Majors extend recovery legs, Bitcoin Strategy ETF is expected to list

Tuesday morning, the dollar was down, remaining near the bottom of its recent range while most Asian markets were closed. In response to disappointing American Industrial Production data, the yields curve flattening has paused, adding to the recovery momentum of the major currencies against US dollar. The bitcoin price hit six-month highs as traders bet on the upcoming listing of a futures-based cryptocurrency exchange-traded fund.

EURUSD at three-week highs

EURUSD is trading close to 1.1650, recovering ground for clinching three-week highs.

A bullish shift in the daily technical outlook is evident with the price crossing over the 34 LWMA. A decisive breakthrough of 1.16391, the previous swing top, would open a door toward 1.17110 and 1.17550.

However, the Relative Strength Index (RSI) suggests that the pair should stage a technical correction before extending the leg up.

As long as buyers defend 1.15950 as initial support, EURUSD remains bullish.

Should the pair close below 1.15950, it would likely retreat toward 1.15232.

Bitcoin hit six-month highs

Bitcoin, the world's largest cryptocurrency by market value, rose 1.5% to $62,960 on Tuesday morning. This is the highest level since April 2021, when it reached a record high of $64,895.

In October, bitcoin rose by some 40%, as pension funds and other institutional investors expect bitcoin ETFs to allow them to invest billions in the sector.

Following Nasdaq's approval of Valkyrie's Bitcoin Strategy ETF listing on Friday, ProShares' Bitcoin Strategy ETF is slated to list and begin trading on Tuesday.

Events of today

Tuesday's data calendar is relatively light, with only housing starts and building permits coming from the US. Instead, central bankers led several speeches, among them Mary Daly, Michelle Bowman, Chris Waller, and, inevitably, Raphael Bostic. BoE governor Andrew Bailey will deliver a speech along with BoE chief economist Catherine Mann and European Central Bank chief economist Philip Lane.

The Hungarian central bank is expected to raise its key interest rate again later, by 15 basis points to 1.80%, for the fifth meeting in a row.