Iota continues to go sideways during the Wednesday session, as we are dancing around the 0.48 level. Most of the consolidation in the currency world has to do with the FOMC Meeting Minutes coming out later on Wednesday, which gives us an idea as to how hawkish or dovish the central bank is in the United States. This will have an effect on the US dollar, and by extension have an effect against crypto currencies measured in US dollars, such as the Iota/USD pair. Because of this, I think that we should have a bit more clarity later in the session, but I already have the first barrier in mind when it comes to buying this market: the 0.50 handle. If we can clear that level, then I think we can go much higher, perhaps reaching towards the 0.60 level after that.
The alternate scenario
If the US dollar strengthens rather radically against standard currencies, it will probably have the same effect against Iota. A breakdown below the 0.44 level would be very negative, and have the market looking for the next large, round, psychologically significant figure, the 0.40 level. That would be a very bearish turn of events, because it would not only be more selling, but it would be a confirmation of the previous selling, perhaps putting this market on its back foot for a while. I believe that the next couple of sessions will be somewhat important, but there is also the possibility that the FOMC Meeting Minutes are a bit cloudy, as the central bank hasn’t exactly been forthcoming at times. If that’s the case, then we will have to go looking for another catalyst to move this market. I suspect the buyers are going to return rather soon, but one never knows when central bankers become involved.