on a successful breakout of the neckline at $0.788, obtained by adding the distance between the second bottom’s depth and the breakout point. 

Considering the Relative Strength Index (RSI) has recently retested the overbought zone, a retest of the 50 mean level would increase the probability of a breakout. Until this happens, Decentraland price will likely be stuck between $0.788 and $0.542 barriers. 

Also read: Arbitrum Arcade launch could fuel narrative for crypto gaming tokens

MANA/USDT 1-week chart

While the outlook for Decentraland price remains bullish in the long-term, a short-term spike in selling pressure could trigger a correction for MANA. In such a case, if Decentraland price breaches $0.542, it would create a lower low and invalidate the bullish thesis.

Such a development could attract panic selling and knock MANA down by 22% resulting in a retest of the January 29 swing low at $0.423.

Also read: Gaming tokens surge, in spillover effect from Bitcoin price rally: GALA, SAND, ENJ, BEAM, APE

Polygon price needs to reset before MATIC bulls can trigger 60% upswing

381389   March 31, 2024 14:26   FXStreet   Market News  

• Polygon price continues to hover around the $0.941 level for nearly two years. 
• MATIC could drop 25%, allowing sidelined buyers to accumulate around $0.762.
• A bounce here could trigger the Layer 2 token to rally 60% to $1.568.
• A weekly candlestick close below the $0.762 support level will invalidate the bullish thesis.

Polygon (MATIC) price has been consolidating inside a range for nearly two years without a directional bias. With the current market outlook, MATIC could drop lower, allowing long-term investors to accumulate before rallying higher.

Also read: MATIC price dips despite implementation of first RIP on Polygon chain

Polygon price ponders long-term uptrend

Polygon price is positioned perfectly to trigger an uptrend, not just from a technical standpoint but also from a fundamental perspective. As noted in a previous article, there not one but six fundamental reasons why MATIC could trigger an uptrend. 

However, focussing on the technical aspects shows that Polygon price is hovering around $0.941 for nearly two years. This level is the midpoint of the $0.315 to $1.568 range. While MATIC might seem to be bouncing off the aforementioned level, it is likely to drop below $0.906 and potentially retest the $0.762 barrier.

This move would allow the Relative Strength Index (RSI) to reset at the 50 mean level and allow long-term holders to accumulate MATIC at a discount. This spike in buying pressure would propel the Layer 2 token to attempt a retest of the range high at $1.568. In total, this move would constitute a 104% gain from $0.762. 

MATIC/USDT 1-week chart

The crypto market outlook is largely positive and shows signs of continuing the uptrend. But a short-term correction could be likely before the uptrend. If Bitcoin price sheds more value than expected, it could be catastrophic for altcoins, including MATIC. 

In such a bearish case, if Polygon price produced a weekly candlestick close below $0.762, it would create a lower low and invalidate the bullish thesis. This development could see MATIC spiral down 35% and sweep the June 5, 2023, swing low at $0.501.

Stellar Price Forecast: XLM to shoot 60% if it clears this key resistance level

381387   March 31, 2024 12:21   FXStreet   Market News  

• Stellar price has underperformed when compared to other altcoins as it trades around $0.139. 
• A flip of the weekly level at $0.142 could trigger a 60% move to $0.229. 
• A breakdown of the $0.107 support level will invalidate the bullish thesis for XLM.

Stellar (XLM) price has been hovering below a critical resistance level for nearly two years. As XLM climbs higher, it contests this hurdle and anticipates a breakout rally. 

Also read: Ripple’s move above this key level could trigger nearly 50% rally for XRP

Stellar price at pivotal point

Stellar price slipped below the $0.142 support level in mid-May 2022 and has traded below it for nearly two years. Even before May 2022, this barrier served as an important level that kickstarted a 484% rally in late 2020 and mid-2021. Therefore, a retest of this level is critical, and a flip would be crucial to achieving an ascent.

Investors should note that a successful flip of the $0.142 resistance level into a support floor would suggest that Stellar price is due for a rally. In such a case, XLM bulls will most likely eye a retest of the $0.229 level, roughly 60% away.

The Relative Strength Index (RSI) has recovered from dipping below the mean level of 50, suggesting that the bullish momentum is still in play. The Awesome Oscillator (AO) also displays a similar positive outlook.

Read more: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts

XLM/USDT 1-week chart

On the other hand, if Stellar price faces another rejection due to selling pressure spike from XLM holders or due to the bearish market outlook, it could fall back to the $0.107 support floor. This level is crucial since it has served as a base for attempting a breakout above $0.142. 

If Stellar prices flips this level into a resistance level, it would invalidate the bullish thesis by producing a lower low. In such a case, XLM could crash 35% and tag the range low at $0.069.

Also read: XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat

China March 2024 Official Manufacturing PMI 50.8 (expected 50.1) Services 53.0 (exp 51.5)

381386   March 31, 2024 09:40   Forexlive Latest News   Market News  

China has two primary Purchasing Managers’ Index (PMI) surveys – the official PMI released by the National Bureau of Statistics (NBS) and the Caixin China PMI published by the media company Caixin and research firm Markit / S&P Global.

• The official PMI survey covers large and state-owned companies, while the Caixin PMI survey covers small and medium-sized enterprises. As a result, the Caixin PMI is considered to be a more reliable indicator of the performance of China’s private sector.
• Another difference between the two surveys is their methodology. The Caixin PMI survey uses a broader sample of companies than the official survey.
• Despite these differences, the two surveys often provide similar readings on China’s manufacturing sector.
• The Caixin manufacturing PMI will follow on Monday, services on Wednesday

***

Today we have had data for the official PMIs. March manufacturing PMI comes in at a solid beat, 50.8

• expected 50.1, prior 49.1

Services beats also at 53.0

• expected 51.5, prior 51.4

Composite 52.7

• prior 50.9

***

China’s Economy kicked off 2024 on a reasonably strong note. Stimulus measures were recently announced during the Two Sessions, and analysts have begun to upgrade GDP forecasts. For example

January – February data has surprised to the upside. Industrial Production, Retail sales, Fixed asset investment all beat in this recent data:

An additional 1 trillion yuan in special treasury bonds this year should help infrastructure and manufacturing investment accelerate further. China’s economy is still, of course, hamstrung by the deep debt troubles of the property sector. Real estate investment is expected to drag on growth in 2024.

China NBS Manufacturing PMI came in at 50.8, above forecasts (49.9) in March

381385   March 31, 2024 09:33   FXStreet   Market News  

Heads up – EU, UK, Switzerland change to daylight saving time this weekend

381384   March 31, 2024 07:35   Forexlive Latest News   Market News  

If you are trading markets in the EU, UK and/or Switzerland note the change of time zones this weekend.

Clocks go forward 1 hour in those locations early on Sunday morning.

Check your local times for an earlier opening to markets in impacted countries!

Newsquawk Week Ahead: US NFP, ISMs, EZ & Swiss CPI, Minutes from ECB & RBA

381381   March 30, 2024 21:05   Forexlive Latest News   Market News  

• Mon: BoJ Tankan Survey (Q1), South Korea Prelim Trade Balance (Mar), Chinese Caixin Manufacturing PMI Final (Mar), US ISM Manufacturing PMI (Mar), US S&P Global Manufacturing PMI Final (Mar)
• Tue: RBA Minutes (Mar), CNB Minutes (Mar), South Korean CPI (Mar), EZ/UK Manufacturing PMI Final (Mar), German Prelim CPI (Mar), US Non-Durable Goods R (Feb), Chilean Central Bank Announcement
• Wed: OPEC+ JMMC Meeting, EZ Flash CPI (Mar), US Services and Composite Final PMI (Mar), US ISM Services PMI (Mar), US ADP National Employment
• Thu: ECB Minutes (Mar), Riksbank Minutes (Mar), Swiss CPI (Mar), EZ/UK Services and Composite Final PMI (Mar), US Goods Trade Balance R (Feb)
• Fri: RBI Announcement, German Industrial Orders (Feb), EZ/UK Construction PMI (Mar), EZ Retail Sales (Feb), US Labour Market Report (Mar), Canadian Labour Market Report (Mar)

Note: Previews are listed in day order

BoJ Tankan Survey (Mon):

The BoJ Tankan business survey is expected to show a decline in Large Manufacturers’ sentiment to +10 from +12, according to a Reuters poll, whilst the Large Non-Manufacturers Index is seen rising to +33 from +30 last quarter. Capex is expected to print at 9.2% vs 13.5% in Q4 2023. Desks suggest large manufacturers’ sentiment will likely be hampered by auto production disruptions in the quarter, with some also citing the vehicle certification issues which resulted in the suspension of shipments of some models. The survey also comes as the BoJ ended 17 years of negative interest rate policy in March, although cautiousness is expected from the Bank, whilst the annual wage negotiations saw the largest pay rise in 33 years. Using the Reuters Tankan survey as a proxy for the BoJ’s release, March manufacturers’ sentiment index printed at +10 vs -1 from Feb while the Service-sector index came in at +32 vs +26 from Feb. The Reuters release surveyed 240 manufacturers and 258 non-manufacturers, with some 237 firms responding during the March 6-15 period.

US ISM Manufacturing PMI (Mon):

Analysts expect the ISM manufacturing PMI to rise a touch to 48.0 in March, from 47.8 in February. S&P Global’s flash US PMI data for March saw the manufacturing index rise to a 21-month high of 52.5 from 52.2, which S&P said points to a solid improvement in the health of the sector. “Further expansions of both manufacturing and service sector output in March helped close off the US economy’s strongest quarter since the second quarter of last year,” the data compiler said, “the survey data point to another quarter of robust GDP growth accompanied by sustained hiring as companies continue to report new order growth.” In the manufacturing sector, production is now growing at the fastest pace since May 2022, with production gains linked to improving demand for goods both at home and abroad, driving a further upturn in business confidence in the outlook.” Analysts will also be attentive to the prices paid sub-indices in the ISM data; S&P Global’s composite flash PMI data warned, however, that inflationary pressures showed signs of picking up. “Input costs rose at the fastest pace in six months, while firms increased their selling prices to the largest extent since April last year.”

RBA Minutes (Tue):

The RBA will publish the minutes from its March 18th-19th meeting where the central bank provided no major surprises as it kept the Cash Rate Target at 4.35%, as unanimously forecast, while it reiterated that the Board remains resolute in its determination to return inflation to the target and inflation continues to moderate but remains high. RBA stated that the “Board is not ruling anything in or out on interest rates” which was a slight adjustment to the previous statement that “a further increase in interest rates cannot be ruled out”, although Governor Bullock had made a similar comment during last month’s press conference. The RBA also noted that higher interest rates are working to establish a more sustainable balance between aggregate demand and supply in the economy and the Board expects that it will be some time yet before inflation is sustainably in the target range, while it added there are encouraging signs that inflation is moderating although the economic outlook remains uncertain. Furthermore, RBA Governor Bullock refrained from any hawkish surprises during the post-meeting press conference where she noted they are making progress in the fight against inflation and that recent data suggests they are on the right track but added the war isn’t won yet on inflation, while she also commented that the board sees risks on both sides for policy and needs to be much more confident on inflation coming down to consider a rate cut.

US ISM Services PMI (Wed):

Analysts expect the ISM services PMI to rise a touch to 52.7 in March, from 52.6 in February. S&P Global’s flash US PMI data for March saw the services business activity index ease to a 3-month low at 51.7 in March from the 52.3 in February. The survey compiler said that service providers reported a slower pace of expansion than factories, with the rate of increase also moderating slightly vs February, linked in part to ongoing cost of living pressures. “However, service providers have also become increasingly optimistic about the outlook, with confidence striking a 22-month high in March to suggest the broad-based economic expansion seen in March will persist into the summer,” S&P said. On prices, the survey noted that the steepening rise in costs and firms’ strengthened pricing power amid the recent upturn in demand, meant that inflationary pressures picked-up again in March. “Costs have increased on the back of further wage growth and rising fuel prices, pushing overall selling price inflation for goods and services up to its highest for nearly a year,” S&P said, “the steep jump in prices from the recent low seen in January hints at unwelcome upward pressure on consumer prices in the coming months.”

JMMC Meeting (Wed):

The non-decision-making and market-analysing committee of OPEC, the JMMC, will convene to discuss market dynamics on April 3rd. No policy recommendation is expected at this meeting, according to desks and sources. Reuters sources on Tuesday also suggested that OPEC+ is unlikely to change output policy before the decision-making June meeting. That being said, Reuters recently reported that OPEC+ has a tendency to announce off-meeting policy changes if the group deems it necessary. Furthermore, recently Russia reportedly told oil companies to cut output to 9mln BPD by the end of June, in line with its OPEC+ pledges. The expectations for no changes in policy could stem from expectations of a slight oil market deficit forecast for later this year (all things equal). The latest IEA oil market report raised its 2024 oil demand growth forecast by 110k BPD to 1.3mln BPD and said if OPEC+ voluntary cuts remain in place through 2024, the market is seen in a slight deficit rather than a surplus. The importance of compliance could be reaffirmed in commentary from the JMMC – the latest OPEC oil market report was framed by Bloomberg as “OPEC oil supply cuts stall as Iraq keeps pumping above quota”, although Reuters then reported that Iraq pledged to cut exports by 130k BPD in the coming months (to 3.3mln BPD) to compensate for exceeding its OPEC+ quota since January.

EZ Flash CPI (Wed):

Expectations are for headline Y/Y HICP to tick lower to 2.5% from 2.6% with no consensus at the time of writing for the core metrics. As a reminder, the prior report saw headline inflation slip to 2.6% from 2.8% with the super-core reading declining to 3.1% from 3.3% with ING noting that “base effects did most of the heavy lifting”. Furthermore, ING stated that, using its own seasonal adjustment, “we see that monthly core inflation ticked up for the third month in a row on the back of services inflation accelerating”. This time around, analysts at Deutsche Bank (who are in line with the consensus for the headline rate and expect core to remain unchanged at 3.1%) note that “an early Easter this year should boost tourism-related services more than usual in March”, whilst “components other than tourism are expected to remain relatively sticky”. The desk adds that “services inflation momentum has been picking up lately, and the strength seems to be broad-based”, as such its forecasts are “consistent with an underlying pace of around 3.5% saar”. From a policy perspective, a hawkish outturn could see a pullback in some of the recent conviction in a June rate cut which is now priced at around 92%, and see the market also scale back expectation of easing later in the year which has three cuts fully priced in and a roughly 50% chance of a fourth.

ECB Minutes (Thu):

As expected the ECB opted to stand pat on rates as policymakers continue to monitor progress towards the Bank’s inflation mandate. Furthermore, guidance on rates was reaffirmed as stating that “rates will be set at sufficiently restrictive levels for as long as necessary”. This served as a disappointment to some who had been hoping that policymakers would insert some language suggesting that discussions on the policy normalisation process had begun. However, the accompanying macro projections did offer something to the doves with the 2024 and 2025 inflation forecasts lowered, leaving the latter matching the Bank’s 2% target. From a growth perspective, 2024 was cut to 0.6% from 0.8% with next year’s forecast held at 1.5%. At the follow-up press conference, Lagarde noted that the Bank is not yet “sufficiently confident” when it comes to meeting its target. In terms of the policy path beyond the March meeting, Lagarde stated the Bank will know a little more in April but a lot more in June. When it comes to the discussions held during the meeting, Lagarde stated that the policy decision was unanimous, there was not a discussion over rate cuts but the GC has begun discussing dialling back its restrictive stance with the view that the Bank will not wait until the 2% inflation target is reached in order to cut rates. Subsequently, source reporting via Reuters noted that policymakers overwhelmingly favour June for the first rate cut; something which has been reaffirmed via subsequent rhetoric from Governing Council members. As such, any mention of this in the account of the meeting will not be new information for the market. That being said, reporting from Reuters also noted that some policymakers floated the idea of a second cut in July to win over a small group still pushing for an April start; any discussion on this will be of note for the market.

Swiss CPI (Thu):

February’s print came in at 1.2%, marginally above the consensus 1.1% but still cooler than the 1.3% prior reading. A metric which helped cement the SNB’s decision to kick off the G10 central bank easing cycle at their March meeting. Within the March gathering, inflation forecasts were trimmed across the board and CPI is forecast to remain well within the 0-2% band for the entire horizon. For Q1 2024, the view has been cut to 1.2% from 1.4%; a forecast which implies the March CPI Y/Y number will come in at around 1.1%. Assuming this is the case, pricing for another cut at the June meeting will likely increase from the current 60% implied probability; however, a cut is unlikely to be fully priced at this point given there are another two inflation numbers due before June. Equally, the SNB could elect to leave policy on hold in June and see how inflation progresses over Q2 & Q3, periods of focus as CPI is expected to tick up incrementally then. Overall, March’s number is of course noteworthy but is unlikely to meaningfully/lastingly move the dial on June’s pricing.

RBI Announcement (Fri):

The RBI is expected to keep the Repurchase Rate unchanged at 6.50% and maintain its stance of remaining focused on the withdrawal of accommodation when it concludes its 3-day policy meeting next week with all 56 forecasters surveyed by Reuters unanimously expecting rates to be kept unchanged. Furthermore, a Reuters poll showed the RBI is expected to keep the repo rate unchanged at least until the end of Q2 and then cut by 25bps in Q3 with a total of 50bps cut expected this year to lower the repo rate to 6.00% by year-end. As a reminder, the RBI kept rates unchanged at the previous meeting in February and maintained the policy stance of remaining focused on the withdrawal of accommodation in which 5 out of 6 members voted in favour of the rate decision and policy stance with MPC external member Varma the lone dissenter who voted for a 25bps cut and for a change in stance to neutral. The language from RBI Governor Das during the policy address remained hawkish and suggested the unlikelihood of any near-term policy tweaks as he stated that growth in India is accelerating and inflation is on a downward trajectory in India, as well as noted that multi-pronged policies have worked well to maintain and strengthen macro and financial stability. Furthermore, Das said the job on inflation is not yet finished as headline inflation remained high and has seen considerable volatility, while he also commented the CPI inflation target of 4% is yet to be reached and monetary policy has to remain vigilant. The recent data releases also support the case to remain on hold as GDP data for the December quarter was stronger than expected with Y/Y growth at 8.4% vs. Exp. 6.6% (Prev. 7.6%) and although the latest Industrial Production reading missed forecasts for January, this remained in line with the previous reading at 3.8% vs. Exp. 4.1% (Prev. 3.8%). In addition, CPI Inflation was above target and slightly firmer than expected in February at 5.09% vs. Exp. 5.02% (Prev. 5.10%), but remained within the 2%-4% tolerance range which suggests a lack of urgency to tweak policy.

US Jobs Report (Fri):

The consensus view is for 200k nonfarm payrolls to be added to the US economy in March, a slowdown vs the prior 275k; that would also be lower than recent averages (3-month average 265k, 6-month average 231k, 12-month average 229k). The unemployment rate is expected to be unchanged at 3.9%. The rate of average hourly earnings is set to pick-up, with analysts forecasting +0.3% M/M (prior +0.1%). The data will be framed in the context of Fed policy, given officials are looking to incoming data to steer its policy reaction. At his post-meeting press conference in March, Fed Chair Powell said that the labour market has remained strong, and despite the tightness easing, it is still relatively tight. He said that strong job creation has been accompanied by an increase in the supply of workers (reflecting increases in participation among individuals aged 25-54 years old, and a continued strong pace of immigration). And although the jobs-to-workers gap has narrowed, labour demand still exceeds the supply of available workers. Accordingly, Powell argued that the risks to achieving the Fed’s employment and inflation goals were coming into better balance. Still, he said that any unexpected weakening in the labour market could warrant a policy response, and could be a reason for the Fed to begin the process of reducing rates (he placed great emphasis on “unexpected”). Powell was also asked if continued strength in the labour market might be a reason for the Fed to hold off on rate cuts; the Fed Chair said that given the labour force is growing, and that continued supply side activity and with growth in the size of the labour force, strong jobs numbers may not be inflationary (and by implication, would not necessarily derail rate cuts).

This article originally appeared on Newsquawk.

Enjin Coin Price Forecast: ENJ could trigger 20% correction if this key level fails

381379   March 30, 2024 18:40   FXStreet   Market News  

• Enjin Coin price shows that its 90% uptrend after a late February breakout is under threat.
• Failure from ENJ bulls to make a comeback could lead to a 20% correction to $0.386.
• A decisive flip of the $0.696 resistance level into a support floor will invalidate the bearish outlook.

Enjin (ENJ) price sits atop a key barrier that will decide where ENJ will go next. A breakdown could lead to a double-digit correction, but a bounce here could trigger an even bigger rally.

Also read: Arbitrum Arcade launch could fuel narrative for crypto gaming tokens

Enjin Coin price at pivotal point

Enjin Coin price trigged a 94% ascent after it breached the declining trendline in late February. This move caused ENJ to pierce the $0.386 and $0.486 hurdles and set up a local top at $0.687. However, the profit-taking or exhaustion caused the altcoin to shed 27% from the top, and it currently trades at $0.499. 

Going forward, investors can expect Enjin Coin price to break down the 0.486 support level and retrace lower. This move will allow the Relative Strength Index (RSI) to reset around the 50 mean level. The weekly imbalance, extending from $0.365 to $0.434, will be a key zone to accumulate ENJ.

However, for the long-term outlook to remain bullish, the Enjin Coin price needs to hold above the $0.386 support level. A breakdown of this level could attract breakout traders and holders to sell their stack, adding selling pressure to the ensuing correction.

Also read: Gaming tokens surge, in spillover effect from Bitcoin price rally: GALA, SAND, ENJ, BEAM, APE

ENJ/USDT 1-week chart

While the short-term correction thesis is logical, Bitcoin’s (BTC) slightly bearish leaning bias helps Enjin Coin price in its journey to the key support level. However, if BTC manages to overcome the lack of volatility and kickstart its ascent, then Enjin Coin price could bounce off the $0.486 support level and restart its ascent.

In such a case, Enjin Coin price could rally roughly 42% and tag the next critical resistance level at $0.698. A clean flip of this level will invalidate the potential bearish outlook for ENJ and open the path up to the $0.914 level, roughly 35% away from $0.698.

Read more: Avalanche price could rise 20% on gaming narrative ahead of GDC conference

Litecoin’s $200 dream might need to take a backseat

381375   March 30, 2024 16:29   FXStreet   Market News  

• Litecoin price tackles the declining trend line for the third time in nearly two years.
• A breakdown of the $100 psychological level could lead to a correction to $90 or lower levels.
• A breakout above the declining trend line could trigger a move of $119 or higher. 

Litecoin (LTC) price has been stuck under a declining trend line, producing lower highs. This development is likely to lead to correction, considering the Bitcoin (BTC) market outlook, which is already bearish.

Also read: Bitcoin Weekly Forecast: BTC looks set for correction amid increasing sell signals

Litecoin price at crossroads 

Litecoin price crashed 69% between November 2021 and February 2022, after which the selling pressure slowed down. Since then, LTC has produced three distinctive lower highs, which can be connected via a declining trend line that serves as a resistance level. The current retest has cleared the weekly hurdle at $100 but has not yet breached the trend line. 

If the Bitcoin price outlook shifts from sideways to correction, the third retest of the declining trend line for Litecoin price will result in a similar move to the last two. For now, investors can expect a breakdown of the $100 psychological level, followed by a correction to the $90 support level, roughly 13% lower.

A bounce here would be a great buying opportunity, especially if BTC’s outlook changes. In such a case, Litecoin price recovery rally could propel LTC to $119. In a highly bullish case, the altcoin could eye a retest of the $150 key level or the $200 psychological level. Either way, the retest of $200 could take a while.

LTC/USDT 1-week chart

While the short-term bearish outlook for Litecoin price looks promising for long-term holders, investors need to pay close attention to Bitcoin price. 

If BTC undergoes a steeper correction, it could cause Litecoin price to breach the $90 support level and nose dive 16% to the next key support level at $75.

[COMPLETED] M5 BTCUSD Weekend Range Scalps

381371   March 30, 2024 16:21   SwingFish   Forex Signals   BTCUSD

keep selling till  70087

STOP 70406

TP1 69868 TP2 69481