FXOpen Trader Posted March 8, 2021 Author Share Posted March 8, 2021 GBP/USD Turns Red While GBP/JPY Could Rise Further GBP/USD surged above 1.4150 before starting a fresh decline below 1.4000. GBP/JPY is rising and it remains supported for more gains above 150.50 Important Takeaways for GBP/USD and GBP/JPY The British Pound started a fresh decline below the 1.4000 support zone against the US Dollar. There was a break below a rising channel with support near 1.3925 on the hourly chart of GBP/USD. GBP/JPY climbed higher steadily above the 149.00 and 150.00 resistance levels. There is a major bullish trend line forming with support near 149.70 on the hourly chart. GBP/USD Technical Analysis This past week, the British Pound topped near the 1.4200 level against the US Dollar. The GBP/USD pair started a fresh decline and traded below many key supports near the 1.4100 level. The pair even broke the 1.4000 support level and settled below the 50 hourly simple moving average. Recently, there was a break below a rising channel with support near 1.3925 on the hourly chart of GBP/USD. The pair even spiked below the 1.3800 level. A low is formed near 1.3778 on FXOpen and the pair is currently consolidating losses. An initial resistance is near the 1.3885 level. The 23.6% Fib retracement level of the recent decline from the 1.4016 high to 1.3778 low is also near the 1.3885 level. The next major resistance is near the 1.3890 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent decline from the 1.4016 high to 1.3778 low is the next barrier near 1.3900. A close above the 1.3900 level may possibly lift the pair higher towards the 1.4000 resistance zone. If not, there is a risk of more downsides below the 1.3800 support zone. The next major support is near the 1.3740 level, below which the pair could decline towards the 1.3680 level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 9, 2021 Author Share Posted March 9, 2021 Decisive Week Ahead for the ECB and the Euro The first week of the month ended up with the Non-Farm Payrolls (NFP) in the United States showing a strong rebound of the US labor market. The NFP report revealed that the job market added double the number of jobs that the economists forecasted. As such, the perspective of a faster than expected recovery is not an illusion anymore but a fact. On top of that, the White House announced that the US will have a vaccine available for every adult by the end of April this year. This puts the US economy in front when it comes to the economic recovery after the pandemic, as the vaccines appear to be effective and the rest of the world lags in its vaccination efforts. Unsurprisingly, the US dollar gained across the board. The USDJPY closed the week above 108, the EURUSD pair fell to 1.19, and even the AUDUSD dropped three big figures from its 0.80 highs. While the previous week was exciting, as all NFP weeks are, the week ahead is even more interesting. The name of the game this week is what the European Central Bank (ECB) will do at its Thursday meeting. ECB in Focus This Week The euro area economies did not perform so well as the United States economy did. Just the opposite. In Europe, the COVID-19 pandemic hit the economies multiple times, with two or three pandemic waves resulting in more deaths than expected. As a consequence, most of the economies were closed for most of last year and in 2021 as well. So, when the US is thinking of the economic growth ahead, Europe barely deals with the pandemic. The European Commission failed to secure vaccines for its population, and the speed of administering the existing ones is much slower than anything we have seen in other countries (e.g., United States, United Kingdom, Israel). Like it or not, the difference will be seen in the economic performances in the period ahead, and Europe is poised to lag its rivals. More problematic for the ECB is the tightening of long-term yields in the United States. The move higher in the US yields, which are the benchmark for risk-free rates in the world, triggered a similar move in other jurisdictions – e.g., the Bund yields in Germany are on the rise too. Higher yields signal economic recovery. While in the US, higher yields are a logical market reaction to the improved economic picture and the fast vaccination rate, in Europe, higher yields bring a challenge. When yields are rising, financial conditions tighten. This is a problem for the ECB, as it does not want tightening conditions while the economy continues to underperform. Hence, Thursday’s ECB meeting is crucial for the ECB and the euro. On the one hand, the ECB must act to wind down the unwanted tightening. On the other hand, the EURUSD exchange rate keeps trading in a tight correlation with the equity markets in the United States. Should the ECB expand the asset-buying program (i.e., PEPP), the EURUSD may fall much lower than the current levels. FXOpen Blog Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 9, 2021 Author Share Posted March 9, 2021 BTC and XRP – Bullish sentiment continues BTC/USD From last Friday when the price of Bitcoin has been traded at $46,371, we have seen an increase of 17.6% measured to its highest point today at the $54,530 level. After a minor pullback, the price back close to the levels of today’s high and is still on an upward trajectory. This upside movement is counted as the starting impulse to the upside after a correction ended on the 28th of February. The first two waves should have ended which is why now we are seeing the development of the next 3rd one. If this is the five-wave impulse the price increase should continue after the completion of this rise which is set to exceed the high on the 3rd. But there is still a possibility that it would end on the 3rd wave in which case that would mean that we have seen the 2nd sub-wave of the higher degree correctional count. In the first case, a new all-time high would be expected, while in the second the price would go above its low of February 28th which would be the first sub-wave of the higher degree descending move. The pivot point would be the pullback that is expected after the current rise ends, as it manages to stay above the $52,600 area it would validate the 4th wave. But if it continues moving down and even falls below the $50,000 area that would be a clear sign that the price of Bitcoin is headed for a lower low as the 4th wave count would be invalidated. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 10, 2021 Author Share Posted March 10, 2021 EUR/USD Remains at Risk, USD/CHF Correcting Gains EUR/USD started a fresh decline below the 1.2000 and 1.1920 support levels. USD/CHF traded towards the 0.9375 level before correcting gains. Important Takeaways for EUR/USD and USD/CHF The Euro started a fresh drop below the 1.2000 and 1.1920 support levels against the US Dollar. There is a key bearish trend line forming with resistance near 1.1890 on the hourly chart of EUR/USD. USD/CHF followed a bullish path and it broke the 0.9300 resistance zone before correcting lower. There was a break below a connecting bullish trend line with support near 0.9295 on the hourly chart. EUR/USD Technical Analysis The Euro failed to extend gains above 1.2120 and started a fresh decline against the US Dollar. The EUR/USD pair broke the key 1.2000 pivot zone to move into a bearish zone. The pair even broke the 1.1920 support level and settled below the 50 hourly simple moving average. The bears were able to push the pair below 1.1880 and a low is formed near 1.1836 on FXOpen. It is currently correcting higher and trading above 1.1850. It even tested the 23.6% Fib retracement level of the recent decline from the 1.2112 high to 1.1836 low. There is also a key bearish trend line forming with resistance near 1.1890 on the hourly chart of EUR/USD. If there is a break above the trend line resistance, the pair could correct higher towards the 1.1940 level. The next major resistance is near the 1.1975 level. It is close to the 50% Fib retracement level of the recent decline from the 1.2112 high to 1.1836 low. If there is no upside break, the pair might continue to move down below 1.1850. The next key support is near the 1.1835 level, below which EUR/USD could decline towards the 1.1800 support. Any more losses could open the doors for a move towards the 1.1750 level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 11, 2021 Author Share Posted March 11, 2021 LTC and EOS – Did we see an upward correction ending? LTC/USD The price of Litecoin has been on a decline from its yesterday’s high made at $208 and has decreased by 7.64% today, coming down to $192. Since the price is in a downward trajectory and has made an entry below its prior higher high, further downside could be expected in the upcoming period. On the hourly chart, we can see that the price of Litecoin has been on the rise since the start of March after a period of continuous decline. As on the 20th of February, we have seen the completion of the impulsive five-wave move to the upside. This is why a steep descending move was made as a corrective wave. This is why now we could have seen the continuation of the higher degree corrective move as the ABC to the upside from the start of the month. The first indication that this was an upward ABC instead of the next five-wave impulse is the fact that the price failed to stay above the 0.382 Fib level which was the ending point of the 1st wave to the upside. If this is true then the price of Litecoin is now headed further to the downside below its low made on the 28th of February at $154. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 12, 2021 Author Share Posted March 12, 2021 Gold Price Back Above $1,700, Oil Price Correcting Gains Gold price started a decent recovery and climbed above $1,720. Crude oil price traded to a new yearly high at $67.81 before correcting lower. Important Takeaways for Gold and Oil Gold price found support near $1,680 and started a short-term recovery against the US Dollar. There was a break above a major bearish trend line at $1,700 on the hourly chart of gold. Crude oil price extended its rally and it traded to a new multi-month high near $67.81. Recently, there was a break below a connecting bullish trend line at $64.20 on the hourly chart of XTI/USD. Gold Price Technical Analysis Gold price formed a strong support base above the $1,680 level against the US Dollar. As a result, there was a decent recovery wave above the $1,700 and $1,705 resistance levels. There was also a break above a major bearish trend line at $1,700 on the hourly chart of gold. It opened the doors for a move above the $1,720 level. The price even cleared the $1,730 level and settled above the 50 hourly simple moving average. A high is formed near $1,740 on FXOpen and the price is currently correcting lower. There was a break below the $1,730 level. The price is now testing the $1,720 support and the 50 hourly simple moving average. There is also a connecting bullish trend line with support near $1,721 on the same chart. If there is a downside break below $1,720, the price could revisit $1,700. Any more losses might call for a test of the $1,680 support. On the upside, an initial resistance is near the $1,730 level. It is close to the 50% Fib retracement level of the recent decline from the $1,740 swing high to $1,719 low. The first major resistance is near the $1,735 level. The 76.4% Fib retracement level of the recent decline from the $1,740 swing high to $1,719 low is also near $1,735. A convincing break above $1,730 and $1,735 might open the doors for a push above the $1,740 and $1,750 levels. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 15, 2021 Author Share Posted March 15, 2021 GBP/USD Correcting Gains, EUR/GBP is Facing Key Resistance GBP/USD is facing resistance near 1.4000 and it is correcting gains. EUR/GBP is consolidating above 0.8550 and it could start a decent increase if it clears 0.8600. Important Takeaways for GBP/USD and EUR/GBP The British Pound is struggling to settle above the 1.4000 resistance zone. There was a break below a key bullish trend line with support at 1.3925 on the hourly chart of GBP/USD. EUR/GBP is forming a strong support base above 0.8550 level. There was a break above a connecting bearish trend line at 0.8575 on the hourly chart. GBP/USD Technical Analysis After a sharp rally, the British Pound failed to stay above 1.4100 against the US Dollar. The GBP/USD pair declined and it even settled below the 1.4000 support zone. It even dived towards the 1.3800 level and broke the 50 hourly simple moving average. Recently, there was a strong upward move above the 1.3900 level, but the pair struggled to clear the 1.4000 resistance zone. A high is formed near 1.4004 on FXOpen before the pair dipped again. There was a break below a key bullish trend line with support at 1.3925 on the hourly chart of GBP/USD. It traded as low as 1.3862 before recovering higher. There was a break above the 50% Fib retracement level of the downward move from the 1.4004 high to 1.3862 low. However, the pair is facing resistance near the 1.3950 level and the 50 hourly simple moving average. The 61.8% Fib retracement level of the downward move from the 1.4004 high to 1.3862 low is also acting as a resistance. The main resistance is still near 1.4000, above which the pair could rally again. On the downside, the 1.3900 level is a decent support. The next major support sits near the 1.3850 level, below which the pair could slide towards the 1.3800 level. Any more losses might call for a test of the 1.3720 support zone. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 15, 2021 Author Share Posted March 15, 2021 Rising Yields Put Pressure on the Fed at Wednesday’s Meeting The main event of the week for financial markets is the Fed’s FOMC meeting on Wednesday. Besides the regular statement, the Fed will reveal its economic projections, and the market will focus on the dots plot that shows the federal funds rate forecast for the next three years. The event is particularly important for traders because the dollar is at crossroads. If the Fed signals a liftoff before 2024, the markets will take it as a hawkish signal that would trigger a wave of dollar buying. On the other hand, if the dots plot do not show any increase until 2024, the Fed signals its willingness to keep accommodative conditions despite the recent fiscal stimulus. Challenges for the Fed The big challenge for the Fed comes from the long-term yields, which rose recently. While the move higher is insignificant on the long-term charts, it does signal an unwanted tightening of financial conditions. Moreover, the move higher in the yields generated a dollar rally at the end of February, tempered only by the new round of fiscal stimulus from Biden’s administration. Should the yields rise further, the investors may turn their attention to the dollar again. Yields typically rise during the economic recovery, and the new fiscal stimulus package leads to faster recovery. Ahead of Wednesday’s meeting, the dollar remains offered – the EURUSD is back above 1.19, the AUDUSD is above 0.77, and the GBPUSD trades close to 1.40. If the Fed hints at no rate hike until 2024, the dollar may take another dive. On the other hand, if the Fed is pressured by the rising yields and hints at a rate hike as early as 2023, the dollar may rally, sending the EURUSD below its recent 1.1840 support. All in all, traders are guaranteed to see high volatility and quick price action as the Fed unveils its economic projections. FXOpen Blog Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 16, 2021 Author Share Posted March 16, 2021 February 2021 TOP 10 PAMM Accounts Overview Although the winter is over, the early spring has not made things much brighter around the world. However, PAMM account managers continue to trade actively, adapting their strategies to the changing market. Investors’ goals are still the same — they want to invest their money in the most promising PAMM accounts with minimum risk and maximum profit. On March 1, 2021, FXOpen launched a new round of “Money Managers” competition, where participants can not only show their skills in PAMM account management but also win up to 5,000 USD in prizes. Registration is open until May 1. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 16, 2021 Author Share Posted March 16, 2021 BTC and XRP – Support found BTC/USD The price of Bitcoin has fallen today to $53,548 at its lowest point from which we have seen an increase of 5.4% as a minor recovery was made to $56,388. Currently, the price is sitting at $55,893 as a pullback is being made but the price is still in an upward trajectory overall. Looking at the hourly chart, you can see that the price has fallen back to the 0.382 Fibonacci level measured from the upward impulse from the start of the month to its new all-time high made on the 13th of March. This could be and most likely is the 4th wave out of the five-wave impulse to the upside from the next starting impulse wave to the upside. If that is true, then the price cannot fall inside the territory of the 1st wave which would be below the 0.5 Fib level at $52,361. Now as we have seen a bounce off of the significant horizontal level at $54,497 it could mark the completion of this 4th wave which is why the increase seen today would be the 1st sub-wave of the next move to the upside that is set to push the price of Bitcoin above its prior all-time high an on to the new one. However, this has to be validated as the price could now be headed further down. The point of validation would be an increase above the 0.236 Fib level or the invalidation if the price continues moving below the 0.382 support. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 17, 2021 Author Share Posted March 17, 2021 EUR/USD and EUR/JPY: Euro is Facing Hurdles EUR/USD started a fresh decline after it failed to surpass 1.2000. EUR/JPY is correcting gains and it is likely to struggle near the 130.00 zone. Important Takeaways for EUR/USD and EUR/JPY The Euro topped near the 1.2000 level and started a fresh decline. There is a key declining channel forming with resistance near 1.1930 on the hourly chart of EUR/USD. EUR/JPY tested the 130.50 and recently declined to test the 129.50 support. There is a major bullish trend line forming with support near 129.65 on the hourly chart. EUR/USD Technical Analysis Recently, the Euro made an attempt to climb above the 1.2000 resistance against the US Dollar, but it failed. The EUR/USD pair started a fresh decline and broke the 1.1960 support zone. The pair even broke the 1.1945 support level and the 50 hourly simple moving average. It traded as low as 1.1882 on FXOpen before the pair started consolidating losses. It climbed above 1.1900, but there was no bullish momentum. An initial resistance is near the 1.1915 level. It is close to the 50% Fib retracement level of the recent decline from the 1.1951 high to 1.1882 low. The next major resistance is near the 1.1925 level and the 50 hourly simple moving average. There is also a key declining channel forming with resistance near 1.1930 on the hourly chart of EUR/USD. The channel resistance is near the 61.8% Fib retracement level of the recent decline from the 1.1951 high to 1.1882 low. Therefore, the pair is likely to face a strong resistance near the 1.1925 and 1.1930 levels. A clear break above 1.1930 might start a fresh increase towards the 1.2000 resistance. If not, there are chances of more losses in EUR/USD below the 1.1880 support zone. The next major support is near the 1.1850 level, below which the pair could dive towards the 1.1800 support level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 18, 2021 Author Share Posted March 18, 2021 LTC and EOS – At key pivot points LTC/USD From Tuesday’s low at $192.55, the price of Litecoin has been on the rise again and came up to $208 at its highest point today, which was an increase of 8.4%. Currently, it is being traded at $204.34 as the minor pullback is being made but the price is still in an upward trajectory overall. On the hourly chart, you can see that the price fell back to 0.382 Fibonacci level on Tuesday where it found support and bounce back to the upside. However, the recovery we have seen isn’t that significant which is why there is still a possibility that it is corrective in nature and is the part of the higher degree downfall that is set to push the price of Litecoin below the $200 area again. All said is applicable on the higher time frame and could be viewed as a fractal, as from the start of the month we have seen a recovery that could be corrective and would lead to a lower low compared to the one made on the 28th of February. This is why now we could either be seeing the start of the 5t wave in a bullish scenario or the second sub-wave of the higher degree five-wave move to the downside. The pivot point is the 0.382 Fibonacci level whose breakout to the downside would invalidate the bullish count, but today’s bounce from it indicates that it is still the main expected outlook. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 19, 2021 Author Share Posted March 19, 2021 AUD/USD and NZD/USD Showing Signs of a Breakdown AUD/USD started a fresh decline from well above 0.7800 and declined below 0.7750. NZD/USD is also declining and it seems like it could break the 0.7150 support zone. Important Takeaways for AUD/USD and NZD/USD The Aussie Dollar started a fresh decline below the 0.7820 and 0.7800 support levels against the US Dollar. There was a break below a couple of bearish continuation patterns near 0.7800 and 0.7755 on the hourly chart of AUD/USD. NZD/USD declined sharply after it failed to surpass the 0.7270 resistance area. There is a crucial bullish trend line forming with support near 0.7160 on the hourly chart of NZD/USD. AUD/USD Technical Analysis After a decent upward move above 0.7800, the Aussie Dollar faced sellers near 0.7850 against the US Dollar. The AUD/USD pair traded as high as 0.7848 on FXOpen and recently started a fresh decline. There was a break below a few important supports near 0.7800. There was also a break below a couple of bearish continuation patterns near 0.7800 and 0.7755 on the hourly chart of AUD/USD. The pair even broke the 0.7780 support level and the 50 hourly simple moving average. A low is formed near 0.7724 on FXOpen and the pair is currently struggling to recover. An initial resistance on the upside is near the 0.7753 level. It is close to the 23.6% Fib retracement level of the downward move from the 0.7848 high to 0.7724 low. The next major resistance is near the 0.7770 level or the 50 hourly simple moving average. The main resistance is forming near the 0.7785 level. The 50% Fib retracement level of the downward move from the 0.7848 high to 0.7724 low is also near 0.7785. If there is no recovery above 0.7770 or 0.7785, there is a risk of more losses. An initial support is near the 0.7725 level. If there is a downside break below 0.7725 and 0.7710, the pair could accelerate lower. In the stated case, it could even decline below 0.7700 and test 0.7650. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 22, 2021 Author Share Posted March 22, 2021 GBP/USD Struggles Below 1.3900, USD/CAD Could Extend Gains GBP/USD started a fresh decline after it failed to surpass the 1.4000 resistance. USD/CAD is rising and it is showing a lot of positive signs above the 1.2800 level. Important Takeaways for GBP/USD and USD/CAD The British Pound started a fresh decline after it was rejected near the 1.4000 area. There was a break below a major bullish trend line with support near 1.3910 on the hourly chart of GBP/USD. USD/CAD traded towards the 1.2375 support zone before starting an upside correction. There was a break above a major bearish trend line with resistance near 1.2455 on the hourly chart. GBP/USD Technical Analysis This past week, the British Pound made another attempt to clear the 1.3990 and 1.4000 resistance levels against the US Dollar. The GBP/USD pair failed to gain strength and started a fresh decline below the 1.3950 support zone. There was a clear break below the 1.3920 support level and the 50 hourly simple moving average. There was also a break below the 1.3850 support level. Moreover, there was a break below a major bullish trend line with support near 1.3910 on the hourly chart of GBP/USD. The pair traded as low as 1.3817 on FXOpen and it is currently consolidating losses. An initial resistance on the upside is near the 1.3850 level. It is close to the 23.6% Fib retracement level of the downward move from the 1.3959 high to 1.3817 low. The first major resistance is near the 1.3880 level. The 50% Fib retracement level of the downward move from the 1.3959 high to 1.3817 low is also near 1.3880 level. The main resistance is now forming near 1.3910 and the 50 hourly simple moving average. A successful close above the 1.3880 and 1.3900 levels could open the doors for a decent increase in the coming sessions. Conversely, the pair might continue to move down below the 1.3820 and 1.3800 support levels. Any more losses may possibly open the doors for a push towards the 1.3740 support level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 23, 2021 Author Share Posted March 23, 2021 Crude Oil Price Drops from the Highs, But Bullish Pressure Remains One of the most spectacular market rallies this year formed on the oil market. After the dip below the zero level in April 2020, the price of oil rallied to $68 in March 2021. The move higher comes in line with rising global demand as the global trade volume reaches pre-pandemic levels. However, the price of oil is higher now than the pre-pandemic levels and triggers expectations of higher inflation ahead. Oil and Inflation – Why Should Traders Care? The problem with higher oil prices is that they trigger higher inflation expectations. As such, central banks are forced to intervene because they all use inflation as part of their mandate. More precisely, higher inflation above a central bank’s target leads to the central bank rising the interest rates. Hence, the currency market is the first one to be impacted by a move in the price of oil. Because traders try to anticipate the moves well ahead, the volatility in the currency market increases with the volatility in the oil market. Last week’s drop of over 7% on a single trading day spooked some investors, but the price of oil found strong support at the $60 level. Moving forward, the focus shifts to the OPEC+ meeting scheduled at the start of April. While the global oil demand increased in the last months as more economies reopen after lockdowns generated by the pandemic, there is still room to go. At current levels, demand is still less than pre-pandemic levels, so the price of oil may make new highs if the supply does not meet demand. Speaking of supply, if OPEC does not increase production in the second quarter of the year, the risk is that the price of oil will make new highs. The vaccination pace in advanced economies is strong enough to trigger rapid economic recovery, creating a positive environment for further advances in the price of oil. FXOpen Blog Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 23, 2021 Author Share Posted March 23, 2021 BTC and XRP – Correction possibly over BTC/USD The price of Bitcoin has been moving sideways from the 17th of March when it came up to $59,600 until the 20th when it paid another revisit to those levels. However, after a failure to break the $60,000 mark to the upside we have seen a rejection that caused a breakout from the symmetrical triangles and a low to $52,924. Now we are seeing a minor recovery with the price currently being traded at $54,528 and has bounced nicely forming a V shape. The descending move was a five-wave impulse which is why we could have seen the completion of the WXY correction. In that case, the price is now making its first attempts to establish an uptrend as the 1st wave from the next impulsive wave to the upside started. However, there could still be a possibility of another lower low to the significant $51,940 level. If we have seen the completion of the 4th wave correction, then the price of Bitcoin is now headed towards the new all-time high, potentially in the zone between $72,000 and $68,000. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 24, 2021 Author Share Posted March 24, 2021 EUR/USD Turns Red, USD/JPY Is Correcting Gains EUR/USD started a fresh decline and traded below the key 1.1880 support zone. USD/JPY is correcting gains and it is now trading below the 108.80 support. Important Takeaways for EUR/USD and USD/JPY The Euro failed to continue higher above 1.1950 and started a fresh decline. There is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD. USD/JPY started a downside correction from well above the 109.00 level. There is a major bearish trend line forming with resistance near 108.65 on the hourly chart. EUR/USD Technical Analysis In the past few days, the Euro struggled to gain bullish momentum above 1.1950 against the US Dollar. The EUR/USD pair formed a swing high near 1.1946 on FXOpen and recently started a fresh decline. There was a break below a few important supports near the 1.1890 and 1.1880 levels. The pair even settled below the 1.1880 support zone and the 50 hourly simple moving average. A low is formed near 1.1836 and the pair is currently consolidating losses. An initial resistance is near the 1.1860 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low. The first major resistance is now forming near the 1.1890 and 1.1880 levels. The 50% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low is also near 1.1891. Moreover, there is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD. Therefore, the pair must clear 1.1880 and 1.1920 to start a strong increase in the coming sessions. Conversely, the pair could continue to move down below the 1.1836 low. The first major support is near the 1.1820 level. If there is a downside break below the 1.1820 support, the pair could dive towards the 1.1750 support in the near term. Any more losses might call for a test of the 1.1715 support level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 25, 2021 Author Share Posted March 25, 2021 LTC and EOS – Decrease seen but for how long? LTC/USD From the start of the week, the price of Litecoin has been in a decline, coming from its Monday’s high at $197.68 to $170.92 at its lowest point today, which was a decrease of 13.53% It is now stabilizing around $173 after a steep downfall made from yesterday when the price decreased by 12.7% as the price recovered close to the levels of Monday’s high before moving to the downside again. Looking at the hourly chart, you can see that the bearish count has been validated in which from the start of March we have seen an ABC correction to the upside. In that case, the descending move from the 13th of March is the 3rd wave from the higher degree correction and is now forming as a five-wave move. It appears that could end very soon around the 0.618 Fibonacci level at tje $167 area, but there would be a possibility that the descending might continue to the 0.786 one. This is because by projecting the length of the first wave from the higher degree correction when the price of Litecoin was $245 and went to $155, we come up with a price target of $143. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 26, 2021 Author Share Posted March 26, 2021 Gold Price Stuck Below $1,750, Oil Price Facing Hurdles Gold price started consolidating in a range above the $1,720 support. Crude oil price is now trading below $60.00 and $60.50 resistance levels. Important Takeaways for Gold and Oil Gold price is trading in a range above the $1,720 support against the US Dollar. There are two connecting bearish trend lines forming with resistance near $1,738 on the hourly chart of gold. Crude oil price is holding the key $57.50 and $57.40 support levels. There is a major bearish trend line forming with resistance near $59.80 on the hourly chart of XTI/USD. Gold Price Technical Analysis Gold price made an attempt to surpass the $1,750 resistance against the US Dollar, but it failed. As a result, there was a fresh decline, but the bulls were active above the $1,720 support. It seems like the price is forming a strong support base above the $1,720 zone. The recent low was formed near $1,722 on FXOpen before the price started an upward move. It broke the 23.6% Fib retracement level of the recent decline from the $1,745 swing high to $1,722 low. An immediate resistance is near the $1,730 level and the 50 hourly simple moving average. The next key resistance is near the $1,733 level. It is close to the 50% Fib retracement level of the recent decline from the $1,745 swing high to $1,722 low. There are also two connecting bearish trend lines forming with resistance near $1,738 on the hourly chart of gold. To start a strong increase, the price must clear trend lines and $1,740. The main resistance is still near $1,750, above which the price could start a strong rally. Conversely, the price could fail to continue higher and it might decline below the $1,725 level. The main support is near the $1,720 zone. A clear break below the $1,720 support may possibly start a strong decline towards $1,700 or even $1,680 in the near term. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 29, 2021 Author Share Posted March 29, 2021 GBP/USD and GBP/JPY: British Pound Eyes Additional Gains GBP/USD found support near 1.3670 and it is now correcting higher. GBP/JPY is rising and it remains supported for more gains above 150.00 Important Takeaways for GBP/USD and GBP/JPY The British Pound declined below 1.3800, but it found support near 1.3670 against the US Dollar. There was a break above a major bearish trend line with resistance near 1.3740 on the hourly chart of GBP/USD. GBP/JPY is trading nicely above the 105.00 and 105.20 resistance levels. There was also a break above a key bearish trend line with resistance near 149.20 on the hourly chart. GBP/USD Technical Analysis This past week, the British Pound saw a bearish wave below the 1.3850 support zone against the US Dollar. The GBP/USD pair even broke the 1.3720 support level. However, the pair found support near the 1.3670 zone. A low was formed near 1.3670 on FXOpen and the pair recently started a fresh increase. It broke the 1.3700 and 1.3720 resistance levels. There was also a break above a major bearish trend line with resistance near 1.3740 on the hourly chart of GBP/USD. The pair is now trading nicely above the 1.3750 level and the 50 hourly simple moving average. It is testing the 38.2% Fib retracement level of the key decline from the 1.4001 high to 1.3670 low. The first major resistance on the upside is near the 1.3825 level. The next major resistance is near 1.3835 level or the 50% Fib retracement level of the key decline from the 1.4001 high to 1.3670 low. A clear upside break above the 1.3825 and 1.3835 resistance levels could open the doors for a larger increase. If there is a fresh decline, the previous resistance near 1.3740 or the 50 hourly simple moving average might provide support. If there are additional losses, the pair could decline towards the 1.3700 level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 29, 2021 Author Share Posted March 29, 2021 Strong Dollar Breaks the Reflation Theme – All Eyes on the U.S. Yields 2020 proved to be a challenging year for currency traders looking to forecast how the U.S. dollar will react to the pandemic. The Federal Reserve of the United States (Fed) immediately lowered the fed funds rate to the lower boundary (i.e., close to zero) and vouched to leave it there for as long as necessary. On top of that, the Fed restarted the quantitative easing program, buying bonds to lower the yields on the short and long end of the curve. Furthermore, it opened USD swap lines with other central banks in the advanced world to provide liquidity and advert the strong dollar theme. It worked. The dollar initially appreciated as the world looked for safety in the face of the pandemic, but then the Fed’s plan entered into effect. Slowly at first, more aggressively after, the dollar started to lose ground across the dashboard. Everything appreciated in dollar terms – the euro, the Australian dollar, the British pound, equities, and commodities alike. The bearish trend on the dollar was so strong that all investment houses forecasted an even lower dollar in 2021. They were right. The so-called reflation trade, where U.S. equities advance, the dollar declines, and risk-on dominates, was the theme for most of the first quarter of the year. However, the dollar started to show some strength recently on the back of a faster economic recovery, impressive vaccination campaign, and a U.S. administration that delivers. What’s Next for the U.S. Dollar? As we head into the second quarter of the year, the dollar trades with a mixed tone. On the one hand, it gained against the euro since the year started. At the start of January, the EURUSD pair traded above 1.23, and last Friday closed below 1.18. Because the euro has the biggest weight in the dollar index, the move lower in the EURUSD exchange rate led to a reversal in the DXY. Gold made a new all-time high in 2020 – it traded above $2,000 last summer but is in retreat ever since. It is barely holding above $1,700 at the moment, and fears of higher inflation in the United States and the developed world are not enough to fuel a rally in the yellow metal. The problem for the reflation trade and gold comes from the fixed-income market. The U.S. yields are rising, and whenever this happened in the past, gold weakened. Put it simply, rising yields mean that investors flee the safety of bonds in search of higher returns in riskier assets. Effectively, it means that confidence is back and, thus, gold suffers as investors do not look for protection anymore. Higher yields also bode well for the dollar. Hence, before betting on a lower dollar, investors should first monitor the fixed-income market and interpret where the yields will go. All in all, the second quarter will be extremely interesting. If the yields continue to rise, the dollar will have a hard time weakening. FXOpen Blog Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 30, 2021 Author Share Posted March 30, 2021 BTC and XRP – Looking bullish BTC/USD The price of Bitcoin has been on the rise since the 25th of March when it fell to $50,420 level. From there a recovery of 17.38% was measured to its highest point so far at $59,236. Currently, it is being traded slightly lower but is still on an upward trajectory. The low on the 25th was the end of the corrective stage in which the price was since the 13th of March and as the third wave ended we have seen the start of the next impulsive move to the upside. As its first wave looks like it has already developed now we could be already seeing the start of 3rd sub-wave from the five-wave impulse. The price would be now expected to continue moving upward above its last all-time high and potential somewhere around $68,000-$72,000 zone. It is still soon to project the ending point so we are going to watch closely how the price action develops and reevaluate our projection accordingly. There could be a possibility that we are seeing an even higher degree impulse wave, increasing the room for growth. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted March 31, 2021 Author Share Posted March 31, 2021 EUR/USD Dives, USD/CHF Likely To Continue Higher EUR/USD started a fresh decline below the 1.1800 and 1.1780 support levels. USD/CHF is rising and it is likely to continue higher above 0.9450. Important Takeaways for EUR/USD and USD/CHF The Euro started a fresh drop below the 1.1850 and 1.1800 support levels against the US Dollar. There is a major bearish trend line forming with resistance near 1.1755 on the hourly chart of EUR/USD. USD/CHF is trading in a bullish zone above the 0.9350 resistance zone. There is a key ascending channel forming with support near 0.9405 on the hourly chart. EUR/USD Technical Analysis The Euro failed to stay above the 1.1900 zone and started a fresh decline against the US Dollar. The EUR/USD pair broke the key 1.1850 pivot zone to move into a bearish zone. The pair even broke the 1.1820 support level and settled below the 50 hourly simple moving average. The bears were able to push the pair below 1.1800 and a low is formed near 1.1709 on FXOpen. It is currently showing a lot of bearish signs and it seems like there are high chances of more losses below the 1.1700 support zone. The next major support could be near the 1.1660 level, below which the pair may possibly test the 1.1620 support. On the upside, an initial resistance is near the 1.1730 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.1804 high to 1.1709 low. There is also a major bearish trend line forming with resistance near 1.1755 on the hourly chart of EUR/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the 1.1804 high to 1.1709 low. The 50 hourly simple moving average is also near 1.1760. If there is a break above the trend line resistance, the pair could correct higher towards the 1.1800 zone. The next major resistance is near the 1.1850 level. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted April 1, 2021 Author Share Posted April 1, 2021 LTC and EOS – More upside expected LTC/USD The price of Litecoin has been on the rise from the 25th when it was being traded at $169. We have seen an increase of 18.7% as the price came up to $200 at its highest point today. Currently it is being traded slightly lower but is still in an upward trajectory overall. Looking at the hourly chart, we can see that the price came up to the 0.382 Fibonacci level and made an attempt to break out above it but failed to do so. The first attempt was made on the 29th from which we have seen some sideways movement below the level before finally another attempt was made today. The price would now be expected to make pullback as the 3rd attempt for a breakout failed, but we haven’t seen a rejection just yet. If from the 25th we have seen the development of the 4th corrective wave out of the five-wave impulse to the downside now the price would be starting the development of its 5th wave to the downside which would be set to achieve a lower low compared to the 25th one. However, there could be a possibility that the decrease ended as a three-wave move as the part of the higher degree complex correction count, in which case the ascending move would be the first sub-wave of the next starting impulse to the upside. In either way, we are going to see from the interaction with the 0.382 Fib level what would be the scenario, as if it manages to go above it, it would enter the territory of the 1st wave and invalidated the possibility of a lower low. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
FXOpen Trader Posted April 2, 2021 Author Share Posted April 2, 2021 Gold Price and Oil Price Eye Additional Gains Gold price started a fresh increase after testing the $1,680 support zone. Crude oil price is trading nicely above $60.00 and it might continue to rise steadily. Important Takeaways for Gold and Oil Gold price remained well bid near the $1,680 and $1,675 levels against the US Dollar. There was a break above a major bearish trend line with resistance near $1,708 on the hourly chart of gold. Crude oil price is holding the key $59.50 and $60.00 support levels. There was a break above a key bearish trend line with resistance near $60.55 on the hourly chart of XTI/USD. Gold Price Technical Analysis Earlier this week, gold price extended its decline below the $1,710 and $1,700 support levels against the US Dollar. However, the bulls were active near the $1,680 and $1,675 levels. A low was formed near $1,677 on FXOpen before the price started a fresh increase. There was a break above the $1,695 and $1,700 resistance levels. The price climbed nicely above the 50% Fib retracement level of the downward move from the $1,745 swing high to $1,677 There was also a break above a major bearish trend line with resistance near $1,708 on the hourly chart of gold. The price is now trading well above $1,710 and the 50 hourly simple moving average. It is now testing the 76.4% Fib retracement level of the downward move from the $1,745 swing high to $1,677 low. A successful break above the $1,730 resistance could open the doors for a larger increase in the coming sessions. The next key resistance is near the $1,745 level. The main resistance is still near $1,750, above which the price could test $1,780. Conversely, the price could fail to continue higher and it might decline below the $1,720 level. The main support is near the $1,705 level. A clear break below the $1,705 support may possibly start a strong decline towards $1,675 in the near term. Read Full on FXOpen Company Blog... Quote Link to comment Share on other sites More sharing options...
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