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ETHUSD and LTCUSD Technical Analysis – 29th SEP, 2022

ETHUSD: Bullish Engulfing Pattern Above $1257

Ethereum was unable to sustain its bullish momentum and after touching a high of 1400 on 27th Sep the price started to decline against the US dollar. The price of Ethereum touched a low of 1266 on 28th Sep after which we can see a bounce upwards.

We can see a continued buying pressure today and the formation of a bullish engulfing line in the 2-hour time frame.

We can clearly see a bullish engulfing pattern above the $1257 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 above its pivot level of 1321 and moving into a strong bullish channel. The price of ETHUSD is now testing its сlassic resistance level of 1327 and Fibonacci resistance level of 1331 after which the path towards 1400 will get cleared.

The relative strength index is at 53 indicating a NEUTRAL demand for Ether and a shift towards the consolidation phase in the markets.

We can see that the adaptive moving average AMA20, AMA50, and AMA100 are giving a bullish trend reversal signal in the markets.

The STOCHRSI and Williams percent range is indicating a NEUTRAL market, which means that the prices are expected to remain in a consolidation phase in the short-term range.

Some of the technical indicators are giving a STRONG BUY market signal.

Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1400 to $1550 in the short-term range.

ETH is now trading above both its 100 & 200 hourly simple and exponential moving averages.

• Ether: bullish reversal seen above the $1257 mark
• The short-term range appears to be mildly BULLISH
• ETH continues to remain above the $1300 level
• The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $1257

ETHUSD is moving in a mildly bullish channel with the price trading above the $1300 handle in the European trading session today.

ETH touched an intraday high of 1351 in the Asian trading session and an intraday low of 1313 in the European trading session today.

We have seen that the ichimoku price is over the cloud in the 1-hour time frame indicating a bullish scenario.

The Bullish harami pattern is observed in the weekly timeframe and MACD indicator is giving a bullish divergence signal in the 4-hour time frame.

The parabolic SAR indicator is giving a bullish reversal signal in the 30-minute time frame and now we are looking at the levels of 1450 to 1500 in the medium-term range.

The daily RSI is printing at 40 indicating a neutral demand in the long-term range.

The key support levels to watch are $1245 and $1285 and the prices of ETHUSD need to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has increased by 4.27% with a price change of 54.65$ in the past 24hrs and has a trading volume of 16.127 billion USD.

We can see a decrease of 13.25% in the total trading volume in the last 24 hrs which is due to the shift towards a consolidation phase in the markets.

The Week Ahead

The price of Ethereum declined due the ongoing strength of the United States dollar and the increase in the market liquidity. We can see that now we are moving into a consolidation zone and the prices tend to move in a narrow range.

We are now looking for a fresh upside wave of correction towards the $1500 and $1600 levels.

We can see the formation of a bullish trendline in place from $1257 towards $1491 level.

The immediate short-term outlook for Ether has turned mildly BULLISH, the medium-term outlook has turned BULLISH, 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 level of $1250 this week.

The weekly outlook is projected at $1550 with a consolidation zone of $1500.

Technical Indicators:

The average directional change (14): is at 25.71 indicating a BUY

The rate of price change: is at 0.156 indicating a BUY

The bull/bear power (13): is at 1.606 indicating a BUY

The ultimate oscillator: is at 56.76 indicating a BUY

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[FXOpen Trader]

Gold Price and Crude Oil Price Could Gain Bullish Momentum

Gold price started a recovery wave from the $1,615 level. Crude oil price could gain bullish momentum if it clears the $82.50 resistance zone.

Important Takeaways for Gold and Oil

• Gold price found support near $1,615 and started a recovery wave against the US Dollar.
• There was a break above a key bearish trend line with resistance near $1,658 on the hourly chart of gold.
• Crude oil price also started a recovery wave from the $76.00 zone.
• There is a major bearish trend line forming with resistance near $81.75 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price declined heavily below the $1,700 level against the US Dollar. The price gained bearish momentum and declined below the $1,680 level.

There was a clear move below the $1,650 support zone and the 50 hourly simple moving average. The price traded as low as $1,615 and recently there was a recovery wave. The price was able to clear the $1,625 resistance zone.

There was a move above the 50% Fib retracement level of the downward move from the $1,687 swing high to $1,615 low. There was also a break above a key bearish trend line with resistance near $1,658 on the hourly chart of gold.

The price of XAU/USD is now trading above the 61.8% Fib retracement level of the downward move from the $1,687 swing high to $1,615 low.

On the upside, the price is facing resistance near the $1,670 level. The first major resistance is near the $1,680 level. The main resistance is now forming near the $1,688 level, above which it could even test $1,700.

A clear upside break above the $1,700 resistance could send the price towards $1,720. An immediate support on the downside is near the $1,655 level. The next major support is near the $1,650 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,620 support zone.

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[ammarasghar]

Gold Price and Crude Oil Price Could Gain Bullish Momentum

Gold price started a recovery wave from the $1,615 level. Crude oil price could gain bullish momentum if it clears the $82.50 resistance zone.

Important Takeaways for Gold and Oil

• Gold price found support near $1,615 and started a recovery wave against the US Dollar.
• There was a break above a key bearish trend line with resistance near $1,658 on the hourly chart of gold.
• Crude oil price also started a recovery wave from the $76.00 zone.
• There is a major bearish trend line forming with resistance near $81.75 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price declined heavily below the $1,700 level against the US Dollar. The price gained bearish momentum and declined below the $1,680 level.

There was a clear move below the $1,650 support zone and the 50 hourly simple moving average. The price traded as low as $1,615 and recently there was a recovery wave. The price was able to clear the $1,625 resistance zone.

There was a move above the 50% Fib retracement level of the downward move from the $1,687 swing high to $1,615 low. There was also a break above a key bearish trend line with resistance near $1,658 on the hourly chart of gold.

The price of XAU/USD is now trading above the 61.8% Fib retracement level of the downward move from the $1,687 swing high to $1,615 low.

On the upside, the price is facing resistance near the $1,670 level. The first major resistance is near the $1,680 level. The main resistance is now forming near the $1,688 level, above which it could even test $1,700.

A clear upside break above the $1,700 resistance could send the price towards $1,720. An immediate support on the downside is near the $1,655 level. The next major support is near the $1,650 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,620 support zone.

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nice and thank you for posting this analysis

 

[FXOpen Trader]

UK Government ditches high-earner tax rate cut; Pound freefall halted for the moment

The British Pound's tremendous freefall has been staggering viewing over the past few weeks. Just when it looked like it would not fall lower, a sudden further drop ensued, bringing the Pound to almost parity with the US Dollar and creating a degree of speculation that perhaps the US Dollar, given its remarkable recent strength, would overtake the Pound and replace it as the world's most valuable currency.

This has not yet happened, and today as the week's trading begins, the British Pound has made a very slight step in the upward direction, albeit still at very low values compared to its high points six months ago.

As the London market opened this morning, the Pound had risen by 0.7% to US1.2453 and 0.20% to EUR0.982.

It is being considered that new further tax cuts which are being expected to be released by Prime Minister Liz Truss in which the highest tax rate, 45%, which is applied to higher earners in the UK, presented a serious risk to the economy, and had been met with great unpopularity by the electorate.

Today, the government announced that it would not proceed with the tax cuts, and that the high rate of tax will remain at 45%, which has gone some way toward curtailing the freefall that the British economy has been in for some months now.

The new government has been criticized for potentially assisting 'the rich' whilst the majority of small businesses and private individuals in the country struggle against extremely difficult economic circumstances.

It is of course easy for those saddled with a 45% tax burden to disagree with the way that the current government has been spending their tax, however in terms of actual percentage of taxable income, it is unlikely that keeping the high rate at 45% will cause a 'brain drain' - that being a term for highly educated, high earners to consider leaving the country.

This is largely because any other Western country which provides a lifestyle as good as that in the United Kingdom will likely have similar tax rates, therefore not much advantage would be gained.

Whilst the Pound's dramatic fall in value appears to have slowed, the FTSE 100 is now in the sights of observers. It is expected to open lower today following heavy losses in the US on Friday and with ongoing nervousness about the state of the UK finances.

There is no doubt that just keeping the top tax rate at 45% is not going to resolve the serious situation that the British economy is in.

Stocks listed on the FTSE 100 are large, blue-chip companies with vast shareholder bases, and their ability to perform well on their home market is a critical measure of investor confidence and equally a measure of the overall condition of British industry.

At the moment, housebuilders and financial services firms are down, whereas raw materials miners are up.

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[FXOpen Trader]

GBP/USD Eyes Steady Recovery, EUR/GBP Faces Hurdle

GBP/USD started a recovery wave from a new low at 1.0341 and climbed above 1.1000. EUR/GBP is now facing a major resistance near 0.8870.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh recovery wave above the 1.0920 resistance zone against the US Dollar.
• There was a break above a couple of bearish trend lines at 1.0700 and 1.0800 on the hourly chart of GBP/USD.
• EUR/GBP started a sharp decline and traded below the 0.8900 level.
• There is a major bearish trend line forming with resistance near 0.8830 on the hourly chart.

GBP/USD Technical Analysis

The British Pound found support near the 1.0340 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to clear the 1.0650 resistance zone.

There was a decent increase above the 1.0920 level and the 50 hourly simple moving average. The pair even climbed above the 1.1100 level. During the increase, there was a break above a couple of bearish trend lines at 1.0700 and 1.0800 on the hourly chart of GBP/USD.

A high was formed near 1.1234 on FXOpen and the pair is now correcting gains. On the downside, an initial support is near the 1.1070 level. It is near the 23.6% Fib retracement level of the upward move from the 1.0540 swing low to 1.1234 high.

The next major support is near the 1.0880 level. It is near the 50% Fib retracement level of the upward move from the 1.0540 swing low to 1.1234 high. Any more losses could lead the pair towards the 1.0750 support zone or even 1.0680.

On the upside, an initial resistance is near the 1.1230 level. The next main resistance is near the 1.1300 zone. A clear upside break above the 1.1300 and 1.1310 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.1500 level.

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[FXOpen Trader]

Tesla in the doldrums as Elon Musk offers political advice

Tesla stock is one of the more volatile among big-cap publicly listed corporations, and the last day's performance has demonstrated once again that there is still a lot of uncertainty with regard to its values.

Tesla stock fell over 8.6% in value during yesterday's New York trading session, adding a further downturn to the 14.6% it has lost over the five day moving average.

Opinions vary on what caused this particular collapse in value, however it did coincide with reports that the company's record delivery figures for its electric cars had shown how challenging it can be to secure vehicle transportation capacity and at a reasonable cost, but surely there must be more to it than that?

Record deliveries of a product which is manufactured by a publicly listed company with shareholders to please usually brings confidence and Tesla's revolutionization of the entire automotive industry toward electric vehicles plus its standing as a huge market contender globally should go along with these record delivery figures nicely.

But it didn't.

Some dissenters consider that the entry level Tesla models such as the Model 3 and Model Y are quite simply not premium products, and despite their pricetag, are not much more well equipped or better engineered than budget cars from established brands in Europe and Asia at less than half the cost, giving rise to a possible feeling of marketing over substance.

That still wouldn't be enough to create such a downturn in share price though, because the cars are selling in high numbers and the revenues are pouring in more than ever.

Increased operating costs are one perhaps interesting area to examine. An expert in balancing the books, rival car manufacturer Ford Motor Company, recently said that inflation-related costs would be $1 billion more than expected in the third quarter and that parts shortages had delayed deliveries.

However, it may well be Elon Musk's tendency to go down the political path in the public arena that has had some effect.

Yesterday, Elon Musk said that, in the current geopolitical conflict, UN-supervised elections in four occupied regions that Moscow has falsely annexed after what it called referendums. "Russia leaves if it is the will of the people" he said, prompting a Twitter response from Ukrainian President Volodymyr Zelensky.

Politics and business often do not mix, and the more conservative investors often take a dim view of involvement in such situations which can create commercial risk.

Elon Musk is no stranger to that, of course, and has in the past caused crashes and booms by taking to Twitter to voice his opinion!

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[FXOpen Trader]

BTCUSD and XRPUSD Technical Analysis – 04th OCT 2022

BTCUSD: Three White Soldiers Pattern Above $18527

Bitcoin was unable to sustain its bullish momentum and after touching a high of 20328 on 27th Sep, it started to decline touching a low of 18525 on 28th Sep. After this decline, the prices have stabilized and we can see an uptrend in the markets.

The prices have crossed the $20000 mark in the European trading session today.

We can see that the price is back over the pivot point in the weekly time frame.

The price of bitcoin is ranging near the horizontal support levels in the weekly time frame.

We can clearly see a three white soldiers pattern above the $18527 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 low of 19510 in the Asian trading session and an intraday high of 20099 in the European trading session today.

Both the STOCH and STOCHRSI 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 74 indicating a STRONG demand for bitcoin, and the continuation of the buying pressure in the markets.

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

Most of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term we are expecting targets of 21000 and 22500.

The average true range is indicating LESS market volatility with a strong bullish momentum.

• Bitcoin: bullish reversal seen above $18527
• The Williams percent range is indicating an overbought level
• The price is now trading just above its pivot level of $19931
• All of the moving averages are giving a STRONG BUY market signal

Bitcoin: Bullish Reversal Seen Above $18527

The strong bullish rebound that is seen is expected to continue in the short-term range and now we are looking at $21000 and $22000 as the immediate targets.

The adaptive moving average AMA20 is giving a bullish crossover pattern in the daily timeframe.

The parabolic SAR indicator is giving a bullish reversal signal on the daily time frame.

We have also detected the ichimoku bullish crossover pattern on the 4-hour time frame.

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

Bitcoin’s support zone is located at $19005 and the prices continue to remain above this level for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its classic resistance level of 20007 and Fibonacci resistance level of 200048 after which the path towards 21000 will get cleared.

In the last 24hrs, BTCUSD has increased by 3.80% by 730$, and has a 24hr trading volume of USD 31.762 billion. We can see an increase of 28.33% in the trading volume as compared to yesterday, due to increased demand for bitcoin globally.

The Week Ahead

The prices of bitcoin are moving in a bullish zone above the $19900 level. Further upsides are projected at $21000 and $22000 as the immediate targets.

We have seen continued buying pressure at lower levels, as we can see the formation of an ascending price channel from $18527 towards the $20214 levels.

The daily RSI is printing at 52 which indicates a neutral level and a move towards the consolidation phase in the markets.

The price of BTCUSD will need to remain above the important support level of $19000 this week.

The weekly outlook is projected at $21000 with a consolidation zone of $20500.

Technical Indicators:

The moving averages convergence divergence (12,26): is at 142.70 indicating a BUY

The ultimate oscillator: is at 60.39 indicating a BUY

The rate of price change: is at 1.75 indicating a BUY

The average directional change (14): is at 52.40 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

 

[FXOpen Trader]

EUR/USD Recovers Ground, USD/JPY Could Resume Uptrend

EUR/USD started a decent recovery wave above the 0.9900 resistance zone. USD/JPY is rising and might soon clear the key 145.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

• The Euro formed a base and started a decent recovery wave above the 0.9800 zone.
• There is a major bullish trend line forming with support near 0.9910 on the hourly chart of EUR/USD.
• USD/JPY declined sharply before it found support near the 143.50 level.
• There was a break below a key bullish trend line with support near 144.55 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro found support near the 0.9550 zone against the US Dollar. The EUR/USD pair started a steady recovery wave above the 0.9600 and 0.9680 resistance levels.

There was a steady increase above the 0.9800 resistance zone and the 50 hourly simple moving average. The pair even climbed above the 0.9900 resistance zone. A high was formed near 0.9998 on FXOpen and the pair is now correcting lower.

An initial support on the downside is near the 0.9940 level. It is near the 23.6% Fib retracement level of the upward move from the 0.9754 swing low to 0.9998 high.

The first major support is near the 0.9920 level. There is also a major bullish trend line forming with support near 0.9910 on the hourly chart of EUR/USD. The main support sits near the 0.9880 zone. It is near the 50% Fib retracement level of the upward move from the 0.9754 swing low to 0.9998 high.

An immediate resistance on the upside is near the 1.0000 level. The next major resistance is near the 1.0050 level. An upside break above 1.0050 could set the pace for another increase. In the stated case, the pair might revisit 1.0150. Any more gains might send the pair towards 1.0200.

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[FXOpen Trader]

Twitter and Tesla volatility as Elon Musk dumps stock to fund his purchase

In today's age of influencers, there is one figure who can possibly lay claim to being the influencer of all influencers, and that is Elon Musk.

Known for making extremely forthright decisions and taking a leading position in, well, pretty much everything he does, what often appear to be vanity projects for self-promotion end up being sound business moves which disrupt entire industry sectors and lead to massive returns.

A case in point is last year's almost unbelievable scenario in which a tweet put out by Elon Musk crashed the value of five popular cryptocurrencies by almost $1 trillion, and instead of scaring people off in their droves, a large number of conservative, analytical investors bought in, and then a few weeks later a subsequent tweet by Elon Musk caused the values to rise again.

This fascinating working of the media by one man has become one of his trademarks, so much so that Elon Musk has been attempting to acquire Twitter for a few months now.

Just as he appeared to have given up, his interest in buying Twitter has resurfaced, and once again he is dumping shares in Tesla to be able to fund the purchase of it.

Back in April 14 this year, Elon Musk made his initial offer to purchase Twitter for $43 billion, after previously acquiring 9.1% of the company's stock for $2.64 billion. To do this, he leveraged some of his positions at Tesla and made loans, however the deal fell through.

Now it appears that the deal is back on the table and Elon Musk is back in the business of offloading Twitter stock in order to buy Twitter on the open market, a move that has been criticized by many traditional investors and wealth managers.

One comment, coming from Wedbush Securities' Dan Ives yesteday was particularly harsh. "Selling Tesla stocks to fund his Twitter takeover is like giving away caviar to buy $2 pizza" said Mr. Ives.

Tesla stock has been declining in value for a number of weeks, and yesterday's move was no exception. The market reacted to Elon Musk's renewed interest in Twitter with a downward move for Twitter of a further 3.4% on the US market yesterday.

Twitter stock, however, jumped up in value from 50.85 USD at the beginning of the trading session to 51.81 by lunchtime yesterday, showing that investors welcomed the news.

In keeping with Elon Musk's gung-ho approach, there is much volatility now in both stocks and it sometimes appears as though he enjoys this sort of market pandemoneum, hence his continued appetite for causing it!

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[FXOpen Trader]

ETHUSD and LTCUSD Technical Analysis – 06th OCT, 2022

ETHUSD: Hammer Pattern Above $1263

Ethereum was unable to sustain its bullish momentum and after touching a high of 1372 on 30th Sep the prices started to decline against the US dollar. The prices of Ethereum touched a low of 1269 on 03rd Oct after which we can see a bounce upwards.

We can see the formation of an ascending channel pattern above the 1289 level and are looking at immediate targets of 1410 and 1469.

We can clearly see a hammer pattern above the $1263 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 above its pivot level of 1366 and is moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1370 and Fibonacci resistance level of 1372 after which the path towards 1400 will get cleared.

The relative strength index is at 51 indicating a NEUTRAL demand for Ether and the shift towards the consolidation phase in the markets.

We can see that the adaptive moving average AMA50 is giving a bullish price crossover pattern in the 15-minute time frame.

The commodity channel index, CCI, and the average directional index, ADX, are indicating a NEUTRAL market, which means that the prices are expected to remain in a consolidation phase in the short-term range.

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

Some of the moving averages are giving a BUY signal and we are now looking at the levels of $1400 to $1500 in the short-term range.

ETH is now trading above both its 100 & 200 hourly simple and exponential moving averages.

• Ether: bullish reversal seen above the $1263 mark
• Short-term range appears to be mildly BULLISH
• ETH continues to remain above the $1300 level
• The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $1263

ETHUSD is now moving into a mildly bullish channel with the price trading above the $1300 handle in the European trading session today.

ETH touched an intraday low of 1345 in the Asian trading session and an intraday high of 1383 in the European trading session today.

We can see the formation of both the bullish harami and bullish harami cross pattern in the 15-minute time frame.

The three white soldiers pattern is visible in the 15-minute time frame indicating a bullish scenario.

We have seen a bullish opening of the markets which is indicative of the ongoing bullish trend.

The daily RSI is printing at 45 indicating a neutral demand in the long-term range.

The key support levels to watch are $1227 and $1276, and the price of ETHUSD needs to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has increased by 1.11% with a price change of 14.93$ in the past 24hrs and has a trading volume of 11.464 billion USD.

We can see an increase of 25.95% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

The price of Ethereum continues to find support at lower levels and we can see an upside correction towards the $1400 level.

Ethereum’s price has now entered the bullish zone against the US dollar and we are now moving towards the $1500 level.

We can see the formation of a bullish trend line in place from $1263 towards $1409 levels.

The immediate short-term outlook for Ether has turned mildly BULLISH, the medium-term outlook has turned BULLISH, 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 $1223 this week.

The weekly outlook is projected at $1475 with a consolidation zone of $1450.

Technical Indicators:

The Williams percent range: is at -28.54 indicating a BUY

The rate of price change: is at 4.33 indicating a BUY

Bull/Bear power (13): is at 33.63 indicating a BUY

The STOCHRSI (14): is at 57.13 indicating a BUY

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[FXOpen Trader]

Watch FXOpen's October 3-7 Weekly Digest Video

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

• GBP/USD eyes steady recovery, EUR/GBP faces hurdle
• Dollar bounces back after record fall
• Oil is getting more expensive. What's next?
• Twitter and Tesla volatility as Elon Musk dumps stock to fund his purchase

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

FXOpen YouTube

Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

 

[FXOpen Trader]

GBP/USD Faces Key Hurdle, USD/CAD Could Rise Further

GBP/USD struggled to clear 1.1500 and corrected lower. USD/CAD is rising and might climb further above the 1.3800 resistance.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound failed to gain strength for a move above the 1.1500 resistance.
• There is a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase above the 1.3600 resistance zone.
• There was a clear move above a major bearish trend line with resistance at 1.3650 on the hourly chart.

GBP/USD Technical Analysis

After forming a base above the 1.0850, the British Pound started a steady recovery wave against the US Dollar. GBP/USD gained pace for a move above the 1.1000 and 1.1200 resistance levels.

There was a move above the 1.1350 resistance and the 50 hourly simple moving average. However, the pair faced a strong resistance near the 1.1500 zone. A high was formed near 1.1496 on FXOpen and recently there was a downside correction.

There was a move below the 1.1350 and 1.1320 support levels. The pair declined below the 38.2% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.

It is now trading below the 1.1200 level and the 50 hourly simple moving average. On the downside, an initial support is near the 1.1020 area. It is near the 50% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.

The next major support is near the 1.0950 level. If there is a break below 1.0950, the pair could extend its decline. The next key support is near the 1.0850 level. Any more losses might call for a test of the 1.0750 support.

An immediate resistance is near the 1.1120 level. There is also a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.

The next resistance is near the 1.1180 level. The main resistance is near the 1.1200 level. If there is an upside break above the 1.1200 zone, the pair could rise towards 1.1280. The next key resistance could be 1.1300, above which the pair could gain strength.

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[FXOpen Trader]

FTSE 100 approaches lowest point in 12 months

The seemingly continual focus on the ever-decreasing value of the British Pound by analysts and traders has been such a central point across the global markets during the past few months that very little attention has been paid to the dichotomy that has been taking place on the stock market.

The London Stock Exchange is home to some of the world's most long-established blue-chip companies and its performance is a definitive measure of the health of the domestic economy from a corporate and industrial perspective.

As the pound made its way down to rock bottom, an interesting pattern emerged within the FTSE 100 index, which is the index that tracks the 100 most prestigious companies listed on the London Stock Exchange's main market.

During these recent weeks, raw materials and mining companies have been doing well, whereas banks and homebuilders have been doing less well.

That demonstrates the current situation in which the British economy is being viewed by not only investors but also banks themselves, many which have removed mortgage products from the market and are taking preventative measures relating to such lending related products in case the interest rate approaches 5% which is anticipated for January 2023.

Today, the FTSE 100 index begins the morning trading session at an almost 12-month low, with factors including high inflation which is driving up costs causing consumer spending to drop, increasing interest rates which are making access to external capital more expensive, continued supply chain disruptions causing global manufacturing delays, and the tanking Pound damaging earnings reported by listed firms being massive contributors.

It is perhaps not surprising that the overall direction of the FTSE 100 index has been a downward one, however some analysts are taking an optimistic view on some of the pharmaceutical stocks, whereas others are looking at the entire British market through a pessimistic lens.

On September 29, the FTSE 100 went down to 6880 points, its lowest point by far in 12 months, and after a slight rebound it is now declining toward that figure again.

The index opened this morning at 6959 points, still below 7000, and 7000 points has been a yardstick measure since mid-2021 when the market was in full upward swing and the news channels were going overboard on the FTSE 100 index having broken the 7000 points barrier, upwards of which it has remained until now.

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Professional traders go all out for FX market volatility as volumes soar

The apparent economic disarray which has been unfolding across many Western nations for the past two years may well have resulted in a sustained devaluation of key major currencies such as the British Pound and Euro, but it has brought back something that was utterly lacking for more than two decades: volatility.

Ever since the last decade of the Cold War in which much of Eastern Europe was a non-participant in the global free-market economy and much of Western Europe was struggling under austerity and labor union chaos, the emphasis has been on steady growth and a pragmatic rise to prosperity for most members of the European and American public.

Over the past 30 years, we have seen many European nations unite and accept a common currency, we have seen Britain shake off the shackles of post-World War 2 austerity after the boom years of the 1980s transformed it from a tough climate of trade unions and beige attire into a property-owning nation of entrepreneurs and international trade, punctuated only by some high interest rates in the early 1990s and the financial crisis of 2008/2009 which only affected some banks and was swiftly recovered from.

Today, the citizens of Europe and much of North America are in a very different place. Over two years of economically catastrophic government-enforced lockdowns, taxpayer-funded furlough schemes, travel restrictions, the exit from the European Union of Great Britain, supply chain curtailments and geopolitical tensions have created rapidly depreciating currencies and massive holes in national balance sheets.

We hear endless reports about the cost of living crisis, and rocketing inflation, energy bills quadrupling and interest rates set to rise to such worrying levels that British banks have been removing mortgage products from the market.

This cocktail of woes has caused the Pound to tank over recent weeks, and although the Euro held up well, as soon as the European Central Bank began raising interest rates, it too began to sink in value.

The anomaly has been the strength of the US Dollar, which is proving its mettle as the world's most reliable reserve currency as it has held up very well against the Euro and British Pound despite the United States being subject to similar fiscal and political challenges as mainland Europe and the United Kingdom.

Interestingly, reports have focused on all of the doom and gloom, but have not been necessarily quick to note the upside of this, that being the increased interest in FX trading due to such levels of volatility which have not been present for almost 3 decades.

As an example, Euronext, which is a European electronic trading venue which operates exchange-traded funds, warrants and certificates, bonds, derivatives, commodities, foreign exchange as well as indices, has been experiencing a boom in volumes on its specialist FX trading platform Euronext FX to the extent that over 30% more trades took place on Euronext in September this year compared to the same period last year, resulting in an aggregated monthly turnover of $533 billion, which is up 18 percent from $452 billion that changed hands in the previous month.

Additionally, interbank FX trading is at multi-year highs in terms of volume, demonstrating that the Tier 1 banks are attempting to capitalize on the increased levels of volatility.

Today the US Dollar remains strong, as the Pound has begun to decline once again against the greenback, and the EURUSD pair languishes at 0.97, which is almost parity.

Yes, the economic outlook remains bleak across Europe and Britain, but the currency markets are alive with volatility.

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[FXOpen Trader]

BTCUSD and XRPUSD Technical Analysis – 11th OCT 2022

BTCUSD: Triple Top Pattern Below $20441

Bitcoin was unable to sustain its bullish momentum and after touching a high of 20441 on 06th Oct, it started to decline touching a low of 18977 today in the early Asian trading session.

The prices of bitcoin continue to decline amid the selling pressure that is seen across the cryptocurrency markets globally.

We can see that the prices are ranging near a new record low of 1 month in the weekly time frame.

We can clearly see a triple top pattern below the $20441 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 19282 and an intraday low of 18960 in the Asian trading session today.

Both the STOCH and STOCHRSI 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 43 indicating a WEAK demand for bitcoin, and the continuation of the selling pressure in the markets.

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

Some of the major technical indicators are giving a SELL signal, which means that in the immediate short term, we are expecting targets of 18500 and 18000.

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

• Bitcoin: bearish reversal seen below $20441
• The Williams percent range is indicating an overbought level
• The price is now trading just below its pivot level of $19107
• Some of the moving averages are giving a SELL market signal

Bitcoin: Bearish Reversal Seen Below $20441

The fall in the price of bitcoin is in line with the three failed attempts at breaching the $20500 resistance level. We are now heading towards the important support level of $19000 which if broken will pave the way towards $18000.

We can see the formation of a bearish harami and bearish harami cross pattern in the 15-minute time frame.

The commodity channel index is giving a neutral level and the relative strength index is approaching the 50 level.

The immediate short-term outlook for bitcoin is mildly 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 $18656 and the prices need to remain above this level for a potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 19028 and Fibonacci support level of 19087 after which the path towards 18500 will get cleared.

In the last 24hrs BTCUSD has decreased by 0.92% by 176$ and has a 24hr trading volume of USD 28.521 billion. We can see an increase of 45.40% in the trading volume compared to yesterday, due to increased selling pressure in the markets.

The Week Ahead

The price of bitcoin is moving in a mildly bearish zone below the $19500 level. Further downsides are projected at $18500 and $18000 as the immediate targets.

After the recent decline, bitcoin is staging for a recovery once it breaches down the important support level of $19000.

The average direction index and MA5, MA10 are indicating a bullish rebound in the price towards the $20000 level.

The daily RSI is printing at 43 which indicates a neutral level and a move towards the consolidation phase in the markets.

The price of BTCUSD will need to remain above the important support level of $18500 this week.

The weekly outlook is projected at $19000 with a consolidation zone of $18800.

Technical Indicators:

The moving averages convergence divergence (12,26): is at -75.50 indicating a SELL

The ultimate oscillator: is at 44.42 indicating a SELL

The rate of price change: is at -0.661 indicating a SELL

Bull/Bear power (13): is at -10.73 indicating a SELL

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[FXOpen Trader]

AUD/USD and NZD/USD Gain Bearish Momentum Below Support

AUD/USD is moving lower and approaching the 0.6220 support. NZD/USD is also declining and showing bearish signs below 0.5600.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline from well above the 0.6320 zone against the US Dollar.
• There was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.
• NZD/USD is gaining bearish momentum below the 0.5600 support zone.
• There was a break below a key bullish trend line with support at 0.5595 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar failed to stay above the 0.6400 level and started a fresh decline against the US Dollar. The AUD/USD pair traded below the 0.6350 support zone to move into a bearish zone.

There was a clear move below the 0.6300 level and the 50 hourly simple moving average. During the decline, there was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart

The pair traded as low as 0.6240 on FXOpen and is currently showing a lot of bearish signs. On the upside, the AUD/USD pair is facing resistance near the 0.6265 level. It is near the 23.6% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.

The next major resistance is near the 0.6290 level and the 50 hourly simple moving average. It coincides with the 50% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.

A close above the 0.6300 level could start a steady increase in the near term. The next major resistance could be 0.6350.

On the downside, an initial support is near the 0.6240 level. The next support could be the 0.6220 level. If there is a downside break below the 0.6220 support, the pair could extend its decline towards the 0.6165 level.

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[FXOpen Trader]

Traders dump British Pound en masse as BoE pulls plug on pension support

Will there be a run on pension funds? It was inevitable that the Bank of England would curtail its support somewhere when 'support' means literally printing money in order to keep fueling a collapsing economy.

Just a few weeks ago, at the point during which the British Pound was in absolute freefall against the Euro and US Dollar, the Bank of England introduced a £65 billion bond buying program which was aimed at preventing a market rout, which was viewed as a money printing exercise and raised many fears among investors.

Now, as the Pound has continued its downward slide, the Bank of England yesterday hinted at potentially ending its support by exiting its emergency gilt support program to pension companies on Friday, as planned.

Speaking in Washington DC yesterday, Bank of England Governor Andrew Bailey stated publicly that "The rebalancing must be done and my message to the funds involved and all the firms involved managing those funds: you've got three days left now. You've got to get this done."

The result was a significant amount of fear among British investors and private pension contributors who began to raise concerns that their pension funds would become worthless, or that the companies responsible for managing them may face financial difficulties.

Commentary in mainstream news contained viewpoints such as people in their mid-fifties considering withdrawing their pension as a lump sum to protect it.

The market reacted as perhaps expected, with traders dumping the Pound and a further decline in value having taken place.

During the US trading session yesterday, the British Pound dropped to 1.09 against the Euro and further slid against the US Dollar.

This morning, however, messages have become mixed as Bank of England Governor Andrew Bailey stated during private conversations with bank executives that the Bank of England may look at extending its emergency bond-buying program past this Friday’s deadline, according to people briefed on the discussions which made its way into the Financial Times this morning, despite Mr Bailey having already told pension funds that they “have three days left” before the support ends.

Pension funds are now in the process of redefining their investment strategies as the support is set to end in just three days time, however with the British Pound in turmoil, the economy tanking and inflation rampaging, interest rates set to reach between 5% and 6% by January 2023, there is a pinch to be felt for borrowers as well as those who are saving for their retirement.

This double-edged sword has not gone down well with investors and the overall outlook for the Pound is bleak indeed, especially considering that the UK Gilt market is not in the best shape, and internal reports have shown that the pensions industry is in no way ready for the Bank of England to withdraw its support.

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[FXOpen Trader]

Watch FXOpen's October 10-14 Weekly Digest Video

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

• GBP/USD faces key hurdle, USD/CAD could rise further
• Professional traders go all out for FX market volatility as volumes soar
• Traders dump British pound en masse as BoE pulls plug on pension support
• Yen tests 1998 lows

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

FXOpen YouTube

Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

 

[FXOpen Trader]

GBP/USD and GBP/JPY Eye Additional Gains

GBP/USD started a decent recovery wave above the 1.1200 resistance. GBP/JPY is also rising and might climb further higher above the 167.25 zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a fresh upward move above the 1.1200 resistance against the US Dollar.
• There is a key bullish trend line forming with support near 1.1210 on the hourly chart of GBP/USD.
• GBP/JPY gained pace after it was able to clear the 164.00 resistance zone.
• There is a major bullish trend line forming with support at 166.85 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.0950 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.1120 level.

There was a clear move above the 1.1200 resistance and the 50 hourly simple moving average. The pair even traded above the 1.1320 level. A high was formed near 1.1380 and recently started a downside correction.

GBP/USD Hourly Chart

There was a move below the 1.1320 support zone. The pair declined below the 1.1250, but the bulls were active near 1.1150. A low is formed near 1.1152 and the pair is now rising.

There was a move above the 1.1200 level. The pair climbed above the 23.6% Fib retracement level of the recent decline from the 1.1380 swing high to 1.1150 level. An immediate resistance on the upside is near the 1.1265 level.

It is near the 50% Fib retracement level of the recent decline from the 1.1380 swing high to 1.1150 level. The next major resistance is near the 1.1320 level, above which the pair could start a steady increase towards 1.1380.

An upside break above 1.1380 might start a fresh increase towards 1.1450. Any more gains might call for a move towards 1.1500 or even 1.1550.

An immediate support is near the 1.1220. There is also a key bullish trend line forming with support near 1.1210 on the hourly chart of GBP/USD. The next major support is near the 1.1150 level. If there is a break below the 1.1150 support, the pair could test the 1.0050 support. Any more losses might send GBP/USD towards 1.0000.

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[FXOpen Trader]

SO much volatility! UK Government to tear up budget in emergency move

The currency and stock markets have been in a remarkable state of turmoil for many weeks now, and perhaps one of the most exaggerated differentials in price has been between the Western major currencies and the British Pound.

Traders and investors have been turning their back on the Pound Sterling, which has been struggling to retain its long-held status as the world's most valuable currency, and the charts have been displaying a continued downward direction for the British Pound for many weeks, a direction which has only begun to slow over the past few days.

Today, however, the Pound has begun to soar! It is now at 1.13 against the US Dollar, a position it has not visited for many weeks.

Many market commentators and analysts have been highlighting what appears at first glance to be a 'turnaround' for the British Pound, but the reality is that it is far from a turnaround - it is just a minor step up from the days before, as the Pound still languishes at a low value after weeks of decline, punctuated by an array of government U-turns, a mini-budget which was not well received at all, and the most short-lived Chancellor of the Exchequer (Finance Minister) in British history, Kwasi Kwarteng who was shown the door after just a few weeks in his position.

Today, Jeremy Hunt, the replacement for Kwasi Kwarteng, is set to make an emergency statement relating to the outcome of the mini-budget, in which it is anticipated that he will tear it up and start again.

Mr Hunt, the most recent senior government minister to be installed without a single free vote having been cast, is the subject of high expectations from the British public who are weary at the floundering government's effect on the economic situation of the country.

Mr Hunt's reason for issuing a statement today is to attempt to calm the markets. One of the items on the agenda today is a statement to the House of Commons at 3.30pm, bringing forward measures from the Medium-Term Fiscal Plan, which is due on October 31.

Some critics have stated this morning that these statements are aimed at buying the government time, and there are even speculators who have aired their view that newly installed Prime Minister Liz Truss may be ousted by her own political party very shortly, which is perhaps one reason why a relatively cautious view is being taken by investors with regard to the British Pound and stocks listed on the London Stock Exchange's FTSE 100 index.

As an undertone to all of the high profile government chaos and economic pandemonium, the Bank of England has been raising interest rates since the beginning of this year and speculation is currently abound that they may well reach 5% in January 2023, and has been buying bonds to the tune of £65 billion which is in effect a way of printing money to bolster a flagging economy.

Many banks pulled mortgage products off the shelves in the concern that interest rates may rocket, and this has been yet another indicator to traders and investors to be cautious.

It would therefore be prudent to assume that many people will be looking out for the results of today's announcement at 3.30pm UK time.

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