Daily Market Analysis By FXOpen

ETHUSD and LTCUSD Technical Analysis – 21st JULY, 2022

ETHUSD: Hanging Man Pattern Below $1627

Ethereum was unable to sustain its bullish momentum and after touching a high of 1627 on 19th July started to decline against the US dollar coming down below the $1500 handle in the European trading session today.

We can see that ETH is losing ground against the US dollar and no major uptrend formation was seen.

The prices touched an intraday low of $1466 and an intraday high of $1565 in the Asian trading session today.

We can clearly see a hanging man pattern below the $1627 handle which is a bearish pattern and signifies the end of a bullish phase and the start of a bearish phase in the markets.

ETH is now trading just above its pivot levels of 1485 and moving into a mildly bearish channel. The price of ETHUSD is now testing its classic support level of 1450 and Fibonacci support level of 1476 after which the path towards 1300 will get cleared.

The relative strength index is at 39 indicating a weak market and the continuation of the downtrend in the markets.

We can see the progression of a bearish trendline formation from $1627 to $1488 which indicates that we are heading towards $1436.

Both the commodity channel index and Williams percent range are indicating a neutral market.

All of the technical indicators are giving a strong sell market signal.

Most of the moving averages are giving a sell signal, and we are now looking at the levels of $1400 to $1350 in the short-term range.

ETH is now trading above both its 100 hourly simple and exponential moving averages.

• Ether: bearish reversal seen below the $1627 mark
• Short-term range appears to be mildly bearish
• ETH continues to remain above $1400
• The average true range is indicating less market volatility

Ether: Bearish Reversal Seen Below $1627

ETHUSD is now moving into a mildly bearish channel with the prices trading below the $1500 handle in the European trading session today.

We have also detected the formation of MA20 and MA50 crossover patterns located at 1529 and 1545 in the hourly time frame indicating that the price is likely to descend below.

We can see that the prices of Ethereum are slowly preparing for moving into a consolidation channel above the $1400 handle.

We can also see the formation of three black crows patterns in the 15-minute time frame indicating the bearish nature of the markets.

In the 2-hour time frame, the super trend indicator is giving bearish reversal signals.

The key support levels to watch are $1385 and $1335, and the prices of ETHUSD need to remain above these levels for any potential bullish reversal in the markets.

ETH has decreased by 2.79% with a price change of 42$ in the past 24hrs and has a trading volume of 23.086 billion USD.

We can see an increase of 2.31% in the total trading volume in the last 24 hrs. which appears to be normal.

The Week Ahead

We can see that ETH failed to clear the resistance zone located at $1650, and with the continued bearish reversal, we are now heading towards the $1400 level.

The prices of Ethereum are preparing to enter into a consolidation phase below the $1500 level and we can see some range-bounded movements between the $1400 and $1500 levels this week.

The immediate short-term outlook for Ether has turned mildly bearish; the medium-term outlook has turned neutral; and the long-term outlook for Ether is neutral in present market conditions.

The price of ETHUSD will need to remain above the important support level of $1400 this week.

The weekly outlook is projected at $1550 with a consolidation zone of $1400.

Technical Indicators:

STOCH (9,6): at 22.50 indicating a sell

The moving averages convergence divergence (12,26): at -17.75 indicating a sell

The rate of price change: at -3.93 indicating a sell

The ultimate oscillator: at 46.50 indicating a sell

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Gold Price and Crude Oil Price Aim Fresh Increase

Gold price started a major decline below the $1,725 support zone. Crude oil price is attempting a fresh increase from the $88.80 support zone.

Important Takeaways for Gold and Oil

• Gold price struggled above $1,740 and declined against the US Dollar.
• Recently, there was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold.
• Crude oil price started a downside correction from the $100 and $101 resistance levels.
• There was a break below a major bullish trend line with support near $98.95 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price struggled to gain pace above the $1,750 resistance zone against the US Dollar. The price started a fresh decline and traded below the $1,725 pivot level.

There was a clear move below the $1,712 support zone and the 50 hourly simple moving average. The price even traded below the $1,700 level and formed a low near $1,680 on FXOpen. It is now correcting losses above the $1,695 level.

Gold Price Hourly Chart

There was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold. The price even climbed above the $1,712 level but struggled to clear $1,720.

A high is formed near $1,720 and the price is now consolidating gains. On the downside, an initial support is near the $1,710 level. It is near the 23.6% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high.

The next major support is near the $1,700 level or the 50% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,680 support zone.

On the upside, the price is facing resistance near the $1,720 level. A clear upside break above the $1,720 resistance could send the price towards $1,735. The main resistance is now forming near the $1,750 level. A close above the $1,750 level could open the doors for a steady increase towards $1,780.

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Watch FXOpen's July 18 - 22 Weekly Digest Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

• British pound begins to rise, but still faces challenges
• EUR/USD starts recovery while USD/CHF dips below support
• What will make oil prices skyrocket?
• Big Tech stock languishes, whilst UK inflation rampages

Watch our short and informative video, and stay updated with FXOpen.



FXOpen YouTube

 

GBP/USD Faces Resistance And GBP/JPY Is Sliding

GBP/USD started a recovery wave above the 1.1950 resistance zone. GBP/JPY declined and remains at a risk of more losses below 163.00.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a recovery wave above the 1.1950 resistance against the US Dollar.
• There is a major bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD.
• GBP/JPY declined steadily after it failed to clear the 166.20 resistance zone.
• There was a break below a key bullish trend line with support near 165.60 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.1750 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to settle above the 1.1850 zone.

There was a steady increase above the 1.1900 zone and the 50 hourly simple moving average. The pair even traded above the 1.2000 resistance zone. However, the bears were active near the 1.2050 and 1.2060 levels.

GBP/USD Hourly Chart

A high was formed near 1.2063 on FXOpen and the pair is now correcting lower. There was a move below the 1.2000 support zone. It even broke the 50% Fib retracement level of the upward move from the 1.1916 swing low to 1.2063 high.

An immediate support is near the 1.1975 and the 50 hourly simple moving average. The next major support is near the 1.1960 level. There is also a major bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD.

If there is a break below the 1.1960 support, the pair could test the 1.1920 support. Any more losses might send GBP/USD towards 1.1850. On the upside, the pair is facing resistance near the 1.2000 level and the 1.2020.

An upside break above 1.2020 could set the pace for a move towards the 1.2060 resistance zone. The next major resistance sits near the 1.2120 level.

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Oil price bonanza may trigger dividend hike for big firms


The incessant increase in the price of oil over recent months has been a moot point for many people, especially those in western countries who are now having to battle with the cost of paying for their domestic heating or the painful cost of buying fuel for their car.

What appeared inconceivable last year when oil prices were very low and had only just begun to recover from the negative equity position that crude oil was in in March 2020, is now a very harsh reality for many domestic and commercial consumers, just as it is for commodities traders who have to make their investment in crude oil work against the backdrop of a surprisingly strong US Dollar.

Currently, the price of oil is still extremely high, with Brent Crude commanding a price of $103 per barrel at July 25, and oil companies are quite simply raking in the profits.

The sanctions which were placed on companies in all sectors of industry based in Russia earlier this year have also had an impact on the price of crude oil, as Russia is an OPEC country and has a vast oil and raw materials industry which exports its products globally.

Once the ability for Russian oil companies to access their settlement payments for oil and gas in Euros or US Dollars via European and North American banks became impossible due to the freezing of those accounts, and Russian oil companies ended up insisting that European and American customers settle their oil and gas purchases in Rubles via Russian banks, the US Dollar became less connected to the commodities settlement business and the ruble shot up, but of course overall demand for oil remained very high.

As a result, the dollar value of oil is still high indeed.

Some of the top international oil majors have already announced expectations of extremely high revenues, especially in their refining divisions, for the second quarter of this year.

A number of analysts expect at least some of them to step up share buybacks and some even to announce an increase in dividends due to record cash flows and record or near-record earnings.

Some Western oil companies are doing very well indeed, as this is a global phenomenon and a global supply and demand issue.

French supermajor TotalEnergies said last week that “Refining & Chemicals results are expected to be exceptional given the very high levels of distillate and gasoline cracks.”

American oil giant ExxonMobil revealed in an SEC filing earlier this month that the rise in industry margins is set to add between $4.4 billion and $4.6 billion to its Q2 results.

At Shell, which recently moved its headquarters from its native Holland to London purely so that it can be in the global trading center for electronic financial services, the refining margin nearly tripled in Q2 compared to Q1 and is expected to add between $800 million and $1.2 billion to the second quarter results of Shell’s Products division compared to the first quarter of 2022.

Therefore, not only are oil stocks in view, but oil prices themselves.

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Tesla stock has volatile week despite Bitcoin unicorn

Tesla has been known for as long as it has been in existence as a disruptor of its sector.

Its founder, Elon Musk, is a maverick and a free thinker and has risen to prominence as one of the world's richest men via his methodology of disregarding the well-trodden path and finding ways to reinvent it.

Thus, Elon Musk's influential interest in cryptocurrency has been a well-covered subject over the past year and a half, and his own advocacy of cryptocurrencies ranging from Bitcoin to oddball meme currencies such as Dogecoin has been high profile.

It is fair to say that Elon Musk's interest in cryptocurrency is not just an interest, it positions him as an influencer.

In May 2021, he was responsible for crashing the value of five popular cryptocurrencies by over $700 million, and then partially responsible for causing them to rise to a higher value than before his infamous Twitter post-orientated tumble.

It is therefore fitting that Elon Musk would bring cryptocurrency investment into his commercial portfolio, which he did with Tesla.

By the end of last year, Tesla could lay claim to being the most influential disrupting force in the automotive industry, as well as the only large cap publicly listed corporation which is a Bitcoin whale.

A Bitcoin whale is an entity or person which holds enough Bitcoin to be able to influence the market.

Now, as Tesla remains a major market force and all of the traditional car manufacturers have been rallying to make electric vehicles after over 100 years of not even considering moving away from internal combustion, and as a recent SEC filing showed that the company has made $64 million in gains from bitcoin sales, its own stock is volatile to say the least.

This week, prices are down to $804 per share after a rally last week.

Whether investors in high market cap publicly listed companies are still relatively conservative and don't favor risky and avantgarde strategies such as the Bitcoin trading activities of Tesla is perhaps a matter for discussion, but despite these crypto-fueled gains being made public information, the value of Tesla stock has been declining during the course of this week.

On Friday last week, Tesla stock was trading at $840 per share, so today's $804 is a definitive downturn.

Elon Musk, who is openly pro-free market, and has objected to government lockdowns across Europe and America has this week stated that Tesla’s factories in Germany and Texas are losing billions of dollars as supply-chain snags and battery-cell manufacturing hurdles limit production caused by the draconian lockdowns in 2020 and 2021.

Clearly, regardless of how well capitalized and how much of a market icon Tesla is, foresight, innovation and disruption still equals volatility.

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BTCUSD and XRPUSD Technical Analysis – 26th JULY 2022

BTCUSD: Bearish Engulfing Pattern Below $24262

Bitcoin was unable to sustain its bullish momentum and after touching a high of 24195 on 20th July started to decline against the US dollar dropping below the $21500 handle in the European trading session today.

We can see that after this decline the prices have entered into a consolidation zone above the $21000 handle.

The drop in the prices of bitcoin comes just before the upcoming US Federal Reserve FOMC meeting, which is expected to raise the interest rates by 75 basis points.

We can clearly see a bearish engulfing pattern below the $24262 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Bitcoin touched an intraday high of 22248 in the Asian trading session and an intraday low of 20928 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 29 indicating a weaker demand for bitcoin at the current market level and the continuation of the selling pressure in the markets.

Bitcoin is now moving below its 100 hourly simple moving average and 200 hourly simple moving averages.

Most of the major technical indicators are giving a strong sell signal, which means that in the immediate short term, we are expecting targets of 20500 and 20000.

The average true range is indicating less market volatility with a bearish momentum.

• Bitcoin: bearish reversal seen below $24262
• STOCHRSI is indicating an overbought level
• The price is now trading just above its pivot level of $21077
• All of the moving averages are giving a strong sell market signal

Bitcoin: Bearish Reversal Seen Below $24262

The price of bitcoin continues to decline below the $22000 handle, and we are now testing the important support level of $20000 in the European trading session.

The global sentiments have changed in the wake of the US Fed interest rate decision and its impact on the cryptocurrency markets worldwide.

We can see the formation of a falling trend channel, and now we are facing the immediate targets of $20500 and $20100.

Bitcoin was unable to clear its resistance zone located at $25000, and we can see a progression of the bearish bias in the markets.

The ultimate oscillator is indicating a neutral market, and the prices can also stage an upwards correction from these levels if the bearish trend gets exhausted.

The immediate short-term outlook for bitcoin is bearish; the medium-term outlook has turned neutral; and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $20000, and the prices continue to remain above these levels for any potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 20902, and Fibonacci resistance levels of 21034, after which the path towards 20000 will get cleared.

In the last 24hrs, BTCUSD has declined by 4.19% by 922 and has a 24hr trading volume of USD 37.899 billion. We can see an increase of 33.97% in the trading volume as compared to yesterday, which is due to the selling seen by the short-term investors.

The Week Ahead

The price of bitcoin is moving in a mildly bearish momentum, and the immediate targets are $20500 and $20000

The daily RSI is printing at 44 which means that the medium range demand continues to remain weak.

The trendline formation is seen from the $24000 level towards the $21000, indicating that if this bearish trend line gets exhausted, we may see an upwards correction in the prices.

Bitcoin prices may continue to remain in a range-bound movement between the $20000 and $22000 levels this week.

The price of BTCUSD will need to remain above the important support levels of $20000 this week.

The weekly outlook is projected at $21500 with a consolidation zone of $20500.

Technical Indicators:

The average directional change (14 days): at 43.57 indicating a NEUTRAL

The rate of price change: at -3.78 indicating a SELL

The relative strength index (14): at 29.67 indicating a SELL

The commodity channel index (14 days): at -59.39 indicating a SELL

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EUR/USD and EUR/JPY Attempt Recovery Wave

EUR/USD started a fresh decline and traded below 1.0150. EUR/JPY is attempting a recovery wave and might rise if it clears 139.50.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro started a major decline from the 1.0250 and 1.0280 resistance levels.
• There is a short-term contracting triangle forming with resistance near 1.0145 on the hourly chart.
• EUR/JPY also started a major decline below the 140.00 and 139.50 support levels.
• There is a key bearish trend line forming with resistance near 139.20 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to clear the 1.0280 resistance against the US Dollar. The EUR/USD pair started a major decline below the 1.0220 and 1.0200 support levels.

There was a clear move below the 1.0150 level and the 50 hourly simple moving average. The pair even settled below the 1.0180 level. A low was formed near 1.0107 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.0250 swing high to 1.0107 low. On the upside, the pair is facing resistance near the 1.0145 level.

There is also a short-term contracting triangle forming with resistance near 1.0145 on the hourly chart. A clear move above the triangle resistance might send the price towards 1.0165. The next major resistance is near the 1.0180 level.

It is near the 50% Fib retracement level of the downward move from the 1.0250 swing high to 1.0107 low. If the bulls remain in action, the pair could revisit the 1.0250 resistance zone in the near term.

On the downside, the pair might find support near the 1.0120 level. The next major support sits near the 1.0100 level. If there is a downside break below the 1.0100 support, the pair might accelerate lower in the coming sessions.

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ETHUSD and LTCUSD Technical Analysis – 28th JULY, 2022

ETHUSD: Bullish Engulfing Pattern Above $1357

Ethereum was unable to sustain its bullish momentum and after touching a high of 1661 on 25th July started to decline against the US dollar coming down below the $1400 handle on 26th July.

We saw that after this decline, the prices started to stabilize above the $1350 handle, and then a pullback action was seen in the markets.

The prices started a bullish reversal which continues pushing the prices of Ethereum above the $1600 handle in the European trading session today.

We can clearly see a bullish engulfing pattern above the $1357 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just below its pivot level of 1622 and moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1629 and Fibonacci resistance level of 1634 after which the path towards 1700 will get cleared.

The relative strength index is at 62 indicating a strong market and the continuation of the uptrend in the markets.

We can see the progression of a bullish ascending trendline formation from $1357 to $1690, which indicates that we are heading towards $1700.

Both the commodity channel index and highs/lows are indicating a neutral market.

Some of the technical indicators are giving a buy market signal.

Most of the moving averages are giving a buy signal, and we are now looking at the levels of $1700 to $1850 in the short-term range.

ETH is now trading above both its 100 hourly simple and exponential moving averages.

• Ether: a bullish reversal seen above the $1357 mark
• Short-term range appears to be mildly bullish
• ETH continues to remain above $1600
• The average true range is indicating less market volatility

Ether: Bullish Reversal Seen Above $1357

ETHUSD is now moving into a mildly bullish channel with the prices trading above the $1600 handle in the European trading session today.

We have also detected the formation of MA5 and MA10 crossover patterns located at 1630 and 1632 in the hourly time frame indicating that the price is likely to descend below after touching these levels in the short-term range.

We can see that the prices of Ethereum are slowly preparing for moving into a consolidation channel above the $1600 handle.

We can also see the formation of a bullish harami pattern in the 2-hour time frame indicating the bullish nature of the markets.

We can also witness the parabolic SAR bullish reversal in the daily timeframe, so the immediate targets visible now are $1650.

The key support levels to watch are $1500 and $1584, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish trend.

ETH has increased by 10.64% with a price change of 155$ in the past 24hrs and has a trading volume of 25.107 billion USD.

We can see an increase of 43.29% in the total trading volume in the last 24 hrs which is due to the buying seen at lower levels.

The Week Ahead

We can see that ETH is now making attempts to clear the resistance zone located at $1650, and with the continued bullish tendency, we are now heading towards the $1700 level.

The price of Ethereum is preparing to enter into a consolidation phase above the $1600 levels and we can see some range-bounded movements between the $1500 and $1700 levels this week.

The immediate short-term outlook for Ether has turned mildly bullish, the medium-term outlook has turned neutral, and the long-term outlook for Ether is neutral in present market conditions.

The prices of ETHUSD will need to remain above the important support levels of $1500 this week.

The weekly outlook is projected at $1750 with a consolidation zone of $1600.

Technical Indicators:

The relative strength index (14): at 62.09 indicating a BUY

The moving averages convergence divergence (12,26): at 41.18 indicating a BUY

The rate of price change: at 1.92 indicating a BUY

Bull/Bear power(13): at 23.28 indicating a BUY

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AUD/USD and NZD/USD Eye Additional Gains

AUD/USD is gaining pace above the 0.6950 resistance. NZD/USD is also eyeing a key upside break above the 0.6300 resistance.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh increase above the 0.6880 resistance zone against the US Dollar.
• There is a key bullish trend line forming with support near 0.6955 on the hourly chart of AUD/USD.
• NZD/USD also started a major increase from the 0.6200 support zone.
• There was a break above a major bearish trend line with resistance near 0.6240 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar formed a base above the 0.6820 and 0.6850 levels against the US Dollar. The AUD/USD pair started a steady increase after it cleared the 0.6900 resistance zone.

There was a clear move above the 0.6950 resistance and the 50 hourly simple moving average. The pair even broke the 0.7000 barrier and traded as high as 0.7014 on FXOpen. Recently, there was a minor downside correction below the 0.7000 level.

AUD/USD Hourly Chart

The pair dipped below the 38.2% Fib retracement level of the upward move from the 0.6912 swing low to 0.7014 high. However, the pair stayed above the 0.6960 level and the 50 hourly simple moving average.

The 50% Fib retracement level of the upward move from the 0.6912 swing low to 0.7014 high also acted as a support. The pair is now rising and trading near 0.7000.

On the upside, the AUD/USD pair is facing resistance near the 0.7000 level. The next major resistance is near the 0.7020 level. A close above the 0.7020 level could start a steady increase in the near term. The next major resistance could be 0.7080.

On the downside, an initial support is near the 0.6970 level. The next support could be the 0.6950 level. There is also a key bullish trend line forming with support near 0.6955 on the hourly chart of AUD/USD. If there is a downside break below the 0.6950 support, the pair could extend its decline towards the 0.6880 level.

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GBP/USD Eyes More Gains, EUR/GBP Could Correct Higher

GBP/USD started a fresh increase above the 1.2000 zone. EUR/GBP might attempt a recovery wave if it clears the 0.8430 resistance.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh increase from the 1.1850 zone against the US Dollar.
• There is a key bullish trend line forming with support near 1.2120 on the hourly chart of GBP/USD.
• EUR/GBP declined below the 0.8450 and 0.8400 support levels .
• There was a break above a major bearish trend line with resistance near 0.8385 on the hourly chart.

GBP/USD Technical Analysis

The British Pound formed base above the 1.1850 and 1.1880 levels against the US Dollar. The GBP/USD pair started a fresh increase after it clearly broke the 1.2000 resistance.

There was a steady move above the 1.2050 level and the 50 hourly simple moving average. The bulls even pumped the pair above the 1.2120 level. A high was formed near 1.2245 on FXOpen the pair is now consolidating gains.

GBP/USD Hourly Chart

There was a minor decline below 1.2120, but the bulls were active near 1.2065. There is also a key bullish trend line forming with support near 1.2120 on the hourly chart of GBP/USD.

The pair is now rising and broke the 50% Fib retracement level of the downward move from the 1.2245 swing high to 1.2064 low. There was a steady increase above the 1.2150 level and the 50 hourly simple moving average.

On the upside, an initial resistance is near the 1.2195 level. The next main resistance is near the 1.2200 zone. It is near the 76.4% Fib retracement level of the downward move from the 1.2245 swing high to 1.2064 low.

A clear upside break above the 1.2200 and 1.2210 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2250 level.

If not, the pair might start a fresh decline below 1.2150. The next major support is near the 1.2120 level. Any more losses could lead the pair towards the 1.2065 support zone or even 1.2000.

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BTCUSD and XRPUSD Technical Analysis – 02nd AUG 2022

BTCUSD: Evening Star Pattern Below $24607

Bitcoin was unable to sustain its bullish momentum and after touching a high of 24597 on 30th July started to decline against the US dollar dropping below the $2300 handle in the European trading session today.

We can see that after this decline the prices have entered into a consolidation zone above the $22500 handle.

The prices have started to move in a descending trend channel due to the decrease in the demand and the continued selling across the global crypto markets.

We can clearly see a bearish evening star pattern below the $24607 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Bitcoin touched an intraday high of 23438 in the Asian trading session and an intraday low of 22670 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 37 indicating a weaker demand for bitcoin at the current market levels and the continuation of the selling pressure in the markets.

Bitcoin is now moving below its 100 hourly simple moving average and its 200 hourly simple moving averages.

Most of the major technical indicators are giving a strong sell signal, which means that in the immediate short term, we are expecting targets of 22000 and 21500.

The average true range is indicating lesser market volatility with a bearish momentum.

• Bitcoin: bearish reversal seen below $24607
• STOCHRSI is indicating an oversold level
• The price is now trading just above its pivot level of $22747
• All of the moving averages are giving a strong sell market signal

Bitcoin: Bearish Reversal Seen Below $24607

The price of bitcoin continues to decline below the $23000 handle, and we are now testing the important support level of $22000 in the European trading session.

The global sentiments continue to remain weak and we can see more downwards correction this week towards the $21500 level.

Bitcoin was unable to clear its resistance zone located at $25000, and now we can see a progression of the bearish bias in the markets.

We can see the formation of a bearish harami pattern in the weekly time frame indicating the underlying bearish nature of the markets.

The immediate short-term outlook for bitcoin is bearish, the medium-term outlook has turned neutral, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $21000, and the prices continue to remain above these levels for any potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 22500 and Fibonacci resistance levels of 22687 after which the path towards 2000 will get cleared.

In the last 24hrs, BTCUSD has declined by 1.70% by 394$, and has a 24hr trading volume of USD 27.922 billion. We can see an increase of 20.09% in the trading volume as compared to yesterday, which is due to the selling seen by the short-term investors.

The Week Ahead

The price of bitcoin is moving in a mildly bearish momentum, and the immediate targets are $22000 and $21500

The daily RSI is printing at 52 which indicates a neutral market and the move towards the consolidation channel.

The trendline formation is seen from the $24600 level towards $22600 indicating that if this bearish trend line gets exhausted, we may see an upwards correction in the prices.

Bitcoin’s price may continue to remain in a range-bound movement between the $22000 and $23000 levels this week.

The prices of BTCUSD will need to remain above the important support level of $21000 this week.

The weekly outlook is projected at $22000 with a consolidation zone of $21000.

Technical Indicators:

The average directional change (14 days): at 27.18 indicating a SELL

The rate of price change: at -1.38 indicating a SELL

The relative strength index (14): at 38.82 indicating a SELL

The commodity channel index (14 days): at -91.53 indicating a SELL

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EUR/USD and USD/JPY At Risk of Additional Losses


EUR/USD started another decline from the 1.0300 resistance. USD/JPY is declining and might continue to move down below 137.00.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started a fresh decline and even traded below the 1.0200 support.
• There was a break below a key bullish trend line with support near 1.0205 on the hourly chart of EUR/USD.
• USD/JPY declined heavily from the 139.00 resistance zone.
• There was a break below a major bullish trend line with support near 136.30 on the hourly chart.

EUR/USD Technical Analysis

This week, the Euro started a fresh decline from well above the 1.0280 level against the US Dollar. The EUR/USD pair declined below the 1.0250 and 1.0220 support levels.

The bears even pushed the pair below the 1.0200 level. There was a close below 1.0200 and the 50 hourly simple moving average. The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.0097 swing low to 1.0293 high.

EUR/USD Hourly Chart


Besides, there was a break below a key bullish trend line with support near 1.0205 on the hourly chart of EUR/USD. An immediate resistance on the upside is near the 1.0200 level.

The next major resistance is near the 1.0225 level and the 50 hourly simple moving average. An upside break above 1.0225 could set the pace for a steady increase. In the stated case, the pair might revisit 1.0280.

If not, the pair might drop and test the 1.0165 support. The next major support is near 1.0145 or the 76.4% Fib retracement level of the upward move from the 1.0097 swing low to 1.0293 high, below which the pair could drop to 1.0100 in the near term.

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Turkish Lira crisis hits corporate borrowers

The ongoing crisis that has been affecting the Turkish Lira for several months is showing no sign of giving way, and the country's astonishing inflation rate of over 70% is testimony to the dire situation that the nation's economy is facing.

Turkey is an industrial and commercial powerhouse in the Middle East, and is home to the most developed and diversified industry base in the region, however whilst the productivity and quality of product are both high, and the work ethic is still being clearly demonstrated in a nation which has been open for business during times when others were less so, the Lira and its inflationary backdrop are a massive bugbear.

The US Dollar, along with all other major currencies, has continued to rise significantly against the Turkish Lira, and today's value for the USDTRY is 17.94.

Turkish companies which conduct business on an international basis have been faced with the volatility of Forex transactions when settling accounts with their partners and clients, and the continued decline in value of the Turkish Lira has landed them with a conundrum.

Yesterday the Turkish media reported that companies are borrowing in Lira partly to pay off their debts in foreign currency, and many companies in Turkey have used an average of around 30 Lira out of every 100 Lira borrowed from banks to settle their debts in US Dollars and Euros.

The sustained losses that the Turkish Lira has made against all major currencies over the past year has caused a dramatic increase in servicing the repayments of foreign debt for Turkish businesses, and this is how it is being addressed.

At the end of June, the Turkish government announced a ban on loans in Lira to companies holding what it deemed to be too much foreign currency.

This caused the Lira to whipsaw, a term referring to price movements in a volatile market when a stock or currency price will suddenly switch direction.

By June 27 the Lira made an unusual gain of approximately 8% gain in two days, trading at 16.01 to the US Dollar, up from the day before the announcement where it closed at 17.35.

But by late afternoon on the following Monday, it had pared some of those gains, decreasing slightly to 16.5 against the dollar, after whipsawing within the 16 to 17 lira per dollar range.

Clearly volatility is still rampant, however the switch toward using Lira to repay debt in overseas currencies could be a potential method of circulating the Lira more vigorously which may go some way toward helping it slow its downward spiral.

Currently, however, it is an uncertain market with an almost year-long record of a downward spiral.

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ETHUSD and LTCUSD Technical Analysis – 04th AUG, 2022

ETHUSD – Three Inside Down Pattern Below $1783

Ethereum was unable to sustain its bullish momentum and after touching a high of 1762 on 30th July started to decline against the US Dollar coming down below the $1600 handle on 02nd Aug.
The selloff that we saw was due to the strength of the US Dollar and its subsequent effect on the prices of the ETHUSD.
We can clearly see a Three Inside Down Pattern Below the $1783 handle which is a Bearish pattern and signifies the end of a Bullish phase and the start of a Bearish phase in the markets.
ETH is now trading just above its Pivot levels of 1619 and is moving into a Mild Bearish channel. The price of ETHUSD is now testing its Classic support levels of 1591 and Fibonacci support levels of 1612 after which the path towards 1600 will get cleared.

Relative Strength Index is at 40 indicating a WEAK market and the continuation of the Downtrend in the markets.
We can see that Aroon Indicator is giving the Bearish signal in the 2 hourly timeframe.
Both the STOCHRSI and Williams Percent Range are indicating an Oversold market, which means that the prices are due for an Upwards correction.
All of the Technical indicators are giving a STRONG SELL market Signal.
All of the Moving Averages are giving a STRONG SELL Signal and we are now looking at the levels of $1600 to $1550 in the short-term range.
ETH is now trading Below its both the 100 Hourly Simple and Exponential Moving Averages.

• Ether Bearish Reversal seen Below the $1783 mark.
• Short-term range appears to be Mild BEARISH.
• ETH continues to remain above the $1600 levels.
• Average True Range is indicating LESS Market Volatility.

Ether Bearish Reversal Seen Below $1783

ETHUSD is now moving into a Mild Bearish Channel with the prices trading above the $1600 handle in the European Trading session today.
We have also detected the formation of the Adaptive Moving Average 20 and 50 Crossover pattern in the 2 hourly time-frame indicating that the price is likely to descend in the short-term range.
We can see the formation of a Major contraction triangle below the $1700 levels in the 1-hour timeframe.

The key support levels to watch are $1595 and $1506 and the prices of ETHUSD need to remain above these levels for any potential Bullish reversal in the markets.

ETH has decreased by 1.93% with a price change of 31$ in the past 24hrs and has a trading volume of 15.964 Billion USD.
We can see a Decrease of 14.86% in the total trading volume in last 24 hrs. which appears to be Normal.


The Week Ahead

We can see that ETH failed to clear its Major resistance zone located at $1800 levels and is now preparing to enter into a consolidation phase above the $1600 levels.
The prices of Ethereum are slowly recovering against the US Dollar and we can see some range bound moves in the short-term range.
The immediate short-term outlook for the Ether has turned as Mild BEARISH, the medium-term outlook remains NEUTRAL, and the long-term outlook for Ether is NEUTRAL in present market conditions.
The prices of ETHUSD will need to remain above the important support levels of $1500 this week.
Weekly outlook is projected at $1650 with a consolidation zone of $1500.

Technical Indicators:

Relative Strength Index (14): It is at 40.99 indicating a SELL.
Moving Averages Convergence Divergence (12,26): It is at -1.66 indicating a SELL.
Rate of Price Change: It is at -2.17 indicating a SELL.
Ultimate Oscillator: It is at 31.86 indicating a SELL.


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GBP/USD Faces Resistance While USD/CAD Is Surging


GBP/USD could gain pace if it clears the 1.2100 resistance zone. USD/CAD is surging and could continue to rise above the 1.3000 resistance zone.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound is attempting an upside break above the 1.2100 resistance zone.
• There is a key bearish trend line forming with resistance near 1.2100 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase above the 1.2920 resistance zone.
• There was a break above a declining channel with resistance near the 1.2865 on the hourly chart.

GBP/USD Technical Analysis


After facing sellers near 1.2280, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.2200 support zone.

There was a move below the 1.2100 support zone and the 50 hourly simple moving average. The pair traded as low as 1.2004 and is currently correcting higher. There was a clear move above the 1.2030 resistance zone.

The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2168 swing high to 1.2004 low. An immediate resistance is near the 1.2080 level.

There is also a key bearish trend line forming with resistance near 1.2100 on the hourly chart of GBP/USD. The next key resistance is near the 1.2105 level. It is near the 50% Fib retracement level of the downward move from the 1.2168 swing high to 1.2004 low.

If there is an upside break above the 1.2100 zone, the pair could rise towards 1.2150. The next key resistance could be 1.2200, above which the pair could gain strength.

On the downside, an initial support is near the 1.2040 area. The first major support is near the 1.2000 level. If there is a break below 1.2000, the pair could extend its decline. The next key support is near the 1.1960 level. Any more losses might call for a test of the 1.1850 support.


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The Roaring 20s! How trading the markets has advanced in just a few years

The 2020s is an exciting time to be trading the global markets.

In the previous decade, the electronic markets went through a revolutionary period. We witnessed the invention and uprising of cryptocurrencies, the 'influencer' generation beginning to move into the financial markets with memes and internet-based trends, and we saw the entire existing framework change in dramatic restructures in the trading methods of financial products traded on the electronic markets in the wake of the 2008/2009 financial crises.

European and American authorities began to make major changes which have fomented the sustainability of the electronic derivatives trading markets where traditional asset classes such as Forex, commodities and equities are concerned, and a whole host of decentralized asset classes have joined them along the way.

As the last exciting decade of revolutionary technological and regulatory development came to an end, the 2020s became a period of limitless innovation, in which FinTech, cryptocurrency and multi-asset trading has been embraced.

Along with the community-driven cryptocurrency revolution and its entry into the mainstream, came various geopolitical milestones that are unprecedented.

Lockdowns, inflation and a volatile commodities market, as well as a myriad of new traders who had switched their ambitions from working for a company prior to the lockdowns to seeking their own financial independence from the convenience of their own laptop or smartphone by trading the markets. We have entered the age of the analytical, pragmatic and goal-orientated trader.

Despite the cryptocurrency revolution and the massive number of people getting involved in investing in Bitcoin, Ethereum and all manner of new native tokens that are now hot property, the commodities market is the hot topic of the decade, and to be more specific: Oil.

Just as the oil market is as traditional as the actual fossil fuel itself, the modern stock market is the absolute opposite! A new era has come about, born out of the minds of mavericks and entrepreneurs seeking to build a community-driven marketplace where influencers are beginning to become market makers in their own right.


The ever-changing and ever increasingly innovative markets are at your fingertips. These are the times when your financial destiny is in your hands.

FXOpen Blog

 

BTCUSD and XRPUSD Technical Analysis – 09th AUG 2022

BTCUSD: Bullish Engulfing Pattern Above $22425

Bitcoin was unable to sustain its bearish momentum and after touching a low of 22431 on 04th Aug started to correct upwards against the US dollar crossing the $24000 handle on 08th Aug.

We can see that bitcoin failed to clear its resistance zone located at $25000 for the second time this month.

After touching a high of $24230 we can see some downwards correction in the prices towards the $23800 level.

We can clearly see a bullish engulfing pattern above the $22425 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday high of 23922 in the Asian trading session and an intraday low of 23639 in the Asian trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 50 indicating a NEUTRAL demand for bitcoin at the current market levels and the continuation of the consolidation phase in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and its 200 hourly simple moving averages.

Some of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 24000 and 24500.

The average true range is indicating less market volatility with a mildly bullish momentum.

• Bitcoin: bullish reversal seen above $22425
• The STOCHRSI is indicating an oversold level
• The price is now trading just below its pivot levels of $23858
• Some of the moving averages are giving a buy market signal

Bitcoin: Bullish Reversal Seen Above $22425

The price of bitcoin is struggling to move above the $24000 handle after it entered into a consolidation zone below the $24000 level.

The overall scenario of the markets is neutral at present; we will have to wait till some clear signals emerge for the medium-term range.

We can see that Ichimoku price is under the cloud in the 15-minute time frame indicating the underlying bearish nature of the markets.

The immediate short-term outlook for bitcoin is neutral; the medium-term outlook has turned neutral; and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $22000 and the prices continue to remain above these levels for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its classic resistance level of 23899 and Fibonacci resistance level of 23932 after which the path towards 24000 will get cleared.

In the last 24hrs, BTCUSD has declined by 0.32% by 76$ and has a 24hr trading volume of USD 28.827 billion. We can see an increase of 50.20% in the trading volume as compared to yesterday, which is due to the buying seen by the short-term investors.

The Week Ahead

The price of bitcoin is moving in a consolidation zone under the $24000 level. The price is expected to remain moving into a narrow range between the $23000 and $24000 before any potential breakouts.

The daily RSI is printing at 59 which indicates a bullish market and the move towards the $25000 level.

The trendline formation is seen from the $22400 levels towards the $24000, and we are now looking for the continuation of this trend in the hourly time frame.

The price of BTCUSD will need to remain above the important support level of $22000 this week.

The weekly outlook is projected at $24000 with a consolidation zone of $23000.

Technical Indicators:

The average directional change (14 days): at 15.10 indicating a neutral

The ultimate oscillator: at 68.29 indicating a BUY

The relative strength index (14): at 52.53 indicating a neutral

The commodity channel index (14 days): at -19.17 indicating a neutral

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Inflation in the UK: Cash withdrawals indicate faith in pound but not in economy


Throughout post-industrial history, when economic woes are abound, a large proportion of the public tend to revert to reliance on carrying items of physical value.

For the past two years, national economies in many Western nations have been turned on their heads, and faith in the traditional economic system has waned dramatically.

During times of rising inflation, it has been common for many people to invest in physical commodities such as gold, and to keep liquid assets at home or on their person.

Throughout many periods in the 20th century, that has been the case. The Great Depression which began in the late 1920s in the United States, the aftermath of World War Two in Europe, and the end of the Cold War in the late 1980s are three notable examples.

During those events, people who had a lot to lose generally bought gold and kept it in a safe place, often under their homes or in the walls.

The long period of stability which ensued has not necessitated such action, however these days, there are many geopolitical events that have once again generated a wave of instability, and have caused a once-trusting population to distrust the government and the system in many countries worldwide.

Inflation which is at 40-year highs in parts of Europe and the United States, along with forced closures of businesses, interruption of supply chains and siding with Ukraine which has caused havoc on the energy markets and cast doubt into the minds of citizens that their own governments actually represent their wellbeing has brought into being an overall level of self-reliance and movement away from trust in the existing economic structure.

The British Pound and its standing as a store of value is very interesting over recent times.

For over 50 years, no currency in the world has been backed by commodities, therefore it has been rare for any currency to be used as a store of value in times of economic uncertainty, but the British Pound is showing signs of being used as exactly that!

The Post Office, which offers banking services as well as mail has recorded a significant upturn in the number of cash withdrawals recently.

It is possible to withdraw cash from any bank account held with any bank via the Post Office, and therefore this is a good measure of the overall behavior of the public with regard to withdrawals of cash.

Britain’s Post Office, which offers banking services as well as mail, handled a record £801 million ($967 million) in personal cash withdrawals in July.

In total, more than £3.3 billion in cash was withdrawn and deposited over the Post Office’s counters, which the first time the amount has crossed the £3.3 billion threshold in the entire 360 years that the Post Office has been established.

Personal cash withdrawals were up almost 8% month on month at £744 in June, and up over 20% from a year ago to £665 million in July.

The Bank of England expects inflation to be at around 13.3% in October and to remain at elevated levels throughout much of 2023, which is alarming to say the least.

Resorting to holding cash appears to be a method being used to attempt to budget more carefully during these times of high inflation, and the Post Office has also been processing government support for energy bills, an indicator that there are serious problems affording daily bills.

The British Pound remains relatively non-volatile, and certainly it will be interesting to see how long this trend lasts during a period at which many firms are attempting to do away with the use of cash entirely.

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EUR/USD Aims Upside Break While USD/CHF Signals More Downsides

EUR/USD is struggling to clear the 1.0250 resistance zone. USD/CHF is declining and remains at a risk of a more losses below the 0.9520 level.

Important Takeaways for EUR/USD and USD/CHF

• The Euro is facing a strong resistance near the 1.0250 zone against the US Dollar.
• There is a key bullish trend line forming with support near 1.0200 on the hourly chart of EUR/USD.
• USD/CHF started a fresh decline after it failed to clear the 0.9650 resistance zone.
• There was a break below a connecting bullish trend line with support near 0.9565 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro struggled to gain pace for a move above the 1.0250 level against the US Dollar. The EUR/USD pair formed a short-term top and reacted to the downside.

There was a break below the 1.0200 support, but the bulls were active near the 1.0150 level. A low was formed near 1.0141 on FXOpen and the pair is now recovering higher. There was a move above the 1.0180 resistance zone.

The pair climbed above the 1.0200 level and the 50 hourly simple moving average. The pair traded above the 50% Fib retracement level of the downward move from the 1.0253 swing high to 1.0141 low.

It is now trading above the 61.8% Fib retracement level of the downward move from the 1.0253 swing high to 1.0141 low. An immediate resistance is near the 1.0240 level. The next major resistance is near the 1.0250 level.

A clear move above the 1.0250 resistance zone could set the pace for a larger increase towards 1.0320. The next major resistance is near the 1.0350 zone.

On the downside, an immediate support is near the 1.0200 level. There is also a key bullish trend line forming with support near 1.0200 on the hourly chart of EUR/USD. The next major support is near the 1.0150 level. A downside break below the 1.0150 support could start another decline.

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