Tag: Daily Brief

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 12 – Bitcoin Formed a Triple Top? Ethereum Accidentally Hard Forks

The cryptocurrency sector has spent the day mostly consolidating, with roughly the same amount of cryptocurrencies ending the day in the green and the red. The largest cryptocurrency by market cap is currently trading for $15,802, representing an increase of 2.68% on the day. Meanwhile, Ethereum gained 0.24% on the day, while XRP gained 0.60%.

The cryptocurrency sector has spent the day mostly consolidating, with roughly the same amount of cryptocurrencies ending the day in the green and the red. The largest cryptocurrency by market cap is currently trading for $15,802, representing an increase of 2.68% on the day. Meanwhile, Ethereum gained 0.24% on the day, while XRP gained 0.60%.

The cryptocurrency sector has spent the day mostly consolidating, with roughly the same amount of cryptocurrencies ending the day in the green and the red. The largest cryptocurrency by market cap is currently trading for $15,802, representing an increase of 2.68% on the day. Meanwhile, Ethereum gained 0.24% on the day, while XRP gained 0.60%.

 Daily Crypto Sector Heat Map

Blockstack gained 17.15% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by OMG Network’s gain of 12.03% and ICON’s 11.46% gain. On the other hand, yearn.finance lost 10.37%, making it the most prominent daily loser. Loopring lost 9.34% while Synthetix lost 8.90%, making them the 2nd and 3rd most prominent daily losers.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance has increased slightly since we last reported, with its value is currently staying at 64.5%. This value represents a 0.6% difference to the upside compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gone up over the course of the day. Its current value is $454.16 billion, representing an $8.04 billion increase compared to our previous report.

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What happened in the past 24 hours?

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Ethereum had quite a bad day, as its consensus reached an unexpected hard fork. This issue is considered the one holding the most weight ever since the DAO debacle from 4 years ago. The developers are still looking into the issue, and things will be fully understood at a later date.

Ethereum essentially hard forked right when its developers introduced a new update to the chain, and those who haven’t upgraded yet (including Blockchair, Infura, and other miners) got stuck in a minority chain for around 30 blocks (2 hours).

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Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization has pushed towards the upside, reaching as far as $15,990 but not being able to break the $16,000 mark. This failure to break its immediate resistance level has caused another (third) top to form, marking a possible short-term trend reversal as a possibility if Bitcoin doesn’t move up quickly.

Traders should trade carefully around this level and be prepared to trade the pullback or the spike. While these “, ride the trend” trades are hard to predict in terms of when they start, they are easy to trade once the entry happens.

BTC/USD 4-hour Chart

Bitcoin’s technicals are bullish on all time-frames. However, its 4-hour and monthly time-frames are completely bullish, while its daily and weekly overviews are showing signs of neutrality or even slight bear presence.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and slightly above its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is near the overbought territory (64.15)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $16,000                                 1: $15,480

2: $16,400                                 2: $14,640

3: $16,700                                  3: $14,100

Ethereum

Ethereum has stayed above the top line of its ascending channel but could not break the resistance zone above $470. However, its price didn’t react negatively to the news of the algorithm failure and an unplanned mini hard fork, which is quite a bullish outcome of events.

Ethereum traders should watch out for how the second-largest cryptocurrency by market cap navigates the range between the top line of the ascending channel and its $470 resistance level.

ETH/USD 4-hour Chart

Ethereum’s technicals are bullish on all time-frames, with its 4-hour and monthly time-frames being completely bullish and its daily and weekly overviews showing signs of neutrality or even slight bear presence.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and slightly above its 21-period EMA
  • Price is above its middle Bollinger band
  • RSI is neutral (60.34)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $470                                     1: $451

2: $490                                     2: $445 

3: $500                                      3: $420

Ripple

The fourth-largest cryptocurrency by market cap has suffered a minor pullback after failing to break its immediate resistance level ($0.26). XRP is still trading within a range bound by $0.2454 to the downside and $0.26 to the upside, while its range is even more narrow lately, as its price is hovering only the top portion of the range.

Traders still have the opportunity to trade XRP’s sideways action without much risk. On the other hand, if the volume does increase drastically, a move towards the upside is much more likely, unless Bitcoin’s potential move down brings every other crypto down with it.

XRP/USD 4-hour Chart

XRP’s technicals on the 4-hour, daily, and weekly time-frame are bullish with slight hints of neutrality. On the other hand, its monthly overview is heavily tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price above its 50-period EMA and slightly above its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is neutral (55.12)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.27                                    3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 12 – Top Trade Setups In Forex – Spotlight on ECB, BOE & FED! 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

On the news side, the eyes will remain on the U.K. Prelim GDP q/q, which is expected to have improved from -19.8% to 15.8% previous month, and it may support the Sterling today. Later in the day, the speeches from the ECB President Lagarde, BOE Gov Bailey, and Fed Chair Powell will remain under the spotlight. All three officials are due to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking via satellite. Lastly, the U.S. CPI figures can also trigger some price action during the U.S. session today; let’s keep an eye on it. 

Economic Events to Watch Today  

 

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17786 after placing a high of 1.18325 and a low of 1.17453. The Euro dropped on Wednesday against the U.S. dollar as the European Central Bank (ECB) policymakers continued signaling further easing, though they downplayed the prospect of further interest rate cuts.

At the ECB forum on central banking in Frankfurt, the ECB President Christine Lagarde said that the coronavirus crisis had produced a highly unusual recession, and recovery is likely to be uneven. She also warned against excessive optimism over the short-term impact on the economy from a vaccine.

Lagarde continued that as the latest news on vaccine looked encouraging, the chances were still there. The economy could face frequent cycles of accelerating viral spread and tightening restrictions until widespread immunity was achieved. On Monday, the U.S. drugmaker Pfizer said that its vaccine’s last stage trials had shown a high level of success in preventing reinfection. Lagarde signaled that the central bank would almost certainly loose monetary policy in the next meeting as the Eurozone economy risks falling back towards recession. She told lawmakers that ECB was ready to take further easing actions. These comments from ECB President weighed on the single currency Euro and dragged the pair EUR/USD on the downside on Wednesday.

Lagarde said that the ECB would keep its interest rates at 0.0%, and it has an asset purchase program in place worth 1.35 trillion euros. She said that bond-buying and pumping extra cash into the financial system were the best ways for the central bank to support the economy.

According to Lagarde, while all the other options were on the table, the PEPP and TLTRO’s have proven their effectiveness in the current environment. Therefore, they will likely remain the main tools for adjusting monetary policy.

According to the latest forecast, the Eurozone GDP in the fourth quarter is likely to decline by roughly 2% as the renewed lockdowns have affected the economic activities. All these updates kept the single currency Euro under pressure and, ultimately, the EUR/USD pair on the downside.

On the U.S. front, the U.S. dollar was high onboard due to the rising hopes of a quick economic rebound and less need for stimulus measures from the FED after the latest optimism from the vaccine front. 

The U.S. Dollar Index rose by about 0.3% on Wednesday and supported the U.S. dollar’s upward trend that ultimately added pressure on the EUR/USD pair. Meanwhile, there was a Bank Holiday in the U.S. and France that kept the macroeconomic data out of the table and left the EUR/USD pair on the mercy of market mood and Lagarde’s speech.

Daily Technical Levels

Support   Resistance

1.1738      1.1827

1.1697      1.1875

1.1648      1.1917

Pivot point: 1.1786

EUR/USD– Trading Tip

The EUR/USD is trading with a bearish bias at the 1.1780 level, having violated the double bottom support level at 1.1800. The same support level was also extended by an upward trendline pattern on the hourly timeframe. At the moment, the EUR/USD has formed a downward channel, which extends resistance at the 1.17800 level. On the lower side, the support holds around 1.1743 level. The MACD and EMA are also turning bearish; therefore, we may see selling below the 1.17800 mark today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.32237 after placing a high of 1.33133 and a low of 1.31912. The GBP/USD pair dropped on Wednesday after placing gains for four consecutive days on the back of rising concerns over the Brexit deal and the broad-based U.S. dollar strength.

On the Brexit front, the U.K. and E.U. are still far apart on fisheries and the flow of goods between Ireland and Northern Ireland. However, hopes were still high that talks between both sides were moving positively as there had been no public finger-pointing by both parties in the preceding few weeks. Despite this, it cannot be said that a deal will surely reach as when it comes to Brexit, there is nothing sure.

Another unofficial deadline for reaching a deal has been set by both sides: the European Summit on November 19. If a settlement is not reached by then, the chances are high that the U.K. will leave the E.U. on December 31 without a trade deal and will bound to follow WTO rules. As the new deadline was reaching closer, these latest concerns raised the fears of no-deal Brexit and weighed on the British Pound that ultimately dragged GBP/USD pair on the downside.

Furthermore, on the U.S. front, the greenback was strong across the board as the Fed’s need for further stimulus dropped after releasing the latest vaccine news. The U.S. Dollar Index rose by about 0.3% and weighed on GBP/USD pair. Moreover, traders’ eyes will be upon the release of the third quarter GDP from Great Britain. Investors believe that the economy will post a strong rebound in Q3 as the coronavirus pandemic caused a sharp decline in GDP in Q2 when it fell by 19.8%. The third-quarter GDP is expected to stand at 15.3%, and any figure within the expectations will prove bullish for GBP. U.K. will also release monthly GDP for September that is projected to decline by 1.5% down from August’s 2.1%.

Meanwhile, the GBP/USD pair’s losses remained limited as the risk sentiment in the market continued supporting the risk perceived GBP. The risk sentiment was supported by the latest optimism about the vaccine development from Pfizer and BioNtech on Monday. However, the British Pound was also under pressure due to the victory of Joe Biden in the U.S. election last week. Biden has said that he will not make a trade deal with the U.K. after its transition period ends if it failed to reach a deal with the E.U. Now the pressure has been increased in the U.K. for securing a trade deal with the E.U., which has also exerted pressure on local currency British Pound that has been weighing on GBP/USD pair since Biden’s victory.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

On Thursday, the GBP/USD is consolidating with a neutral bias at 1.3210 level ahead of the UK GDP figures later today. The GBP/USD is holding over the resistance becomes a support level of 1.3159. At the moment, the Cable may find immediate support at the 1.3208 level, and below this, Sterling can dip until the 1.3140 level. As you can see on the hourly timeframe, the Cable is stuck in a very narrow range, and there is likely to be an excellent trade opportunity in the market upon breakout. Let’s consider selling below the 1.3190 level and buying above the same area today. 

USD/JPY – Daily Analysis

During Thursday’s Asian trading session, the USD/JPY currency pair failed to extend its early-day recovery streak and edged lower around below the 105.30 level. Selling bias could be associated with the risk-off market sentiment, which underpins the safe-haven Japanese yen and contributes to the currency pair losses. Therefore, the market trading sentiment was being pressured by the increasing market concerns about the possible economic fallout from the second wave of continuous. 

Across the pond, the broad-based U.S. dollar selling bias, triggered by the optimism over a potential vaccine for the highly infectious coronavirus pandemic, could also be considered as one of the key factors that dragged the currency pair lower. In the meantime, the U.S. dollar losses were further bolstered by the renewed hopes for substantial U.S. fiscal stimulus measures. On the contrary, the optimism over a potential vaccine and the progress surrounding the Brexit talks keep challenging market risk-off mood and become the key factor that helps the currency pair limit its deeper losses. On the flip side, the currency pair mostly ignores the second-tier data from Japan. At this particular time, the USD/JPY currency pair is currently trading at 105.31 and trading in the range between 105.22 – 105.47.

The market trading sentiment failed to extend its previous day’s positive performance. It started to flash red on the day as the resurgence of (COVID-19) cases still not dispensing any sign of slowing down in the U.S. and Europe, which keep fueling the worries over the global economic recovery. As per the latest report, the U.S. keeps reporting record cases daily, more than 100K per day. Even all U.S. states representing a worse status report of the COVID-19, which was backed by the record hospitalizations and daily cases. As in result, New York has declared a 10 p.m. curfew on bars, gyms, and restaurants to curb the virus spread. It is also worth mentioning that the COVID-19 hospitalizations in the U.S. exceeded 60,000. 

In addition to the U.S., Europe also imposed lockdown again last week, threatening to weaken the economic recovery. As per the latest report, Sweden declared a partial lockdown is shutting down bars and restaurants for the 1st-time since the virus started. Thus, the back to back lockdowns restrictions will have an instant negative effect on global economic recovery.

Moreover, the market risk-off sentiment was further bolstered by the reports suggesting that the Dragon Nation takes one more trade-negative measure for Aussie. As per the latest report, the Dragon Nation extended its anti-Aussie bias while suspending the Victorian timber logs. The dragon nation has already lifted bars for Australian wine, iron ore, and barley after the Pacific inquiry alleging the Asian leader’s negligence caused the coronavirus (COVID-19) outbreak. Apart from this, the bearish market sentiment could also be associated with the long-lasting US-China tussle, which continuously picks the pace. As per the latest report, the U.S. National Security Adviser Robert Charles O’Brien recently threatened the Dragon Nation over its responsibility to trigger Hong Kong freedom violations.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27     107.21

101.35     108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY is trading sideways, maintaining a narrow range of 105.63 – 104.835 ever since it has violated the descending trendline at 104.950 area. The USD/JPY pair is trading choppy as investors seem to brace for the U.S. inflation figures later today. The USD/JPY pair needs to violate the 104.900 level to continue trading bearish, and below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 11 – Mempool Cleared! Bitcoin Fees Plummet

The cryptocurrency sector has spent the day consolidating and preparing for the next move and setting up valid technical formations. The largest cryptocurrency by market cap is currently trading for $15,377, representing an increase of 0.01% on the day. Meanwhile, Ethereum gained 2.08% on the day, while XRP gained 1.14%.

The cryptocurrency sector has spent the day consolidating and preparing for the next move and setting up valid technical formations. The largest cryptocurrency by market cap is currently trading for $15,377, representing an increase of 0.01% on the day. Meanwhile, Ethereum gained 2.08% on the day, while XRP gained 1.14%.

The cryptocurrency sector has spent the day consolidating and preparing for the next move and setting up valid technical formations. The largest cryptocurrency by market cap is currently trading for $15,377, representing an increase of 0.01% on the day. Meanwhile, Ethereum gained 2.08% on the day, while XRP gained 1.14%.

 Daily Crypto Sector Heat Map

Loopring gained 30.64% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by UMA’s gain of 24.45% and yearn.finance’s 17.59% gain. On the other hand, Decentraland lost 13.96%, making it the most prominent daily loser. Decred lost 9.94% while HedgeTrade lost 8.76%, making them the 2nd and 3rd most prominent daily losers.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance has decreased slightly since we last reported, with its value is currently staying at 63.9%. This value represents a 0.3% difference to the downside compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gone up slightly over the course of the day. Its current value is $446.12 billion, representing a $4.38 billion increase compared to our previous report.

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What happened in the past 24 hours?

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Bitcoin’s transaction fees have plummeted as its mempool got cleared, reaching its smallest size since the middle of Oct. This means that hundreds, if not thousands of unconfirmed transactions, got included in the recent blocks, leaving the blockchain clear and unclogged. The mempool clearing has been attributed to a 42% increase in hash rate, which happened just a couple of days ago as Chinese miners completed their migration from the Sechuan region.

At the moment, the median transaction fee is 3 sat/byte, or roughly $0.11.

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Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization has spent the day trading in a narrow range between $15,100 and $15,500, trying to pass the $15,480 level with confidence. However, as this did not happen, we are seeing a possible lower high forming. The flat RSI and volume dropping signal a “calm before the storm,” which means that traders should prepare for a sharp move soon.

Traders should wait for Bitcoin to choose its short-term direction and trade only if Bitcoin confidently goes above $15,480 or below $15,420 with significant volume.

BTC/USD 4-hour Chart

Bitcoin’s technicals are bullish on all time-frames. However, its shorter time-frames are showing signs of neutrality, or even slight bearish presence, while its monthly overview is completely bullish.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and right at its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (54.44)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $15,480                                 1: $15,420

2: $16,400                                 2: $14,640

3: $16,700                                  3: $14,100

Ethereum

Ethereum has, unlike Bitcoin, had a great day as its price propelled past the top line of the ascended channel. The price increase is mainly attributed to great news regarding its 2.0 update adoption, as its deposit contracts top 22.5 million only one week after launch.

However, while the price increase is certainly a great thing, Ethereum is currently entering a strong resistance zone (above $460), which may cause problems for the ETH bulls.

Traders should pay close attention to how (and if) Ethereum pulls back or continues upwards. If Bitcoin doesn’t make any moves, it’s safe to assume that Ethereum will pullback in the short future.

ETH/USD 4-hour Chart

Ethereum’s technicals show “extreme buy” daily, weekly, and monthly time-frames, while its 4-hour overview is slightly more neutral.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is neutral (60.73)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $470                                     1: $451

2: $490                                     2: $445 

3: $500                                      3: $420

Ripple

The fourth-largest cryptocurrency by market cap has continued trading within a range, bound by $0.2454 to the downside and $0.26 to the upside. XRP has spent the day slowly increasing its price, but the one attempt it had of pushing past $0.26 got shut down quickly.

Traders are safe to assume that XRP will trade within the same range and that they can trade the sideways action. On the other hand, if the volume increases drastically, a move towards the upside is much more likely than one towards the downside (unless fueled by Bitcoin’s move).

XRP/USD 4-hour Chart

XRP’s technicals on the 4-hour and weekly time-frame are slightly bullish with slight hints of neutrality, while its daily overview is bullish. On the other hand, its monthly overview is tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price above its 50-period EMA and slightly above its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is neutral (52.36)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.27                                    3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 11 – Top Trade Setups In Forex – Bank Holidays! 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

On the news front, the economic calendar is mostly empty on the back of the Bank holiday in Europe and the United States. French banks will be closed in observance of Armistice Day, while Canadian banks will be closed in observance of Remembrance Day. The U.S. banks will also remain closed amid the Veterans Day holiday in the bank. We may experience thin trading volume and volatility in the market. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18133 after placing a high of 1.19198 and a low of 1.17951. The EUR/USD pair rose to its highest since September 02 on Monday but failed to keep its gains and fell to post losses for the day as the U.S. dollar rallied in the American session as risk appetite took over. Pfizer and BioNtech announced that their coronavirus vaccine was more than 90% effective in preventing the coronavirus. The news about the vaccine optimism raised the risk sentiment further and pushed the pair to its highest in 9 weeks in earlier sessions on Monday.

Pfizer and BioNtech said they would seek the approval authorization for emergency-use from the U.S. later this month. The market’s optimism raised and supported the EUR/USD pair’s an upward movement in earlier trading hours.

A vaccine will likely mean the end of lockdowns and restrictions and hence, a sharp economic comeback. However, it will take up to the second half of next year for the vaccine or vaccines to reach enough people to grant a more regular return to activities. Nevertheless, optimism will prevail. However, the EUR/USD pair failed to keep its gains for the day and started declining on Monday on the back of Joe Biden’s victory in the U.S. presidential election. The political gridlock in the U.S. Senate could stall the prospect of any fresh package of U.S. fiscal stimulus package that failed to keep the U.S. dollar under pressure and weighed on the EUR/USD pair.

The European Central Bank (ECB) President Christine Lagarde refrained from touching upon monetary policy in her scheduled speech at the Green Horizon Summit on Monday. She only talked about climate risks and said that the economic challenges of climate transition were phenomenal. The main driver of the EUR/USD pair remained the strength of the U.S. dollar triggered by the faded hopes of additional stimulus measures as the vaccine news raised optimism about the economic recovery.

European banks will be closed in observance of Armistice Day; therefore, thin trading volume and volatility can be expected today. 

Daily Technical Levels

Support   Resistance

1.1766      1.1891

1.1717      1.1969

1.1640      1.2017

Pivot point: 1.1843

EUR/USD– Trading Tip

On Wednesday, the EUR/USD is trading bullish at the 1.1833 level amid a stronger U.S. dollar. The pair may now head higher until an immediate resistance level of 1.1883. On the 4 hour timeframe, the EUR/USD has formed an upward channel supporting the pair at the 1.18016 level. On the higher side, a bullish crossover of 1.1883 level can extend the buying trend until the 1.1945 area. The MACD entered the oversold zone and now suggesting odds of bullish trend continuation; therefore, we should look for a buying trade over the 1.1801 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31634 after a high of 1.32081 and a low of 1.31183. Despite higher market sentiment and weaker safe-haven demand on Monday, the British Pound to U.S. dollar exchange rate has been under pressure. The Sterling remained weak despite the increased market sentiment from the news of coronavirus vaccine efficiency. Pfizer and the BioNtech announced that their vaccine had been proved more than 90% efficient in preventing the coronavirus on Monday. Both companies also said they would be taking approval from the U.S. for the vaccine’s emergency-use later this month. After this news, risk appetite increased in the market, and global equities raised; however, the risk perceived GBP/USD pair remained under pressure as British Pound was weak due to Biden victory in the U.S. elections.

Joe Biden’s victory decreased the hopes for the U.K. & U.S. post-Brexit trade deal as Joe Biden has already said that if U.K. fails to reach a deal with the E.U., then the US-UK deal will also be jeopardized. As there was no news regarding the progress made in the U.K. & E.U. talks, the British Pound came under fresh pressure after Joe Biden became the U.S.

The governor of the Bank of England, Andrew Bailey, explained that what the BoE was doing to ensure the financial system plays its part in tackling climate change. He warned that climate change was a bigger risk than coronavirus. Furthermore, the chief economist from the Bank of England, Andy Haldane, said that a breakthrough in developing a coronavirus vaccine could deliver a vital boost of confidence to consumers and businesses. He added that the economy might have reached a decisive moment after the pharmaceutical company Pfizer announced that its coronavirus vaccine candidate was 90% effective.

He also said that the vaccine could be a game-changer for the economy. He cautioned that it would take several months for the vaccine to be rolled out but would have an immediate effect on consumer and business confidence. He added that the economic cycle would start again as it would unlock the business investments, and the economy will start recovering. The GBP/USD pair remained a little bullish due to high pressure on British Pound on Tuesday.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is trading with a strong bullish bias due to a stronger Sterling 1.3191 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead to the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.388 after placing a high of 105.645 and a low of 103.187. The USD/JPY pair surged past the 105.6 level on Monday after the risk-on market sentiment raised and weighed on the Japanese Yen. The safe-haven Japanese Yen came under fresh pressure after the Pfizer and its German partner BioNtech announced that their vaccine candidate was proved more than 90% efficient in its last-stage trials. Both companies announced that they would seek U.S. approval for the emergency-use of vaccine later this month.

The pair USD/JPY witnessed a sharp rise in its prices of almost 3-4% on Monday after the vaccine optimism raised the risk appetite in the market that weighed heavily on the safe-haven Japanese Yen. This ultimately pushed the USD/JPY pair to the highest level since October 20.

The gains in USD/JPY pair were also supported by the victory of Democratic Joe Biden in U.S. elections. Biden was expected to deliver a massive stimulus package that had been weighing on the U.S. dollar. Still, after the news of vaccine development and its efficiency, the need for the massive stimulus package dropped and raised the U.S. dollar onboard. 

The Bank of Japan released the Summary of opinions that stated that one member said that the bank needs to ensure its purchases of exchange-traded funds are sustainable. Other members said that BOJ must be ready to ramp up stimulus to cushion the economic blow from the coronavirus pandemic. The Cleveland Federal Reserve Bank President Loretta Mester said that the emergency lending programs the Fed set up during the coronavirus pandemic had reduced distress in financial markets. She also said that there was still a need for lending programs. 

Mester also noted that Fed Chair Jerome Powell would be working with the Treasury Department to determine if the programs should be extended beyond the end of the year. She also stated that the Fed was not out of ammunition to stimulate the economy. The Fed could provide more accommodation by adjusting its asset purchase program and using other tools. She said that the economy recovered more strongly than expected, but gains have not been evenly spread. Mester said that economic growth would be more slowly despite the optimistic news about the vaccine. These comments kept the markets under pressure and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27      107.21

101.35      108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY has violated the descending trendline at 104.950 area, and on the lower side, it’s testing the support area of 104.840 level. The USD/JPY pair has recently entered the overbought zone, and now investors may experience a bearish correction in the market. The USD/JPY pair needs to violate the 104.900 level. Below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400, which seems a bit hard. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 10 – Bitcoin Miners Migrated: BTC Hash Rate Up 42%

The cryptocurrency sector has spent the day mostly consolidating and preparing for the next move and setting up technical formations. The largest cryptocurrency by market cap is currently trading for $15,288, representing a decrease of 1.14% on the day. Meanwhile, Ethereum lost 1.70% on the day, while XRP lost 0.8%.

The cryptocurrency sector has spent the day mostly consolidating and preparing for the next move and setting up technical formations. The largest cryptocurrency by market cap is currently trading for $15,288, representing a decrease of 1.14% on the day. Meanwhile, Ethereum lost 1.70% on the day, while XRP lost 0.8%.

The cryptocurrency sector has spent the day mostly consolidating and preparing for the next move and setting up technical formations. The largest cryptocurrency by market cap is currently trading for $15,288, representing a decrease of 1.14% on the day. Meanwhile, Ethereum lost 1.70% on the day, while XRP lost 0.8%.

 Daily Crypto Sector Heat Map

Civic gained an astonishing 101.35% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by Golem’s gain of 29.25% and Decentraland’s 22.26% gain. On the other hand, Loopring lost 9.76%, making it the most prominent daily loser. Synthetix lost 7.39% while Energy Web Token lost 7.35%, making them the 2nd and 3rd most prominent daily losers.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance has decreased slightly since we last reported, with its value is currently staying at 64.2%. This value represents a 0.1% difference to the downside compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gone down slightly over the course of the day. Its current value is $441.50 billion, representing a $4.29 billion decrease compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

The past 24 hours were characterized by a slow price movement of the crypto sector. However, a lot of important news reached the public’s eye. Bitcoin Miners finished up on Sichuan’s migration, triggering a hash rate spike of 42% in the past 2 days. Ethereum has been performing great, and news of its 2.0 version is all over the place, with the most recent one being that the number of addresses surpassing 32 ETH (the amount required to be a validator) is at an all-time high. On the other hand, Bitcoin SV brought bad news to the sector, as its multi-sig feature got compromised, causing enormous losses for its users.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization is trading in a very uncertain zone at the moment. Its price has most likely created a double top formation, indicating a possible pullback in the short-term. This prediction is even more convincing as we can see that Bitcoin can’t get past the $15,480 resistance after trying for over 12 hours. However, the overall sentiment around the cryptocurrency is extremely bullish, and its downside is protected by the ascending (yellow) line.

With that being said, traders should wait for Bitcoin to choose its direction and trade only if Bitcoin spikes above $15,480 or below $15,420 with significant volume.

BTC/USD 4-hour Chart

Bitcoin’s technicals are bullish on all time-frames. The only difference compared to yesterday was that every single time-frame is completely bullish and with almost no neutrality present (as opposed to yesterday, when neutral sentiment could be seen on some overviews).

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and right at its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (53.60)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $16,400                                 1: $15,480

2: $16,665                                 2: $14,640

3: $17,260                                  3: $14,100

Ethereum

Ethereum has been playing around the upper line of the ascending channel (yellow dotted line) and constantly going above and under it. At the moment, its price is under the line, and any attempts of getting past it have been extinguished quickly. This most likely means that Ethereum failed to establish itself above the $451 level, which could trigger a correction towards the 50-period moving average, and ultimately the bottom channel line.

Traders should pay close attention to volume, as they will not have a lot of time to join in on the trade towards the downside. Placing a stop-loss right above the ascending channel top line should be a “safe bet.”

ETH/USD 4-hour Chart

Ethereum’s technicals are tilted heavily towards the buy-side on its 4-hour and monthly overview, while the neutral sentiment is heavily present on its daily and weekly charts.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and slightly above its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (55.58)
  • Volume is slightly elevated
Key levels to the upside          Key levels to the downside

1: $451                                     1: $445

2: $470                                     2: $420 

3: $490                                      3: $415

Ripple

The fourth-largest cryptocurrency by market cap continued its consolidation phase right above the $0.2454 level, which is considered a major pivot point in XRP’s trading in the recent past. XRP created a double bottom at this level, possibly indicating a push towards the $0.26 in the short term.

Traders should still be safe to assume that XRP will trade within the range and that they can trade the sideways action. However, if the volume increases drastically, a move towards the upside is much more likely (if not fueled by Bitcoin’s move).

XRP/USD 4-hour Chart

XRP’s technicals on the 4-hour, daily, and weekly time-frame are all tilted towards the buy-side. However, neutral sentiment can be seen in all of them. On the other hand, its monthly overview also has the same neutrality amount but is tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price slightly above its 50-period EMA and at its 21-period EMA
  • Price is slightly below its middle Bollinger band
  • RSI is neutral (49.69)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.27                                    3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 10 – Top Trade Setups In Forex – Risk on Market Sentiment! 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

On the news front, the eyes will remain on the European German ZEW Economic Sentiment data and the Industrial Production figures from France and Italy. All of the figures are expected to have dropped, which may put bearish pressure on the single currency Euro. Besides this, the eyes will stay on the labor market figures from the United Kindom. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18133 after placing a high of 1.19198 and a low of 1.17951. The EUR/USD pair rose to its highest since September 02 on Monday but failed to keep its gains and fell to post losses for the day as the U.S. dollar rallied in the American session as risk appetite took over.

Pfizer and BioNtech announced that their coronavirus vaccine was more than 90% effective in preventing the coronavirus. The news about the vaccine optimism raised the risk sentiment further and pushed the pair to its highest in 9 weeks in earlier sessions on Monday.

Pfizer and BioNtech said they would seek the approval authorization for emergency-use from the U.S. later this month. The optimism around the market raised and supported the EUR/USD pair’s upward movement in earlier trading hours.

A vaccine will likely mean the end of lockdowns and restrictions and hence, a sharp economic comeback. However, it will take up to the second half of next year for the vaccine or vaccines to reach enough people to grant a more normal return to activities. Nevertheless, optimism will prevail.

However, the EUR/USD pair failed to keep its gains for the day and started declining on Monday on the back of Joe Biden’s victory in the U.S. presidential election. The political gridlock in the U.S. Senate could stall the prospect of any fresh package of U.S. fiscal stimulus package that failed to keep the U.S. dollar under pressure and weighed on the EUR/USD pair.

On the data front, at 12:00 GMT, the German Trade Balance for September raised to 17.8B against the expected 17.2B and supported Euro that pushed the EUR/USD pair higher on Monday. AT 14:30 GMT, the Sentix Investor Confidence for October came in as -10.0 against the forecasted -15.0 and supported Euro.

Moreover, the European Central Bank (ECB) President Christine Lagarde refrained from touching upon monetary policy in her scheduled speech at the Green Horizon Summit on Monday. She only talked about climate risks and said that the economic challenges of climate transition were phenomenal. The main driver of the EUR/USD pair remained the strength of the U.S. dollar triggered by the faded hopes of additional stimulus measures as the vaccine news raised optimism about the economic recovery.

Daily Technical Levels

Support   Resistance

1.1766      1.1891

1.1717      1.1969

1.1640      1.2017

Pivot point: 1.1843

EUR/USD– Trading Tip

The EUR/USD is trading bullish at the 1.1833 level amid a stronger U.S. dollar. The pair may now head higher until an immediate resistance level of 1.1883. On the 4 hour timeframe, the EUR/USD has formed an upward channel supporting the pair at the 1.18016 level. On the higher side, a bullish crossover of 1.1883 level can extend the buying trend until the 1.1945 area. The MACD entered the oversold zone and now suggesting odds of bullish trend continuation; therefore, we should look for a buying trade over the 1.1801 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31634 after a high of 1.32081 and a low of 1.31183. Despite higher market sentiment and weaker safe-haven demand on Monday, the British Pound to U.S. dollar exchange rate has been under pressure. The Sterling remained weak despite the increased market sentiment from the news of coronavirus vaccine efficiency.

Pfizer and the BioNtech announced that their vaccine had been proved more than 90% efficient in preventing the coronavirus on Monday. Both companies also said they would be taking approval from the U.S. for the vaccine’s emergency-use later this month. After this news, risk appetite increased in the market, and global equities raised; however, the risk perceived GBP/USD pair remained under pressure on Monday as British Pound was weak due to Biden victory in the U.S. elections.

Joe Biden’s victory decreased the hopes for the U.K. & U.S. post-Brexit trade deal as Joe Biden has already said that if U.K. fails to reach a deal with the E.U., then the US-UK deal will also be jeopardized. As there was no news regarding the progress made in the U.K. & E.U. talks, the British Pound came under fresh pressure after Joe Biden became the U.S.

Meanwhile, on Monday, the governor of Bank of England, Andrew Bailey, explained that what the BoE was doing to ensure the financial system plays its part in tackling climate change. He warned that climate change was a bigger risk than coronavirus. Furthermore, the chief economist from the Bank of England, Andy Haldane, said that a breakthrough in developing a coronavirus vaccine could deliver a vital boost of confidence to consumers and businesses. He added that the economy might have reached a decisive moment after the pharmaceutical company Pfizer announced that its coronavirus vaccine candidate was 90% effective.

He also said that the vaccine could be a game-changer for the economy. He cautioned that it would take several months for the vaccine to be rolled out but would have an immediate effect on consumer and business confidence. He added that the economic cycle would start again as it would unlock the business investments, and the economy will start recovering. The GBP/USD pair remained a little bullish due to high pressure on British Pound on Monday.

Daily Technical Levels

Support   Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is trading with a strong bullish bias due to a stronger Sterling 1.3191 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead to the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.388 after placing a high of 105.645 and a low of 103.187. The USD/JPY pair surged past the 105.6 level on Monday after the risk-on market sentiment raised and weighed on the Japanese Yen. The safe-haven Japanese Yen came under fresh pressure after the Pfizer and its German partner BioNtech announced that their vaccine candidate was proved more than 90% efficient in its last-stage trials. Both companies announced that they would seek U.S. approval for the emergency-use of vaccine later this month.

The pair USD/JPY witnessed a sharp rise in its prices of almost 3-4% on Monday after the vaccine optimism raised the risk appetite in the market that weighed heavily on the safe-haven Japanese Yen. This ultimately pushed the USD/JPY pair to the highest level since October 20.

The gains in USD/JPY pair were also supported by the victory of Democratic Joe Biden in U.S. elections. Biden was expected to deliver a massive stimulus package that had been weighing on the U.S. dollar. Still, after the news of vaccine development and its efficiency, the need for the massive stimulus package dropped and raised the U.S. dollar onboard. The rising U.S. dollar also helped the USD/JPY pair to post massive gains on Monday.

Meanwhile, on Monday, the Bank of Japan released the Summary of opinions that stated that one member said that the bank needs to ensure its purchases of exchange-traded funds are sustainable. Other members said that BOJ must be ready to ramp up stimulus to cushion the economic blow from the coronavirus pandemic.

On Monday, the Cleveland Federal Reserve Bank President Loretta Mester said that the emergency lending programs the Fed set up during the coronavirus pandemic had reduced distress in financial markets. She also said that there was still a need for lending programs. Mester also said that Fed Chair Jerome Powell would be working with the Treasury Department to determine if the programs should be extended beyond the end of the year. She also stated that the Fed was not out of ammunition to stimulate the economy and that the Fed could provide more accommodation by adjusting its asset purchase program and using other tools.

She said that the economy recovered more strongly than expected, but gains have not been evenly spread. Mester said that economic growth would be more slowly despite the optimistic news about the vaccine on Monday. These comments kept the markets under pressure and capped further gains in the USD/JPY pair.

Daily Technical Levels

Support   Resistance

103.82      106.29

102.27      107.21

101.35      108.75

Pivot point: 104.74

USD/JPY – Trading Tips

The USD/JPY has violated the descending trendline at 104.950 area, and on the lower side, it’s testing the support area of 104.840 level. The USD/JPY pair has recently entered the overbought zone, and now investors may experience a bearish correction in the market. To see a bearish retracement, the USD/JPY pair needs to violate the 104.900 level. Below this, we may see the USD/JPY pair falling until the 104.220 level, and a further breakout can lead it towards 102.400, which seems a bit hard. However, we may see buying over 104.950 levels today until 105.600. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 9 – Bitcoin at $15,500; What Will Biden’s Win Bring to the Crypto Sector?

The cryptocurrency sector has spent the weekend trying to recover and regain previous highs after most cryptocurrencies briefly dropped in price due to the election uncertainty. The most recent spike was triggered by the end of the US presidential elections, which caused mass uncertainty in the markets, as well as by now-President Biden hiring pro-crypto Gary Gensler as a member of his team. The largest cryptocurrency by market cap is currently trading for $15,433, representing an increase of 2.73% on the day. Meanwhile, Ethereum gained 2.94% on the day, while XRP gained 0.34%.

The cryptocurrency sector has spent the weekend trying to recover and regain previous highs after most cryptocurrencies briefly dropped in price due to the election uncertainty. The most recent spike was triggered by the end of the US presidential elections, which caused mass uncertainty in the markets, as well as by now-President Biden hiring pro-crypto Gary Gensler as a member of his team. The largest cryptocurrency by market cap is currently trading for $15,433, representing an increase of 2.73% on the day. Meanwhile, Ethereum gained 2.94% on the day, while XRP gained 0.34%.

The cryptocurrency sector has spent the weekend trying to recover and regain previous highs after most cryptocurrencies briefly dropped in price due to the election uncertainty. The most recent spike was triggered by the end of the US presidential elections, which caused mass uncertainty in the markets, as well as by now-President Biden hiring pro-crypto Gary Gensler as a member of his team. The largest cryptocurrency by market cap is currently trading for $15,433, representing an increase of 2.73% on the day. Meanwhile, Ethereum gained 2.94% on the day, while XRP gained 0.34%.

 Daily Crypto Sector Heat Map

Aave gained 20.05% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by THORChain’s gain of 17.75% and NEAR Protocol’s 17.57% gain. On the other hand, Celo lost 7.03%, making it the most prominent daily loser. The rest of the cryptocurrencies barely suffered any losses in the past 24 hours.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance has decreased slightly since we last reported, with its value is currently staying at 64.3%. This value represents a 1% difference to the downside compared to the value it had on Friday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gone up slightly over the weekend. Its current value is $446.21 billion, representing a $4.85 billion increase compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has entered a state of uncertainty due to how close the US presidential election process was, and even had a brief drop due to less crypto-friendly Joe Biden winning. However, a new announcement regarding Biden hiring crypto-friendly advisors, as well as general stabilization of the political sphere, has triggered a spike in both stocks and Bitcoin.

Bitcoin has, after a brief drop below the yellow ascending line, come back above it, but only slightly as the move to the upside was stopped by the $15,420-$15,480 level.

Traders should wait for Bitcoin to “decide” whether it will go above $15,480 or below $15,420 and trade off of that.

BTC/USD 4-hour Chart

Bitcoin’s technicals are bullish on all time-frames, with smaller time-frames showing a bit of neutrality and longer time-frames being completely bullish.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (60.66)
  • Volume is slightly elevated
Key levels to the upside          Key levels to the downside

1: $15,480                                 1: $14,640

2: $16,665                                 2: $14,100

3: $17,260                                  3: $13,900

Ethereum

Ethereum has had an amazing weekend, with its price skyrocketing past the top line of the ascending channel. While most analysts thought that the second-largest cryptocurrency by market cap couldn’t get back above this line after the Nov 7 drop, Ethereum has proven them wrong and went above $450.

However, the immediate area above $450 is a zone of strong resistance, and Ethereum traders have to watch out how they enter trades here. The safest pick when it comes to trading Ethereum right now would be “riding the wave” towards the upside when ETH decides to spike.


ETH/USD 4-hour Chart

Ethereum’s technicals are almost completely neutral on the 4-hour and daily time-frames, while its longer time-frames are heavily tilted towards the buy-side.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and its 21-period EMA
  • Price slightly above its middle Bollinger band
  • RSI is neutral (62.07)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $451                                     1: $445

2: $470                                     2: $420 

3: $490                                      3: $415

Ripple

The fourth-largest cryptocurrency by market cap had ended its ascension on Nov 7, when most cryptocurrencies dropped heavily in price. However, while most cryptos managed to get back near its previous highs, XRP failed to do so. It is currently trading in a wide range between $0.2454 and $0.26, after stopping its upward move at the ~$0.256 level.

Traders can consider trading XRP’s sideways movement as the volume is now reduced, and the possibility of a strong move is low. However, if such a move does happen, it could be easily predicted due to XRP’s current position.

XRP/USD 4-hour Chart

XRP’s technicals on the 4-hour, daily, and weekly slightly bullish, with some hints of neutrality. Its monthly overview, however, is still tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price slightly above its 50-period EMA and at its 21-period EMA
  • Price is slightly below its middle Bollinger band
  • RSI is neutral (53.59)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.27                                    3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 09 – Top Trade Setups In Forex – BOE Gov Bailey Speaks! 

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency. While the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency. While the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

On the news front, the investor’s focus is likely to stay on the German Trade Balance, and the ECB President Lagarde Speaks ahead of the BOE Gov Bailey Speech during the European session today. German Trade Balance is forecasted to improve from 15.7B to 17.2B, and it may help support the Euro as a single currency, while the ECB President Lagarde and BOE Bailey is scheduled to speak at Green Horizon Summit via satellite.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18746 after placing a high of 1.18907 and a low of 1.17952. The EUR/USD pair was rose to its highest level since September 15 on Friday. The EUR/USD pair has been holding onto gains as the markets were following the U.S. elections. The lead of Democratic Joe Biden in U.S. elections kept the U.S. dollar under pressure and supported the EUR/USD pair’s bullish momentum.

The safe-haven dollar remained on the back foot throughout the week and pushed the riskier EUR/USD pair to its multi week’s highest level. The greenback was also weak due to the dovish decision by Federal Reserve this week. The Federal Reserve Chairman, Jerome Powell, said that the pace of the recovery was moderated and that fed has discussed the bond-buying scheme. He also showed his concerns about the resurgence of coronavirus in the U.S. and all over the globe and urged lawmakers to act.

On the data front, at 12:00 GMT, the German Industrial Production for September declined to 1.6% from the forecasted 2.6% and weighed on Euro. At 12:45 GMT, the French Prelim Private Payrolls for the quarter raised to 1.8% from the forecasted 0.2% and supported Euro that added in the gains of EUR/USD pair. The French Trade Balance for September came in as -5.7B against the expected -6.9B and supported Euro. At 14:00 GMT, the Italian Retail Sales for September came in as -0.8%against the expected -1.5% and supported Euro and pushed EUR/USD pair higher.

At 18:30 GMT, Average Hourly Earnings from the U.S. for October dropped to 0.1% from the projected 0.2% and weighed on the U.S. dollar and supported the upward trend of the EUR/USD pair. The Non-Farm Employment Change for October elevated to 638K against the predictable 595K and supported the U.S. dollar. In October, the Unemployment Rate from the U.S. dropped to 6.9%from the projected 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the expected -0.1% and weighed on the U.S. dollar that ultimately added strength in the EUR/USD pair on Friday.

The COVID-19 cases have been continuously rising on both sides, Europe and the USA, and once the U.S. elections settle, the par could see a decline in its prices.

The focus of market participants was only on the U.S. election, where over the weekend, the Democratic Joe Biden won the presidency of the United States and became 46th President of the USA. Despite the lawsuits claiming electoral fraud, Biden was elected as U.S. President and weighed on the U.S. dollar that ultimately will help the EUR/USD pair to post further gains.

Daily Technical Levels

Support    Resistance

1.1733      1.1884

1.1647      1.1947

1.1583      1.2034

Pivot point: 1.1797

EUR/USD– Trading Tip

The EUR/USD is trading bullish at the 1.1890 level amid a weaker U.S. dollar. The pair may head further higher until the 1.1945 level, having immediate support at the 1.18826 level. On the 4 hour timeframe, the EUR/USD has violated the double top resistance level of 1.1882 level, which may lead the EUR/USD pair further higher until the 1.1945 mark. The MACD supports buying; therefore, we should look for a buying trade over the 1.1880 level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31474 after placing a high of 131770 and a low of 1.30924. The GBP/USD pair rose to its highest since September 07 on Friday despite the better than expected Unemployment rate and NFP data from the U.S.

The market’s focus was shifted to the U.S. Election results that were showing a Democratic lead; it weighed on the U.S. dollar and contributed to the GBP/USD pair’s gains. The strong Employment figures also failed to improve the mood around the U.S. dollar as investors were not impressed by it, and they continued following the U.S. election results.

Over the weekend, Joe Biden won 290 Electoral College votes against Donald Trump’s 214 that confirmed Biden’s victory as the candidate should secure at least 270 Electoral College votes to win the presidency.

On the data front, at 13:30 GMT, the Halifax Housing Price Index for October declined to 0.3% against the forecasted 1.0% and weighed on British Pound and capped further gains in GBP/USD pair.

On the U.S. front, at 18:30 GMT, Average Hourly Earnings from the U.S. for October fell to 0.1% from the estimated 0.2% and weighed on the U.S. dollar and supported the upward trend of the GBP/USD pair. The Non-Farm Employment Change for October rose to 638K against the estimated 595K and supported the U.S. dollar. In October, the Unemployment Rate from the U.S. fell to 6.9%from the estimated 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the estimated -0.1% and weighed on the U.S. dollar and provided strength to the GBP/USD pair.

The improved employment figures from the U.S. failed to give any strength to the falling U.S. dollar on Friday as the focus of traders was only towards the U.S. election results leading Joe Biden over Donald Trump. Whereas, on the Brexit front, the UK PM Boris Johnson will be under greater pressure to strike a Brexit deal with the E.U. as Joe Biden has won the presidency. It is because a no-deal Brexit could seriously threaten relations with a new Democratic administration.

Joe Biden has already made it clear that there will be no agreement on a post-Brexit UK-US trade deal if the U.K. disagreed with the E.U. The talks between E.U. & U.K. officials were continued throughout the week, and the result of those talks has not been published yet. The market’s focus will be shifted towards economic data and other fundamentals rather than on U.S. elections in the coming week as the uncertainty regarding the U.S. election has faded away.

Daily Technical Levels

Support    Resistance

1.2997      1.3222

1.2851      1.3301

1.2771      1.3448

Pivot point: 1.3076

GBP/USD– Trading Tip

The GBP/USD is also trading with a strong bullish bias due to a weaker dollar in the 1.3181 area. The pair has violated the intraday resistance level at 1.3159, which is now working as a support for Sterling. On the higher side, the continuation of an upward trend can lead the GBP/USD pair until the 1.3226 area. The cable had violated the descending triangle pattern, and ever since, it’s trading with a bullish bias. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 103.364 after placing a high of 103.758 and a low of 103.174. The USD/JPY pair was dropped to its lowest since 8th March. The U.S. dollar against the Japanese Yen on Friday dragged the pair to a fresh 8-months lowest level as the chances for Joe Biden to win the U.S. election increases. The USD/JPY pair followed the USD weakness throughout the week and reached the 103 level.

The investors have welcomed a Democrat government’s prospects with a split congress where Republicans can block initiatives to raise taxes or introduce tighter regulations with a risk rally that sent the safe-haven U.S. dollar to multi-month lows against its main rivals.

On the data front, at 04:30 GMT, the Average Cash Earning for the year came in as -0.9% against the forecasted -1.1% and supported the Japanese Yen and added further losses in the USD/JPY pair. The Household Spending for the year came in as -10.2% against the expected -10.5% and supported the Japanese Yen that added further weakness in the currency pair USD/JPY.

From the U.S. side, at 18:30 GMT, Average Hourly Earnings from the U.S. for October weakened to 0.1% from the anticipated 0.2% and weighed on the U.S. dollar added further losses in the USD/JPY pair. The Non-Farm Employment Change for October surged to 638K against the anticipated 595K and supported the U.S. dollar, and capped further losses in the USD/JPY pair. In October, the Unemployment Rate from the U.S. weakened to 6.9%from the anticipated 7.7% and supported the U.S. dollar. At 20:00 GMT, the Final Wholesale Inventories for September came in as 0.4% against the anticipated -0.1% and weighed on the U.S. dollar and dragged the pair USD?JPY to the multi-month lowest level.

The USD/JPY pair’s main driver at the ending day of the week remained the U.S. dollar weakness due to Biden’s prospects in U.S. elections. Over the weekend, the results showed that Biden won 290 Electoral College votes compared to Trump’s 214 and became the 46th President of the U.S. Biden is expected to deliver a larger stimulus package, and the markets were following these hopes that could lead further to the downside of the safe-haven U.S. dollar.

Daily Technical Levels

Support    Resistance

103.09      104.22

102.70      104.95

101.97      105.34

Pivot point: 103.83

USD/JPY – Trading Tips

The USD/JPY has violated the descending triangle pattern at 104.149 area, and on the lower side, it’s testing the support area of 103.270 level. Recently the closing of bullish engulfing patterns may drive an upward movement in the market. On the higher side, the USD/JPY can go after the next 103.850 mark. On the flip side, violation of the 103.215 level can extend selling until the 102.750 mark. The MACD is also showing oversold sentiment among investors; therefore, we should look for a bullish trade over 103.270 and selling below the 103.830 level today. Good luck! 

Categories
Crypto Market Analysis

BTC/USD Chart Overview + Possible Outcomes

In this weekly BTC /USD analysis, we will be taking a look at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, we will be taking a look at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, we will be taking a look at the most recent events, the current technical formations, as well as discussing possible outcomes.

Overview

Bitcoin has spent the week vigorously pushing towards the upside. The move went parabolic as soon as BTC crossed the $13,900 mark and entered the $14,000 zone. While the surge got stopped just before it hit $16,000, there is a lot of potential upside as there is practically no resistance holding Bitcoin from reaching its all-time high. However, many traders are taking profits and playing it safe out of fear of ending up the same way they did in 2017/2018. This has caused BTC to lose momentum and, most likely, look for a pullback soon.

Technical factors


Bitcoin has conquered the ~15,000 level after a week of constant pressure to the upside. The largest cryptocurrency by market cap is currently consolidating right above the $15,480 support level, which will act as a pivot point and a trading direction decider. The next day or two will be crucial for Bitcoin’s price movement in the short future.

While Bitcoin’s sentiment is extremely bullish at the moment, there is no denying that a pullback is quite possible (and maybe even optimal). As there are no set resistance levels to the upside (because Bitcoin only visited these price levels during the bull run of 2017), we are using Fib retracements as well as small consolidation points from that time to determine possible consolidation/direction change spots.

Another thing to note is that, as of Oct 29, the hash ribbons indicator is showing miner capitulation, sending out a major buy signal.

Likely Outcomes

Bitcoin has two main scenarios it can play out, and both end up with the price pulling back to stabilize and consolidate a bit. The possibility of these plays happening is slightly in favor of the second scenario, but it mainly depends only on where Bitcoin ends up (above or below its pivot point).

  1. If Bitcoin remains above $15,480, we may expect further attempts of conquering the upside. The next target to the upside are the $16,000 psychological resistance, 23.6% Fib retracement level (sitting at $16,570) and $16,665. If Bitcoin pushes towards the upside, we are almost certainly expecting strong resistance at these levels and an almost certain pullback in the short-term.
  2. The other scenario may be slightly more likely, and involves Bitcoin rejecting the current level and falling below its pivot point. In this case, the largest cryptocurrency by market cap will look for a support level, and will most likely find it at the $14,640 level or the 38.2% Fib retracement level (sitting at $14,380).

While moves which include Bitcoin moving straight up or down and ignoring these support/resistance levels are possible, they are far less likely and would have to be caused by some fundamental even rather than just price action and technicals.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 6 – Bitcoin Zooming Past $15,000: How Far Can it Go Before Pulling Back?

The cryptocurrency sector has exploded to the upside as Bitcoin keeps paving the path towards highs only seen during the bull run of 2017/2018. The largest cryptocurrency by market cap is currently trading for $15.632, representing an increase of 10.1% on the day. Meanwhile, Ethereum gained 7.74% on the day, while XRP gained 4.5%.

The cryptocurrency sector has exploded to the upside as Bitcoin keeps paving the path towards highs only seen during the bull run of 2017/2018. The largest cryptocurrency by market cap is currently trading for $15.632, representing an increase of 10.1% on the day. Meanwhile, Ethereum gained 7.74% on the day, while XRP gained 4.5%.

The cryptocurrency sector has exploded to the upside as Bitcoin keeps paving the path towards highs only seen during the bull run of 2017/2018. The largest cryptocurrency by market cap is currently trading for $15.632, representing an increase of 10.1% on the day. Meanwhile, Ethereum gained 7.74% on the day, while XRP gained 4.5%.

 Daily Crypto Sector Heat Map

Uniswap gained 28.39% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by Aave’s gain of 25.21% and NEAR Protocol’s 23.87% gain. On the other hand, The Midas Touch Gold lost 6.16%, making it the most prominent daily loser. It is followed by Numeraire’s loss of 5.03% and Celo’s loss of 3.94%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since we last reported, with its value is currently staying at 65.3%. This value represents a 0.4% difference to the upside when compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has skyrocketed in the past 24 hours. Its current value is $440.94 billion, representing a $28.77 billion increase compared to our previous report.

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What happened in the past 24 hours?

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_______________________________________________________________________

Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization has surged past the $15,000 psychological resistance and entered the zone last seen in Jan 2018, right before the BTC crash. Bitcoin scored double-digit gains on the day and destroyed the $14,640 resistance on the way, turning it into support. While it is currently slowing down as it is approaching $16,000, many analysts call for $17,000 before a pullback.

Traders should wait for Bitcoin to start pulling back if they want a safer trade, or they can ride the wave whenever Bitcoin’s price spikes if they are quick on their feet to enter and leave the trade.

BTC/USD 4-hour Chart

Bitcoin’s technicals are extremely bullish on all time-frames, and no time-frame is showing any signs of bearishness or neutrality.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is well above both its 50-period EMA and its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is heavily in the overbought zone (79.75)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $15,420                                 1: $14,640

2: $16,665                                 2: $14,100

3: $17,260                                  3: $13,900

Ethereum

Ethereum has, due to Bitcoin pulling it up as well as due to the hype created around its 2.0 version coming out, surged and almost scored a double-digit gain on the day. The second-largest cryptocurrency by market cap has established itself back in the ascending channel after briefly dropping out of it. However, that wasn’t enough for the Ethereum bulls as they tried to push its price above the channel completely.

As the upper channel line held amazingly and stopped Ethereum’s rise, we can conclude that (unless Bitcoin doesn’t have any extreme surges), Ethereum traders can safely trade within a range bound by the ascending channel.


ETH/USD 4-hour Chart

Ethereum’s technicals are somewhat neutral on the 4-hour and daily time-frames, while its longer time-frames show a heavy tilt towards the buy-side.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is well above both its 50-period and its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is extremely overbought (78.03)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $445                                     1: $420

2: $451                                     2: $415 

3: $490                                      3: $400

Ripple

As we predicted in our previous article, the fourth-largest cryptocurrency by market cap has broken the triangle formation that was forming from Nov 3. The price has sparked up by Bitcoin’s push towards the upside, moved to the upside as well, reaching past the $0.2454 resistance level and up towards $0.25.

One thing to note is that, while XRP has managed to break $0.2454, it needs to confirm its position above it in order to be safe in the short-term.

XRP/USD 4-hour Chart

XRP’s technicals on the 4-hour, daily, and weekly chart are slightly tilted towards the buy-side but are not completely bullish. Its monthly overview, however, is tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is well above its 50-period EMA and its 21-period EMA
  • Price at its top Bollinger band
  • RSI is on the verge of being overbought (68.49)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $0.26                                 1: $0.2454

2: $0.266                                     2: $0.235

3: $0.27                                  3: $0.227

 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 5 – Bitcoin Finally Above $14,000 as the Bull Run Continues; Ethereum 2.0 Contract Release Live

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin broke the $14,316 and entered the territory explored only during the 2017/2018 bull run and last seen in July 2018. The largest cryptocurrency by market cap is currently trading for $14,316, representing an increase of 5.54% on the day. Meanwhile, Ethereum gained 4.78% on the day, while XRP gained 0.67%.

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin broke the $14,316 and entered the territory explored only during the 2017/2018 bull run and last seen in July 2018. The largest cryptocurrency by market cap is currently trading for $14,316, representing an increase of 5.54% on the day. Meanwhile, Ethereum gained 4.78% on the day, while XRP gained 0.67%.

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin broke the $14,316 and entered the territory explored only during the 2017/2018 bull run and last seen in July 2018. The largest cryptocurrency by market cap is currently trading for $14,316, representing an increase of 5.54% on the day. Meanwhile, Ethereum gained 4.78% on the day, while XRP gained 0.67%.

 Daily Crypto Sector Heat Map

HedgeTrade gained 38.24% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by Celsius’ gain of 9.37% and CyberVain’s 7.78% gain. On the other hand, Uniswap lost 16.95%, making it the most prominent daily loser. It is followed by yearn.finance’s loss of 16.73% and ABBC Coin’s loss of 9.35%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since we last reported, with its value is currently staying at 64.9%. This value represents a 0.6% difference to the upside when compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased over the course of the day. Its current value is $412.17 billion, representing a $7.35 billion increase when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization had finally broken the $13,900 resistance with confidence and confirmed its position above it. Not only that, but it has entered the price level last seen in July 2018. This means that there will be a lot of uncertainty and unset support and resistance levels, and also a lot of random volatility due to various entities taking profit and new investors FOMOing in.

However, a couple of potential resistance levels have formed, one of them being at $14,640. Traders should pay close attention to this level as well as use Fib retracements to create possible targets when trading.

BTC/USD 1-hour Chart

Bitcoin’s technicals on showing a strong buy at all time-frames. No neutrality is being shown as Bitcoin is currently in an extremely favorable place price-wise.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and its 21-period EMA
  • Price is slightly below its top Bollinger band
  • RSI is coming out of the overbought zone (69.10)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $14,640                                 1: $14,100

2: $16,665                                 2: $13,900

3: $17,260                                  3: $13,570

Ethereum

Bitcoin’s push towards the upside has fueled Ethereum, and the hype surrounding its version 2.0 launch, managed to surge above the ascending channel bottom line and re-enter the channel once again. The second-largest cryptocurrency by market cap reached as high as $409 before pulling back. It is now consolidating at slightly below $400.

If we don’t see any explosive moves from BTC and ETH in the short term, we can expect Ethereum to pull back slightly more and test the ascending channel’s bottom line as support. Traders can wait for the results of the “test” and trade off of that.

ETH/USD 4-hour Chart

Ethereum’s technicals on all time-frames are tilted towards the buy-side. However, its shorter time-frames (4-hour and daily) are showing hints of neutrality, while its longer time-frames are completely bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and its 21-period EMA
  • Price is between its middle and top Bollinger band
  • RSI is neutral (57.63)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $361

Ripple

The fourth-largest cryptocurrency by market cap hardly even moved in the past 24 hours despite the rest of the crypto market booming. As we mentioned in our previous article, if Bitcoin’s next explosive move doesn’t fuel XRP, it will move within a range bound by $0.235 and $0.2454, exactly what happened.

XRP seems to be creating a triangle formation on its 4-hour chart. If that is the case, it is bound to move above or below it extremely soon. However, the move will most likely be stopped at its immediate support or resistance level.

XRP/USD 4-hour Chart

XRP’s technicals have improved slightly, as they were extremely bearish the last time we reported. While its daily overview is still heavily tilted towards the sell-side, its weekly and monthly overviews are almost neutral (though still slightly tilted towards the bear side), and its 4-hour time-frame is even showing some bullishness.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is below its 50-period EMA and at its 21-period EMA
  • Price at its middle Bollinger band
  • RSI is neutral (48.73)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.2454                                 1: $0.235

2: $0.26                                     2: $0.227

3: $0.266                                  3: $0.221

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 05 – Top Trade Setups In Forex – Eyes on U.S. Election Results! 

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

On the news front, the eyes will remain on the outcome of the U.S. elections, although Joe seems to be the next president of the United States considering the voting lead against Trump so far. Besides, the Monetary Policy decision from the Bank of England will remain in highlights. The BOE isn’t expected to make any changes in the policy; however, the press conference will be worth watching. The muted impact is expected on the news. Lastly, the Unemployment Claims from the U.S. may support the U.S. dollar today.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17227 after placing a high of 1.17706 and a low of 1.16025. After falling to its lowest since mid-July, the EUR/USD pair reversed and started to rise and ended Wednesday with gains. The EUR/USD pair has been having a highly volatile week so far as uncertainty around the U.S. 2020 Presidential Election intensifies. Results have been tighter than the market’s expectations, and investors felt hesitant to sell the safe-haven U.S. dollar.

On Wednesday, the U.S. dollar rally kept the EUR/USD pair under pressure and made it hard to sustain gains Wednesday as both share a negative correlation. Moreover, the Eurozone’s coronavirus situation also worsened as the pandemic’s second wave raised across the bloc and forced many major economies, including Germany and France, to re-introduce fresh restrictions and lockdown measures.

In turn, the ECB has been signaling that it could introduce a new monetary policy stimulus that only added in the weakness of Euro currency and kept the gains in EUR/USD pair limited on Wednesday.

On the data front, at 13:00 GMT, the Spanish Unemployment Change for October came in as 49.6K compared to the previous -26.3K. At 13:15 GMT, the Spanish Services PMI for October raised to 41.1 from the forecasted 40.0 and supported Euro and added further in EUR/USD air’s gains. AT 13:45 GMT, the Italian Services PMI for October declined to 46.7 against the forecasted 47.4 and weighed on Euro.

 At 13:50 GMT, the French Final Services PMI remained flat at 46.5. At 13:55 GMT, the German Final Services PMI raised to 49.5 against the forecasted 48.9 and supported the single currency Euro. At 14:00 GMT, the Final Services PMI from the whole bloc for October also surged to 46.9 against the forecasted 46.2 and supported the single currency Euro and added further upside momentum to EUR/USD pair.

From the U.S. side, at 18:15 GMT, the ADP Non-Farm Employment Change for October dropped to 365K against the estimated 650K and weighed on the U.S. dollar that added strength to the upward momentum of the EUR/SD pair. At 18:30 GMT, the Trade Balance from the U.S. for October came in line with the expectations of -63.9B. At 19:45 GMT, the Final Services PMI for October surged to 56.9 from the projected 56.0 and supported the U.S. dollar and capped further gains in EUR.USD pair.

At 20:00 GMT, the ISM Services PMI for October fell to 56.6 from the anticipated 57.4 and weighed on the U.S. dollar and provided support to the rising EUR/USD pair.

The U.S. dollar is a safe-haven currency that tends to rise during uncertain environment and in the U.S. 2020 Presidential Election, the fears that election result could be close or contested, it led to a rise in the safe-haven demand and the U.S. dollar, that ultimately added pressure on EUR/USD pair.

Daily Technical Levels

Support    Resistance

1.1650      1.1757

1.1588      1.1802

1.1543      1.1864

Pivot point: 1.1695

EUR/USD– Trading Tip

The EUR/USD is trading sideways, with a wide trading range of 1.1615 to 1.1760 area as the U.S. elections keep the markets on the move. On the lower side, the bearish breakout of the 1.1615 area can extend selling until the next support area of the 1.1591 level. The release of European services PMI data may support the pair; elsewhere, the outcome of elections may drive further market movement. The MACD is entering the selling zone, but we may not see further selling until the 1.1615 level gets violated. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29142 after placing a high of 1.31401 and a low of 1.29839. The broad-based U.S. dollar strength added pressure on GBP/USD pair and kept it on the bearish track on Wednesday.

The uncertainty surrounding the U.S. election results increased after the race to White House became tighter than anticipation. However, the results from key battle states like Wisconsin, Michigan, and Pennsylvania were delayed. This uncertainty forced investors to hold onto their U.S. dollar positions and weighed on GBP/USD pair.

On the previous day, the markets were moving on Biden recovery expectations, but as results from different states were announced, the election results became tighter. Chances for a divided government increased, and the blue wave decreased that raised the U.S. dollar onboard and weighed on GBP/USD pair.

On the data front, at 14:30 GMT, the Final Services PMI for October fell to 51.4 against the estimated 52.3 and weighed on British Pound. From the U.S. side, at 18:15 GMT, the ADP Non-Farm Employment Change for October fell to 365K against the expected 650K and weighed on the U.S. dollar. At 18:30 GMT, the Trade Balance from the U.S. for October came in line with the anticipations of -63.9B. At 19:45 GMT, the Final Services PMI for October rushed to 56.9 from the estimated 56.0 and supported the U.S. dollar and weighed on GBP/USD pair. At 20:00 GMT, the ISM Services PMI for October declined to 56.6 from the projected 57.4 and weighed on the U.S. dollar.

In the U.K., the lawmakers approved a one-month lockdown for England as the coronavirus cases were continuously increasing. On Wednesday, the U.K. reported 25,177 new cases in a single day against Tuesday’s 20,018. The British Pound came under fresh pressure after these depressing highlights from the U.K. and added further losses in GBP/USD pair.

The Bank of England will release its monetary policy decision on Thursday. The uncertainty about the decision of BoE also increased with the escalated version of the coronavirus pandemic. The Bank is expected to keep rates stable, but as the lockdowns are re-introduced banks could change its decision and announce further easing. These uncertainties also kept the local currency under pressure and kept weighing on GBP/USD pair.

Daily Technical Levels

Support   Resistance

1.2913      1.2941

1.2898      1.2954

1.2884      1.2969

Pivot point; 1.2926

GBP/USD– Trading Tip

Just like the EUR/USD, the GBP/USD is also trading sideways in between a narrow trading range of 1.3122 – 1.2940 area. The Cable has recently violated the downward channel, supporting the GBP/USD pair around the 1.2940 level. Above this level, the odds of buying remain strong today. On the higher side, the Sterling may find next resistance around 1.3122 while the bearish breakout of 1.2940 may lead the Cable towards the 1.2855 level. A choppy session is expected today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.517 after placing a high of 105.343 and a low of 104.149. The USD/JPY pair moved upward towards its 11-days highest level on Wednesday but it lost most of its daily gains in the late trading session.

The primary driver of the USD/JPY pair was the USD’s market valuation on Wednesday. As the early election results showed that the blue wave was un-likely, it supported the safe-haven U.S. dollar and pushed the USD/JPY pair higher. The U.S. Dollar Index (DXY) also rose on Wednesday and moved to the 94.30 level.

As the markets were moving in previous days over the chances of Biden victory, after tighter election results, the chances for divided government increased and weighed on market sentiment. The hopes for larger stimulus also faded away with the declining hopes of the blue wave and the U.S. dollar gained through it and supported a strong bullish move on Wednesday.

However, on late night Tuesday, when it was clear that there will not be a winner, President Trump falsely claimed victory when millions of votes were still uncounted in the tight presidential race. This weighed on the U.S. dollar and the pair USD/JPY started to rise.

On the data front, at 18:15 GMT, the ADP Non-Farm Employment Change for October dropped to 365K against the projected 650K and weighed on the U.S. dollar. At 18:30 GMT, the Trade Balance from the U.S. for October remained flat with the expectations of -63.9B. At 19:45 GMT, the Final Services PMI for October raised to 56.9 from the projected 56.0 and supported the U.S. dollar. At 20:00 GMT, the ISM Services PMI for October dropped to 56.6 from the expected 57.4 and weighed on the U.S. dollar.

Meanwhile, the Bank of Japan released its monetary policy meeting of September on Wednesday that showed that some policymakers called for deeper scrutiny on how to address the fallout from the coronavirus pandemic as the economic outlook remained highly uncertain.

Many in the nine-member board agreed that it was sufficient to maintain the current ultra-loose monetary policy, for now, to cushion the economic blow from the pandemic. But some saw the need to debate how the BOJ could re-shape its policy in an era where the population must balance the need to contain the virus and sustain economic activity.

The Bank of Japan Governor Haruhiko Kuroda has said that the central bank’s focus will be on providing liquidity to cash-strapped firms hit by the pandemic. He has also indicated that deeper debate on how to achieve its 2 percent inflation target will be put on the back burner—these added strengths in the Japanese Yen and capped gains in the USD/JPY pair on Wednesday.

Daily Technical Levels

Support   Resistance

104.32      104.71

104.19      104.95

103.94      105.09

Pivot point: 104.57

USD/JPY – Trading Tips

The USD/JPY is trading choppy in between a wide trading range of 105.64 to 104.420 level. Violation of these ranges may determine the next trend in the USD/JPY pair. A bullish breakout of 105.062 level can extend the buying trend until 105.590. Conversely, the bearish breakout of 104.426 can lead the USD/JPY pair towards the 104 area. The MACD is also showing mixed bias among investors; therefore, let’s wait for a breakout before taking the next position in the USD/JPY. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 04 – Top Trade Setups In Forex – Eyes on U.S. Election Results! 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

On the news front, the market is exhibiting mixed but sharp movements in the wake of U.S. elections. Democratic party’s Joe Biden seems to take the lead so far, and his winning remains solid. The market is exhibiting safe-haven appeal in the wake of election results. Besides, the European economy is due to release Services PMI figures that may drive some price action in the market, but most of it is likely to be overshadowed by the U.S. election outcome. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17198 after placing a high of 1.17396 and a low of 1.16297. The EUR/USD pair surged on Tuesday and recovered some of its previous daily losses of 6 consecutive sessions. The pair climbed to 1.1739 level on U.S. Election Day as the U.S. dollar was down by 0.83% on the day, and the U.S. Dollar Index was trading at a six-day lower level under 93.40. The improvement in the market sentiment could be attributed to the declining expectations of any outcome of a disputed election that could result in a legal battle, political and social tension.

The rise in EUR/USD pair’s prices was also because of the anticipations of a so-called Blue wave outcome of the U.S. election. As the victory of Joe Biden would have a negative impact on the U.S. dollar amid his intentions to deliver a massive stimulus package after his victory, the EUR/USD pair gained further and rose to its three days highest level on Tuesday.

Apart from the U.S. election, rally in EUR/USD pair continued on the day due to risk appetite after European Central Bank reported that Pandemic Emergency Purchase Programme (PEPP) would likely remain the main instrument to increase the stimulus at the next meeting as the ECB has already committed to act in December and has not ruled out using all available instruments. However, the virus spread and the subsequent lockdowns could weigh on EUR/USD pair in the coming days.

On Tuesday, France reported the highest death toll since April, and both Netherlands and Hungary announced new virus lockdowns. These concerning situations in Eurozone related to the coronavirus pandemic kept the gains in EUR/USD pair limited on Tuesday.

On the data front, the French GOV Budget Balance was released at 12:45 GMT that came in as -161.6B for September compared to Previous -165.7B. From the U.S. side, the Wards Total Vehicle Sales dropped to 16.2M from the expected 16.5M and weighed on the U.S. dollar that ultimately added further gains in EUR/USD pair on Tuesday.

The main driver of the EUR/USD pair remained the U.S. dollar on the U.S. Election Day on Tuesday that was under pressure in the uncertain environment and continued supporting the EUR/USD pair’s upward momentum,

Daily Technical Levels

Support Resistance

1.1624     1.1657

1.1607     1.1673

1.1591     1.1690

Pivot point: 1.1640

EUR/USD– Trading Tip

The EUR/USD is trading sideways, with a wide trading range of 1.1615 to 1.1760 area as the U.S. elections keep the markets on the move. On the lower side, the bearish breakout of the 1.1615 area can extend selling until the next support area of the 1.1591 level. The release of European services PMI data may support the pair; elsewhere, the outcome of elections may drive further market movement. The MACD is entering the selling zone, but we may not see further selling until the 1.1615 level gets violated. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30635 after placing a high f 1.30787 and a low of 1.29073. The GBP/USD pair reached its five-day highest level on Tuesday amid broad-based U.S. dollar weakness during the U.S. Election Day.

The Americans were heading to the polls, and the market participants were shrugging off the risk aversion by anticipating a clear Democratic victory that would open the way for a larger fiscal stimulus package and, thus, weakened the U.S. dollar, ultimately added in the gains of GBP/USD pair.

Meanwhile, the lack of any news from the Brexit negotiations that have limited period left as the December 31 deadline was near, along with the introduction of a one-month lockdown in the U.K. to curb the traders ignored the effects of COVID-19 infections on Tuesday that could have capped further gains in the currency pair GBP/USD.

Despite there was no news related to Brexit progress from the ongoing talks between the E.U. and the U.K., the hopes for a last-minute deal helped prop up the British Pound. These hopes, combined with the U.S. dollar weakness, added additional gains in GBP/USD pair. The U.S. dollar index fell sharply to below 93.50 level, and it was down by 0.75%.

On the data front, the U.S. Factory Orders for September came in as 1.1% from the expected 1.0%, and the U.S. Wards Total Vehicle dropped to 16.2M from the anticipated 16.5 M weighed on the U.S. dollar that helped the British Pound to U.S. dollar exchange rate.

On the Brexit front, the reports indicated that talks were stuck between both parties on a level playing field and fisheries, the two main issues that stalled progress a month ago. However, other areas like social security saw progress and raised bars for a Brexit deal before the transition period. Both top negotiators Michel Barnier and David Frost will report on the progress of recent talks on Wednesday, and traders are keenly awaiting it.

The pair GBP/USD likely continue trading alongside risk-related sentiment during the upcoming sessions. As well as British Pound will not ignore any Brexit-related headlines once the picture of the U.S. election became clear.  

Daily Technical Levels

Support Resistance

1.2913     1.2941

1.2898     1.2954

1.2884     1.2969

Pivot point; 1.2926

GBP/USD– Trading Tip

Just like the EUR/USD, the GBP/USD is also trading sideways in between a narrow trading range of 1.3122 – 1.2940 area. The Cable has recently violated the downward channel, supporting the GBP/USD pair around the 1.2940 level. Above this level, the odds of buying remain strong today. On the higher side, the Sterling may find next resistance around 1.3122 while the bearish breakout of 1.2940 may lead the Cable towards the 1.2855 level. A choppy session is expected today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.497 after placing a high of 104.799 and a low of 104.431. After placing gains for three consecutive sessions, the pair reversed and posted losses on Tuesday. The U.S. dollar was under pressure on the day and was moving below 93.49 level on the back of expectations of a sweeping Democratic Party victory. The so-called blue-wave where the Joe-Biden with Democrats will take both Houses of Congress would indicate that further stimulus was on the way.

Since markets started to price in a global economic recovery, the U.S. dollar was on the back foot, a coronavirus vaccine, and ongoing fiscal and central bank stimulus in anticipation of renewed reflationary momentum.

The uncertainty over the vote’s outcome kept the safe-haven appeal in demand and continued supporting the Japanese Yen due to its safe-haven status and weighed on the USD/JPY pair. The uncertainty further escalated after Trump showed his willingness to challenge any unfavorable outcome to him legally. It came in response to the Initial polls that suggested that Biden was in the lead, and there will be a Blue/Democratic wave in the election. However, the revised readings showed that the gap between Trump and Biden was tightened.

Biden accused Trump of mishandling the COVID-19 pandemic and deserting safety precautions, including the mandated mask-use that could have saved countless lives from the crisis. Trump refuted that the American economy would be shattered under Biden, who wanted to raise most wealthy taxes.

If Biden wins the election, expectations are high that he will issue a massive stimulus package that would weigh on the U.S. dollar and ultimately drag the USD/JPY pair on the downside. Because of the stimulus package, traders started pricing it and kept selling the USD/JPY pair on Tuesday.

Meanwhile, on the data front, there was no macroeconomic release from Japan due to Bank Holiday. From the U.S., at 20:00 GMT, the Factory Orders in September elevated to 1.1% from the estimated 1.0%. The Wards Total Vehicle Sales for October weakened to 16.2 against the anticipated 16.5M and weighed on the U.S. dollar that ultimately added pressure on the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Resistance

104.56     104.92

104.40     105.12

104.20     105.28

Pivot point: 104.76

USD/JPY – Trading Tips

The USD/JPY is trading choppy in between a wide trading range of 105.64 to 104.420 level. Violation of these ranges may determine the next trend in the USD/JPY pair. A bullish breakout of 105.062 level can extend the buying trend until 105.590. Conversely, the bearish breakout of 104.426 can lead the USD/JPY pair towards the 104 area. The MACD is also showing mixed bias among investors; therefore, let’s wait for a breakout before taking the next position in the USD/JPY. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 4 – Bitcoin Contesting $14,000; Crypto Sector in the Green

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin is contesting the $14,000 level yet again. The largest cryptocurrency by market cap is currently trading for $13,863, representing an increase of 3.81% on the day. Meanwhile, Ethereum gained 2.93% on the day, while XRP gained 3.67%.

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin is contesting the $14,000 level yet again. The largest cryptocurrency by market cap is currently trading for $13,863, representing an increase of 3.81% on the day. Meanwhile, Ethereum gained 2.93% on the day, while XRP gained 3.67%.

The cryptocurrency sector has explosively pushed towards the upside as Bitcoin is contesting the $14,000 level yet again. The largest cryptocurrency by market cap is currently trading for $13,863, representing an increase of 3.81% on the day. Meanwhile, Ethereum gained 2.93% on the day, while XRP gained 3.67%.

 Daily Crypto Sector Heat Map

The Midas Touch Gold gained 13.90% in the past 24 hours, making it the most prominent daily gainer out of the top100 cryptos ranked by market capitalization. It is closely followed by ABBC Coin’s gain of 11.68% and Ampleforth’s 9.31% gain. On the other hand, CyberVain lost 9.64%, making it the most prominent daily loser. It is followed by NEAR Protocol’s loss of 9.57% and VeChain’s loss of 8.87%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since we last reported, with its value is currently staying at 64.3%. This value represents a 0.3% difference to the upside when compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased over the course of the day. Its current value is $399.05 404.52 billion, representing a $10.79million increase when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization had a great day as its price moved above the $13,900 mark. While the move got stopped out near $14,000, its price is still above the level it just passed.

Due to no strong pullbacks happening at the moment and Bitcoin staying within a very narrow range ($13,000-$14,100), we can expect a strong move to either side very soon. Traders should pay attention to any attempt to break its support/resistance levels Bitcoin makes.

BTC/USD 4-hour Chart

Bitcoin’s technicals on all time-frames are bullish, with the weekly overview being the only one with a considerable amount of neutrality.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and its 21-period EMA
  • Price above its middle Bollinger band
  • RSI is neutral (58.89)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $13,900                                 1: $13,570

2: $14,000                                 2: $13,180

3: $14,100                                  3: $13,000

Ethereum

Ethereum has bounced off of its $371 support level and started moving back towards its ascending channel. However, the channel bottom line was too strong to pass, and Ethereum ended up consolidating slightly below it. As time passes, the possibility of Ethereum breaking the level will be diminished due to the constant increase in the line’s price position.

Ethereum is now trading in a range between $378 and the ascending channel bottom line, which can be taken advantage of. However, Bitcoin is preparing a move, and Ethereum will most likely respond to it by following its direction and intensity, which can be used by the traders.

ETH/USD 4-hour Chart

Ethereum’s short-term technicals are unclear (4-hour overview being slightly bearish while daily overview is slightly bullish), while its longer-term technicals are heavily tilted towards the buy-side.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is below its 50-period and at its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (49.02)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $361

Ripple

The fourth-largest cryptocurrency by market cap took the day to push back above $0.235 and consolidate above it. This returned XRP back within a range bound by $0.235 to the downside and $0.2454 to the upside.

As we mentioned in our previous articles, if the next Bitcoin’s explosive move does not fuel XRP, traders can comfortably trade sideways action within this range. If, however, Bitcoin’s price moves to either side and XRP follows the direction, traders can use this event to trade alongside the direction XRP is moving in.

XRP/USD 4-hour Chart

XRP’s technicals on all time-frames are heavily tilted towards the sell-side. However, the longer the time-frame, the more neutral the technicals are, with the monthly indicator being very close to being completely neutral.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price below its 50-period EMA and above its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is close to the oversold territory (50.52)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $0.2454                                 1: $0.235

2: $0.26                                     2: $0.227

3: $0.266                                  3: $0.221

 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 3 – Crypto Sector in the Red; Altcoins Plummeting

The cryptocurrency sector experienced an overall price drop as Bitcoin pushed down towards sub-$13,500 levels. Most cryptocurrencies ended in the red as they lost quite a bit more than Bitcoin itself. The largest cryptocurrency by market cap is currently trading for $13,411, representing a decrease of 1.88% on the day. Meanwhile, Ethereum lost 5.68% on the day, while XRP lost 3.96%.

The cryptocurrency sector experienced an overall price drop as Bitcoin pushed down towards sub-$13,500 levels. Most cryptocurrencies ended in the red as they lost quite a bit more than Bitcoin itself. The largest cryptocurrency by market cap is currently trading for $13,411, representing a decrease of 1.88% on the day. Meanwhile, Ethereum lost 5.68% on the day, while XRP lost 3.96%.

The cryptocurrency sector experienced an overall price drop as Bitcoin pushed down towards sub-$13,500 levels. Most cryptocurrencies ended in the red as they lost quite a bit more than Bitcoin itself. The largest cryptocurrency by market cap is currently trading for $13,411, representing a decrease of 1.88% on the day. Meanwhile, Ethereum lost 5.68% on the day, while XRP lost 3.96%.

 Daily Crypto Sector Heat Map

The Midas Touch Gold gained 8.44% in the past 24 hours, making it the cryptocurrency to gain the most in a day (out of the top100 cryptos by market capitalization). The rest of the cryptocurrencies experienced close to no gains. On the other hand, Reserve Rights lost 17.14%, making it the most prominent daily loser. It is followed by SushiSwap’s loss of 14.07% and Compound’s loss of 12.86%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased since we last reported, with its value is currently staying at 64%. This value represents a 0.9% difference to the upside when compared to the value it had yesterday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has decreased over the course of the day. Its current value is $388.84 404.52 billion, representing a $5.32 million decrease when compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market cap has (as said in our previous article) moved away from the sideways trading as it could not stand trading in such a narrow range. Bitcoin pulled back below $13,570 and even went as low as ~13,200 before bouncing back to ~$13,400 (where it is currently consolidating).

The recent days have brought us a lot of support/resistance hopping, which is what we may expect in the near future as well. Traders should focus on capitalizing on these movements as they almost always overextend. The trades can be made both while Bitcoin is creating overextension (riskier but a bigger profit potential) or during the pullback (safer but less profit potential).

BTC/USD 4-hour Chart

Bitcoin’s 4-hour technicals are showing a bear tilt, while its longer time-frames are tilted towards the buy-side (longer time-frames have less neutrality and more of a buy-tilt than the shorter ones).

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far at its 50-period EMA and below its 21-period EMA
  • Price below its middle Bollinger band
  • RSI is neutral (43.90)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $13,570                                 1: $13,180

2: $13,900                                 2: $13,000

3: $14,000                                  3: $12,870

Ethereum

Ethereum has plummeted after failing to break the $400 mark, and losing all the most recent gains in the process. The second-largest cryptocurrency by market cap has left the ascending channel since the end of September. Its price drop was stopped at the $371 resistance level, which has held up quite well.

Ethereum is now trading in a narrow range bound by $371 to the downside and $378 to the upside. Traders should look for any breakouts to enter trades, while the ones that want to trade the sideways action should wait and see if Ethereum is likely to stay within this range.

ETH/USD 4-hour Chart

Ethereum’s 4-hour and daily technicals are tilted towards the sell-side, while its weekly and monthly overviews remain bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is far below both its 50-period and its 21-period EMA
  • Price is at its bottom Bollinger band
  • RSI is close to being overbought (35.83)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $361

3: $415                                      3: $358

Ripple

The fourth-largest cryptocurrency by market cap has had a red day as well, with its price falling through major support levels. A failed attempt to break the $0.2454 level has triggered a pullback, which pushed XRP’s price below $0.235 and even attempted to break $0.227. However, this support level held up, and XRP is now trading slightly above it.

If not fueled by Bitcoin’s explosive move towards either side, XRP will most likely trade sideways between $0.227 and $0.235. While traders could trade the sideways action without much problem, the lack of intra-range volatility is low, which brings the profit potential way down.

XRP/USD 4-hour Chart

XRP’s daily, weekly, and monthly technicals are all showing a strong tilt towards the sell-side, while its 4-hour overview is slightly bullish with hints of neutrality.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price far below both its 50-period EMA and its 21-period EMA
  • Price is at its bottom Bollinger band
  • RSI is close to the oversold territory (31.89)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $0.235                                   1: $0.227

2: $0.2454                                 2: $0.221

3: $0.26                                    3: $0.217

 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 03 – Top Trade Setups In Forex – U.S. Presidential Election in Highlights!

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

On the news front, eyes will remain on the U.S. Presidential Election. The voters will elect the 46th President of the United States. The winner will likely be projected before the official vote count is announced, based on early vote counts and exit polling. Besides, the U.S. Factory Orders m/m are also due, but their impact is likely to be overshadowed by the U.S. elections. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.16399 after placing a high of 1.16554 and a low of 1.16218. EUR/USD pair extended its losses and dropped for the 6th consecutive session on Monday amid the rising safe-haven appeal and coronavirus situation in Europe. The EUR/USD pair ended its day with modest losses as the currency pair’s bearish momentum was somehow cooled down because of the positive PMI data from European nations. Meanwhile, the U.S. dollar was also strong onboard due to its safe-haven status as well as due to the strong macroeconomic data on Monday.

At 13:15 GMT, the Spanish Manufacturing PMI for October raised to 52.5 against the expected 51.0 and supported the single currency Euro. At 13:45 GMT, the Italian Manufacturing PMI for October remained flat with a forecast of 53.9. At 13:50 GMT, the French Final Manufacturing PMI for October also came in as expected 51.3. At 13:55 GMT, the German Final Manufacturing PMI came in line with the anticipations of 58.0. At 14:00 GMT, the Final Manufacturing PMI for the whole bloc in October raised to 54.8 from the expected 54.4 and supported the single currency Euro.

Europe’s positive PMI data gave some support to Euro that ultimately capped further losses in EUR/USD pair.

From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI for October remained flat at 53.4. At 20:00 GMT, the ISM Manufacturing PMI for October rushed to 59.3 from the estimated 55.6 and supported the U.S. dollar. The Construction Spending for September fell to 0.3% from the projected 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also elevated to 65.6 against the anticipated 60.5 and supported the U.S. dollar.

On Monday, the positive data from the U.S. made the U.S. dollar even stronger and supported the downside movement of the EUR/USD pair.

Furthermore, the U.S. dollar was set to lose its bullishness in the days ahead as markets were keenly waiting for the U.S. presidential elections’ results. Although the uncertainty persists in the market regarding the election’s outcome, this is the critical time to enter or place any position in the market. This is the reason behind the consolidated movement of the EUR/USD pair on Monday.

Furthermore, both the U.S. election candidates, Biden and Trump, have said that they would deliver a big stimulus package after the election. So, it means the next round of stimulus packages will be delivered regardless of the winner. These hopes kept weighing in the U.S. dollar and capped further losses in EUR/USD pair.

On the other hand, the renewed lockdown restrictions in France, Germany, Italy, and Belgian to curb the effect of coronavirus pandemic raised the concerns for Eurozone economic recovery and kept weighing on single currency that kept the EUR/USD pair on the downside.

Daily Technical Levels

Support Resistance

1.1637     1.1651

1.1631     1.1659

1.1623     1.1665

Pivot point: 1.1645

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped below the support area of 1.1653. At the moment, the EUR/USD is likely to face the resistance at the same level of 1.1653. On the higher side, a bullish crossover of 1.1653 increases the odds of continuing an upward trend, and it may lead the EUR/USD price towards 1.1700. Further bullish crossover of this area can lead the pair towards the 1.1758 level. Conversely, a bearish crossover of 1.1653 support level has opened additional room for selling until the 1.1613 area as a double bottom support area extends the level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29180 after placing a high of 1.29426 and a low of 1.28539. The British Pound started to decline against the U.S. dollar at the starting day of the week as the hopes raised for further monetary easing by the Bank of England this week following the second lockdown in England.

Over the weekend, the U.K. announced that it would enter a second national lockdown for a month to control the rise in coronavirus infections. On Monday, the coronavirus cases fell to 18,950 in comparison to 10,900 cases a week ago. The expectations for further easing came on board after the Britain government made this announcement on the weekend.

The new lockdown measures in the U.K. demand the people stay at home unless there is an essential purpose like education, medical reason, or shopping for groceries. However, economists have warned that country would enter a double-dip recession if it enters another lockdown as it will dent the economic growth in the final quarter of the year. These concerns kept the risk sentiment under pressure and weighed on British Pound that ultimately added the GBP/USD pair’s losses.

On the data front, at14:30 GMT, the Final Manufacturing PMI from Great Britain was raised to 53.7against the expected 53.3 and supported British Pound and capped further losses in GBP/USD pair. From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI for October came in line with the anticipations of 53.4. At 20:00 GMT, the ISM Manufacturing PMI for October raised to 59.3 from the forecasted 55.6 and supported the U.S. dollar. The Construction Spending for September plunged to 0.3% from the forecasted 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also rose to 65.6 against the estimated 60.5 and supported the U.S. dollar.

The positive PMI data from the U.S. gave strength to the U.S. dollar and added further pressure on GBP/USD pair. On the Central Bank front, the BOE will have its monetary policy meeting on Thursday, and the hopes are that it will refrain from announcing negative rates, and the bank could also introduce another easing for supporting the economy.

On the Brexit front, the Brexit-talks continue in Brussels as the U.K. and the E.U. were working to avoid a no-deal Brexit. However, no fresh headlines were seen regarding this matter on Monday that kept the currency pair under the mercy of a strong U.S. dollar across the board.

Daily Technical Levels

Support Resistance

1.2913     1.2941

1.2898     1.2954

1.2884     1.2969

Pivot point; 1.2926

GBP/USD– Trading Tip

The GBP/USD is trading sharply bearish to trade over the double bottom support area of 1.2910 level. On the 2 hour timeframe, the GBP/USD pair has formed a downward channel, and bearish trend continuation can lead the pair further lower towards the next support area of 1.2830 level. However, to see that kind of selling, the Cable needs to violate the immediate support area of 1.2910. The MACD and 50 EMA support selling; therefore, we should look for a selling trade below the 1.2910 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.749 after placing a high of 104.947 and a low of 104.514. The USD/JPY pair rose and posted gains for the third consecutive session on Monday amid the broad-based U.S. dollar strength. The U.S. dollar pushed higher in the early European session on Monday as European nations imposed more lockdowns on the back of an incessant rise in coronavirus cases. The uncertainty surrounding the upcoming U.S. elections also weighed on market sentiment and kept the USD/JPY pair higher.

The U.K. joined Germany and France over the weekend and re-introduced partial lockdowns to curb the coronavirus’s spread. Europe crossed the 10 million total cases of coronavirus infections and supported the safe-haven appeal that added further strength to the U.S. dollar.

The Bank of England will hold its monetary policy meeting on Thursday, and investors believe that the bank will increase the asset purchases by 150-200 billion British Pounds. These hopes forced the investors to stick with the U.S. currency in these uncertain times, but the ranges were tight as the markets were under pressure ahead of Tuesday’s U.S. presidential election.

The U.S. dollar was also strong because of the rising hopes for the victory of Joe Biden in the upcoming election as he has maintained a healthy lead over his competitor Donald Trump in national polls over the weekend before elections. Furthermore, some of the gains in the USD/JPY pair were lost in the late trading session as the traders were also waiting for the upcoming Federal Reserve monetary policy meeting on Thursday.

On the data front, at 05:30 GMT, the Final Manufacturing PMI from Japan for October raised to 48.7 from the forecasted 48.0 and supported the Japanese Yen that capped further upside in USD/JPY pair. From the U.S. side, at 19:45 GMT, the Final Manufacturing PMI from the U.S. for October remained flat at 53.4. At 20:00 GMT, the ISM Manufacturing PMI from the U.S. advanced to 59.3 from the estimated 55.6 in October and supported the U.S. dollar. The Construction Spending for September fell to 0.3% from the predicted 1.0% and weighed on the U.S. dollar. The ISM Manufacturing Prices for October also raised to 65.6 against the projected 60.5 and supported the U.S. dollar. The U.S. dollar was further supported by the positive results from the macroeconomic data, and it helped the USD/JPY pair to post gains on Monday.

Daily Technical Levels

Support Resistance

104.51     104.66

104.45     104.75

104.35     104.81

Pivot point: 104.60

USD/JPY – Trading Tips

The USD/JPY is trading slightly bullish at the 104.745 level, having crossed over the immediate resistance area of the 104.600 mark. On the 2 hour timeframe, the USD/JPY has violated the downward trendline at 104.550 level, and now the same level is likely to support the USD/JPY pair. The closing of candles over 104.650 level is supporting strong odds of bullish trend continuation until 105.049 level. Further bullish trend continuation can also lead the USD/JPY pair towards the 105.800 level. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, November 02 – Top Trade Setups In Forex – Series of Manufacturing PMI Ahead! 

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to the lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to the lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

On the news front, eyes will remain on the Manufacturing PMI and Services PMI figures from the Eurozone, the U.K., and the United States. Almost all economic figures are expected to perform better than previous months, perhaps due to the lift of lockdown. Price action will depend upon any surprise changes in the PMI figures.

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.16445 after placing a high of 1.17041 and a low of 1.16398. The EUR/USD pair extended its losses for the 5th consecutive day on Friday and remained bearish throughout the day.

The main driver behind the steepest fall in Euro currency this week was the market concerns about the rising number of coronavirus infections in Europe and the effects of the social distancing measures to curb them. 

The latest lockdown restrictions introduced by France and Germany and the tighter restrictions applied in Italy and Spain raised alarms about their impact on the fragile economic recovery and weighed on the single currency Euro that ultimately added pressure on EUR/USD pair. Furthermore, the European Central Bank hinted to unleash new stimulus measures in December to counteract the pandemic’s negative impact and weighed on the Euro currency that added further losses in EUR/USD pair on Friday.

Meanwhile, on the data front, at 11:30 GMT, the French Consumer Spending for September was dropped to -5.1% against the expected -1.5% and weighed on Euro. The French Flash GDP for the quarter raised to 18.2% against the expected 15.0% and supported Euro. At 12:00 GMT, German Retail Sales for September dropped to -2.2% from the forecasted -0.6% and weighed on Euro. At 12:45 GMT, the French Prelim CPI for October fell to -0.1% against the forecasted 0.0% and weighed on Euro.

At 13:00 GMT, the Spanish Flash GDP for the quarter surged to 16.7% after placing a high of 13.5% and supported Euro. The Italian Monthly Unemployment Rate declined to 9.6% from the forecasted 10.1% and weighed on Euro. At 14:00 GMT, German Prelim GDP for the quarter raised to 8.2% from the forecasted 7.3% and supported Euro. The Italian Prelim GDP for the quarter also raised to 16.1% from the forecasted 11.1% and supported Euro. At 14:58 GMT, the Italian Prelim CPI for October remained flat with the expectations of 0.2%.

At 15:00 GMT, the CPI Flash Estimate for the year remained flat at -0.3%. The Core CPI Flash Estimate for the year also came in line as expected, 0.2%. The Prelim Flash GDP for the quarter raised to 12.7% from the forecasted 9.5% and supported Euro. The Unemployment Rate from the whole bloc raised to 8.3% from the forecasted 8.2% and weighed on Euro.

After the release of economic data, the single currency Euro came under fresh pressure amid the rising fears of investors’ that strong quarterly economic growth in Germany, which raised to 8.2% in the third quarter, will be temporary as the virus spread in the region has picked up the pace. This added further pressure on EUR/USD pair on Friday.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September came in line with the anticipations of 0.2%. The Personal Spending for September rose to 1.4% against the projected 1.0% and supported the U.S. dollar and added pressure on EUR/USD pair. The Employment Cost Index for the quarter came in line with the expectations of 0.5%. The Personal Income for September also surged to 0.9% from the estimated 0.3% and supported the U.S. dollar and add losses in EUR/USD pair.

 At 18:45 GMT, the Chicago PMI for October upraised to 61.1 against the predictable 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also elevated to 81.8 against the estimated 81.2 and supported the U.S. dollar that supported the losses on EUR/USD pair on Friday. The Revised UoM Inflation Expectations for October were reported as 2.6% compared to September’s 2.7%.

Daily Technical Levels

Support Resistance

1.1798     1.1789

1.1672     1.1834

1.1626     1.1870

Pivot point: 1.1753

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped below the support area of 1.1653. At the moment, the EUR/USD is likely to face the resistance at the same level of 1.1653. On the higher side, a bullish crossover of 1.1653 increases the odds of continuing an upward trend, and it may lead the EUR/USD price towards 1.1700. Further bullish crossover of this area can lead the pair towards the 1.1758 level. Conversely, a bearish crossover of 1.1653 support level has opened additional room for selling until the 1.1613 area as a double bottom support area extends the level.  

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29464 after placing a high of 1.29879 and a low of 1.28989. After placing losses for two consecutive days, the GBP/USD pair raised on Friday and posted gains. The GBP/USD pair rose on Friday despite the strength of the U.S. dollar, improved risk-averse market sentiment, and the rising number of coronavirus cases in Great Britain. The rising number of coronavirus cases in the U.K. showed that the imposed restrictions might be insufficient, and the country should follow the steps of Europe and France.

On the U.S. Presidential election front, the polls after the presidential debate showed that former vice president Joe Biden was leading over President Donald Trump. The chances for a blue wave in the U.S. gave pressure on local currency and supported the gains of the GBP/USD pair on Friday. On the data front, at 11:52 GMT, the Nationwide House Price Index for October raised to 0.8% from the forecasted 0.4% and supported British Pound that added further gains in GBP/USD pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September came as anticipated by 0.2%. The Personal Spending for September surged to 1.4% against the anticipated 1.0% and supported the U.S. dollar. The Employment Cost Index for the quarter came as expected of 0.5%. The Personal Income for September also raised to 0.9% from the projected 0.3% and supported the U.S. dollar.

At 18:45 GMT, the Chicago PMI for October surged to 61.1 against the anticipated 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also rose to 81.8 against the forecasted 81.2 and supported the U.S. dollar. The Revised UoM Inflation Expectations for October came as 2.6% in comparison to September’s 2.7%. Despite the better than expected macroeconomic figures from the U.S., the U.S. dollar remained lower ahead of upcoming elections and weighed on GBP/USD pair on Friday.

Furthermore, the Brexit developments also helped the GBP/USD pair to stay higher in such circumstances this week. The Chief EU Negotiator Michel Barnier extended his stay in London to discuss the Brexit deal with his U.K. counterpart. The fact that he has delayed his stay also gave some hope that progress has been made in Brexit proves and supported GBP/USD pair.

The reports also suggested that both sides have almost reached an agreement over the state aid issue, and the only sticking point in the UK-EU deal left was the fisheries. These Brexit developments in depressing circumstances supported the GBP/USD pair on Friday.

Daily Technical Levels

Support Resistance

1.2909     1.3057

1.2839     1.3135

1.2762     1.3205

Pivot point: 1.2987

GBP/USD– Trading Tip

The GBP/USD is trading sharply bearish to trade over the double bottom support area of 1.2910 level. On the 2 hour timeframe, the GBP/USD pair has formed a downward channel, and bearish trend continuation can lead the pair further lower towards the next support area of 1.2830 level. However, to see that kind of selling, the Cable needs to violate the immediate support area of 1.2910. The MACD and 50 EMA support selling; therefore, we should look for a selling trade below the 1.2910 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.673 after placing a high of 104.740and a low of 104.123. The USD/JPY pair extended its previous daily gains and rose for the second consecutive session on Friday.

The U.S. dollar was moving back and forth on Friday within the previous ranges, however, was unable to find a significant recovery. The second round of lockdown in Europe and the cautious market mood ahead of the U.S. Presidential elections kept the pair higher as the risk-averse market sentiment was gaining traction.

On the macroeconomic front, at 04:30 GMT, the Tokyo Core CPI for the year remained flat at -0.5%. The Unemployment Rate from Japan declined to 3.0% in September from the forecasted 3.1% and supported the Japanese Yen. At 04:50 GMT, the Prelim Industrial Production for September also raised to 4.0% from the expected 3.0% and supported the Japanese Yen. At 10:00 GMT, the Housing Starts from Japan for September dropped to -9.9% from the forecasted -8.6% and weighed on the Japanese Yen and supported the upside momentum in the USD/JPY pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for September remained flat at 0.2%. The Personal Spending for September advanced to 1.4% from the expected 1.0% and supported the U.S. dollar. The Employment Cost Index for the quarter came in line with the expectations of 0.5%. The Personal Income for September raised to 0.9% from the forecasted 0.3% and supported the U.S. dollar.

 At 18:45 GMT, the Chicago PMI for October surged to 61.1 against the expectable 58.2 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment for October also advanced to 81.8 against the anticipated 81.2 and helped the U.S. dollar. The Revised UoM Inflation Expectations for October came as 2.6% in comparison to September’s 2.7%.

The stronger than expected data from the U.S. side also supported the USD/JPY pair’s upside movement on Friday. Meanwhile, the market mood was inclined towards the U.S. dollar demand in safe-haven as the growing number of infections in Europe forced the governments to impose lockdowns, which raised concerns over the global economic recovery when the economies were already struggling.

Furthermore, on Friday, the Federal Reserve declared that it will amend its main street lending program to support better small businesses that were still fighting the crisis of coronavirus pandemic. The central bank revealed that it would reduce the minimum amount that can be borrowed by the small & medium-sized businesses from $250,000 to $100,000. The Federal Reserve said that the change in the main-street lending program had been made to support pandemic-hit small companies. These announcements from the Fed weighed on the U.S. dollar and kept the gains in USD.JPY pair limited on Friday.

Daily Technical Levels

Support Resistance

104.07     104.53

103.86     104.78

103.62     104.99

Pivot point: 104.32

USD/JPY – Trading Tips

The USD/JPY is trading slightly bullish at the 104.745 level, having crossed over the immediate resistance area of the 104.600 mark. On the 2 hour timeframe, the USD/JPY has violated the downward trendline at 104.550 level, and now the same level is likely to support the USD/JPY pair. The closing of candles over 104.650 level is supporting strong odds of bullish trend continuation until 105.049 level. Further bullish trend continuation can also lead the USD/JPY pair towards the 105.800 level, but, I’m afraid, traders will wait for the U.S. Elections and the U.S. NFP later this Friday. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 2 – Ethereum’s Price Explodes; Bitcoin’s Whitepaper Celebrates its 12th Birthday

The cryptocurrency sector was full of volatility over the weekend as Bitcoin tried to break the $14,000 mark. Bitcoin is currently trading for $13,735, representing a decrease of 0.13% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.31%.

The cryptocurrency sector was full of volatility over the weekend as Bitcoin tried to break the $14,000 mark. Bitcoin is currently trading for $13,735, representing a decrease of 0.13% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.31%.

The cryptocurrency sector was full of volatility over the weekend as Bitcoin tried to break the $14,000 mark. Bitcoin is currently trading for $13,735, representing a decrease of 0.13% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.31%.

 Daily Crypto Sector Heat Map

Taking a look at the top 100 cryptocurrencies, Ocean Protocol gained 20.20% in the past 24 hours, making it the crypto to gain the most in a day. Aave (10.97%) and Ox (8.84%) also did great. On the other hand, ABBC Coin lost 10.72%, making it the most prominent daily loser. It is followed by CyberVain’s loss of 7.62% and Ren’s loss of 3.92%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had stayed at the same place since we last reported, with its value is currently 63.1%. This value represents a 0% difference when compared to the value it had on Friday.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased slightly over the weekend. Its current value is $404.52 billion, representing a $4.91 million increase compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market cap had quite a volatile weekend, with its price breaking the $13,900 mark at one point and even reaching as high as $14,100. However, this price didn’t hold up, and Bitcoin fell back below $13,900, where it is consolidating at the moment. Bitcoin is now trading within a tight range, bound by $13,570 to the downside and $13,900 to the upside. History has shown us that BTC doesn’t stay range-bound for long; thus, we may expect a large move soon.

Traders should look for a trade when Bitcoin breaks one of its immediate resistances.

BTC/USD 4-hour Chart

Bitcoin’s overview on all time-frames is slightly bullish, with hints of neutrality. The neutrality is more present on the shorter time-frames as opposed to less neutrality on longer time-frames.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and above its 21-period EMA
  • Price slightly above its middle Bollinger band
  • RSI is neutral (53.43)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $13,900                                 1: $13,570

2: $14,000                                 2: $13,180

3: $14,660                                  3: $12,870

Ethereum

Ethereum had spent the weekend slowly following the ascending channel bottom line until Sunday when its price bounced off and pushed past $400. The second-largest cryptocurrency by market cap managed to reach as high as $405 before pulling back and consolidating. The fight for $400 will continue, and it will decide if Ethereum will push towards $415 and $420 in the near future or not.

Traders should look for Ethereum’s break (or the failure to break) the $400 level and trade off of that.

ETH/USD 4-hour Chart

Ethereum’s 4-hour technicals have changed to a strong buy after Ether’s price spike, while its daily, weekly, and monthly time-frames are all slightly bullish with hints of neutrality.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is far above both its 50-period and its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is close to being overbought (64.51)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $361

Ripple

The fourth-largest cryptocurrency by market cap spent the weekend consolidating below the $0.2454 level, which it has dropped below just before the weekend started. XRP tested both the $0.235 downside and $0.2454 upside, and both have proven to be strong support/resistance levels, which has left XRP range-bound.

XRP will take a lot of buying power to break above $0.2454 again, which means that the traders should consider trading sideways inside the range XRP is currently in.

XRP/USD 4-hour Chart

XRP’s daily, weekly, and monthly technicals are all showing a strong tilt towards the sell-side, while its 4-hour overview is slightly bullish with hints of neutrality.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price below its 50-period EMA and above its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is neutral (50.10)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.27                                    3: $0.227

 

Categories
Crypto Market Analysis

BTC/USD Chart Overview + Possible Outcomes

In this weekly BTC /USD analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

Overview

Bitcoin has spent another week pushing towards the upside. This time, it has passed the resistance zone at ~13,200 and pushed further towards the 2019 yearly high of $13,900. Breaking this level signifies a crucial move towards reaching all-time highs as the zone between $13,900 and the $20,000 level has close to no volume, meaning that it is “air-filled.” The moves in this zone will include a lot of volatility due to people taking profits as well as FOMO-ing in.

Technical factors



Bitcoin has conquered the ~13,200 zone after a week of trading above it and a couple of retests. However, a new high is in sight, the 2019 yearly high of $13,900.

Bitcoin is booming with bullish indicators, with its downside being guarded by the 21-period moving average, as well as hash ribbons making a crossover into miner capitulation (a huge bullish signal).
Hash Ribbons are great for detecting market bottoms or preparations for another spike, and it is one of the indicators that has provided traders with the most stable and predictable returns (and with low drawdowns).

However, the technicals factors will have no effect on the strength of the move once it happens, and Bitcoin’s short-term direction will remain unclear until it confidently breaks or pulls back from the $13,900 level.

Likely Outcomes

Bitcoin has two main scenarios it can play out, which will depend on how the “fight” for $13,900 ends.
1: If it confirms its position above the level, we can expect the unexpected, as there is close to no sell pressure above. However, many will start taking profits so unexpected downswings might happen. With that being said, the most likely target after breaking $13,900 is $13,640, which is one of the small consolidation points which happened during the 2017/2018 spike.
2: The other scenario is just as likely, and involves Bitcoin rejecting $13,900, thus creating a double top and a short-term pullback. This pullback might end at the $13,200 zone, which historically has a lot of buy and sell pressure, or even further down towards $12,470.

We also have to note that, whichever of these scenarios play out, Bitcoin’s overall sentiment is extremely bullish and that investors that do not like trading should just stick with what they are comfortable with.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 30 – Bitcoin Bounces Back Above $13,500; XRP Breaks Crucial Support Level

The cryptocurrency sector was full of volatility today but ended the day with close to no gains. Bitcoin is currently trading for $13,561, representing an increase of 2.50% on the day. Meanwhile, Ethereum gained 0.01% on the day, while XRP lost 1.12%.

The cryptocurrency sector was full of volatility today but ended the day with close to no gains. Bitcoin is currently trading for $13,561, representing an increase of 2.50% on the day. Meanwhile, Ethereum gained 0.01% on the day, while XRP lost 1.12%.

The cryptocurrency sector was full of volatility today but ended the day with close to no gains. Bitcoin is currently trading for $13,561, representing an increase of 2.50% on the day. Meanwhile, Ethereum gained 0.01% on the day, while XRP lost 1.12%.

 Daily Crypto Sector Heat Map

None of the top100 cryptocurrencies gained much over the course of the day. NEM gained 3.57% in the past 24 hours, making it the crypto to gain the most in a day. Celsius (2.68%) and FTX Token (2.63%) also did great. On the other hand, yearn.finance lost 16.68%, making it the most prominent daily loser. It is followed by Ocean Protocol’s loss of 16.06% and Reserve Rights’ loss of 15.74%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had increased since we last reported, with its value is currently 63.1%. This value represents a 0.8% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased slightly in the past 24 hours. Its current value is $399.63 billion, representing a $6.58billion increase compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization had quite a volatile day, with its price bouncing back from the $13,180 resistance and pushing up. While the price has reached ~$13,700 level, it has pulled back since, currently contesting the $13,570 resistance.

Traders should look at Bitcoin contesting the $13,570 level and trade in whichever direction the price confirms its move in.

BTC/USD 4-hour Chart

Bitcoin’s 4-hour and weekly overviews are neutral bullish, while its daily and monthly overviews are tilted towards the buy-side with close to no neutrality.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and above its 21-period EMA
  • Price slightly above its middle Bollinger band
  • RSI is ascending towards overbought (59.94)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $13,570                                 1: $13,180

2: $13,900                                 2: $12,870

3: $14,000                                  3: $12,500

Ethereum

Ethereum had, just like Bitcoin, quite a volatile day today. Its price first bounced off of the ascending channel bottom line, which prompted a push towards $395 before falling yet again. As things stand now, the leg down is still not over yet, and Ethereum is yet to decide whether it will change its course towards the upside or break the channel down.

Traders should look for Ethereum’s response to the bottom channel line and trade in continuation to where it chooses to go.

ETH/USD 4-hour Chart

Ethereum’s technicals on all time-frames except for the 4-hour one are tilted towards the buy-side, with hints of neutrality. On the other hand, its 4-hour time-frame is tilted towards the sell-side with slight hints of neutrality.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is below its 50-period and its 21-period EMA
  • Price is between its middle and bottom Bollinger band
  • RSI is neutral (40.64)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $361

Ripple

The fourth-largest cryptocurrency by market cap had a bad day, as its price dropped below the crucial $0.2454 support level. XRP tried to recover and went above it at one point but failed to keep the price above the level, therefore triggering another push towards $0.24, where it is currently consolidating.

It is hard to say how traders should look at XRP, though the outlook is certainly bearish. Any push towards the upside will almost certainly result from Bitcoin making a large move towards the upside.

XRP/USD 4-hour Chart

XRP’s technicals are uniformed in its bearishness, with the 1-day and monthly overviews showing a bit more neutrality than the others.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price well below both its 50-period EMA and its 21-period EMA
  • Price is slightly above its bottom Bollinger band
  • RSI is near oversold (35.97)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.2454                                 1: $0.235

2: $0.26                                     2: $0.227

3: $0.266                                  3: $0.221

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 29 – Top Trade Setups In Forex – Eyes on ECB Policy Rate! 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

The focus will remain on the U.S. Advance GDP figures. GDP data expected to perform better than before as the data represents the economic activity of the lockdown period. Besides this, the major focus will remain on the ECB Monetary policy decision, where the ECB is expected to keep the interest rate unchanged. However, the increased number of  Covid-19 cases may trigger a dovish sentiment on the European official bank rate, and it may place bearish pressure on the single currency Euro. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17460 after placing a high of 1.17879 and a low of 1.17176. The EUR/USD pair dropped to its one week lowest level and remained bearish throughout the day. The Euro fell against the U.S. dollar on Wednesday ahead of the European Central Bank meeting amid the rising fears that the Eurozone’s economic recovery will be hard as Germany and France introduced fresh lockdown measures to control the spread of coronavirus infections.

A four-week lockdown was introduced by German Chancellor Angela Merkel on Wednesday for the country to control the spread of the virus. The partial lockdown will start from Monday, and under the restrictions, the hospital sector will likely ease as restaurants, bars, gyms, cinemas will be closed while schools, daycare centers, and kindergartens will remain open.

France that is already under curfew, will announce a nationwide lockdown on Friday. The President of France Emmanuel Macron has said that the measures they had taken to control the spread did not work out and were insufficient to counter the second wave of coronavirus affecting all of Europe.

Both Germany and France have seen a rise in coronavirus cases, with France expected to experience 100,000 new cases per day in the coming days. These fears that the lockdown measures will greatly impact the emerging European economic recovery weighed heavily on a single currency on Wednesday.

At 12:00 GMT, German Import Prices raised in September to 0.3% from the forecasted -0.3% and supported Euro currency on the data front. At 17:30 GMT, the Goods Trade Balance for September came in as -79.4B against the projected -84.8B and supported the U.S. dollar that weighed on EUR/USD prices. The Prelim Wholesale Inventories from the U.S. in September were reported as -0.1% against the expected 0.4% and supported the U.S. dollar added in the losses of EUR/USD pair on Wednesday.

On the U.S. dollar front, the United States also saw records high numbers of coronavirus cases; however, the U.S. dollar remained strong across the board. It seems like investors chose to invest in the greenback in these uncertain times due to its safe-haven status. The strong U.S. dollar weighed further on EUR.USD pair on Wednesday, and the prices continued moving in downside momentum.

Daily Technical Levels

Support Resistance

1.1779     1.1825

1.1762     1.1856

1.1732     1.1872

Pivot Point: 1.1809

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, having dropped to the support area of 1.1745. Above this, the pair has strong odds of taking a bullish turn until the 1.1790 area. Continuation of an upward trend may lead the EUR/USD price towards 1.1790, and bullish crossover of this area can lead the pair towards the 1.1820 level. Conversely, a bearish crossover of 1.1745 support level can extend selling until the 1.1694 area. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29877 after placing a high of 1.30636 and a low of 1.29163. The GBP/USD pair dropped and posted losses on Wednesday. The GBP/USD pair dropped to its seven days lowest level on Wednesday amid broad-based U.S. dollar strength and the rising number of coronavirus cases in the U.K. The Brexit impasse, along with the U.S. elections uncertainty, also weighed on GBP/USD pair on Wednesday.

The U.S. dollar was strong across the board on Wednesday as the global coronavirus spread raised the greenback’s safe-haven allure. The British Pound lost as much as 1% against the U.S. dollar on Wednesday as investors withdraw due to decreased hopes for global economic recovery and increased risk-aversion market sentiment.

The uncertainties surrounding the U.S. elections were already weighing on the market sentiment, and the resurgence of coronavirus cases in Europe and the United States emerged that escalated the concerns. In the past week, the rate of deaths in Europe rose by almost 40%, and it challenged the narrative that the virus was relatively harmless that had encouraged the easing of lockdown measures for the sake of local economies.

Both Germany and France announced new lockdown measures to control coronavirus spread, and the U.K. was also expected to impose Tier-3 restrictions. These fears weighed heavily on the local currency British Pound that ultimately dragged the GBP/USD pair’s prices on Wednesday to its one-week lowest level.

On the data front, t 05:01 GMT, BRC Shop Price Index for October came in as -1.2% compared to -1.6%. Whereas, from the U.S. side, at 17:30 GMT, the Goods Trade Balance for September was reported as -79.4B against the expected -84.8B and supported the U.S. dollar that weighed on GBP/USD prices. The Prelim Wholesale Inventories from the U.S. in September came in as -0.1% against the anticipated 0.4% and supported the U.S. dollar that weighed on GBP/USD pair on Wednesday.

On the Brexit front, Britain and the European Union have just over two months to reach a trade agreement before the status-quo transition period ends on December 31. The E.U.’s chief negotiator, Michel Barnier, is in London for negotiations, and it is believed that progress has been made over some sticking points.

The sentiment has raised hopes that this time a deal will be reached between the U.K. and the E.U. by early November. According to Bloomberg, both sides have begun work on the text of the agreement on the level competitive playing field and were close to finalizing a joint document covering state aid.

These developments regarding Brexit-deal gave some ease to the market sentiment and capped further losses in the GBP/USD pair on Wednesday.

Furthermore, the Bank of England has shown willingness to go for negative rates that had been partially priced in the market and had kept the British Pound under pressure. Therefore, any such action by the bank would not come as a surprise in the upcoming meeting, and it means that a negative interest rate effect could be of secondary importance for GBP traders than a shock of Brexit in the coming days.

Daily Technical Levels

Support Resistance

1.3001     1.3081

1.2961     1.3121

1.2921     1.3161

Pivot Point: 1.3041

GBP/USD– Trading Tip

The GBP/USD has violated the symmetric triangle pattern at the 1.3017 area, and closing of candles below the 1.3017 level has driven strong selling until the 1.2915 support area. On the higher side, the Cable my lead GBP/USD price towards 1.3046 level. For now, the GBP/USD pair may find an immediate resistance at 1.3046 are, and below this, selling can be captured until 1.2980 and 1.2919 level.  

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.307 after placing a high of 104.554 and a low of 104.111. The USD/JPY pair remained bearish and placed losses on Wednesday. The USD/JPY pair has posted slight losses on Wednesday despite the broad-based U.S. dollar strength. The Japanese Yen has gained about 1.2% throughout the last three weeks in October and has weighed on the USD/JPY pair. The USD/JPY pair dropped on Wednesday to its lowest level since September 21.

The U.S. dollar was strong on Wednesday as its safe-haven status got attention after European nations started re-imposing lockdown measures to control the virus’s spread. However, the U.S. dollar’s strength could not reverse the USD/JPY pair’s movement on Wednesday as traders were focused more on the Bank of Japan’s decision in its upcoming monetary policy meeting on Thursday.

Bank of Japan is up to hold its monetary policy meeting on Thursday, and investors were pricing the potential moves by it ahead of the meeting. The Bank of Japan is expected to keep its rates unchanged at -10bps while maintaining a 10-year JGB yield target at 0.0%. The Bank of Japan has extended a deadline for two virus linked funding programs and enlarged asset purchases. As mentioned by the quarterly assessment report, the central bank has downgraded this fiscal year’s economic and inflation outlooks.

As the outlook reviews have already been priced in the market, any hint over additional monetary easing through Q.E. in December on Thursday could have a major impact on the Japanese yen and ultimately on the USD/JPY pair. Furthermore, the coronavirus cases in the United States were rising day by day and weighed on local currency as the chances for a fresh lockdown increased with the increased number of COVID-19 infections. Over the last seven days, the U.S. reported about half a million new coronavirus cases, and it has raised both economic and health-related concerns that have weighed on the local currency U.S. dollar. The USD/JPY pair also followed these rising concerns and kept moving in the downward direction on Wednesday.

On the data front, from the U.S. side, at 17:30 GMT, the Goods Trade Balance for September came in as -79.4B against the anticipated -84.8B and supported the U.S. dollar. The Prelim Wholesale Inventories from the U.S. in September came in as -0.1% against the projected 0.4% and supported the U.S. dollar. The strong U.S. dollar failed to reverse the USD/JPY pair’s negative momentum on Wednesday, and the pair kept falling towards its multi-week lowest level.

Daily Technical Levels

Support Resistance

104.22     104.73

104.05     105.07

103.70     105.25

Pivot point: 104.56

USD/JPY – Trading Tips

The bearish bias in the USD/JPY continues to extend the bearish bias; however, it’s trading within a choppy trading range now. The choppy range may provide resistance at 104.505 to 104.200 area. Violation of this range can trigger further selling until the 103.900 level. The MACD and RSI support selling bias today; therefore, we will be looking to enter a selling trade below 104.24 today as a violation of this level has high odds of leading the USD/JPY pair further lower towards the 103.900 level. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 29 – Bitcoin Back At $13,000: What’s Next? Trading Ideas and Market Overview

The cryptocurrency sector quite a bad day, as Bitcoin led the rest of the sector down by dropping from $13,900 all the way to below $13,000. Bitcoin is currently trading for $13,240, representing a decrease of 3.70% on the day. Meanwhile, Ethereum lost 3.60% on the day, while XRP lost 2.93%.

The cryptocurrency sector quite a bad day, as Bitcoin led the rest of the sector down by dropping from $13,900 all the way to below $13,000. Bitcoin is currently trading for $13,240, representing a decrease of 3.70% on the day. Meanwhile, Ethereum lost 3.60% on the day, while XRP lost 2.93%.

The cryptocurrency sector quite a bad day, as Bitcoin led the rest of the sector down by dropping from $13,900 all the way to below $13,000. Bitcoin is currently trading for $13,240, representing a decrease of 3.70% on the day. Meanwhile, Ethereum lost 3.60% on the day, while XRP lost 2.93%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, Ocean Protocol gained 11.69% in the past 24 hours, making it the crypto to gain the most in a day. Nexo (7.86%) and DigiByte (4.49%) also did great. On the other hand, ABBC Coin lost 12.3%, making it the most prominent daily loser. It is followed by Band Protocol’s loss of 11.46% and Quant’s loss of 11.36%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had decreased slightly since we last reported, with its value is currently 62.3%. This value represents a 0.1% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has decreased significantly in the past 24 hours. Its current value is $393.05 billion, representing a $15.07 billion decrease compared to our previous report.

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What happened in the past 24 hours?

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Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization pulled back as its price couldn’t pass the crucial resistance of $13,900. The move was strong and lasted three candles (around 12 hours), over which Bitcoin fell as low as $12,895, where it bounced off of its 50-period moving average. Bitcoin is now consolidating above the $13,180 level.

Traders should look at how Bitcoin trades within the range bound by $13,180 and $13,570 and trade off of that.

BTC/USD 4-hour Chart

Bitcoin’s 4-hour, daily, and monthly technicals are looking almost identical, with all of them being tilted towards the buy-side, with a bit of neutrality sprinkled in. On the other hand, its weekly overview is a bit more bearish, with oscillators leaning towards the sell-side.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and at its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (52.27)
  • Volume is descending
Key levels to the upside          Key levels to the downside

1: $13,570                                 1: $13,180

2: $13,900                                 2: $12,870

3: $14,000                                  3: $12,500

Ethereum

Ethereum has followed Bitcoin to the downside, ultimately following its own predicted path within an ascending channel and reaching the bottom of $380 (as predicted in our previous articles) before bouncing back. It is currently trading slightly below $400, with a good chance of retesting this level once again.

Traders should watch for how Ethereum looks to retest the $400 resistance level and trade the pullback or the spike after that.

ETH/USD 4-hour Chart

Ethereum’s daily and monthly technicals are tilted towards the buy-side (with slight neutrality next to them). However, its shorter time-frame (the 4-hour overview) looks completely bearishness, while its weekly overview is completely neutral.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is below its 50-period and its 21-period EMA
  • Price is slightly below its middle Bollinger band
  • RSI is neutral (42.03)
  • Volume is slightly above average
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $361

Ripple

The fourth-largest cryptocurrency by market cap managed to push above the ascending dotted yellow line (as predicted in our previous articles) but quickly failed as Bitcoin was dragging the market down. XRP followed and fell to its $0.2454 support level, which is holding for now. However, XRP is still quite close to the support level, which might break at any moment.

Traders should look for an entry if XRP breaks $0.2454 to the downside. When looking at trades to the upside, traders can look at Bitcoin’s upside pushes and trade off of that.

XRP/USD 4-hour Chart

XRP’s technicals are almost uniformed in how bearish they are, with its 4-hour, daily, and monthly overviews showing a slight tilt towards the sell-side. Its weekly overview, however, is completely neutral.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price far below both its 50-period EMA and its 21-period EMA
  • Price is slightly above its bottom Bollinger band
  • RSI is neutral (38.72)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 28 – Top Trade Setups In Forex – Bank of Canada Policy! 

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

On the news front, the Bank of Canada Overnight Rate rate and Rate Statement will be in focus, and it may drive some price action in Canadian pairs. Elsewhere, we don’t have any major event that can drive sharp movements in the U.S. dollar related pairs. Let’s focus on technical levels.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17872 after placing a high of 1.18385 and a low of 1.17821. The EUR/USD pair moved lower and posted losses on Tuesday to extend the previous bearish trend. The EUR/USD pair extended its losses on Tuesday and fell for 2nd consecutive day despite the broad-based U.S. dollar weakness. The decline in the EUR/USD pair was due to the rising number of coronavirus cases and the increased numbers of lockdown in European nations to curb the COVID-19 crisis’s effects.

The EUR/USD pair moved in upward momentum during the first half of Tuesday and recovered most of its previous daily losses on the back of broad-based U.S. dollar weakness. The U.S. Dollar Index was down to 92.8 level by 0.3% on Tuesday as the uncertainty over the next round of U.S. stimulus package and the upcoming U.S. Presidential election weighed on the greenback.

The risk-averse market sentiment emerged in the market due to an increased number of coronavirus cases worldwide, especially in the European nations. The United States reported more than 74,300 new coronavirus cases on Monday that pushed the country’s daily average over the past week above 71,000. Meanwhile, in Europe, France prepared for a fresh lockdown as new daily confirmed coronavirus cases hit the highest ever at above 52,000 on a single day.

Italy and the Netherlands also reported a new record high of cases over the weekend. Spain declared a national emergency and imposed a night-time curfew for six months. All these reports from across the globe weighed on risk sentiment and dragged the riskier asset like EUR/USD pair on the downside. Meanwhile, the risk sentiment was further affected by the latest news from one of the vaccine developers, Pfizer, that said that getting early results by October for coronavirus vaccine shots would be nearly impossible. These comments added further to the downside momentum of EUR.USD pair on Tuesday.

On the data front, at 13:00 GMT, the Spanish Unemployment Rate for September raised to 16.3% against the forecasted 16.0% and weighed on the single currency Euro that added further to the losses of EUR/USD pair. At 14:00 GMT, the M3 Money Supply for the year was advanced to 10.4% from the forecasted 9.6% and supported Euro currency. The Private Loans for the year from Eurozone remained flat at 3.1%.

At 18:00 GMT, August’s Housing Price Index raised to 1.5% from the projected 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also elevated to 5.2% from the projected 4.2% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October surged to 29 from the anticipated 18 and supported the U.S. dollar added in the additional losses in EUR/USD pair on Tuesday.

However, at 19:00 GMT, the C.B. Consumer Confidence for October dropped to 100.9 from the projected 102.1 and weighed on the U.S. dollar that capped further losses in EUR/USD prices on Tuesday. Furthermore, the risk sentiment was deteriorated by the latest tensions between the U.S. & China over the potential sales of American made missiles to Taiwan. This raised the market’s safe-haven appeal and weighed on the riskier EUR/USD pair for the day.

Daily Technical Levels

Support Resistance

1.1787     1.1845

1.1766     1.1882

1.1729     1.1904

Pivot point: 1.1824

EUR/USD– Trading Tip

The EUR/USD traded with a bearish bias, falling from the 1.1800 level to test the support area of the 1.1770 mark. Violation of the 1.1770 level can drive further selling until the 1.1733 support level, which is extended by an upward trendline. However, the MACD and RSI are supporting selling bias; therefore, the EUR/USD may exhibit a selling trend below an intraday pivot point level of 1.1824 level. Buying can be seen over the 1.1700 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30414 after placing a high of 1.30793 and a low of 1.30007. The GBP/USD pair reversed on Tuesday and started moving in a bullish track. The GBP/USD pair rose and broke it’s 4 days bearish streak on Tuesday amid the broad-based U.S. dollar weakness and the rising optimism surrounding the Brexit process. The U.S. dollar was weak across the board amid the fallen U.S. yields and rising concerns over the U.S. stimulus package and upcoming U.S. election.

The U.S. dollar also failed to cheer the positive macroeconomic figures from the economic docket on Tuesday as investors’ focus shifted towards other developments. The Wall Street stocks were mixed during the day as the resurgence in COVID-19 cases was creating concerns among the market participants. The market’s risk sentiment was also affected by the latest dispute between the U.S. & China, along with the increased number of coronavirus cases and the slowdown of economies throughout the globe. The deteriorated risk sentiment weighed heavily on the risk perceived British Pound and GBP/USD pair gains remained limited for the day.

The British investors were more focused on the Brexit process’s optimism as the Chief EU negotiator Michel Barnier extended his stay in London for ongoing talks. This raised the hopes that both parties will soon reach a consensus over the Brexit-deal key points as the negotiations were extended. The silence around the talks matter was seen as a positive sign between the investors, and they started buying British Pound against the U.S. dollar.

Meanwhile, the PM Boris Johnson has also said that he was not waiting for the U.S. elections to deal with the E.U. He added that resolving the issues of state aid and fisheries was more critical at the time, and the markets started moving on the positive side for British Pound as U.K. was eager to strike a deal with the E.U.

On the data front, at 16:00 GMT, the CBI Realized Sales for October came in as -23 against the expectations of -1 and weighed on British Pound and capped further gains in GBP/USD pair. At 18:00 GMT, the Housing Price Index for August surged to 1.5% from the expectations of 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also surged to 5.2% from the forecasted 4.2% and helped the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October raised to 29 against the expectations of 18 and supported the U.S. dollar that limited further gains in GBP/USD prices.

However, at 19:00 GMT, the C.B. Consumer Confidence for October fell to 100.9 from the expected 102.1 and weighed on the U.S. dollar that pushed the GBP/USD pair further on the upside. As for the U.S. Presidential elections, the uncertainty surrounding the question that who will win the election kept the U.S. dollar weak across the board on Tuesday. Some polls were suggesting a blue wave while others were in favor of re-electing president Donald Trump. Along with the stalled talks for the next round of the U.S. stimulus package before November 3, these uncertainties weighed on the U.S. dollar and supported the GBP/USD pair’s gains on Tuesday.

Daily Technical Levels

Support Resistance

1.2985     1.3067

1.2947     1.3113

1.2902     1.3150

Pivot point: 1.3030

GBP/USD– Trading Tip

The GBP/USD is trading sideways, holding within a symmetric triangle pattern extending neutral with a narrow trading range of 1.3071 – 1.3007 level. Violation of 1.3007 level can open additional room for selling until the 1.2965 area, which extends support due to an upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. On the other hand, the violation of 1.3071 can drive upward movement until the 1.3165 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.475 after placing a high of 104.888 and a low of 104.386. The USD/JPY pair moved in a bearish direction and posted big losses on Tuesday. The USD/JPY pair was down on Tuesday amid the broad-based U.S. dollar weakness along with the rising risk-averse market sentiment on the back of fresh tensions between the U.S. and China. The safe-haven appeal was also supported by the rising number of coronavirus cases and lockdowns that drove the stock market on the downside and weighed on the USD/JPY pair as well.

The U.S. Dollar Index that measures the value of the greenback against the basket of six currencies dropped by 0.3% to 92.8 level on Tuesday that weighed on the U.S. dollar and dragged the USD/JPY pair prices.

On the coronavirus front, the United States, Russia, France, Italy, Netherland, Spain, and many other nations across the globe set a new record for the number of daily coronavirus cases. The U.S. reported more than 74,300 new cases in a single day, France reported more than 52,000 daily cases over the weekend. The global record for the infections was recorded as 43.4 million on Tuesday by the Johns Hopkins University.

The rising number of coronavirus cases also urged governments to re-impose lockdown measures to curb the virus’s spread. These lockdowns in a situation where economies were still under recovery phase from the previous lockdown effects raised a high appeal for the safe-haven market sentiment in the market. The risk-averse sentiment supported the safe-haven Japanese Yen that ultimately weighed on the USD/JPY pair on Tuesday.

Meanwhile, on the data front, at 09:59 GMT, the BOJ Core CPI for the year dropped to -0.1% from the forecasted 0.0% and weighed on the Japanese Yen that failed to reverse the negative movement of the USD/JPY pair. At 18:00 GMT, August’s Housing Price Index rose to 1.5% from the anticipated 0.7% and supported the U.S. dollar. The S&P/CS Composite-20 HPI for the year also advanced to 5.2% from the projected 4.2% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index for October raised to 29 against the expected 18 and supported the U.S. dollar but failed to impress investors; thus, the USD/JPY pair continued moving in the downward momentum on Tuesday.

However, at 19:00 GMT, the C.B. Consumer Confidence for October was dropped to 100.9 from the anticipated 102.1 and weighed on the U.S. dollar that added further pressure on the USD/JPY pair. The U.S. dollar failed to cheer the positive macroeconomic data on Tuesday because of the stalled talks for the next round of the U.S. stimulus package. The stalemate between the White House and the House of Representative Speaker Nancy Pelosi over the U.S. stimulus aid package’s size led to delayed talks till November 3rd election results and weighed on the U.S. dollar.

Furthermore, the Biden victory bets were started to weigh on the U.S. dollar as the polls suggested a blue wave in the upcoming Presidential elections. The weak U.S. dollar on Tuesday caused the USD/JPY pair to move on the downside. Moreover, the U.S. and China tensions came on-board after a long pause on Tuesday when news suggested a potential $2.4 billion sale of U.S. anti-ship missiles to Taiwan. In response to this news, China slapped sanctions on U.S. companies over national security interests. These fresh tensions between the U.S. and China raised safe-haven appeal and supported the safe-haven Japanese Yen that ultimately added weight on the USD/JPY pair on Tuesday.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY continues to extend its bearish momentum as the pair trades at the 104.298 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s driving bearish movement in the market, and it may support the pair around 104.300 and 104.007 area. Conversely, the continuation of an upward movement is likely to drive the buying trend until the 104.778 level. The MACD and RSI are supporting selling bias today; therefore, we will be looking to enter a selling trade below 104.84 today. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 28 – Bitcoin Rushing Towards $14,000; Over 50% of US Investors Interested in Crypto

The cryptocurrency sector had a great day, with most cryptocurrencies ending up in the green due to Bitcoin pushing towards $13,900. Bitcoin is currently trading for $13.720, representing an increase of 4.81% on the day. Meanwhile, Ethereum gained 3.63% on the day, while XRP gained 1.61%.

The cryptocurrency sector had a great day, with most cryptocurrencies ending up in the green due to Bitcoin pushing towards $13,900. Bitcoin is currently trading for $13.720, representing an increase of 4.81% on the day. Meanwhile, Ethereum gained 3.63% on the day, while XRP gained 1.61%.

The cryptocurrency sector had a great day, with most cryptocurrencies ending up in the green due to Bitcoin pushing towards $13,900. Bitcoin is currently trading for $13.720, representing an increase of 4.81% on the day. Meanwhile, Ethereum gained 3.63% on the day, while XRP gained 1.61%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, Flexacoin had another amazing day, gaining an astonishing 332.35% in the past 24 hours, making it the crypto to gain the most in a day. Nexo (13.94%) and Compound (13.71%) also did great. On the other hand, ABBC Coin lost 13.58%, making it the most prominent daily loser. It is followed by Reserve CyberVein’s loss of 10.32% and Quant’s loss of 7.90%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had increased quite a bit since we last reported, with its value is currently 62.4%. This value represents a 0.8% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has increased significantly since we last reported. Its current value is $408.12 billion, representing an increase of $13.35 billion compared to our previous report.

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What happened in the past 24 hours?

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Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization surprised the market once again by pushing even further up. Our weekly chart overview has listed a push towards $13,900 as one of the likely scenarios for this week, which is exactly what happened. Bitcoin has pushed past the descending (yellow dotted) line and above the $13,180 resistance level, all the way to $13,800.

Traders should look at how Bitcoin behaves around $13,900 and follow the next push (either a pullback below $13,570 or a break past $13,900).

BTC/USD 4-hour Chart

Bitcoin’s technicals have changed to extremely bullish on all time frames since yesterday, with only the 4-hour chart oscillators showing some signs of a tilt towards the sell-side.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above both its 50-period EMA and its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is overbought (74.76)
  • Volume is above average
Key levels to the upside          Key levels to the downside

1: $13,570                                 1: $13,200

2: $13,900                                 2: $12,870

3: $14,000                                  3: $12,500

Ethereum

Ethereum has spent the day bouncing off of the support level dating back from early September. While Ether had a slightly bigger chance of continuing its path down the projected path towards the bottom of the channel, Bitcoin’s rise sparked up Ether’s bounce. Its price is now hovering slightly above $400, with a solid chance of testing $415 again.

Traders should watch for how Ethereum plays out in the next few days to evaluate if it pushes towards $415-$420 or goes below $400.

ETH/USD 4-hour Chart

Ethereum’s technicals are tilted towards the buy-side on all time-frames, but only the daily time-frame is completely bullish. On the other hand, the 4-hour, weekly, and monthly overviews have signs of neutrality, mostly when it comes to oscillators.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and slightly above its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (55.78)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $415                                     1: $400

2: $420                                     2: $378

3: $435                                      3: $371

Ripple

The fourth-largest cryptocurrency by market cap has stayed at the same place over the course of the past 24 hours, possibly preparing itself for a move towards the yellow ascending line. Even if it keeps following it, XRP will gain a significant boost in price and an opportunity to test $0.26 once again.

Traders should look for a trade when XRP reaches $0.26, as they can enter a trade on either the pullback or the push above.

XRP/USD 4-hour Chart

XRP’s technicals are slightly tilted towards the buy-side, but the 1-day, as well as 4-hour and weekly technicals, show slight neutrality. On the other hand, its monthly overview is still bearish.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price at both its 50-period EMA and its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (50.04)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 27 – Bitcoin Preparing For a Retracement; XRP Tumbles on the Daily

The cryptocurrency sector spent the day with cryptocurrencies trying to find consolidation points as preparation for Bitcoin’s next move. Bitcoin is currently trading for $13.049, representing an increase of 0.61% on the day. Meanwhile, Ethereum lost 2.74% on the day, while XRP lost 1.73%.

The cryptocurrency sector spent the day with cryptocurrencies trying to find consolidation points as preparation for Bitcoin’s next move. Bitcoin is currently trading for $13.049, representing an increase of 0.61% on the day. Meanwhile, Ethereum lost 2.74% on the day, while XRP lost 1.73%.

The cryptocurrency sector spent the day with cryptocurrencies trying to find consolidation points as preparation for Bitcoin’s next move. Bitcoin is currently trading for $13.049, representing an increase of 0.61% on the day. Meanwhile, Ethereum lost 2.74% on the day, while XRP lost 1.73%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, Flexacoin gained an astonishing 144.03% in the past 24 hours, making it the crypto to gain the most in a day. Kusama (28.07%) and Ocean Protocol (20.44%) also did great. On the other hand, Quant lost 13.61%, making it the most prominent daily loser. It is followed by Reserve Rights’ loss of 10.28% and Cybervein’s loss of 8.60%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had increased slightly since we last reported, with its value is currently 61.6%. This value represents a 0.5% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has stayed at the same place since we last reported. Its current value is $394.54 billion, representing an increase of $1.86 billion compared to our previous report.

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What happened in the past 24 hours?

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Technical analysis

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Bitcoin

 

The largest cryptocurrency by market capitalization has spent the past 24 hours slowly gaining value and reaching the $13,180 mark. However, it managed to make (at the moment) the third lower high in a row, creating a short-term bearish indicator. The decaying volume, as well as an increase in sell pressure around the $13,200 level, supports the claim that Bitcoin is more likely to retrace first before moving up.

Traders should pay attention to how BTC approaches $13,180 and if it (more likely) enters a price correction phase, or if it rather (less likely) pushes past $13,180 and towards #13,900.

BTC/USD 4-hour Chart

Bitcoin’s technicals are a bit more bearish than the day before, despite its price being a bit higher. Its 4-hour, daily and weekly overviews all have sell-tilted oscillators and buy-tilted moving averages, while the overall summary is slightly bullish. The monthly overview is still fully bullish.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and its 21-period EMA
  • Price is slightly above its middle Bollinger band
  • RSI is slightly below being overbought (61.54)
  • Volume is descending
Key levels to the upside          Key levels to the downside

1: $13,200                                 1: $12,870

2: $13,900                                 2: $12,500

3: $14,000                                  3: $12,300

Ethereum

Ethereum has spent the day following its ascended trading channel but to the downside. The second-largest cryptocurrency by market cap bounced off of the $420 highs as it couldn’t pass either of the $415 and $420 resistance levels and pushed towards the downside. The move will most likely end somewhere between $400 and $378. However, if Bitcoin pushes towards the upside, Ethereum will most likely abandon its current pattern and trade alongside it.

Traders should watch for how Ethereum retraces and what it does after, as many safe trading patterns may emerge from that.

ETH/USD 4-hour Chart

Ethereum’s technicals are quite confusing, as its 4-hour overview is completely bearish, while its daily overview is completely bullish. Its weekly and monthly overviews are tilted towards the buy-side, but the weekly one is slightly more neutral.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is below both its 50-period and its 21-period EMA
  • Price is at its lower Bollinger band
  • RSI is nearly oversold (38.94)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $415                                     1: $400

2: $420                                     2: $378

3: $435                                      3: $371

Ripple

The fourth-largest cryptocurrency by market cap trying to decide its direction. Its price started to fall down after it failed to break $0.26, but it was expected for the ascending trend line (yellow dotted line) to hold at least for a bit more. However, XRP quickly broke that level to the downside, opening itself towards more possibility of moving down.

On the other hand, some people call the most recent moves a bull flag and are entering long positions. While this is unlikely, all traders must be aware of and respect this stance as well before entering their own trades.

XRP/USD 4-hour Chart

XRP’s technicals split into two sides, with the 4-hour and monthly overviews being tilted towards the sell-side and daily and weekly overviews being tilted towards the bull-side (with a bit of neutrality).

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price slightly below both its 50-period EMA and its 21-period EMA
  • Price is between its lower and middle Bollinger band
  • RSI is ascending (42.18)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 27 – Top Trade Setups In Forex – C.B. Consumer Confidence in Play! 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

On the news side, the eyes will remain on the economic events coming out of the U.S. economy. The Core Durable Goods Orders m/m and Durable Goods Orders m/m are expected to report mixed data that may or may not drive price action in dollar related events. While the C.B. Consumer Confidence will be the major highlight of the day, economists expect a slight movement on consumer confidence from 101.8 to 102.1 that may underpin the U.S. dollar today. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18-93 after placing a high of 1.18596 and a low of 1.18031. The EUR/USD pair moved in a bearish trend on Monday and lost most of its previous day gains. The EUR/USD pair fell on Monday amid the strong U.S. dollar and the rising number of coronavirus infections through Europe. The market turned risk-averse and weighed on the riskier EUR/USD pair that reversed its movement on Monday.

The rising number of coronavirus cases in Europe kept the shared currency under bearish pressure at the starting day of the week. Spain declared a state of emergency on Sunday for six-months and imposed a national curfew to control the spread of coronavirus. France has already placed a curfew, and it reported more than 50,000 new infections in a single day. On Monday, Italy also announced a national curfew to curb the coronavirus spread. Germany will reportedly introduce more restrictions later in the week.

On Monday, as the coronavirus situation was out of control in Europe, Germany’s DAX 30 and the Euro Stoxx 50 indexes lost more than 2%, reflecting the risk-off market sentiment that ultimately weighed on EUR/USD pair. Another factor involved in the market’s dismal sentiment was the lack of progress in the U.S. stimulus aid package. The U.S. advisor Larry Kudlow said that talks were slowed but not ended as the chances of a deal before the election were null, but investors were awaiting the post-election stimulus.

On the data front, at 14:00 GMT, the German Ifo Business Climate for October dropped to 92.7 from the projected 93.1 and weighed on single Currency Euro that added in the losses n EUR/USD pair on Monday. At 19:00 GMT, the New Home Sales from the U.S. also declined to 959K against the expected 1025K and weighed on the U.S. dollar that ultimately helped to limit the losses of the EUR/USD pair. The U.S. dollar was strong on Monday as the U.S. Dollar Index was up to 93 levels due to its safe-haven nature. The greenback rose on Monday as the global COVID-19 cases continue to soar and weigh on market sentiment. Furthermore, the rising number of infections in China decreased the appetite of risky assets like EUR/USD pair as the world’s second-largest economy could suffer a setback.

Looking forward, the Euro traders will await tomorrow for the release of the European Central Bank’s Lending Survey, and the U.S. dollar investors will be looking to September’s U.S. Durable Goods Orders report. The fresh developments surrounding the coronavirus outbreak in the continent will also remain under observation by EUR/USD pair’s investors.

Daily Technical Levels

Support Resistance

1.1839      1.1861

1.1828      1.1872

1.1817      1.1882

Pivot point: 1.1850

EUR/USD– Trading Tip

The EUR/USD is trading with a slightly bearish bias at the 1.1836 level, holding mostly below an immediate resistance level of 1.1865 area. Closing of candles below the 1.1866 level may drive selling bias until the 1.1811 level that marks 38.2% Fibonacci retracement level. Continuation of a selling bias may lead the EUR/USD pair further lower until 1.1770, the 50% Fibo level. Conversely, the bullish breakout of the 1.1866 area can open further room for buying until the 1.1910 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30230 after placing a high of 1.30749 and a low of 1.29928. The GBP/USD pair dropped and continued its previous bearish trend. The GBP/USD pair extended its losses on Monday and continued its bearish streak for the 4th consecutive day, dropping below 1.3000 level despite the Brexit deal optimism in the market mainly due to the broad-based U.S. dollar strength on the day.

The British Pound held steady against the rising U.S. dollar on Monday and shrugged off the renewed demand for the safe-haven greenback on expectations that the U.K. and the E.U. will eventually reach a Brexit deal after both sides agreed to push out the deadline to reach a consensus.

Last Thursday, Brexit talks were resumed and were extended to comping Wednesday when E.U. Brexit negotiator Michel Barnier is expected to attempt to bridge some of the differences between the U.K. and E.U.

It is also assumed that Barnier’s efforts to clinch a deal could revive hopes that German Chancellor Angela Merkel might be able to persuade French President Emmanuel Macron to ease his stance on one of the key sticking points of fishing rights. The United Kingdom has stressed that it would take control over the access to its waters after the Brexit transition period ends. On the other hand, Macron fears that a softer stance over fisheries will sacrifice the French fishermen.

On the other hand, the optimism on progress this week had been mitigated somewhat following reports that the U.K. was waiting until after the U.S. election to reveal its negotiation strategy as a blue wave could weaken Britain’s negotiation stance. Joe Biden has previously said that a UK-US deal would depend on Britain securing a deal with the E.U. These concerns also weighed on British Pound and GBP/USD. However, the British Prime Minister Boris Johnson said that Brexit and the U.S. election results were entirely separate.

On the data front, at 19:00 GMT, the U.S. economic docket released the report of New Home Sales that dropped to 959K from the anticipated 1025Kand weighed on the U.S. dollar that eventually helped GBP/USD pair in capping further losses. Moreover, the GBP/USD pair’s losses could be attributed to the rising number of coronavirus cases in the U.K. As well as the rising fears of the second wave of coronavirus and its impact globally raised the safe-haven demand for greenback that ultimately added pressure on GBP/USD pair on Monday.

The developments surrounding the U.S. stimulus package also kept the U.S. dollar stronger as the package will not be delivered before the election. The stronger U.S. dollar weighed further on the GBP/USD pair on the day.

Daily Technical Levels

Support Resistance

1.3040      1.3064

1.3028      1.3076

1.3016      1.3088

Pivot point: 1.3052

GBP/USD– Trading Tip

The GBP/USD traded with a selling bias below an immediate resistance area of 1.3075. Below this, Cable has closed a bearish engulfing candle that may drive selling bias until the 1.3013 level. Violation of 1.3013 level can open further room for selling until 1.2965 area, the level that’s extending support due to upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.866 after placing a high of 105.053 and a low of 104.651. The USD/JPY pair remained bullish on Monday and recovered most of the previous daily losses. The USD/JPY pair rose to its highest level in five days above 105 level on Monday. However, it erased a large portion of its gains on the day during the American session.

The broad-based U.S. dollar strength caused the rise in the USD/JPY pair on the day due to its safe-haven status. The selling pressure surrounding the major European currencies on concerns over the rising number of coronavirus cases in the continent also helped the U.S. dollar outperform its rivals. The U.S. Dollar Index that was dropped 1% last week posted a decisive recovery on the starting day of this week and was up by 0.32% on the day at 93.04.

The rising U.S. dollar Index pushed the USD/JPY pair above the 105 level on Monday. However, investors saw this as a selling opportunity regardless of the U.S. dollar strength, and hence, the pair started losing most of its daily gains in the late trading hours. On the data front, at 04:50 GMT, the SPPI for the year from Japan raised to 1.3% against the forecasted 1.0% and supported the Japanese Yen that capped further gains in the USD/JPY pair on Monday.

At 19:00 GMT, the New Home Sales from the U.S. for September fell to 959K from the forecasted 1025K and weighed on the U.S. dollar that also limited further upside in the USD/JPY pair on the day.

The U.S. dollar was also strong on Monday as the talks for the next round of U.S. stimulus measures were stalled till the election. Both parties were moving forward to reach a consensus over the stimulus aid package’s size, but they delayed the delivery of major measures after the election. This raised the U.S. dollar on board and pushed the USD/JPY pair even higher on Monday. Other than that, the U.S. dollar was also up due to rising demand for its safe-haven nature amid the rising number of coronavirus cases globally. France reported 50,000 new cases in a single day and introduced a curfew to curb the virus’s spread. 

Just like that, many European nations, including Italy and Spain, also introduced curfews and restrictive measures. Germany was set to impose restrictions this week and not only in European nations, but the second wave of coronavirus was also spreading worldwide. These concerns weighed on market risk sentiment and raised demand for the greenback that ultimately added strength to the USD/JPY pair on Monday.

Looking forward, the investors will await the release of Durable Goods Orders and the Conference Board’s Consumer Confidence data that will release on Tuesday.

Daily Technical Levels

Support Resistance

104.18      105.35

103.68      106.00

103.02      106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The oversold USD/JPY pair is taking a bullish turn now, perhaps to complete Fibonacci retracement at 104.900 level. A 38.2% Fibonacci retracement level extends this level, and it may extend resistance to the USD/JPY pair today. Continuation of a bullish bias over the 104.900 level can lead the USD/JPY pair further higher until the 105.225 level. The MACD and RSI are also supporting bullish bis in the USD/JPY pair today. However, the pair seems to have formed a bearish flag on the 4-hour timeframe that typically breakout on the lower side; if that happens, we may see USD/JPY price dropping until the 104.350 mark. Good luck! 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 26 – Top Trade Setups In Forex – New Home Sales in Play! 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

On Monday, the market is likely to exhibit thin trading volume and volatility in the wake of the Labor day holiday in New Zealand, while the other economies are expecting to release low impact events that may keep the market unchanged. Most of the focus will stay on the U.S. New Home Sales data that may help drive some market volatility today. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18562 after placing a high of 1.18646 and a low of 1.17865. The movement of the EUR/USD pair was bullish on Friday. Things in European nations were getting out of control and led the governments to impose further restrictions to curb coronavirus’s effect on the economy. France, Italy, and Spain reported a record rise in the daily infection cases that urged their governments to impose curfews and lockdowns.

However, the single currency managed to remain bullish on Friday despite the rising number of coronavirus cases in Europe as the focus of traders shifted more towards the U.S. dollar. The coronavirus condition in the U.S. was also not better as the country reported a record-high number of 82,668 cases in a single day and weighed on the U.S. dollar that ultimately supported the bullish trend of the EUR/USD pair on Friday.

On the data front, at 12:15 GMT, the French Flash Services PMI for October dropped to 46.5 against the forecasted 47.0 and the previous 47.5 and weighed on Euro. The French Flash Manufacturing PMI came in as 51.0 against the expected 51.3 and previous 51.2. AT 12:30 GMT, the German Flash Manufacturing PMI raised to 58.0 against the expected 55.0 and previous 56.4 and supported the single currency. Simultaneously, the German Flash Services PMI raised to 48.9 against the expected 49.6 and previous 50.6 and weighed on the single currency Euro.

At 13:00 GMT, the Flash Manufacturing PMI from Eurozone for October raised to 54.4 against the projected 53.0 and previous 53.7 and supported the single currency Euro. Whereas the Flash Services PMI from the whole bloc dropped to 46.2 from the anticipated 47.1 and the previous 48.0, it also weighed on the single currency Euro. At 17:59 GMT, the Belgian NBB Business Climate from Europe came in as -8.5 against the forecasted -11.2 and supported the single currency. The Eurozone’s macroeconomic data was mixed and failed to provide any meaningful direction to the currency pair EUR/USD on Friday.

From the U.S. side, at 18:45 GMT, the Flash Manufacturing PMI came in line with the expectations of 53.5 for October. The Flash Services PMI from the U.S. for October advanced to 56.0 from the projected 54.7 and supported the U.S. dollar that ultimately capped further gains in EUR/USD pair.

Another factor that kept the additional gains in EUR/USD pair supported was the improved risk sentiment as President Donald Trump and Democratic Joe Biden took part in the final debate of the presidential election campaign in Nashville, Tennessee. The final debate was far more civilized than the previous one, and it potentially led to an additional tightening in the polls that raised the risk sentiment in the market and supported the EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1796     1.1853

1.1776     1.1888

1.1740     1.1909

Pivot point: 1.1832

EUR/USD– Trading Tip

The EUR/USD is trading with a slightly bearish bias at the 1.1836 level, holding mostly below an immediate resistance level of 1.1865 area. Closing of candles below the 1.1866 level may drive selling bias until the 1.1811 level that marks 38.2% Fibonacci retracement level. Continuation of a selling bias may lead the EUR/USD pair further lower until 1.1770, the 50% Fibo level. Conversely, the bullish breakout of the 1.1866 area can open further room for buying until the 1.1910 level today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30400 after placing a high of 1.31221 and a low of 1.30189. Overall the movement of the GBP/USD pair remained bearish throughout the day. The GBP/USD pair was down on Friday as the U.S. dollar gained traction on board and made GBP/USD pair weak. As well As, the retreat inequity and risk sentiment also hit the Pound that dropped to fresh lows.

Wall Street’s equity prices went lower on Friday and raised the greenback on board that ultimately dragged GBP/USD pair on the downside. The Dow Jones was down by 0.10%, and NASDAQ was down by 0.18%. The expectations for a new round of fiscal stimulus by the U.S. government before elections faded away and supported the U.S. dollar that ultimately weighed on GBP/USD pair.

Meanwhile, the Chief EU Brexit negotiator Michel Barnier will provide his weekly assessment of the talks and could point to a lack of meaningful progress despite intensifying talks. The British Brexit negotiator, David Frost, could also do that, and these concerns kept the British Pound under pressure at the ending day of the week.

However, the cautious optimism was prevailing in the market as the E.U. and U.K. had resumed talks related to the Brexit deal. The French President has said to the local fishing industry to brace for an impact that indicated a close deal. Whereas the investors were still cautious as talks could be bent on either side, British Pound remained under pressure ahead of the talks’ results. Moreover, the rising number of coronavirus cases in the United Kingdom pressured the authorities to impose a new full lockdown; however, some were refusing to do so as it had already cost the economy too much. These tensions in the local country also kept the British Pound under pressure.

On the data front, at 04:01 GMT, the GfK Consumer Confidence from Great Britain dropped to -31 against the expected -28and weighed on British Pound and added losses in GBP/USD pair. At 13:30 GMT, the Flash Manufacturing PMI for October remained flat with the anticipated 53.3, and the Flash Services PMI dropped to 52.3 against the projected 53.4 and weighed on British Pound and pulled the pair GBP/USD even lower.

From the U.S. side, at 18:45 GMT, the Flash Manufacturing PMI came in line with the anticipations of 53.5 for October. The Flash Services PMI from the U.S. for October raised to 56.0 from the expected 54.7 and supported the U.S. dollar that ultimately dragged the GBP/USD pair on the downside on Friday.

Daily Technical Levels

Support Resistance

1.3049     1.3129

1.3021     1.3179

1.2970     1.3208

Pivot point: 1.3100

GBP/USD– Trading Tip

The GBP/USD traded with a selling bias below an immediate resistance area of 1.3075. Below this, the cable has closed a bearish engulfing candle that may drive selling bias until 1.3013 level. Violation of 1.3013 level can open further room for selling until 1.2965 area, the level that’s extending support due to upward trendline on the 4-hour timeframe. The MACD and RSI are in support of selling bias today. Consider opening sell trades below the 1.3075 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.695 after placing a high of 104.934 and a low of 104.545. The USD/JPY pair moved in a bearish trend throughout Friday. The USD/JPY pair fell on Friday after the final presidential debate between U.S. President Donald Trump and Joe Biden before the November 3rd election.

The Final debate between two presidential candidates took place in Nashville, Tennessee. This final debate was more restrained than the first one. The center of the discussion was on policy rather than a personal attack.

It looked like investors were closing their long positions ahead of the elections and were hesitant to place any big position ahead of November 3 as polls before the final debate turned, so it became difficult to project the outcome of elections.

Investors were also keeping a close eye on the negotiations between House of Representative Speaker Nancy Pelosi and the U.S. Treasury Secretary Steven Mnuchin over the next round of U.S. stimulus package. Pelosi has expressed optimism that a consensus could be reached. In contrast, the expectations that a U.S. stimulus package could be delivered before elections faded away as the date of the election has come closer.

These hopes that a stimulus relief bill could not be delivered ahead of elections, whether both parties agreed on the package’s size as the election was only a week away, supported the U.S. dollar and capped further losses in the USD/JPY pair on Friday.

On the data front, at 04:30 GMT, the National Core CPI from Japan for the year came in as -0.3% against the forecasted -0.4% and supported the Japanese Yen that added in the USD/JPY’s losses. At 05:30 GMT, the Flash Manufacturing PMI dropped to 48.0 from the projected 48.4 and weighed on the Japanese Yen.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The oversold USD/JPY pair is taking a bullish turn now, perhaps to complete Fibonacci retracement at 104.900 level. This level is extended by a 38.2% Fibonacci retracement level, and it may extend resistance to the USD/JPY pair today. Continuation of a bullish bias over the 104.900 level can lead the USD/JPY pair further higher until the 105.225 level. The MACD and RSI are also supporting bullish bis in the USD/JPY pair today. However, the pair seems to have formed a bearish flag on the 4-hour timeframe that typically breakout on the lower side; if that happens, we may see USD/JPY price dropping until the 104.350 mark. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 26 – JP Morgan Calls Bitcoin “Currency With A Large Upside Potential”; Crypto Preparing For A Big Move

The cryptocurrency sector spent the weekend hovering around the same spot as Bitcoin was testing its ~$13,000 level. Bitcoin is currently trading for $13.049, representing a decrease of 0.80% on the day. Meanwhile, Ethereum lost 1.52% on the day, while XRP gained 0.18%.

The cryptocurrency sector spent the weekend hovering around the same spot as Bitcoin was testing its ~$13,000 level. Bitcoin is currently trading for $13.049, representing a decrease of 0.80% on the day. Meanwhile, Ethereum lost 1.52% on the day, while XRP gained 0.18%.

The cryptocurrency sector spent the weekend hovering around the same spot as Bitcoin was testing its ~$13,000 level. Bitcoin is currently trading for $13.049, representing a decrease of 0.80% on the day. Meanwhile, Ethereum lost 1.52% on the day, while XRP gained 0.18%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, Flexacoin gained an astonishing 171.94% in the past 24 hours, making it the crypto to gain the most in a day. Filecoin (56.89%) and Reserve Rights (13.22%) also did great. On the other hand, Energy Web Token lost 7.94%, making it the most prominent daily loser. It is followed by Cosmos’ loss of 5.78% and ABBC Coin’s loss of 5.71%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had increased slightly since when we last reported, with its value is currently 61.1%. This value represents a 0.3% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has stayed at the same place since we last reported. Its current value is $396.38 billion, representing an increase of $1.83 billion compared to our previous report.

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What happened in the past 24 hours?

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_______________________________________________________________________

Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization has spent the weekend hovering around the $13,000 mark, and even attempted to break through the $13,200 resistance level (but failed to). With the volume is descending ever since Oct 21, most analysts are expecting a big move very soon. However, they are torn when it comes to the direction.

Traders should pay attention to how BTC handles its push towards the resistance level, as there might be good trading opportunities after (more likely) the level holds and a pullback occurs, or after BTC breaks the level and pushes higher (less likely).

BTC/USD 4-hour Chart

Bitcoin’s sentiment is highly bullish, with its shorter time-frames showing a bigger tilt towards neutrality, while its longer time-frames are more titled to the buy-side.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and slightly above its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is slightly below being overbought (62.22)
  • Volume is descending
Key levels to the upside          Key levels to the downside

1: $12,870                                 1: $12,500

2: $13,200                                 2: $12,300

3: $14,000                                  3: $12,000

Ethereum

Ethereum has continued its descent from the highs it made on Oct 22, with its price moving slowly towards the downside. The smaller time-frame charts are showing that ETH kept creating new lower highs, with one (failed) attempt to break out of the trend. The next couple of hours will be crucial, as Ethereum is about to hit the trend line, break it or continue pushing down towards $400.

Traders should watch for how Ethereum reacts to the descending trend line and trade off of it.

ETH/USD 2-hour Chart

Ethereum’s technicals are tilted towards the buy-side on all time-frames, with its lower time frames being slightly more neutral.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and slightly above its 21-period EMA
  • Price is at its Bollinger band
  • RSI is overbought (52.24)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $415                                     1: $400

2: $420                                     2: $378

3: $435                                      3: $371

Ripple

The fourth-largest cryptocurrency by market cap spent the weekend testing its ascending support level (the dotted yellow line), which dates back from Oct 16. XRP has slowly descended from its most recent highs and reached the support line at the ~$0.252 level. The line provided good support, and XRP shot up as a result of it. However, it could not break the $0.26 resistance level, which may prove a problem in the long run.

XRP is unlikely to pass $0.26 unless it is fueled by Bitcoin’s push towards the upside. The more likely scenario would be that XRP hovers between the support line and the $0.26 level for some time.

XRP/USD 4-hour Chart

XRP’s technicals are bullish with hints of neutral sentiment on the 4-hour, 1-day, and 1-week time-frames, while its monthly time-frame shows strong bearish sentiment.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price above both its 50-period EMA and its 21-period EMA
  • Price is near its top Bollinger band
  • RSI is ascending (58.25)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Crypto Market Analysis

BTC/USD Chart Overview + Possible Outcomes

In this weekly BTC /USD analysis, where we are looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, where we are looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this weekly BTC /USD analysis, where we are looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

Overview

Bitcoin has had another week of explosive gains, mostly due to its fundamentals. This week’s spike can’t go without mentioning PayPal’s announcement that it will enable its users to buy, sell and hold crypto, as well as that it will not be just a gimmick but rather a crucial factor in PayPal’s future business development (PayPal will offer crypto payments to its 26 million merchants, as well as enable the usage of crypto on its payment processing app Venmo). This news, alongside other news of large corporations investing tens of millions in Bitcoin and crypto, sparked the push past $12,000 and up to $13,235.

Technical factors



Bitcoin has abruptly left its triangle formation last week, pushing a little above $11,700 before consolidating and pulling back. After being pressed between $11,300 and $11,500 for some time, the PayPal news broke out, and Bitcoin surged, reaching as far as $13,235 before the move stopped.
Bitcoin is now in a consolidation phase, creating a triangle formation on the smaller time-frames. The formation is accompanied by descending volume, indicating that the move that will follow will be quite strong. Its RSI is overbought on all time-frames above 4 hours, while its moving averages are at play only at the 1-hour chart, where the current price is supported by the 21-period moving average.
Sentiment built around Bitcoin is certainly bullish at the moment, and any serious downturns are very unlikely. However, a slight pullback before the next push is likely.
Another thing to add is that Bitcoin is one step away from moving into the “fresh air” territory (after the 2019 high of $13,900) where there is no technical or historical volume ahead, meaning that this territory will be full of new people entering the market to chase profits as well as smart money taking profits.

Likely Outcomes

Bitcoin currently has two main scenarios it can play out. Both of these scenarios are bullish, where one breaks out above the current 1h time-frame triangle formation to the upside and past the $13,200 area, while the other one involves a pullback before the spike.
1: As shown in the chart, Bitcoin will most likely have to retrace slightly and reset its RSI level. While the bull sentiment is prevailing, the largest cryptocurrency by market cap should establish and confirm its support at the ~$12,500 level (which it breezed through) before going further up.
2: The other scenario is slightly less likely, and involves a simple breakout scenario of the current triangle formation to the upside and a push towards (ultimately) $13,900. This level will certainly be contested as it is the last frontier before the all-time high territory. On top of that, many investors will most likely take profit at this level.

The scenario in which Bitcoin suddenly down sharply and swiftly is incredibly unlikely. While a strong move in this direction is possible only if it’s backed by some bearish news/events, the bull phase Bitcoin is in at the moment is highly resistant to bad news.

Categories
Forex Market Analysis

Daily F.X. Analysis, October 23 – Top Trade Setups In Forex – European PMI In Highlights! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.18184 after placing a high of 1.18666 and a low of 1.18111. The EUR/USD pair was down and remained bearish on that day. As the market sentiment deteriorated and the U.S. dollar moved stronger across the board, the EUR/USD pair dropped on a session by 0.3% and remained one of the worst G10 performers on Thursday.

The common currency put an end to a four-day rally on Thursday as the hopes of the next round of U.S. stimulus deal faded away. 

The U.S. President Donald Trump crushed the risk appetite on Thursday after blaming Democrats for not compromising an acceptable agreement. This raised the U.S. dollar on board from its seven-week lowest level. The hopes for the next round of U.S. stimulus package were faded after Trump blamed Democrats that they were unwilling to compromise on the relief aid bill’s size. However, the talks were continuing, and it is uncertain whether a stimulus package is delivered before the Presidential elections or not.

The faded hopes dampened the risk sentiment and added strength to the U.S. dollar that ultimately added weight on the EUR/USD pair on Thursday. Furthermore, the rising number of coronavirus cases in Europe also weighed on the EUR/USD pair. In Europe, the daily number of infections reached record levels, with Spain becoming the first western country to report one million cases. These rising numbers of coronavirus cases from Europe also undermined the Euro currency’s confidence, ultimately added to the losses of the  EUR/USD pair.

On the data front, at 11:00 GMT, the German GfK Consumer Climate came in as -3.1 against the forecasted -2.9 and weighed on Euro currency that added in the losses of EUR/USD pair. At 18:52 GMT, the Consumer Confidence from Europe was also declined to -16 from the projected -15 and weighed on the single currency and added in the losses of EUR/USD pair. From the U.S. side, the Unemployment Claims from last week were dropped to 787K against the projected 860K and supported the U.S. dollar. At 19:00 GMT, the Existing Home Sales also raised to 6.54M against the forecasted 6.20M and supported the U.S. dollar that ultimately weighed on EUR/USD pair.

Apart from macroeconomic data, the European Central bank has also hinted that the Eurozone’s economy was in for a bumpy road ahead. The President of ECB Christine Lagarde also warned about the effects of the second wave of coronavirus on the economy. So, the weak outlook of the Eurozone economy also weighed on EUR/USD pair.

Daily Technical Levels

Support    Resistance

1.1828     1.1889

1.1795     1.1915

1.1768     1.1949

Pivot Point: 1.1855

EUR/USD– Trading Tip

The bullish bias of the EUR/USD has weakened as the pair fell from the 1.1880 level to a 50% Fibonacci retracement level of 1.1805 level. This level’s violation may trigger further selling until the 1.1769 area that marks 61.8% Fibonacci retracement for the EUR/USD. The EUR/USD is likely to exhibit further selling bias today, especially after violating the 1.1770 level to 1.1740 level. The MACD and RSI are also supporting the bearish bias; therefore, bearish bias remains dominant today. The EUR/USD may face resistance around 1.1837 and 1.1880 level today.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30822 after placing a high of 1.31517 and a low of 1.30704. Overall the GBP/USD pair remained on the downside all through the day. The GBP/USD pair gave up some ground and remained bearish on Thursday amid the broad-based U.S. dollar come back. However, the GBP/USD pair managed to stay in the upper half of its weekly range.

The British Pound fell on Thursday, although the talks between the E.U. & U.K. resumed on the day. The reason could be attributed to the brinkmanship from Britain amid negotiations, risk an accidental no-deal Brexit. On Thursday, the top E.U. Brexit negotiator Michael Barnier arrived in London to intensify talks with his British counterpart David Frost to break the impasse and find a solution to key sticking points, fisheries, and state aid.

The fisheries have long been a debating point in the Brexit negotiations as the U.K. has been determined to control access to its waters after the transition period ends. U.K. has refused to stick with the E.U.’s common fisheries policy that set fishing quotas among the E.U. member states. The transition period has come near to end with just months to go, and the U.K. has refused to allow talks to run past the year-end deadline. According to a spokesman for UK PM Boris Johnson, the time has remained very short as the U.K. has been reportedly clear that any agreement should be placed before the end of the transition period.

The concerns have raised in the market that the U.K.’s strategy to be somewhat tough on talks and deadlines could risk an accidental no-deal Brexit as the end of the year is coming ahead. These concerns weighed on the Sterling and added the GBP/USD pair’s losses on Thursday.

On the data front, the CBI Industrial Order Expectations from the U.K. came in as -34 against the forecasted -50 and supported British Pound. 

However, from the U.S. side, the Unemployment Claims from the previous week declined to 787K against the forecasted 860K and supported the U.S. dollar. The Existing Home Sales also supported the U.S. dollar after rising to 6.54M from the anticipated 6.20M. The positive data from the U.S. exerted pressure on GBP/USD pair on Thursday. Meanwhile, the Bank of England Governor Andrew Bailey told of strong demand to invest in climate change technology. He also sketched a strong demand for green investment. Looking forward, market participants will await the release of PMI for services and manufacturing activities to find a fresh clue about GBP/USD pair.

Daily Technical Levels

Support    Resistance

1.3049     1.3129

1.3021     1.3179

1.2970     1.3208

Pivot point: 1.3100

GBP/USD– Trading Tip

The GBP/USD traded bearishly below the 1.3165 resistance area to trade at the 1.3070 level that marks the 38.2% Fibonacci retracement level for the Sterling. On the further downside, the GBP/USD pair may take another dip until the 61.8% Fibo level of 1.3018 as the MACD is still pointing towards the selling area. At the moment, Sterling’s immediate resistance holds at the 1.3070 mark; however, the closings below this level is supporting the selling bias. Consider opening sell trades below the 1.3100 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.884 after placing a high of 104.921 and a low of 104.474. The movement of the USD/JPY currency pair stayed bullish throughout the day. The USD/JPY pair traded with a positive note during the whole Thursday session after a goodish pickup in the U.S. dollar demand. The rebounded U.S. dollar helped currency pair USD/JPY to gain positive traction and move away from the six-week lowest level it touched on Wednesday.

The slow progress in the U.S. stimulus measure package attracted some buying in the greenback that dampened the hopes that financial aid will be delivered before elections. The statement by House of Representatives Speaker Nancy Pelosi that soon there will be pen to paper on the stimulus bill failed to impress investors, and the USD/JPY pair continued moving in the upward direction.

Pelosi even said that the stimulus package could be passed in the House before election day. Still, investors were somewhat unconvinced that the bill could pass through the Senate due to the strong opposition from Republicans over a bigger stimulus deal. This, in turn, weighed on risk sentiment and supported the Japanese Yen that ultimately capped further upside in the USD/JPY pair prices.

Apart from developments surrounding the U.S. fiscal stimulus, the USD bulls further took clues from the better than expected release of the U.S. initial jobless claims. The number of Americans filed for unemployment benefits declined to 787K during the previous week for the first time against the projected 860K and supported the U.S. dollar. The decline in unemployment claims means less need for a U.S. stimulus package and more strength for the U.S. dollar and USD/JPY pair.

On the data front, the C.B. Leading Index from the U.S. dropped to 0.7% against the expected 0.8% and weighed on the U.S. dollar. The Existing Home Sales advanced to 6.54M in comparison to projected 6.20M and supported the U.S. dollar. Another favorable economic data release gave strength to the U.S. dollar that pushed the USD/JPY pair even higher on grounds.

Meanwhile, the rising number of coronavirus cases across the globe and fears for economic recovery due to lockdowns imposed to curb the spread of the virus raised the safe-haven appeal, supported the Japanese Yen, and weighed on the USD/JPY pair to limit its bullish move on Thursday.

On Thursday, the U.S. Dollar Index measures the greenback against the six currencies’ basket surge by 0.4% to 92.97. The U.S. dollar index fell to its seven-week lowest level at 92.46 on Wednesday but recovered from there on the next day amid a strong U.S. dollar despite the talks for stimulus package continued. However, traders’ focus will now be shifted towards the final presidential debate between President US Donald Trump and his Democratic rival Joe Biden.

Daily Technical Levels

Support    Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 23 – PayPal Enabling Crypto Not as Good as it Sounds; Ethereum Pushes Towards $420

The cryptocurrency sector was mostly consolidating after Bitcoin’s surge, with almost every single cryptocurrency in the top100 ending up in the green. Bitcoin is currently trading for $12,961, representing an increase of 1.21% on the day. Meanwhile, Ethereum gained 5.64% on the day, while XRP gained 2.34%.

The cryptocurrency sector was mostly consolidating after Bitcoin’s surge, with almost every single cryptocurrency in the top100 ending up in the green. Bitcoin is currently trading for $12,961, representing an increase of 1.21% on the day. Meanwhile, Ethereum gained 5.64% on the day, while XRP gained 2.34%.

The cryptocurrency sector was mostly consolidating after Bitcoin’s surge, with almost every single cryptocurrency in the top100 ending up in the green. Bitcoin is currently trading for $12,961, representing an increase of 1.21% on the day. Meanwhile, Ethereum gained 5.64% on the day, while XRP gained 2.34%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, Ampleforth gained 19.04% in the past 24 hours, making it the crypto to gain the most in a day. Energy Web Token (17.44%) and Reserve Rights (12.20%) also did great. On the other hand, Filecoin lost 13.57%, making it the most prominent daily loser. It is followed by HedgeTrade’s loss of 8.57% and ABBC Coin’s loss of 8.49%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had decreased slightly since when we last reported, with its value is currently 60.8%. This value represents a 0.4% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has experienced an increase since we last reported. Its current value is $394.96 billion, representing an increase of $4.72 billion compared to our previous report.

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What happened in the past 24 hours?

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While most of the market rejoices Bitcoin’s surge, confirmation of a bull market, and PayPal enabling its users to buy, sell and hold crypto, not everyone is equally happy. Some analysts have pointed out that PayPal will almost certainly bring adoption, but perhaps at a steep price. If the payment processor giant doesn’t get involved in the community and refuses to give private keys to its users, the benefits may not outweigh the setbacks.

With that being said, additional adoption and introduction of Bitcoin to the wider masses is certainly a positive thing.

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Technical analysis

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Bitcoin

The largest cryptocurrency by market capitalization stayed strong after yesterday’s push and even gained some more value. The price pushed past $13,000 once again but couldn’t hold the level, which prompted a pullback towards the sub-$13,000 level. However, the $12,870 level has turned to a support level (though it still needs proper confirmation), which is certainly positive.

At the moment, traders should look Bitcoin’s pullback and trade-off of that. However, if Bitcoin manages to push past $13,000 with confidence, traders shouldn’t wait much but rather join in quickly.

BTC/USD 4-hour Chart

Bitcoin’s technical overview has a strong bullish sentiment on longer time-frames (weekly and monthly), while its short-term sentiment is slightly more neutral.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and at its 21-period EMA
  • Price between its middle and top Bollinger band
  • RSI is overbought but descending(73.99)
  • Volume is extremely elevated
Key levels to the upside          Key levels to the downside

1: $12,870                                 1: $12,500

2: $13,200                                 2: $12,300

3: $14,000                                  3: $12,000

Ethereum

Ethereum’s push from yesterday was just a weaker iteration of Bitcoin’s push. However, the second-largest cryptocurrency by market cap has pushed further towards the upside on its own today, testing the $415 and $420 levels. While tests towards both levels failed, Ethereum is still very near $415 and may have the opportunity to strike again, or just consolidate near this level.

Traders should pay attention to Ethereum’s pullback towards $400 or push past $415 and trade off of that.

ETH/USD 4-hour Chart

Ethereum’s technicals are slightly confusing, as its 4-hour overview is completely bullish, while its daily overview is neutral-bullish. However, its long term technicals all tilt towards the buy-side.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is far above its 50-period and its 21-period EMA
  • Price is near the top Bollinger band
  • RSI is overbought (75.95)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $415                                     1: $400

2: $420                                     2: $378

3: $435                                      3: $371

Ripple

The fourth-largest cryptocurrency by market cap had a day filled with volatility, ups, and downs. XRP started the day off strong with a push past $0.26 and towards $0.266. However, bulls have reached exhaustion quickly, and bears stepped in, pulling the price back down to $0.257, where XRP is now consolidating.

XRP has a high-resistance zone above $0.26, which we have seen today as well. For this reason, it is much more plausible that XRP will push towards the downside and retest the $0.25 or $0.2454 levels.

XRP/USD 4-hour Chart

XRP’s technicals are extremely bullish on the 4-hour and 1-day chart, while they are tilting towards the sell-side the longer time-frame we choose.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price far above its 50-period EMA and above its 21-period EMA
  • Price is between its middle and top Bollinger band
  • RSI has left the overbought territory (61.12)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 22 – Top Trade Setups In Forex – U.S. Jobless Claims In Focus! 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

The economic calendar is filled with medium impact economic events such as Unemployment Claims, C.B. Leading Index m/m, and Existing Home Sales from the United States on the news front. Besides, the Consumer Confidence from the Eurozone will also remain in the highlights today. The market may show some price action during the U.S. session on the release of U.S. Jobless Claims. 

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18609 after placing a high of 1.18806 and a low of 1.18209. The EUR/USD pair extended its previous day’s gains and rose for the 4th consecutive session on Wednesday to reach its highest since mid-September. Despite the alarming comments from ECB President Christine Lagarde, the EUR/USD pair managed to post gains on Wednesday over the U.S. dollar’s weakness and improved risk sentiment.

The U.S. Dollar Index was down by 0.5% and fell to its seven-week lowest level on Wednesday to 92.46 over fresh hopes that the U.S. stimulus package for coronavirus would release soon. The hopes were encouraged by the comments of U.S. President Donald Trump, who said that he was ready to accept a larger coronavirus-relief package. This boosted investor’s optimism that eventually led to rising risk sentiment and increasing pressure on the safe-haven U.S. dollar. The U.S. dollar weakness added further strength to the already rising EUR/USD pair’s prices on Wednesday.

According to the White House spokesperson, Allysa Farah, she was optimistic that a fiscal deal between Democrats and Republicans would reach soon as Trump has suggested that he accept the $2.2 trillion bill proposed by Democrats. However, Senate Republicans have made it public that they will oppose a larger bill.

On Wednesday, the President of the European Central bank, Christine Lagarde, said in a pre-recorded interview that the economic outlook was under clear risk due to an unexpected early pickup in coronavirus infections. She said that more scientists in the Eurozone were expecting the epidemic’s resurgence in November or December with the cold. Lagarde’s concerning statements weighed on the single currency Euro and capped further gains in EUR/USD pair on Wednesday.

The central bank of Europe is set to hold a governing council next week to decide on its monetary policy. The majority of economists expect no change in policy until December. ECB is expected to ramp up its 1.35 trillion pandemics bond-buying program at its last policy meeting in 2020.

These expectations also weighed on the single currency Euro and capped further gains in currency pair EUR/USD.

Meanwhile, the number of coronavirus cases in Europe is continuously setting fresh records. However, market participants are ignoring the issue; it still holds some importance in driving the EUR/USD pair as there was no macroeconomic data to be released from Europe or the U.S. On Thursday, Europe will publish the Consumer Confidence Report, and the U.S. will publish its initial jobless claims from last week that will have a major impact on EUR.USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1/1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar to trade at 1.1848 level, and the has formed inside bar down, which suggests that the bullish bias is getting weaker and sellers may dominate the market. On the lower side, the EUR/USD can go for bearish correction until the 1.1819 level that marks the 38.2% Fibonacci retracement level. Continuation of further selling trends can lead the EUR/USD price towards a 1.1800 mark, and below this, the next support level stays at 1.1765. The MACD and RSI are also supporting the bearish bias now. The bearish bias remains dominant today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.31461 after a high of 1.31765 and a low of 1.29332. On Wednesday, the GBP/USD pair followed its previous daily trend and rose for 3rd consecutive day. The British Pound jumped higher on the day by 1.6% and reached its highest since September 7.

The recent jump in British Pound against the U.S. dollar came in as the E.U. and the U.K. were set to resume talks after Britain welcomed the bloc’s desire to break the impasse in negotiations. The post-Brexit talks are set to resume on Thursday after the E.U. Brexit negotiator Micheal Barnier said a deal was in reach and pledged to seek the necessary compromises on both sides. He added that an agreement has reached within and if both sides were willing to work constructively and compromise despite the difficulties.

Great Britain signaled that it was ready to intensify talks to soften the key sticking issues included fisheries and sovereign aid. Micheal Barnier believed that sovereignty was a legitimate concern for the U.K., and E.U. would have to compromise. These developments in Brexit talks gave strength to British Pound and supported GBP/USD pair on Wednesday to post gains.

On the data front, at 11:00 GMT, the CPI for the year from Great Britain was released as 0.5% against the forecasted 0.4% in September and supported British Pound. The Core CPI for the year was also released and came in as expected by 1.3%. The Public Sector Net Borrowing advanced to 35.4B against the forecasted 32.5B and weighed on GBP. The RPI for the year also dropped to 1.1% against the expected 1.2% and weighed on GBP.

At11:03 GMT, the United Kingdom’s PPI input raised to 1.1% against the forecasted -0.9% and raised British Pound. However, at 12:30 GMT, the PPI output remained flat at -0.1%. The Housing Price Index for the year from Pound also came in line with 2.5% expectations.

The rising CPI and PPI Input data supported the bullish momentum of the GBP/USD pair on Wednesday.

The British Pound was also helped by easing fears over negative interest rates after Deputy Bank of England Governor Dave Ramsden said that cutting rates below zero could hamper lending activity. He also said that there might be an appropriate time to use negative interest rates, but this was not that time. These comments also gave strength to British Pound and raised the GBP/USD pair on Wednesday.

Meanwhile, the U.K. reported 26,688 coronavirus cases on Wednesday in comparison to Tuesday’s 21,331 cases. The rising number of coronavirus infections from the U.K. forced the government to impose new lockdown measures in the country’s parts. These lockdowns also held the upward trend of the GBP/USD pair on Wednesday.

On the U.S. front, the stimulus package talks were resumed after U.S. President Donald Trump agreed to increase the stimulus package’s size. The renewed hopes for a stimulus package before elections weighed on the U.S. dollar, which added further strength to the rising GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2997     1.3220

1.2864     1.3310

1.2774     1.3443

Pivot point: 1.3087

GBP/USD– Trading Tip

The GBP/USD soared sharply to trade at the 1.3170 level, and recently, it has entered the overbought zone. Below 1.3170, we may see the GBP/USD price trading bearish to complete 23.8% Fibo level and 38.2% Fibo level at 1.3100 and 1.3068 level. Continuation of a bearish trend can lead the Cable towards the 1.3006 level that marks a 61.8% Fibo level. The cable may face resistance at 1.3170 level today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 104.580 after placing a high of 105.523 and a low of 104.339. The USD/JPY pair reversed its previous day momentum and fell on Wednesday to its one-month lowest level on the back of fresh U.S. dollar weakness. The pair hit 104.339 level, the lowest level since September 21 after U.S. President Donald Trump boosted for a larger stimulus package. This report prompted some investors to move toward riskier assets and dampened the safe-haven appeal for the greenback.

The price action from the USD/JPY traders suggested that traders were betting heavily on the news that there might be a stimulus by this weekend and ignored the signs of opposition from Trump’s Republican Party.

The Senate Majority Leader Mitch McConnell provided no timetable for a relief bill and said that he was not in favor of larger stimuli before elections. Whereas, the White House Chief of Staff Mark Meadows preserved the hopes for a stimulus deal and said on Wednesday that he was very hopeful that progress was being made in the negotiations. He added that both parties would remain under talks over the coming days.

The U.S. Treasury yields held near their highest levels in four months on Wednesday over the expectations that a deal might be reached. The 10-year Treasury yield was up by 1.5 basis points and touched its fresh four months high at 0.84%. This weighed on the U.S. dollar and added further pressure on the USD/PY pair.

The Federal Reserve issued it Beige Book on Wednesday that revealed that economic activity was continuously increasing across all districts with a pace of growth characterized as slight to modest in most districts.

The USD/JPY pair’s main driver on Wednesday remained fresh hopes for a stimulus package as there was no macroeconomic data to be released on the day. The focus was entirely on the relief bill, where Nancy Pelosi also affirmed that she was optimistic about the chances of reaching an agreement before the U.S. Presidential elections.

Daily Technical Levels

Support Resistance

104.18     105.35

103.68     106.00

103.02     106.51

Pivot point: 104.84

USD/JPY – Trading Tips

The USD/JPY traded dramatically bearish to drop from 105.460 level to 104.349 level. Like other pairs, the USD/JPY has also entered the oversold zone, and now sellers seem to be exhausted. On the higher side, the USD/JPY pair has reversed some of the losses to trade at the 104.700 level. On the higher side, the pair may go after the 38.2% Fibonacci retracement level of 104.900 and 50% Fibo level of 105. Let’s consider taking a buying trade over 104.350 area today. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 22 – PayPal to Enable its Users to Buy and Sell Crypto; Bitcoin Skyrockets to $13,000 as a Response

The cryptocurrency sector has rallied up and skyrocketed as PayPal announced that it will now support cryptocurrencies. Bitcoin has led the rally with an almost double-digit increase. It is currently trading for $12,886, representing an increase of 7.25% on the day. Meanwhile, Ethereum gained 6.69% on the day, while XRP gained 4.78%.

The cryptocurrency sector has rallied up and skyrocketed as PayPal announced that it will now support cryptocurrencies. Bitcoin has led the rally with an almost double-digit increase. It is currently trading for $12,886, representing an increase of 7.25% on the day. Meanwhile, Ethereum gained 6.69% on the day, while XRP gained 4.78%.

The cryptocurrency sector has rallied up and skyrocketed as PayPal announced that it will now support cryptocurrencies. Bitcoin has led the rally with an almost double-digit increase. It is currently trading for $12,886, representing an increase of 7.25% on the day. Meanwhile, Ethereum gained 6.69% on the day, while XRP gained 4.78%.

 Daily Crypto Sector Heat Map

If we check out the top 100 cryptocurrencies, we can see that Reserve Rights gained 45.36% in the past 24 hours, making it the top daily gainer. Litecoin (16.03%) and Ampleforth (14.02%) also did great. On the other hand, ABBC Coin lost 18.97%, making it the most prominent daily loser. It is followed by Filecoin’s loss of 14.56% and The Midas Touch Gold’s loss of 7.03%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level had increased slightly since when we last reported, with its value is currently 61.2%. This value represents a 0.7% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has experienced a huge increase since we last reported. Its current value is $390.24 billion, representing an increase of $23.98 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has had quite an amazing day filled with volatility and extremely high bull presence. Fueled by PayPal’s announcement that it will enable its users to buy,  sell and hold crypto,  Bitcoin skyrocketed and reached as high as $13,235 before pulling back. It’s currently trying to consolidate just under the $12,870 resistance level.

Any skepticism regarding whether the bull market has started has been shattered with Bitcoin’s most recent move. However, while this move was intense, Bitcoin will need a lot of great news, adoption, and ultimately time to reach its all-time highs.

At the moment, traders should look at how Bitcoin handles the pullback and trade-off of that.


BTC/USD 1-day Chart

Bitcoin’s technical overview is very strongly tilted towards the buy-side on longer time-frames (weekly and monthly), while its short-term overviews are slightly more neutral.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and at its 21-period EMA
  • Price above its top Bollinger band
  • RSI is extremely overbought (81.74)
  • Volume is extremely elevated
Key levels to the upside          Key levels to the downside

1: $12,870                                 1: $12,500

2: $13,200                                 2: $12,300

3: $14,000                                  3: $12,000

Ethereum

Ethereum has followed Bitcoin’s lead and pushed towards the upside, though with much less strength. Its price ultimately reached the $400 resistance before pulling back slightly. It is currently trying to consolidate right under the $400 level, which is still a great increase in price since yesterday when Ether was fighting to stay above $378.

Ethereum traders should pay attention to how the second-largest cryptocurrency by market cap handles its immediate resistance level, as well as an eventual further pullback.

ETH/USD 4-hour Chart

Ethereum’s technicals on all time-frames show bullishness, with its 4-hour and long-term technicals being a bit more tilted towards the neutral position, while its 1-day overview is completely bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is far above its 50-period and its 21-period EMA
  • Price is at the top Bollinger band
  • RSI is close to overbought (66.91)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $360

Ripple

The fourth-largest cryptocurrency by market cap has, like yesterday, used the momentum that Bitcoin has provided to push further up. Its price has established itself above the $0.2454 support level and pushed past $0.25. However, the $0.26 resistance level has not fallen, and XRP is now consolidating at the ~$0.255 level.

XRP’s upside is a zone of strong resistance, which this cryptocurrency will hardly surpass without Bitcoin’s push. XRP traders should pay attention to Bitcoin’s moves while focusing on XRP’s moves towards the downside.

XRP/USD 4-hour Chart

XRP’s technicals have changed quite a bit since our last report. Its 4-hour, 1-day, and weekly overviews are strongly tilted towards the buy-side, while its monthly overview is still bearish with a slight hint of neutrality.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price far above its 50-period EMA and above its 21-period EMA
  • Price is at its top Bollinger band
  • RSI is close to overbought (65.61)
  • Volume is below average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 21 – Bitcoin Above $12,000; Bull Market in Full Swing

The cryptocurrency sector was mostly in the red until Bitcoin took the day to push past $12,000, after which some cryptos started following it towards the upside. Bitcoin is currently trading for $12.234, representing an increase of 4.21% on the day. Meanwhile, Ethereum gained 0.40% on the day, while XRP lost 0.31%.

The cryptocurrency sector was mostly in the red until Bitcoin took the day to push past $12,000, after which some cryptos started following it towards the upside. Bitcoin is currently trading for $12.234, representing an increase of 4.21% on the day. Meanwhile, Ethereum gained 0.40% on the day, while XRP lost 0.31%.

The cryptocurrency sector was mostly in the red until Bitcoin took the day to push past $12,000, after which some cryptos started following it towards the upside. Bitcoin is currently trading for $12.234, representing an increase of 4.21% on the day. Meanwhile, Ethereum gained 0.40% on the day, while XRP lost 0.31%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that Nano gained 6.94% in the past 24 hours, making it the top daily gainer. Aave (5.59%) and OKB (5.41%) also did great. On the other hand, NXM lost 13.92%, making it the most prominent daily loser. It is followed by Reserve Rights’ loss of 13.85% and Arweave’s loss of 12.59%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since when we last reported, with its value is currently 60.5%. This value represents a 1% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has stayed at the same spot since we last reported. Its current value is $366.26 billion, representing an increase of $0.79 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization is pushing past its psychological and actual major resistance of $12,000 right at this moment. The move started slow, with one candle testing the waters above $12,000 before backing out, before bulls went head-on and pushed the move quickly to far above this level. At the moment, Bitcoin has stopped its push at just above $12,250.

Traders should pay attention to hot Bitcoin finishes this move and trade either the pullback or the next wave up.

BTC/USD 1-day Chart

Bitcoin’s technical overview is strongly tilted towards the buy-side, with lower time-frames showing some signs of neutrality, while longer time-frames are completely bullish.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is far above its 50-period EMA and at its 21-period EMA
  • Price above its top Bollinger band
  • RSI is extremely overbought (80.30)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $12,330                                 1: $12,000

2: $12,500                                 2: $11,850

3: $12,870                                  3: $11,735

Ethereum

Ethereum’s price was pretty much stagnant until Bitcoin broke $12,000, which is when the second-largest cryptocurrency by market cap started pushing up as well. The price has slowly pushed past $371 and then explosively past $378, which is where it is at the moment.

Traders should pay attention to how ETH tries to establish itself above $378, and trade off of it.

ETH/USD 4-hour Chart

Ethereum’s 4-hour technicals are showing a tilt towards the sell-side, while its 1-day overview is still bullish. When taking a look at its longer time-frames, we can see heavy neutrality, but still overall bulishness.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and its 21-period EMA
  • Price is near the top Bollinger band
  • RSI is neutral (56.02)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $360

Ripple

The fourth-largest cryptocurrency by market cap used the momentum Bitcoin’s move has created to push past its $0.2454 resistance once again after falling below it the day before. While this is a great thing, XRP couldn’t pass its previous resistance level of $0.25, which caused it to retest the support level. If it drops below $0.2454 again, bears may gather in a larger number and XRP might push down towards $0.235

XRP/USD 4-hour Chart

XRP’s technicals are quite mixed up, with its 4-hour and weekly overviews showing signs of bullish sentiment, while its daily and monthly overviews are tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is at its 50-period EMA and above its21-period EMA
  • Price is near its top Bollinger band
  • RSI is neutral (53.64)
  • Volume is below average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, October 21 – Top Trade Setups In Forex – U.K., U.S., Canada Events in Highlights! 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

On the news front, the economic calendar is filled with a series of fundamentals from the U.K. and Canada, focusing on the U.S. Inflation data. The U.K. Inflation data is due during the European session, and economists expect a slight improvement in the U.K. CPI figures from 0.2% to 0.4%, while core CPI is likely to surge to 0.4% from 0.2%, and it may underpin the Cable pair today. On the other hand, the Canadian inflation report is also expected to perform slightly better today to support the Canadian dollar demand. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.8221 after placing a high of 1.18406 and a low of 1.17598. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD rose for the 3rd consecutive day and extended its previous day’s gains to reach its highest since September 21. On Tuesday, the EUR/USD pair’s upward momentum was supported by a weaker U.S. dollar across the board.

The U.S. Dollar Index was down by 0.45% at 93.0, the lowest October level, however, the Dow Jones gains 0l68%, and the NASDAQ rose by 0.30%. On Tuesday, the greenback remained weak against all of its rivals as the investors look for the results in negotiations for a new round of fiscal stimulus in the U.S.

The EUR/USD pair rose more than 0.5% on Tuesday above the 1.18400 level for the first time in October as the market mood improved. EUR/USD pair followed the lockdown on Brexit talks, coronavirus spread in Europe, and France is reporting the record-high number of people hospitalized with Ireland introducing tough restrictions.

On the data front, the German PPI for September raised to 0.4% from the forecasted 0.1% and supported the single currency. At 13:00 GMT, the Current Account from Eurozone also raised to 19.9B against the forecasted 17.2B and supported EUR/USD pair’s bullish move.

At 17:30 GMT, the Building Permits raised to 1.55M from the expected 1.52M and supported the U.S. dollar on the U.S. front. The Housing Starts from the U.S. declined to 1.42M against the forecasted 1.45M and weighed on the U.S. dollar that ultimately added strength to EUR/USD pair on Tuesday. Furthermore, the improved risk sentiment after the reviving hopes for additional U.S. fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year boosted investors’ confidence. The risk-on flow smashed the greenback’s relative safe-haven status and was seen as a key factor driving the currency pair higher.

The U.S. House Speaker Nancy Pelosi said on Sunday that legislation on a wide-range of coronavirus relief packages could be pushed through before the election on November 3. Whereas, the investors remained unconvinced that a deal could be reached with Republicans before the self-imposed deadline by Pelosi.

Traders were also concerned about the rising number of coronavirus cases in Europe that could lead to fresh lockdown measures and dent global economic recovery. This, in turn, raised the U.S. dollar demand due to its safe-haven status and capped further upside momentum for EUR/USD pair.

Looking forward, the market participants will await the release of German PPI for September on Wednesday for finding fresh clues about the EUR/USD pair’s movements.

Daily Technical Levels

Support Resistance

1.1773     1.1854

1.1725     1.1889

1.1691     1.1936

Pivot point: 1.1807

EUR/USD– Trading Tip

The EUR/USD is trading sharply bullish amid a weaker U.S. dollar at 1.1848 level, and continuation of a bullish trend has formed three white soldiers on the 4-hour timeframe. That bullish setup may drive an upward movement until the 1.1870 mark and 1.1900 level. The MACD and RSI support the buying trend, and on the higher side, the EUR/USD may face resistance at 1.1870. Conversely, the bearish correction can also be seen until the 1.1831 level and 1.1807 mark. Above 1.1807, we can expect a continuation of a buying trade today. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29466 after placing a high of 1.29794 and a low of 1.29107. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair followed its previous daily trend and rose for the second consecutive day on Tuesday; however, the gains remain limited as the frozen Brexit talks overshadowed the U.S. dollar’s weakness. The parts of Britain went into lockdown to curb virus infections also weighed on the rising GBP/USD pair on Tuesday.

The Brexit trade deal’s trade talks were paused after a phone call between negotiators from both sides failed to make a breakthrough. The U.K. negotiator David Frost said that his call with E.U. counterpart Michel Barnier was constructive but in-person talks could not resume. He said that fundamental change in the E.U.’s approach was required before face-to-face talks should continue. At the same time, Barnier said that the E.U.’s door was open following the phone call. The Frenchman who had proposed intensified talks in London this week said that both sides should make the most out of the little time left as both sides sought an agreement to govern their trading relationship[ after the U.K.’s transition period in the E.U. ends in January 2021. Both sides are calling on the other to compromise ahead of the looming December deadline for a deal. The disagreement persists on key issues like fisheries, level playing field, and governance.

On Tuesday, the U.K. Prime Minister Boris Johnson reportedly told the Greek prime minister that Brexit talks would remain paused until the E.U. changes its stance on the negotiations. He also reaffirmed that the E.U. had effectively ended the negotiations by stating that they did not want to change their negotiating positions, so the E.U. should change their position, and then the U.K. would be willing to talk on a new basis.

Without a trade deal, the U.K. will trade on the terms of the World Trade Organization with the E.U. that will hurt both economies, particularly when some parts of Britain were under lockdown to control the rising infection cases. The PM Boris Johnson also confirmed that Great Manchester would be going into the highest lockdown level – Tier 3- from Friday. It came in because the U.K.’s coronavirus cases raised by 21,330 daily, its highest daily rise since June 5.

All these Brexit tensions and rising coronavirus cases, and the renewed lockdowns kept the GBP/USD pair’s additional gains under pressure on Tuesday. Whereas, the internal market of PM Boris Johnson that seeks to undermine parts of the Brexit withdrawal agreement was voted down in Parliament, and this supported the GBP/USD pair’s bullish trend on Tuesday.

There was no macroeconomic release from Britain’s side on the data front, and from the U.S., the Housing Starts were declined to 1.42M against the expected 1.45M and weighed on the U.S. dollar that ultimately added strength to GBP/USD pair.

Daily Technical Levels

Support Resistance

1.2910     1.2980

1.2875     1.3015

1.2841     1.3049

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.506 after placing a high of 105.745 and a low of 105.339. Overall the movement of the USD/JPY pair remained bullish throughout the day. The USD/JPY pair rose to its six-day highest level on Tuesday in the early trading session but started losing its intraday gains in the late session due to U.S. dollar weakness. The uncertainty surrounding the next round of the U.S. fiscal stimulus kept the U.S. dollar bulls defensive and the USD/JPY pair under pressure.

The main factor involved in the USD/JPY pair’s upward momentum in U.S. dollar weakness was the solid rebound in U.S. equity markets that undermined the safe-haven Japanese Yen. Furthermore, a strong pickup in the U.S. Treasury bond yields, though, failed to revive the U.S. dollar demand and remained supportive of the move.

On the data front, at 17:30 GMT, the Building Permits for September from the U.S. raised to1.55M from the projected 1.52M and supported the U.S. dollar that ultimately pushed the USD/JPY pair higher. The Housing Starts declined in September to 1.42M from the anticipated 1.45M and weighed on the U.S. dollar helped cap further upside momentum in the USD/JPY pair.

The trade’s focus was on the developments over the U.S. stimulus measure as the self-imposed deadline by the U.S. House of Representatives Speaker Nancy Pelosi to reach a deal with Republicans was about to end. The hopes for the next round of stimulus measures were fading away as only two weeks are left for U.S. presidential elections, and it seems hard that both sides will reach a deal by then.

These faded hopes also supported the U.S. dollar and added further strength to the rising USD/JPY pair on Tuesday.

Meanwhile, on Tuesday, the U.S. Federal Reserve Vice Chair Randal Quarles said that the nonbank financial system was significantly more fragile than its traditional counterparts, and it has been confirmed by the market stresses created by the coronavirus pandemic. Furthermore, the Philadelphia Federal Reserve Bank President Patrick Harker said that Fed’s new framework should help address shortfalls in employment and help affected workers find new opportunities. He said that tolerating higher inflation will be worth it to help achieve employment goals. These comments from Fed officials also supported the USD/JPY pair’s bullish move on Tuesday.

Daily Technical Levels

Support Resistance

105.33     105.69

105.18     105.90

104.96     106.05

Pivot point: 105.54

USD/JPY – Trading Tips

The USD/JPY trades with a bearish bias around the 105.250 level, having violated the upward channel at the 105.450 level. Closing of candles below this level may lead the USD/JPY pair towards the 105 mark; however, it needs to violate the immediate support area of 105.285. Closing of candles below 105.285 may help us capture quick selling trades until the 105 level. The USD/JPY has recently closed a bearish engulfing candle, and it has also violated the upward channel; both of these are supporting further selling trend in the USD/JPY pair today.  

Good luck!  

Categories
Forex Market Analysis

Daily F.X. Analysis, October 20 – Top Trade Setups In Forex – European Events in Highlights! 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

On the news front, the economic calendar is filled with a series of low impact economic events. However, the focus will remain on the German PPI m/m and Current Account from the Eurozone, and the point to note is that both of the data are expected to be positive so that it may underpin the Euro today. Besides, the FOMC Member Williams and Quarles speeches will be monitored for further price action. 

Economic Events to Watch Today  

 


 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17708 after placing a high of 1.17936 and a low of 1.17030. Overall the movement of the EUR/USD pair remained bullish throughout the day. The EUR/USD pair was up on Monday and tried to approach the 1.1800 arear as the hopes of a U.S. stimulus package weighed on the U.S. dollar. 

The U.S. dollar was weak across the board due to mounting hopes that the U.S. stimulus package will be delivered soon and the encouraging Chinese data published on the day in early trading sessions. It was revealed that Republicans added 0.1 trillion dollars to its previous $1.8 trillion package offer to reach a consensus with Democrats. The Democrats, however, still found it difficult to reach a deal with republicans.

However, the hopes were increased in the market for U.S. stimulus as Republicans were making progress in compromising. This weighed on the U.S. dollar and helped the EUR/USD pair to extend its gains. On China’s front, the data from there reported its GDP at 4.9% in Q3 that was below the expectations of 5.2% and above the previous 3.2%. The U.S. dollar came under pressure because of China’s good performance in Q3 than Q2 and supported the EUR/USD pair’s upward momentum.

On Monday, the European Central Bank President Christine Lagarde said that she wanted E.U. governments to consider the possibility of making E.U. debt a permanent fixture of the bloc’s economic response to the crises. When asked about the 750 billion euros debt-fueled response to the coronavirus crisis, the E.U. commission will borrow on financial markets and disburse to E.U. countries as grants and loans; Lagarde said that this stimulus tool was a response to an exceptional situation like a pandemic. She added that there should be a discussion about this stimulus’s possibility to remain in the European toolbox to be mobilized again in identical circumstances.

Lagarde added that a debate on a common budgetary tool specific to the Euro area should take place and learn lessons from the situation that has happened recently. These comments from Lagarde added further strength to the already rising Euro currency and added additional gains. On the coronavirus front, Belgium extended its restrictions on bars and restaurants for the next four weeks as the infection rate rose continuously. The health minister warned that Belgium could soon be overwhelmed by new coronavirus infections.

Italy recorded its highest daily infection rate on Sunday and announced a raft of measures to control infection spread. Meanwhile, nine major French cities were also placed under curfew. However, these lingering coronavirus tensions failed to reverse the rising EUR/USD pair, and the currency pair remained on the positive track on Monday.

Daily Technical Levels

Support Resistance

1.1709     1.1723

1.1703     1.1731

1.1695     1.1737

Pivot point: 1.1717

EUR/USD– Trading Tip

The EUR/USD is consolidating below a strong resistance level of 1.1793 level, extended by a downward trendline on the 4-hour timeframe. On the lower side, the EUR/USD may find support at the 1.1735 level, and violation of this support level can extend selling until the 1.1690 level. On the higher side, bullish trend continuation can lead the EUR/USD price towards the next target level of the 1.1830 mark. The MACD supports bullish bias; therefore, we should look for buying trades upon today’s breakout of the 1.1790 level. 

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29827 after placing a high of 1.30244 and a low of 1.28912. The British Pound eased from session highs on Monday against the U.S. dollar but remained supported as the E.U. assured that it would remain committed to intensifying Brexit-deal talks with the U.K. The E.U. Brexit negotiator Michel Barnier confirmed that the E.U. remained available to intensify negotiations in London. This marked a change in tone after E.U. leaders dropped their pledge to intensify trade talks last week and called on the U.K. to make concessions for a deal. Barnier’s statement raised the possibility of a Brexit deal and helped GBP/USD pair to remain positive on Monday.

The U.K. Cabinet Office Minister Michael Gove had suggested that the U.K. would not resume talks before acknowledging signs of progress. He also said that he welcomes the constructive move on the part of the E.U. However, he said that there was no basis to find an agreement and that Brussel’s proposals were inconsistent with sovereign status. He also labeled potential talks as meaningless.

The pair GBP/USD was raised during the early trading session but failed to extend gains and eased due to Gove’s statement. Michael Gove said that the U.K. was increasingly well-prepared for an Australian-style exit from the E.U., meaning no-deal. The mixed statements from Barnier and Gove confused the traders, and the currency pair suffered from it as it moved on the upside in the early session and lost most of its gains in the late session.

On the data front, at 04:01 GMT, the Rightmove Housing Price Index for October came in as 1.1% compared to the previous 0.2%. From the U.S. side, the NAHB Housing Market Index rose to 85 from the forecasted 83 and supported the U.S. dollar that limited GBP/USD pair gains on Monday.

Meanwhile, the rising number of coronavirus in the U.K. also weighed on GBP/USD pair as an 18,804 new cases were reported for COVID-19 in the U.K. on Monday with 80 new deaths. This also kept the pair under pressure and its gains limited on the day.

Daily Technical Levels

Support Resistance

1.2900     1.2941

1.2874     1.2956

1.2859     1.2982

Pivot point: 1.2915

GBP/USD– Trading Tip

The GBP/USD surged sharply to trade at the 1.3006 mark, but soon it slipped again to trade at the 1.2939 level. The cable is currently gaining immediate support at the 1.2939 level, and a bearish breakout of the 1.2939 mark can lead to GBP/USD prices further lower towards the 1.2886 level. On the flip side, the resistance continues to hold around the 1.3006 level. The MACD and RSI show neutral bias as investors seem to wait for a solid reason to enter the market. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed to 105.430 after placing a high of 105.501 and a low of 105.299. Overall the movement of the USD/JPY pair remained bullish throughout the day. Despite the U.S. dollar weakness, the USD/JPY pair posted gains on Monday and remained bullish as the U.S. stimulus package deal’s developments started moving on the positive side. The market mood was also better and played against the greenback after releasing the GDP report from China.

The Republicans extended its previous offer of $1.8 trillion to a $1.9 trillion packages on Monday, which was again failed by Democrats. The U.S. President Donald Trump has expressed his willingness for a larger stimulus package, but he still has to convince Republicans. Whereas, the U.S. House Speaker Nancy Pelosi has set out a 48-hour deadline for U.S. stimulus talks in the last effort to reach a deal before the elections.

Before elections, the hopes for a stimulus package dimmed and supported the U.S. dollar and raised the USD/JPY pair on Monday.

Meanwhile, China published its GDP report for the third quarter that came in as 4.9% and fell short of the forecasted 5.5% but extended compared to the previous 3.2%. The U.S. dollar came under pressure because of the Chinese GDP report and further capped gains in the USD/JPY pair on Monday.

On the data front, at 04:50 GMT, the Trade Balance from Japan for September came in as 0.48T against the forecasted 0.85T and weighed on the Japanese Yen. At 19:00 GMT, the NAHB Housing Market Index for October raised to 85 from the forecasted 83 and supported the U.S. dollar that pushed the USD/JPY pair even higher. Meanwhile, the Fed Chair Jerome Powell said in his speech on Monday that it should be more important for the U.S. to get the development of CBDC- cross-border digital currency right than being the first one to issue it.

China has given away about $1.5 million for its digital currency trials and has said that it would become the first to issue a CBDC. China wanted to reduce its dependence on the global dollar payment system and has taken the initiative to issue its digital currency.

Following China’s move, many central banks worldwide have started examining the possibility of issuing a digital currency. Facebook has also announced introducing Libra, its digital currency, given the increased demand for digital payments during the COVID-19 pandemic.

The Bank for International Settlements (BIS) and the seven other central banks, including the U.S. Fed and Bank of England, have released a report that tells the importance of CBDC to catch up with China’s move be the first one. According to Powell, the U.S. Fed has not yet decided on the issuance of digital currency, but it has been an active participant in research into the issue.

Moreover, the Federal Reserve Vice Chair Richard Clarida said on Monday that after taking a substantial hit from the pandemic, the U.S. economy was rebounded strongly. He said that it might take another year to reach pre-pandemic economic levels, but the labor market could take more than that to recover the pandemic’s damage. Fed officials’ comments also weighed on the U.S. dollar and caped further gains in the USD/JPY pair on Monday.

Daily Technical Levels

Support Resistance

105.37     105.50

105.28     105.56

105.23     105.64

Pivot point: 105.42

USD/JPY – Trading Tips

The USD/JPY trades with a bullish bias around the 105.550 level, holding below the double bottom area. Bullish crossover of 105.550 level may lead USD/JPY pair further higher until 105.800 level. On the 2 hour chart, the USD/JPY has formed an upward channel, which is likely to support the USD/JPY pair around the 105.300 level. Below this, the next support is likely to be found around 105.250 and 105.06. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 20 – Bitcoin Above $12,000 by the End of the Month? Bull Market has Already Started

The cryptocurrency sector has pushed towards the upside as Bitcoin reached $11,850. Bitcoin is currently trading for $11,741, representing an increase of 2.22% on the day. Meanwhile, Ethereum gained 0.50% on the day, while XRP gained 1.69%.

The cryptocurrency sector has pushed towards the upside as Bitcoin reached $11,850. Bitcoin is currently trading for $11,741, representing an increase of 2.22% on the day. Meanwhile, Ethereum gained 0.50% on the day, while XRP gained 1.69%.

The cryptocurrency sector has pushed towards the upside as Bitcoin reached $11,850. Bitcoin is currently trading for $11,741, representing an increase of 2.22% on the day. Meanwhile, Ethereum gained 0.50% on the day, while XRP gained 1.69%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that Dash gained 11.62% in the past 24 hours, making it the top daily gainer. Stellar (7.37%) and Quant (6.5%) also did great. On the other hand, Aave lost 10.73%, making it the most prominent daily loser. It is followed by Crypto.com Coin’s loss of 10.06% and NEAR Protocol’s loss of 9.3%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since our last report, with its value is currently 59.5%. This value represents a 0.7% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has lost a bit of its value since Friday. Its current value is $365.47 billion, representing a decrease of $4.35 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has pushed past its major resistance sitting at $11,500. The push was accompanied by a major volume increase, which brought Bitcoin’s price to as high as $11,850 before dropping back down to sub-$11,800.


This new spike has put Bitcoin at above 60% year-to-date gains. On top of that, Bitcoin is on track to challenge (and even pass) $12,000, which is a crucial resistance. With the price ignoring all indicators showing that it would bounce back down and pull away from its highs, it does quite the opposite. This inspired many analysts to call for Bitcoin at over $12,000 even by the end of the month.

BTC/USD 1-day Chart

Bitcoin’s technical overview is heavily tilted towards the buy-side, with every single time-frame showing almost no signs of neutrality.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and at its 21-period EMA
  • Price near its top Bollinger band
  • RSI is pushing towards the overbought area (63.99)
  • Volume is descending after a major spike
Key levels to the upside          Key levels to the downside

1: $11,735                                 1: $11,630

2: $11,850                                 2: $11,500

3: $12,000                                  3: $11,300

Ethereum

Ethereum’s price moved towards the downside throughout the past week, but then rebounded after hitting the $361 support level and began a slow push towards the upside. Ethereum bulls were patient and slowly took over first the $371 resistance level and now the $378 level, turning them both into support. In both cases, the push was just enough to bring the price above these levels, but the consolidation phase always ended with Ether’s price above its newly found support.

The fundamentals surrounding Ethereum are (at the moment) looking particularly strong as investors are expecting a successful launch of Ethereum 2.0.


ETH/USD 4-hour Chart

Ethereum’s technicals are showing a tilt towards the buy-side on all time-frames. However, while its lower time-frames are being more positive, its longer time-frames are being a bit more neutral (mostly oscillators).

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and its 21-period EMA
  • The price between its middle and top Bollinger band
  • RSI is neutral (57.27)
  • Volume is descending from a spike
Key levels to the upside          Key levels to the downside

1: $400                                     1: $378

2: $415                                     2: $371

3: $420                                      3: $360

Ripple

The fourth-largest cryptocurrency by market cap has unexpectedly pushed towards the upside as XRP whales reemerged and went on a buying spree. The most recent upswing has put XRP above the $0.2454 level, which has proven itself both as strong support and resistance level. At the time of writing, XRP seems like it will stay above the level, even though most of its indicators are showing a strong possibility of price pulling back a bit more.

Traders should pay attention to how XRP handles the $0.2454 support level and trade it as XRP bounces up or breaks below it.


XRP/USD 4-hour Chart

XRP’s technicals are quite mixed up. While its 4-hour overview is neutral-bullish, its 1-day chart is completely bearish. On the other hand, its weekly overview is tilted towards the buy-side, while its monthly overview is quite neutral, but still leaning slightly towards the bear side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is at its 50-period EMA and above its21-period EMA
  • Price is near its top Bollinger band
  • RSI is neutral (53.39)
  • Volume is below average
Key levels to the upside          Key levels to the downside

1: $0.26                                     1: $0.2454

2: $0.266                                   2: $0.235

3: $0.2855                                3: $0.227

 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 19 – Stablecoin Market Surpasses $20 Billion; Tether Dominating With Market Cap of Almost $16 Billion

The cryptocurrency sector has spent the weekend pushing towards higher highs but ultimately being stopped out at the most recent highs. Bitcoin is currently trading for $11,471, representing an increase of 0.71% on the day. Meanwhile, Ethereum gained 1.63% on the day, while XRP gained 0.35%.

The cryptocurrency sector has spent the weekend pushing towards higher highs but ultimately being stopped out at the most recent highs. Bitcoin is currently trading for $11,471, representing an increase of 0.71% on the day. Meanwhile, Ethereum gained 1.63% on the day, while XRP gained 0.35%.

The cryptocurrency sector has spent the weekend pushing towards higher highs but ultimately being stopped out at the most recent highs. Bitcoin is currently trading for $11,471, representing an increase of 0.71% on the day. Meanwhile, Ethereum gained 1.63% on the day, while XRP gained 0.35%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that UMA gained 24.3% in the past 24 hours, making it the top daily gainer. Aave (19.42%) and Reserve Rights (14.8%) also did great. On the other hand, Filecoin lost 23.88%, making it the most prominent daily loser. It is followed by Crypto.com Coin’s loss of 8.92% and Waves’ loss of 4.28%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since our last report, with its value is currently 58.9%. This value represents a 0.2% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has lost a bit of its value since Friday. Its current value is $361.12 billion, representing a decrease of $1.44 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent its weekend building up a bull presence and trying to push towards (and past) the $11,500 resistance level. However, the move failed, and Bitcoin is now trading just under the resistance line. With that being said, the volume that followed this move was incredibly low, which implies that a bigger move is ahead, and that traders should pay attention to what happens with the volume in the near future.

Bitcoin will most likely either go up or stay above $11,300, as many analysts say that Bitcoin is done with its sub-$11,000 area. However, we do have to pay attention to the Bitcoin CME Futures Gap.

BTC/USD 1-day Chart

Bitcoin’s technical overview is tilted towards the buy-side on every single time-frame. While its 4-hour and 1-day time-frames are showing neutral bullishness, its weekly and monthly sentiment is extremely positive.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and at its 21-period EMA
  • Price near its top Bollinger band
  • RSI is neutral (57.29)
  • Volume is below average and descending
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Ethereum’s price movement throughout the weekend looked a lot like Bitcoin’s, but with a twist. The second-largest cryptocurrency by market cap moved towards the downside and (just like Bitcoin) created three lower highs on the way down. However, unlike Bitcoin, Ethereum has broken the downtrend and shot up in recent hours, though only to be stopped by the $378 resistance level. While there is still a chance for Ethereum to break this level, it will most likely be stuck below it (possibly within a range bound by $371 and $378) in the short-term.

ETH/USD 4-hour Chart

Ethereum’s technicals are showing a tilt towards the buy-side on all time-frames, with lower time-frames being more positive, while longer time-frames being more tilted towards the neutral stance (mostly oscillators).

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and its 21-period EMA
  • The price at its middle Bollinger band
  • RSI is neutral (54.55)
  • Volume is descending
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

XRP spent the weekend mostly trading sideways or rising a little after a whole week of price drops. The fourth-largest cryptocurrency by market capitalization fell under the $0.2454 and stayed below it over the weekend, and even though it is moving towards it, the current volume would not support a break of such a major resistance level.

Many analysts are calling for even more downward movement from XRP, justifying it by saying that this is a continuation of a trend dating back from 2018. The reduced volatility and range-bound trading seem to be confirming this thesis.

XRP/USD 4-hour Chart

XRP’s technicals are extremely bearish. Its 4-hour and daily sentiment being tilted towards the sell-side fully, while its weekly and monthly overviews are showing some signs of neutrality, though they are also heavily bearish.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is below both its 50-period EMA and its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is neutral (42.17)
  • Volume is below average
Key levels to the upside          Key levels to the downside

1: $0.2454                                 1: $0.235

2: $0.26                                     2: $0.227

3: $0.266                                  3: $0.221

 

Categories
Crypto Market Analysis

BTC/USD Chart Overview + Possible Outcomes

In this BTC /USD 1-day time-frame analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this BTC /USD 1-day time-frame analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

In this BTC /USD 1-day time-frame analysis, we will be looking at the most recent events, the current technical formations, as well as discussing possible outcomes.

Overview

Bitcoin has had a week of explosive gains, mostly due to its fundamentals. The US President Donald Trump announced another set of stimulus packages (while he was completely against it just before the announcement), as well as Jack Dorsey’s Square investing $50 million in Bitcoin sparked bulls’ interest and made the largest cryptocurrency by market cap push above $11,700. Bitcoin established support above its previous heavy resistance level, which is certainly another great sign for the bulls. However, one technical formation says that additional correction is ahead before the next push towards $12,000.

Technical factors

Bitcoin has left its triangle formation abruptly and to the upside, breaking not only the formation but also numerous resistances. The price started consolidating in a range bound by $11,300 to the downside and $11,500 to the upside, which was a great trading opportunity for traders that like sideways trading. Taking a look at smaller time-frames, Bitcoin has built a downwards-sloping channel that calls for a slight pullback (and a possible fill of the Bitcoin CME Futures gap) before pushing further up.

There are two most likely versions of this pullback, and both will be discussed above. However, an unexpected price spike or plummet is always a possibility, no matter how slim.

Likely Outcomes



Bitcoin currently has two main scenarios. It can play out, and both involve a pullback before a push towards $12,000.

  1. As shown on the chart, Bitcoin will most likely follow the channel until it finds strong support; it cannot go below, after which it will break the channel to the upside. After finding confirmation above it, it is free to push towards the upside ($11,730, $11,960, or even $12,000).
  2. The other scenario is a bit tricky, and therefore a bit less likely. The premise for this scenario is the head and shoulders chart pattern that started in late April of this year. The most recent high of this scenario is the top of the right shoulder, while the neckline is the black ascending line shown on the chart. In this scenario, the price would move alongside the dotted line until it hit the neckline, after which it would start to go up. In this case, the pullback and confirmation would most likely happen above $11,300, and only after consolidating above this level could Bitcoin push to the aforementioned targets.
  3. The scenario in which Bitcoin suddenly pushes up or down sharply and swiftly is incredibly unlikely and would have to be backed by some major news.
Categories
Forex Market Analysis

Daily F.X. Analysis, October 16 – Top Trade Setups In Forex – Retail Sales in Focus! 

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17068 after placing a high of 1.17576 and a low of 1.16883. Overall the movement of the EUR/USD pair remained bearish throughout the day. The EUR/USD pair dropped on Thursday to its nine-day lowest level over the strength of the U.S. dollar and rising fears of a second wave of coronavirus in Europe. 

The U.S. dollar was strong across the board on Thursday, with the market ruling out the chance of more fiscal stimulus before the November elections despite the surge in coronavirus cases. Furthermore, the unexpected rise in the Philadelphia Fed Manufacturing Index also helped raise the U.S. dollar across the board on Thursday. At 17:30 GMT, it raised to 32.3 in October against the expectations of 14.4 and supported the U.S. dollar. The advanced index encouraged hopes that the U.S. economy could demonstrate greater resilience in the year’s final months.

This raised the U.S. dollar despite the rise in initial jobless claims and weighed on EUR/USD pair.

Meanwhile, the E.U. Summit started on Thursday. E.U. leaders met in Brussels to seek a way out of the Brexit impasse as the bloc remained divided over-ambitious targets to slash greenhouse gas emissions.

E.U. leaders also agreed to extend the trade negotiations with Britain. In a joint statement, E.U. leaders called on the U.K. to make the necessary moves to make an agreement possible and shift from their red lines to make a Brexit deal possible.

The E.U. chief negotiator Michel Barnier said that he wanted talks to continue with the U.K. till next month. Whereas, the German Chancellor Angela Merkel said that the E.U. should also compromise with the U.K. to reach a final agreement. On the data front, the French Final CPI for September came in line with -0.5% expectations. The data from Europe failed to impact the prices of a single currency.

Moreover, the European Central Bank President Christine Lagarde said on Thursday that ECB would be prepared to inflict additional emergency measures to seize the economic fallout from the coronavirus crisis, with the region facing a rapid surge in coronavirus infections. As per the World Health Organization, Europe has recorded more than 7.4 million coronavirus cases, with more than 251000 deaths and an alarming hospitalization rate. Lagarde said that as the second wave of coronavirus was hitting Europe’s coastline, ECB should make sure all the resources that ECB has available will be used to deal with the situation. She added that many resources, including asset purchases and interest rates, were still available, and ECB was ready to use them in need.

The ECB’s concerns and readiness to use further stimulus in need also weighed on Euro currency and dragged the EUR/USD pair downward.

Daily Technical Levels

Support Resistance

1.1676     1.1748

1.1646     1.1790

1.1605     1.1820

Pivot point: 1.1718

EUR/USD– Trading Tip

The EUR/USD is trading at 1.1706 level, holding above an immediate double bottom support level of 1.1693. The U.S. dollar is likely to show some volatility during the day on the back of high and medium impact economic events from the United States. A stronger dollar may trigger a selling trend until the 1.1656 level, while the resistance can be found around 1.1725 and the 1.1748 levels.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.29037 after placing a high of 1.30299 and a low of 1.28903. Overall the movement of the GBP/USD pair remained bearish throughout the day. The British Pound fell dramatically against the U.S. dollar on Thursday after the E.U. leaders urged U.K. to make necessary moves to secure an agreement instead of committing to work intensively with the U.K. to reach a trade deal. 

After the first day of the E.U. Summit, the chief EU negotiator Michel Barnier said that the level playing field, fisheries, and governance issues remained, as the key sticking points that held up the progress on trade talks. E.U. officials also criticized the U.K. Brexit negotiator David Frost and called on the U.K. to make further concessions to reach a deal on trade. Prime Minister Boris Johnson will announce his decision on whether the U.K. will walk away or continue talks on Friday.

One of many reasons behind the lack of progress in talks was the U.K. facing an aggressive second wave of the coronavirus that has forced the government to impose lockdown restrictions that could slow the recovery.

In Great Britain, talks continued between the government and local leaders over expanding the strictest coronavirus restrictions to more parts of England. The rising number of coronavirus cases in the U.K. raised the need for restrictions that will affect the economic recovery. These recovery fears weighed on local currency and ultimately dragged the GBP/USD pair on the downside.

On the data front, the C.B. Leading Index from the United Kingdom came in as 0.5% for August compared to July’s 0.8% and weighed on GBP that added further pressure on GBP/USD pair. From the U.S. side, the Philly Fed Manufacturing Index rose in October to 32.3 from September’s 15.0, and the forecasted 14.4 supported the U.S. dollar. The strong U.S. dollar added further strength to the rising GBP/USD pair on Thursday.

Meanwhile, the U.S. dollar was also strong onboard after Nancy Pelosi said that Trump only wanted to secure his position. That is why he was forcing a smaller stimulus package ahead of elections. She added that he did not have any concern about the struggling Americans and refused to pass a half stimulus measure. These lingering tensions confusion related to U.S. stimulus measures raised uncertainty and supported the U.S. dollar. The main driver of the GBP/USD pair’s downward momentum on Thursday was E.U. leaders’ calls for the U.K. to make necessary moves to reach consensus on the Brexit deal and the rising number of restrictions in England. 

Daily Technical Levels

Support Resistance

1.2859     1.3000

1.2804     1.3086

1.2718     1.3141

Pivot point: 1.2945

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2890 level, having supported over 1.2890 level. Above this, the next target is likely to be found around 1.2957 and 1.3020 level. Simultaneously, a bearish breakout of the 1.2890 support level can extend selling bias until 1.2840. The bearish bias remains solid below the 1.2890 mark. The cable may exhibit a breakout on the release of U.S. related economic events, especially the retail sales and consumer confidence. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2880 today. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.420 after placing a high of 105.491 and a low of 105.060. Overall the movement of the USD/JPY pair remained bullish throughout the day. On Thursday, the U.S. dollar appreciated across the board due to its safe-haven status after the rising concerns about tightened coronavirus restrictions. The rising number of coronavirus infections with little expectations of a fiscal stimulus deal kept the investors away from risk.

On Thursday, the U.S. Treasury Secretary Steven Mnuchin said he was open to a targeted deal with the House Speaker Nancy Pelosi. He said that Pelosi should move 300 billion dollars to needy Americans from the previous fund’s leftovers. In response, she replied that Donald Trump only wanted to seek a symbolic victory and genuinely had no intentions to help the struggling poor people. Pelosi also said that she would not go for a half stimulus measure and stick to her $2.2 trillion packages.

These tensions surrounding the U.S. stimulus package dropped the hopes that any measure will release before elections and supported the U.S. dollar. The rising U.S. dollar help provides further support to the USD/JPY pair.

The Philly Fed Manufacturing Index for October raised to 32.3 from the forecasted 14.4 and the previous 15.0 and supported the U.S. dollar. At 17:30 GMT, the Unemployment Claims from the U.S. for last week raised to 898K from the forecasted 810K and weighed on the U.S. dollar. The Empire State Manufacturing Index from the U.S. dropped to 10.5 from the expected 13.9 and weighed on the U.S. dollar. The Import Prices from September remained flat with the expectations of 0.3%. From the Japan side, the Tertiary Industry Activity for August was released at 09:30 GMT that fell short of expectations of 1.2% and came in as 0.8% and weighed on the Japanese Yen that ultimately supported the additional gains in USD/JPY pair on Thursday.

Traders ignored the rising number of unemployment claims and shifted their focus towards the rising Philly Fed Manufacturing Index and supported the USD/JPY pair’s bullish movement. The advanced index refreshed hopes that the U.S. economy could reveal greater flexibility in the final months of the year.

Furthermore, the Dallas Federal Reserve President Robert Kaplan said that minorities and women who have been affected by the job losses due to the coronavirus pandemic would need help to get back to work. Kaplan said that the economic activities were shifting more towards the less dependent sectors on face-to-face interaction due to the fears of coronavirus spread. Whereas, the Fed’s vice chair of supervision, Randal Quarles, said a need for more aid in the short-term funding market.

The rising number of coronavirus in the absence of any approved vaccine has raised fears for an economic recovery that has already been under pressure due to ongoing geopolitical tensions, the trade war between the U.S. & China, and the deep recession. These uncertainties kept the U.S. dollar supportive due to its safe-haven status and helped the USD/JPY pair post gains on Thursday.

Daily Technical Levels

105.05     105.70

104.82     106.12

104.40     106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 16 – ICO That Raised $257 Million in 60 Minutes Finally Launched; Bitcoin Pushing Towards $11,500

The cryptocurrency sector has spent the day trying to push higher highs but failed as Bitcoin didn’t make it above $11,500. Bitcoin is currently trading for $11,486, representing an increase of 0.65% on the day. Meanwhile, Ethereum lost 0.64% on the day, while XRP lost 1.42%.

The cryptocurrency sector has spent the day trying to push higher highs but failed as Bitcoin didn’t make it above $11,500. Bitcoin is currently trading for $11,486, representing an increase of 0.65% on the day. Meanwhile, Ethereum lost 0.64% on the day, while XRP lost 1.42%.

The cryptocurrency sector has spent the day trying to push higher highs but failed as Bitcoin didn’t make it above $11,500. Bitcoin is currently trading for $11,486, representing an increase of 0.65% on the day. Meanwhile, Ethereum lost 0.64% on the day, while XRP lost 1.42%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that Filecoin gained an astonishing 120.78% in the past 24 hours, making it the top daily gainer. ABBC Coin (39.25%) and Blockstack (9.35%) also did great. On the other hand, Aave lost 15.89%, making it the most prominent daily loser. It is followed by Arweave’s loss of 14.13% and Synthetix Network Token’s loss of 8.96%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has stayed at the same level since our last report, with its value currently being 58.7%. This value represents a 0% difference when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gained a bit of its value over the course of the past 24 hours. Its current value is $362.56 billion, representing an increase of $1.46 billion compared to our previous report.

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What happened in the past 24 hours?

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_______________________________________________________________________

Technical analysis

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Bitcoin

The oldest cryptocurrency spent the past 24 hours trying to push past the $11,500 resistance. While the fight for it still continues, there is a strong possibility that Bitcoin will actually stabilize its price above it. If that happens, bulls might come in even stronger and push the price towards $11,630, or even $11,730.

If, however, Bitcoin moves back below $11,500, the sentiment won’t change to a lot more bearish one, as Bitcoin is used to trading above $11,300 as of lately.

BTC/USD 1-day Chart

Bitcoin’s technical overview is extremely bullish on every single time-frame for almost a month now, with longer time-frames showing complete bullish sentiment, while the shorter ones are slightly less tilted towards the buy-side.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and at its 21-period EMA
  • Price near its top Bollinger band
  • RSI is neutral (60.70)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Unlike Bitcoin that tried to push towards its resistance level, Ethereum spent the day fighting to stay above the $378 level it recently fell under. The second-largest cryptocurrency by market cap tested the $371 support level, which held up quite nicely and attempted a push towards (now) resistance level of $378. While the fight for it still lasts, Ethereum will most likely end up above it if Bitcoin’s price doesn’t drop and pull ETH alongside.

ETH/USD 4-hour Chart

Ethereum’s technicals on all time-frames are a varying degree of bullish. While its 4-hour and monthly overviews are a bit more neutral, its daily and weekly overviews are strongly tilted towards the buy-side.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and right at its 21-period EMA
  • The price at its middle Bollinger band
  • RSI is neutral (54.03)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

XRP has spent the past 24 hours continuing its drop towards the $0.2454 support level. XRP is approaching a quarterly price drop of 20% if the price breaks to the downside. However, so far, the $0.2454 support level is holding up, and XRP bears are not able to break it. If the support level break, we can expect XRP to move towards $0.235.

Traders should either wait for a bounce towards the upside (less likely and riskier) or wait for a possible break below $0.2454 to trade alongside the strong move to the downside.


XRP/USD 4-hour Chart

XRP’s technicals have changed the sentiment to quite bearish in the past couple of days. While its monthly sentiment was bearish for a while, its 4-hour and 1-day overviews have turned completely towards the sell-side. On the other hand, XRP’s weekly overview is still slightly bullish.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is below both its 50-period EMA and its 21-period EMA
  • Price is slightly above its lower Bollinger band
  • RSI is neutral (40.83)
  • Volume is average (except for a couple of huge volume candle)
Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227

 

Categories
Forex Signals

USD/JPY Under Pressure – Downward Channel Weights! 

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The USD/JPY pair was closed at 105.161 after placing a high of 105.514 and a low of 105.034. Overall the movement of the USD/JPY pair remained bearish throughout the day. The rising uncertainties in the market related to US stimulus, vaccine development, global economic recovery, and the US November presidential elections gave a push to safe-haven appeal that supported safe-haven Japanese Yen and weighed on USD/JPY pair.

The currency pair dropped on Wednesday to one week’s lowest level as the hopes for the next round of US stimulus package before elections fell after Nancy Pelosi said that the newly proposed package of $1.8 trillion by President Trump would be not sufficient to provide support to economic recovery from the pandemic and deep recession.

Another reason behind the faded risk sentiment was the latest news about the vaccine trials from different candidates. Earlier this week, Johnson & Johnson halted their coronavirus vaccine’s clinical trials due to an unexpected illness in one of the participants. And on Wednesday, the Eli Lilly and Co. also stopped its vaccine’s trials for coronavirus, and this raised concerns that without a vaccine, the economic recovery will be slow. These concerns added in demand for safe-haven and raised the Japanese Yen that ultimately weighed on the USD/JPY pair.

On the data front, the Revised Industrial Production from Japan for August dropped to 1.0% from the forecasted 1.7% and weighed on the Japanese Yen. The PPI and the Core PPI data from the United States for September raised to 0.4% from 0.2% of forecasts and supported the US dollar. Macroeconomic data from both sides supported the USD/JPY pair but failed to reverse the direction as the investors were focusing on the rising number of uncertainties in the market.

Meanwhile, the 2020 World Bank Group-IMF Annual Meetings started on October 12th to 18th, in which global finance leaders warned that the fragile recovery would be crushed by the failure to stop the spread of coronavirus, maintain stimulus, and rising debts in developing nations.

Global poverty has been raised to the highest levels for the first time in 2 decades due to the coronavirus crisis. Developing nations had been hit hard by the pandemic as the debts for recovering through the crisis rose in developing nations to alarming levels. The annual meetings’ agenda was to take necessary actions to build a strong foundation for a strong recovery that would help all countries.

The US Treasury Secretary Steven Mnuchin urged both global institutions IMF and World Bank on Wednesday to work thoughtfully within their existing resources to battle the coronavirus pandemic. Mnuchin also urged G20 nations to approve a proposed debt restructuring framework.

The rising hopes that developing nations will be getting help to recover from the pandemic also raised the market’s risk sentiment that limited additional losses in USD/JPY prices on Wednesday.

Furthermore, on Wednesday, the Federal Reserve Vice Chair Richard Clarida said that the US economic data has been shockingly strong since May, but the output will still take another year to climb back to its pre-pandemic level. Clarida’s comments raised uncertainty over recovery and supported the Japanese Yen that weighed on the USD/JPY pair.


Daily Support and Resistance

S1 104.26

S2 104.74

S3 104.93

Pivot Point 105.22

R1 105.41

R2 105.7

R3 106.18

The USDJPY pair is trading with a selling bias below an immediate resistance level of 105.349 level. On the 4 hour timeframe, the USD/JPY has formed a downward channel that’s extending resistance at 105.349. Closing of candles beneath this level is likely to keep the USD/JPY pair in a selling mode until the 105.050 mark, conversely, the bullish breakout of the 105.349 level may lead the pair further higher towards the 105.580 level. 

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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Forex Market Analysis

Daily F.X. Analysis, October 15 – Top Trade Setups In Forex – ECB President Lagarde Speaks

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

On the news side, the economic calendar is likely to offer another round of central bankers’ speeches worldwide. BOC Gov Council Member Lane, U.S. FOMC officials, is due to speak today. Simultaneously, the main highlight of the day is likely to be ECB President Lagarde Speaks and Unemployment Claims from the U.S. economy.

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.17459 after placing a high of 1.17708 and a low of 1.17197. Overall the movement of the EUR/USD pair remained flat yet slightly bullish throughout the day. The EUR/USD pair followed its previous day’s bearish trend and extended its decline in the first half of the day but started to recover losses in the second half of the day as the U.S. dollar became weak. However, the gains were also limited due to the increased uncertainty in the market related to Europe’s coronavirus situation.

The risk sentiment in the market supported the consolidated movement of the EUR/USD pair on Wednesday and turned the prices on the upside after the European Union agreed to pay more than 1 billion euros, about 1.2 billion dollars to Gilead GILD.O. The amount will be paid for a six-month supply of its antiviral drug Remdesivir shortly before the publication of the coronavirus medication’s biggest trial. This news helped EUR/USD pair to recover some losses of the day on Wednesday.

Other than that, the U.S. dollar was weak across the board on Wednesday after the Federal Reserve Vice Chairman Richard Clarida said that the U.S. economic data since May has been surprisingly strong; however, it will still take another year for output to reach back to its pre-pandemic level. 

The rising uncertainty about the economic recovery weighed on risk sentiment and dragged the EUR/USD prices on Wednesday to the downward direction.

On the data front, at 14:00 GMT, the Industrial Production from Eurozone dropped to 0.7% from the expected 0.8% and weighed on the Euro currency. At 17:30 GMT, the Core PPI & PPI data from the U.S. for September raised to 0.4% from the projected 0.2% and supported the U.S. dollar. The macroeconomic data from both sides weighed on EUR/USD pair and kept the pair under pressure on Wednesday.

On October 14, the European Central Bank President Christine Lagarde said that European countries would need to invest 290 billion euros each year to meet their commitments under the 2015 Paris climate agreement. 

The little gains in EUR/USD could also be attributed to the latest Brexit optimism that emerged after U.K. Prime Minister Boris Johnson suggested that the U.K. continue to work on Brexit deal past the October 15 deadline. This raised hopes that no-deal will be out of option soon and raised EUR/USD pair on Wednesday.

Furthermore, the downward pressure on the EUR/USD pair was due to the latest moves from Eli Lilly and Co. to halt the government-sponsored clinical trials of its coronavirus vaccine. This move after a day when Jonson & Johnson halted its vaccine’s clinical trials due to an unexpected illness found in one participant raised economic recovery concerns and weighed on the riskier EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1720     1.1773

1.1694     1.1798

1.1668     1.1825

Pivot point: 1.1746

EUR/USD– Trading Tip

The EUR/USD pair traded sharply bearish to break below a solid support area of 1.1780 extended by an upward channel. On the lower side, the EUR/USD is gaining support at the 1.1732 level, and the bearish breakout of the 1.1732 level may lower the EUR/USD price further than the 1.1697 level. The MACD and RSI favor selling bias, but we may see a slight upward movement until the 1.1764 level before seeing further selling in the pair.

GBP/USD – Daily Analysis

The GBP/USD closed at 1.30113 after placing a high of 1.30642 and a low of 1.28627. Overall the movement of the GBP/USD pair remained bullish throughout the day. The currency pair GBP/USD raised on Wednesday amid the renewed hopes of a Brexit deal and the U.S. dollar weakness. On Wednesday, the U.S. dollar was weak as the U.S. Treasury Secretary Steven Mnuchin said that the U.S. stimulus package would not be delivered before November Presidential elections. The hopes for stimulus measure faded away and weighed on the U.S. dollar, ultimately helping the GBP/USD pair’s upward momentum.

Meanwhile, the upward trend in GBP/USD pair was also supported by the latest extension to the reach a Brexit deal by PM Boris Johnson. The U.K. government allowed Brexit talks to extend beyond the former deadline of October 15, announced by the PM Boris Johnson.

The extension raised renewed hopes to reach a Brexit deal and supported the local currency that favored the additional gains in GBP/USD pair.

However, the gains were limited by the rise of coronavirus cases in the United Kingdom, as it reported almost 20,000 new coronavirus cases on Wednesday. PM Boris Johnson said on the issue of coronavirus spread that the latest three-tier regional approach was productive in controlling the spread as the aim was to avoid the nationwide lockdown.

Moreover, the Brexit headlines overshadowed the coronavirus threats, and the pair kept moving in the upward direction on Wednesday. The main operator of the GBP/USD pair on Wednesday was the optimism about the Brexit deal in the market. On the flip side, the Bank of England chief Andy Haldane said that he was hopeful that Britain’s economic recovery from coronavirus’s initial impact would persist despite the risks. He said it because of the adaptability of businesses and households in the region.

He said that the consumption patterns and work practices of Britain’s had been changed since March lockdowns. This positive comment also raised the British Pound bars that helped the GBP/USD pair’s upward movement. The Core PPI for September and the PPI data rose to 0.4% from the forecasted 0.2% and capped further gains in GBP/USD pair from the U.S. side.

However, the comments from Federal Reserve member Clarida that it will take another year for economic output to reach its pre-pandemic level weighed on the U.S. dollar that helped additional gains in GBP/USD pair on Wednesday.

Daily Technical Levels

Support Resistance

1.2894     1.3098

1.2777     1.3183

1.2691     1.3301

Pivot point: 1.2980

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3020 level, having supported over 1.3005 level. Above this, the next target is likely to be found around 1.3050 and 1.3070 level. At the same time, a bearish breakout of the 1.3005 support level can extend selling bias until 1.2959. The bullish bias remains strong over 1.3005. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2944 today. 

USD/JPY – Daily Analysis

The USD/JPY currency pair successfully stopped its previous day losing streak and took some fresh bids near two-week highs, around the 105.30 regions in the last hour. However, the reason for the pair’s prevalent bullish bias could be attributed to the stronger U.S. dollar. Hence, the U.S. dollar remained supportive on the back of fading hopes over additional U.S. fiscal stimulus measures and surging COVID-19 cases in the leading European countries, which keeps the market trading sentiment under pressure and increase demand for traditional safe-haven assets. Apart from this, the latest halts in the COVID-19 vaccine trials are also weighing on the market risk tone. On the contrary, the prevalent risk-off market sentiment underpinned demand for traditional safe-haven assets, including the Japanese yen, which could be considered one of the key factors that kept the lid on any additional gains currency pair. At this particular time, the USD/JPY is currently trading at 105.25 and consolidating in the range between 105.10 – 105.30.

However, the market risk sentiment extended the previous two-day slumps to 3,478, down 0.08% intraday on the day. The market trading sentiment was being pressured by the fears of no U.S. stimulus ahead of the U.S. presidential election. Moreover, the S&P 500 Futures’ losses were further bolstered by the intensifying coronavirus (COVID-19) conditions in Europe amid pauses in the (COVID-19) virus vaccine trials. In the meantime, the on-going Brexit woes and downbeat U.S. inflation also exerted downside pressure on the market trading sentiment, which underpinned the demand for traditional safe-haven assets, including the U.S. dollar and Japanese yen.

As per the latest report, the U.S. Treasury Secretary Steve Mnuchin blamed the opposition Democratic Party to stop the stimulus package from keeping President Donald Trump lagging the election polls. Across the pond, the rising COVID-19 cases in notable European countries, such as Spain, France, Germany, and the U.K., orders for strict local lockdowns in recent days. Whereas, Johnson and Johnson’s pause in vaccine trials and Eli Lily also dragged the market sentiment down.

Moreover, the market risk-off sentiment was further bolstered by the reports suggesting that no deal was signed between the European Union (E.U.) and the U.K. Furthermore, the intensifying tussle between the U.S. and China also exerted downside pressure on the market. This, in turn, underpinned the safe-haven Japanese yen, which becomes the key factor that kept the lid on any additional gains in the currency pair.

The broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders still cheering the risk-off marker mood. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls suggest a clear-cut presidential victory for the Democrat candidate Joe Biden, which might cap further upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that helps the currency pair to stay bid. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.050 level today. Good luck!  

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 15 – JP Morgan Says Bitcoin is Overvalued; XRP Crashes As it Breaks Major Support

The cryptocurrency sector has spent the day trying to find a point of consolidation. However, most cryptocurrencies did end up in the red. Bitcoin is currently trading for $11,412, representing a decrease of 0.38% on the day. Meanwhile, Ethereum lost 1.28% on the day, while XRP lost 3.36%.

The cryptocurrency sector has spent the day trying to find a point of consolidation. However, most cryptocurrencies did end up in the red. Bitcoin is currently trading for $11,412, representing a decrease of 0.38% on the day. Meanwhile, Ethereum lost 1.28% on the day, while XRP lost 3.36%.

The cryptocurrency sector has spent the day trying to find a point of consolidation. However, most cryptocurrencies did end up in the red. Bitcoin is currently trading for $11,412, representing a decrease of 0.38% on the day. Meanwhile, Ethereum lost 1.28% on the day, while XRP lost 3.36%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that ABBC Coin gained 21.28% in the past 24 hours, making it the top daily gainer. Reserve Rights (19.41%) and Ren (13.61%) also did great. On the other hand, Storj lost 13.98%, making it the most prominent daily loser. It is followed by Uniswap’s loss of 12.63% and Energy Web Token’s loss of 9.94%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has decreased since our last report, with its value currently being 58.7%. This value represents a 2.54% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has lost a bit of its value over the course of the past 24 hours. Its current value is $360.10 billion, representing a decrease of $1.88 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market cap spent the past 24 hours stuck within a range bound by the $11,300 support level and $11,500 resistance level. The price entered a state of enormous volatility at one point, where Bitcoin tried to break both to the upside and downside. However, the move to the upside was quickly shut down, while the move towards the downside took a bit more time but failed as well. This left Bitcoin in a narrow range, which it will come out of as soon as the bulls and bears stabilize. Its decreasing RSI and volume are proof of future possible, sideways trading, as well as a big move up ahead.

BTC/USD 1-day Chart

Bitcoin’s technical overview is extremely bullish on every single time-frame, with longer time-frames showing full tilt towards the buy-side, while the shorter ones are slightly tilted towards the buy-side.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above its 50-period EMA and at its 21-period EMA
  • Price is at the middle Bollinger band
  • RSI is neutral and descending (53.49)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Ethereum (just like Bitcoin) tried to find a consolidation price but failed to do so. The second-largest cryptocurrency by market cap faced an upward-facing trend line which it could not follow anymore that triggered a selloff and a drop below the line as well as the $378 support level. While Ethereum is still fighting for the support (now resistance) level, the price will most likely stay above this line.

ETH/USD 4-hour Chart

Ethereum’s technicals on all time-frames are bullish, with longer time-frames having a stronger bullish sentiment than the shorter ones. However, its monthly overview’s oscillators are showing indecisiveness, as they are neutral.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above its 50-period and at its 21-period EMA
  • The price at its middle Bollinger band
  • RSI is neutral (51.89)
  • Volume is average
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

XRP had the worst day performance-wise out of the three cryptocurrencies we are covering. The third-largest cryptocurrency by market cap has dropped below its ascending support trend line, which extended the push towards the downside. The price reached as low as the $0.2454 support level, which is where the bulls picked up the pace and pushed the price up slightly.

Traders should pay attention to how XRP’s price moves around the ascending (yellow) resistance line, as well as the $0.2454 support level.

XRP/USD 4-hour Chart

XRP’s technicals are quite inconsistent, with its 4-hour and monthly technicals being tilted towards the sell-side. On the other hand, its weekly overview is bullish, while its daily overview is tilted more towards the bull side, with moving averages still having a hint of bearish sentiment.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is below both its 50-period EMA as well as its 21-period EMA
  • Price is at its lower Bollinger band
  • RSI is pushing towards the oversold area (38.64)
  • Volume is average (with the exception of one huge volume candle)
Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227

 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 14 – Analysts Calling for a Bull Market; Bitcoin Back Under $11,500

The cryptocurrency sector has experienced a pullback as Bitcoin went under its $11,500 support. Bitcoin is currently trading for $11,425, representing a decrease of 0.31% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP lost 0.52%.

The cryptocurrency sector has experienced a pullback as Bitcoin went under its $11,500 support. Bitcoin is currently trading for $11,425, representing a decrease of 0.31% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP lost 0.52%.

The cryptocurrency sector has experienced a pullback as Bitcoin went under its $11,500 support. Bitcoin is currently trading for $11,425, representing a decrease of 0.31% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP lost 0.52%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that PumaPay gained 13.55% in the past 24 hours, making it the top daily gainer. ABBC Coin (9.05%) and Uniswap (6.64%) also did great. On the other hand, Solana lost 7.81%, making it the most prominent daily loser. It is followed by Loopring’s loss of 6.9% and Kusama’s loss of 6.77%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has decreased slightly since our last report, with its value currently being 60.24%. This value represents a 0.16% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has lost a bit of its value over the course of the past 24 hours. Its current value is $361.98 billion, representing a decrease of $5.11 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market cap went into pullback mode as it couldn’t stay at its daily high of a little over $11,700. Bitcoin’s bull exhaustion triggered a pullback, which then broke the $11,500 support level to the downside, putting the cryptocurrency boxed in between $10,300 support and $10,500 resistance level. With the volume decreasing and RSI dropping down, we may expect sideways trading in the short-term before another attempt of (mostly likely) upwards motion.

Many analysts say that Bitcoin has almost no chance of going under $11,000 and that the most recent break above it has turned Bitcoin’s sentiment into a bullish one. However, if Bitcoin manages to go under $11,000, we may expect that the move will continue downwards quickly.

BTC/USD 4-hour Chart

Bitcoin’s technical overview is extremely bullish on all time-frames, with longer time-frames showing even stronger bull overview than the shorter ones.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and 21-period EMA
  • Price is at the middle Bollinger band
  • RSI is descending (57.23)
  • Volume is above-average (descending
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Ethereum also experienced a pullback from its highs as ETH bulls couldn’t go past $496. However, unlike Bitcoin, Ethereum didn’t break any support levels during the move towards the downside. As it bounced off of the $378 support level, it continued moving alongside a very steep upwards-trending line, which is a very bullish short-term sign.

While moving alongside this line is unsustainable in the long-term, Ethereum might experience some more stable gains in the next couple of days.

ETH/USD 4-hour Chart

Ethereum’s 1-day and weekly overviews extreme tilt towards the bull-side, while its 4-hour and monthly overviews show a bit of indecisiveness, though they are still bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and its 21-period EMA
  • The price slightly above its middle Bollinger band
  • RSI is neutral (60.70)
  • Volume is elevated (descending to average)
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

XRP is known for being less correlated to Bitcoin’s movements than most other cryptocurrencies, which it has shown today as well. The third-largest cryptocurrency by market cap has traded sideways and hasn’t experienced any pullbacks. It has been trading alongside the upward-trending (yellow) line, which will force XRP to either go under it or face its resistance at the $0.26 level. In the meantime, however, we may expect low volatility.

XRP/USD 4-hour Chart

XRP’s technicals are quite inconsistent, as its daily and weekly overviews show quite a bullish tilt, while its monthly overview is almost completely bearish. Its 4-hour overview is leaning towards the buy-side but is quite neutral.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is above its 50-period EMA as well as its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is flat (52.19)
  • Volume is average but descending
Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, 14th October – Top Trade Setups In Forex – U.S. PPI Figures Ahead! 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

On the news side, the focus will remain on the Core PPI and PPI figures that are likely to underperform compared with the previous month’s data, with this, the dollar may get weaker against other currencies. However, the FOMC members’ speeches will be worth monitoring to predict further market action. 

Economic Events to Watch Today  

 

EUR/USD – Daily Analysis

The EUR/USD closed at 1.17451 after placing a high of 1.18154 and a low of 1.17301. The EUR/USD pair dropped on Tuesday amid the strength of the U.S. dollar, dampened hopes of a coronavirus vaccine, and the rising number of coronavirus cases from the Eurozone along with the rising unemployment fears in the Euro area.

Euro currency remained stressed on Tuesday due to the strength of its rival U.S. dollar across the board. The impasse over the U.S. stimulus package after the comments from U.S. House Speaker Nancy Pelosi that the newly proposed stimulus relief bill from the U.S. President was not sufficient to meet Americans’ requirements gave strength to the U.S. dollar. The strength of the U.S. dollar weighed on EUR/USD pair on Tuesday.

Meanwhile, the market’s risk appetite was declined by Johnson & Johnson’s recent decision to halt the trials of their COVID-19 vaccine. The dampened hopes of a coronavirus vaccine weighed on the riskier currency Euro and dragged the prices of the EUR/USD pair further on the downside.

Furthermore, the coronavirus pandemic situation in European nations escalated and raised fears for the Eurozone’s economic recovery. The Eurozone’s economic prospects were also down because of the increased uncertainty about the Brexit deal and the U.S. presidential elections. The rising uncertainty caused an increased demand for safe-haven greenback that ultimately added to the EUR/USD pair’s losses on Tuesday.

Moreover, at 10:59 GMT, the German Final Consumer Price Index (CPI) for September remained in-line with the expectations of -0.2%. At 14:00 GMT, the ZEW Economic Sentiment from Eurozone dropped to 52.3 against the forecasted 72.0 and the previous 73.9 in October and weighed on a single currency added further in EUR/USD pair. The German ZEW Economic Sentiment also dropped in October to 56.1 from the forecasted 74.1 and the previous 77.4 and weighed on Euro that ultimately dragged EUR/USD prices on the downside.

The rising number of coronavirus cases in European nations has forced authorities to impose restrictions, which has raised fears for unemployment. The official data suggested that U.K. unemployment started to grow even before the government imposed new restrictions to control the virus’s spread. These fears continuously weighed on the euro currency and EUR/USD pair.

From the U.S. side, the NFIB Small Business Index came in as 104.0 against the projected 100.9 and supported the U.S. dollar added in the EUR/USD pair’s losses on Tuesday. Simultaneously, the CPI and Core CPI data from the U.S. remained flat with the expectations of 0.2% and had no impact on the U.S. dollar and EUR/USD pair.

Daily Technical Levels

Support Resistance

1.1791    1.1832

1.1767    1.1851

1.1749    1.1874

Pivot point: 1.1809

EUR/USD– Trading Tip

The EUR/USD pair traded sharply bearish to break below a solid support area of 1.1780 extended by an upward channel. On the lower side, the EUR/USD is gaining support at 1.1732 level, and the bearish breakout of 1.1732 level may lower the EUR/USD price further than the 1.1697 level. The MACD and RSI favor selling bias, but we may see a slight upward movement until the 1.1764 level before seeing further selling in the pair.

GBP/USD – Daily Analysis

The GBP/USD pair was close at 1.29340 after placing a high of 1.30678 and a low of 1.29216. The British Pound fell sharply on Tuesday amid the rising concerns about the no-deal Brexit and fears over a looming lockdown hurt sentiment.

The chances that the U.K. will leave the E.U. without a trade deal increased after the French government appeared reluctant to give in to U.K. demands over its fisheries’ control. The French foreign minister Jean-Yves Le Drian said that the possibility of the U.K. leaving the E.U. without a trade deal was a credible hypothesis.

The French government has already said that it will not accept any bad deal in fisheries, and this has raised the uncertainty over the deal just ahead of October 15-16 European summit. The E.U. Brexit negotiator Michel Barnier will provide updates on Brexit negotiations at the E.U. summit. Barnier will elaborate on the E.U. summit’s situation on the Brexit’s key sticking points with the details about priorities and the red lines. 

The British Pound remained under pressure as the concerns were raised after the French government’s warning about the no-deal Brexit. This weighed ultimately on the GBP/USD prices. Furthermore, the rising number of coronavirus in the United Kingdom forced the local government to impose further restrictions to control the virus’s spread. PM Boris Johnson said that the rising number of cases in the U.K. was flashing at them like dashboard warnings in a passenger jet. 

Boris Johnson unveiled a new three-tier system that categories areas based on the medium, high, and very high alert levels due to an uptick in coronavirus cases across the country. The U.K. government’s rising restrictions to control the spread of the virus raised fears of economic recovery that weighed on the local currency, which added further losses in the GBP/USD pair.

On the data front, at 04:01 GMT, the BRC Retail Sales Monitor for the year from Britain rose in September to 6.1% from the expected 3.5% and the previous 4.7% and supported British Pound and caped further losses in GBP/USD pair. AT 11:00 GMT, the Claimant Count Change in September dropped to 28.1K against the forecasted 78.8K and the previous 39.5K and supported British Pound. In September, the Unemployment Rate rose to 4.5% from the forecasted 4.3% and weighed on British Pound and added the GBP/USD pair’s additional losses.

At 11:02 GMT, Britain’s Average Earnings Index came in as 0.0% for the quarter against the expected -0.6% and supported GBP. On the other hand, the NFIB Small Business Index was released from the United States at 15:30 GMT and raised to 104.0 from the anticipated 100.9 and supported the U.S. dollar that dragged the GBP/USD pair even downward.

Daily Technical Levels

Support Resistance

1.3018    1.3098

1.2971    1.3131

1.1938    1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.2894 level, holding right below an immediate resistance level of 1.2944. The resistance is extended by an intraday horizontal level on the two-hourly timeframes. Below the 1.2944 resistance level, the Sterling can trigger selling until the 1.2894 level and 1.2845 level. On the flip side, a bullish breakout of 1.2944 levels can trigger buying until the 1.2994 level. The leading indicators, such as MACD and RSI, support selling; therefore, it’s worth taking a selling trade below 1.2944 today. 

USD/JPY – Daily Analysis

The USD/JPY closed at 105.475 after placing a high of 105.625 and a low of 105.234. The risk aversion market sentiment kept the USD/JPY pair on the high on Tuesday. The impasse supported the market sentiment over the U.S. stimulus package, the pandemic spread worldwide, and the pause of vaccine trials by Johnson & Jonson along with the Australian and Chinese recent clash.

The latest talks between Republicans & democrats for a fresh round of stimulus measures also failed to provide meaningful results and weighed on market sentiment. The U.S. House Speaker Nancy Pelosi downplayed the hopes for another round of stimulus package further after saying that the newly proposed package by US Trump was insufficient to meet the United States’ needs.

These dampened hopes over the next round of coronavirus relief bill raised risk aversion market sentiment and supported the U.S. dollar due to its safe-haven status and supported USD/JPY pair. Furthermore, the risk-off market bias was underpinned by the rising number of coronavirus cases across the globe and the governments’ restrictive measures to curb coronavirus’s effect on the economy. The economic recovery concerns raised even further after the IMF report that revealed that business and other economic activities were highly disturbed by the coronavirus pandemic-induced lockdowns. 

However, the IMF projection for the global recession somewhat improved on Tuesday to 4.4% than the previous projection of 5.2% in summer. This projection helped improve the risk sentiment and weighed on the safe-haven Japanese yen that added further gains in the USD/JPY pair.

The U.S. Dollar Index was up by 0.5% on Tuesday after the risk sentiment suffered due to the pause of vaccine trials by Johnson & Johnson. The company paused its trials after an unexpected illness was found in one of the participants. This pause increased the uncertainty over the economic recovery and supported the safe-haven greenback that pushed the USD/JPY pair.

On the data front, at 04:50 GMT, the M2 Money Stock for the year from Japan dropped to 9.0% from the expected 9.1% and weighed on the Japanese Yen that added strength to the USD/JPY pair on Tuesday. At 15:00 GMT, the NFIB Small Business Index for September advanced to 104.0 against the expected 100.9 and previous 100.2 and supported the U.S. dollar that lifted the USD/JPY pair. At 17:30 GMT, the CPI and the Core CPI data from September remained flat with the anticipated 0.2% and had a null-effect on the U.S. dollar.

Furthermore, China reportedly banned imports of Australian coal and left Australian vessels stuck at Chinese ports. These tensions between China and Australia increased concerns and raised uncertainty that helped improve the safe-haven Japanese yen and capped further gains in the USD/JPY pair on Tuesday.

Daily Technical Levels

105.05    105.70

104.82    106.12

104.40    106.36

Pivot point: 105.47

USD/JPY – Trading Tips

The USD/JPY traded sideway, with a neutral bias within a narrow trading range of 105.600 level to the 105.250 mark. Most of the selling triggered following the USD/JPY disrupted an upward channel at the 105.900 mark on Monday. The USD/JPY is trading at 105.459 marks, the support that’s was prolonged by double bottom mark on the two-hourly charts. A bearish violation of the 105.450 mark may encourage additional selling unto the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling sentiment today. Let’s consider opening sell trade beneath 105.60 and buying over 105.250 level today. Good luck!  

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 13 – G7 Will Continue to Oppose Libra; Bitcoin Consolidating After Another Bull Run

The cryptocurrency sector has experienced another surge as Bitcoin moved away from $11,300 and closer to $11,500. Bitcoin is currently trading for $11,434, representing an increase of 0.89% on the day. Meanwhile, Ethereum gained 3.35% on the day, while XRP gained 0.03%.

The cryptocurrency sector has experienced another surge as Bitcoin moved away from $11,300 and closer to $11,500. Bitcoin is currently trading for $11,434, representing an increase of 0.89% on the day. Meanwhile, Ethereum gained 3.35% on the day, while XRP gained 0.03%.

The cryptocurrency sector has experienced another surge as Bitcoin moved away from $11,300 and closer to $11,500. Bitcoin is currently trading for $11,434, representing an increase of 0.89% on the day. Meanwhile, Ethereum gained 3.35% on the day, while XRP gained 0.03%.

 Daily Crypto Sector Heat Map

Taking a look at the top 100 cryptocurrencies, we can see that Ocean Protocol gained 21.97% in the past 24 hours, making it the top daily gainer. CyberVein (14.58%) and Synthetix Network Token (11.83%) also did great. On the other hand, Ren lost 14.83%, making it the most prominent daily loser. It is followed by PumaPay’s loss of 8.33% and Uniswap’s loss of 3.33%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has decreased slightly since our last report, with its value currently being 60.40%. This value represents a 0.26% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has a bit more value over the course of the past 24 hours. Its current value is $366.13 billion, representing an increase of $7.71 billion compared to our previous report.

_______________________________________________________________________

What happened in the past 24 hours?

_______________________________________________________________________

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market cap has continued its push towards the upside, getting past $11,500 and even close to the $12,000 mark. The move died out when it approached $11,750. Bitcoin is now in the pullback phase, where its price has breached $11,500 to the downside and is testing how low it can go until the bulls step in again.

Traders should pay attention to how Bitcoin handles the $11,300-$11,500 level when looking for their next trade.


BTC/USD 4-hour Chart

Bitcoin’s technical overview on all time-frames is tilted towards the buy-side, with longer time-frames showing an extremely strong bull overview.

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and 21-period EMA
  • Price descending from the top Bollinger band
  • RSI is descending from almost-overbought levels (62.46)
  • Volume is above-average
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Ethereum has had another bull-run in the past 24 hours, with its price reaching as high as $396. However, the second-largest cryptocurrency by market cap couldn’t reach past the $400 mark, triggering bull exhaustion, and ultimately a pullback. With volume and RSI dropping, we may expect Ethereum to look for a price to consolidate a bit lower than its current price, and possibly test the $371 support level.


ETH/USD 4-hour Chart

Ethereum’s 1-day and monthly overviews show some signs of doubt in the bullish sentiment, while its 4-hour and weekly overviews are completely bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and its 21-period EMA
  • The price at its top Bollinger band
  • RSI is flat and nearly overbought (66.74)
  • Volume is elevated
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

Unlike Bitcoin and Ethereum, which both had a strong bull presence today, XRP has been trading sideways for most of the day. Its inability to reach past the $0.26 level has proven to be a problem, and we may expect XRP’s price to collide with the ascending trend line very soon. There is a small probability that XRP will reach past $0.26 and get close to $0.266, but it will most likely happen with Bitcoin’s help (though it is more likely that XRP will face the ascending line first).


XRP/USD 4-hour Chart

XRP’s 1-day technicals show a hint of doubt in its short-term bullish sentiment, while the 4-hour and weekly overviews are completely bullish. However, XRP’s monthly overview is still completely tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is above its 50-period EMA as well as its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is flat (55.33)
  • Volume is average but descending
Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227

 

Categories
Forex Market Analysis

Daily F.X. Analysis, 13th October – Top Trade Setups In Forex – U.S. Inflation in Highlights! 

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Investor’s eyes will stay on the Final CPI and Final core CPI due to the U.S. Economy. The analysts are forecasting no significant changes in the inflation rate; thus, it may go muted. However, the Claimant Count Change and Unemployment Rate data from the U.K. is likely to drive market movements. Let’s keep an eye on U.K. labor market figures and U.S. CPI m/m later today.

Economic Events to Watch Today  

  

EUR/USD – Daily Analysis

The EUR/USD pair was closed at 1.18109 after placing a high of 1.18265 and a low of 1.17865. Overall the movement of the EUR/USD pair remained flat throughout the day. The EUR/USD pair was flat on Monday, as the European Central Bank members reportedly downplayed expectations that it would adopt the Federal Reserve’s average inflation targeting measure, cooling bets on central banks allowing inflation to run above target.

Several ECB policymakers appeared reluctant to follow the Fed with an average inflation target on concerns it could lead to unrealistic expectations about future policy decisions. The European Central Bank has targeted an inflation policy of below but close to 2% for years. If ECB adopts average inflation targeting like Fed, this move will see the ECB allow inflation to run above its 2% target for some time to make up for periods of sluggish price increases. 

Recently, Eurozone inflation has remained short of the bank’s target. Following U.S. Federal Reserve on inflation targeting measure could allow inflation to rise above 2% and makeup periods of lagging price pressures.

Meanwhile, the signs that the second wave of coronavirus has started to weigh on growth have attracted the central bank’s attention and caused a sluggish move in the single currency Euro. On the data front, at 10:59 GMT, the German Wholesale Price Index dropped to 0.0% from the forecasted 0.2% and weighed on single currency Euro that ultimately weighed on EUR/USD pair.

On the U.S. front, the U.S. dollar remained strong onboard on Monday amid the rising hopes that a small coronavirus relief bill will be passed before elections as the talks over the massive stimulus bill stalled on the day. The new proposed bill by Trump of 1.8 trillion dollars faced rejection from both Republicans and Democrats. Republicans were reluctant to add more to the government debt pile, and Democrats wanted their 2.2 trillion packages.

After this, Trump Administration called on Congress for a small stimulus package to be funded from leftover funds and used for hardly-hit sectors like airline and small businesses. The hopes that a small package will be delivered before elections gave strength to the U.S. dollar that added pressure on EUR/USD, and the pair remained flat throughout the day.

Daily Technical Levels

Support Resistance

1.1791 1.1832

1.1767 1.1851

1.1749 1.1874

Pivot point: 1.1809

EUR/USD– Trading Tip

The EUR/USD pair is supported over 1.1790 level, which marks double bottom level on the 4-hour timeframe. Above this level, the EUR/USD is likely to bounce off until the 1.1811 level, and the bullish breakout of the 1.1831 level can also extend buying until the next target level of 1.1870. Conversely, the bearish breakout of the 1.1790 level can extend the selling trend until the 1.1750 level.

GBP/USD – Daily Analysis

The GBP/USD pair was closed at 1.30644 after placing a high of 1.30824 and a low of 1.30052. Overall the movement of the GBP/USD pair remained bullish throughout the day. The GBP/USD pair remained positive on Monday despite broad-based U.S. dollar strength. The pair traded at its four-week highest level, but the prospect remained depressed as the local country’s coronavirus situation escalated and forced to impose new restrictive measures.

The U.S. dollar was high on board after the talks for massive stimulus measures stalled again, and the Chinese yuan depreciated. The strong U.S. dollar helped cap further gains in GBP/USD pair on Monday. The latest move also weighed the gains in the GBP/USD pair from the Bank of England, who asked commercial banks earlier today about their readiness to cope with negative interest rates. On Monday, the Bank of England wrote banks to ask them how ready they were to cope with adopting negative interest rates.

This move from BoE raised concerns that it was considering cutting interest rates further to cope with the rising coronavirus cases in the U.K. The rising speculations over further rate cuts from BoE in the coming months weighed on British Pound and limited the additional gains in GBP/USD pair.

Meanwhile, the Governor of Bank of England, Andrew Bailey, said on Monday that the central bank thought Britain’s economy could struggle more than it has forecasted to recover from the coronavirus pandemic crisis. Bailey said that risk was, unfortunately, all on the downside, which added further pressure on British Pound.

Moreover, British Prime Minister Boris Johnson implemented a three-tiered system of restrictions with the closure of pubs in certain parts of England as the country was trying to deal with the rising number of coronavirus cases. These restrictive measures also exerted downside pressure on GBP/USD pair on Monday.

Furthermore, on the U.S. front, the U.S. dollar remained strong across the board after the Chinese yuan was depreciated. The Chinese city gave away 10M yuan in a lottery trial of digital currency. The latest digital currency trial was aimed at stimulating consumer spending to aid China’s economic recovery from the coronavirus pandemic.

Other than that, the U.S. dollar was also strong as the talks for a massive stimulus bill stalled again when Republicans and Democrats disagreed with passing the newly proposed bill by Trump of worth $1.8 trillion. After this, Trump Administration called on Congress to small stimulus aid for airline and small businesses. The strong U.S. dollar also kept the GBP/USD pair’s gain limited on Monday.

On the Brexit deal front, the concerns rose that negotiations could collapse as the differences between E.U. & U.K. demands were only rising. The deadline to reach a deal is just three days far, and no progress has been reported as of yet that has raised the risk sentiment in the market. The improved risk sentiment kept the GBP/USD pair higher on board.

Daily Technical Levels

Support Resistance

1.3018 1.3098

1.2971 1.3131

1.1938 1.3177

Pivot point: 1.3051

GBP/USD– Trading Tip

The GBP/USD is trading at 1.3043 level, holding right below an immediate resistance level of 1.3063. The resistance is extended by an upward channels’ trendline on the two-hourly timeframes. Below the 1.3063 resistance level, the Sterling can trigger selling until the 1.3003 level and 1.2959 level. On the higher side, a bullish breakout of 1.3063 levels can trigger buying until the 1.3127 level. The fundamental side is muted today, and the U.S. banks are closed in the observance of Columbus day; therefore, we may experience thin volatility. 

USD/JPY – Daily Analysis

The USD/JPY pair was closed at 105.317 after placing a high of 105.817 and a low of 105.240. Overall the movement of the USD/JPY pair remained bearish throughout the day. The USD/JPY pair failed to cheer the Chinese Yuan depreciation and U.S. dollar strength on Monday and continued decline over the fresh hopes that the U.S. stimulus aid package will be delivered before the elections.

The people’s Bank of China removed a 20% reserve requirement ratio for yuan forward settlements that undermined the cost of shorting yuan and weighed on the Chinese currency. But investors failed to take advantage of this depreciation in yuan, and the pair USD/JPY remained depressed in the market.

The rising number of coronavirus cases worldwide and the increased restrictions to curb the coronavirus pandemic’s effect raised the safe-haven appeal and supported the Japanese Yen that weighed on the USD/JPY pair. Meanwhile, the absence of key macroeconomic events due to the U.S. and Canada celebrating Columbus Day and Thanksgiving respectively exerted more pressure on the USD/JPY pair.

On the Japan front, the Bank Lending for the year was released at 04:50 GMT that remained flat at 6.4%. The Core Machinery Orders raised to 0.2% from the forecasted -1.0% and supported the Japanese Yen that weighed on the USD/JPY pair. Whereas, the PPI for the year from Japan decreased to -0.8% against the forecasted -0.5%. At 10:58 GMT, the Prelim Machine Tool Orders for the year remained flat at -15.0%.

Furthermore, the newly proposed U.S. stimulus measure of $1.8 trillion by Trump also faced rejection from both parties. In response to this, the Trump administration asked Congress to provide Americans with a small relief fund specifically for airlines and small businesses before elections.

The hopes that a small package could be passed before elections and a massive stimulus package after elections weighed on the U.S. dollar and added further losses in the USD/JPY pair on Monday.

Moreover, the White House physician Sean Conley said that U.S. President Donald Trump was free of transmission risk to others on Saturday. On Sunday, Trump claimed that he was now immune from the coronavirus, but the chances to get infected remained again. Trump was tested positive for coronavirus on first October, and he has been getting medical assistance since then. The news that Trump was getting better and has no transmission risk raised risk sentiment and capped further losses in the USD/JPY pair by weighing on safe-haven Japanese yen.

Daily Technical Levels

105.05 105.70

104.82 106.12

104.40 106.36

Pivot point: 105.47

USD/JPY – Trading Tips

On Tuesday, the USD/JPY traded sharply bearish to drop from 105.900 level to the 105.450 mark. Most of the selling triggered after the USD/JPY violated an upward channel at 105.900 level. Currently, the USD/JPY pair is trading at 105.459 level, the support level that’s extended by double bottom level. A bearish breakout of 105.450 level may drive further selling until the 105.070 support level as the MACD, and the 50 periods EMA are in support of selling bias today. Let’s consider opening sell trade below 105.40 level today. Good luck!  

Categories
Forex Signals

AUD/USD Failed To Gain Any Positive Traction – Double Bottom Supports! 

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The market risk-on sentiment faded after the House Speaker Nancy Pelosi rejected Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion. Apart from this, the on-going surge in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears also weighs on the market risk sentiment, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the no-deal Brexit is gradually gaining momentum as the European Union (E.U.) and the U.K. are still at loggerheads, despite being near the October 15 deadline. 

Across the pond, the latest figures from Europe and the U.K. keeps leading the national lockdowns. As per the latest report, France reported record 27,000 new cases with German infections surging by the most since April, which kept fueling the worries over the global economic recovery and kept the currency pair under pressure. 

As a result, the broad-based U.S. dollar succeeded in stopping its early-day losses and took the fresh bids on the day. However, the U.S. dollar gains could be temporary as worries over the economic recovery in the U.S. could be stopped amid the reappearance of coronavirus cases and U.S. post-election uncertainty. 

The People’s Bank of China (PBOC) set the financial institutions free from the need to set aside cash when purchasing F.X. for clients through forwards. These moves could negatively impact the Chinse currency as the same moves were taken in September 2017, which resulted in over 2.0% drop of the Chinese yuan (CNY) during the following three weeks. Thus, any Chinese currency loss tends to undermine the Australian dollar as China is the biggest customer in Australia.


Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bullish bias over 0.7203 level, and continuation of an upward trend may lead AUD/USD price towards 0.7253 level. On the lower side, the support stays at the 0.7203 area today. We may see the AUD/USD to trade bullish until 0.7250 and 0.7330. Good luck! 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 12 – Crypto Market Consolidating After a Surge: What’s Next?

The cryptocurrency sector has experienced a surge over the weekend as Bitcoin pushed above $11,000. Bitcoin is currently trading for $11,319, representing a decrease of 0.25% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP gained 0.32%.

The cryptocurrency sector has experienced a surge over the weekend as Bitcoin pushed above $11,000. Bitcoin is currently trading for $11,319, representing a decrease of 0.25% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP gained 0.32%.

The cryptocurrency sector has experienced a surge over the weekend as Bitcoin pushed above $11,000. Bitcoin is currently trading for $11,319, representing a decrease of 0.25% on the day. Meanwhile, Ethereum gained 0.09% on the day, while XRP gained 0.32%.

 Daily Crypto Sector Heat Map

Taking a look at the top 100 cryptocurrencies, we can see that Ren gained 27.02% in the past 24 hours, making it the top daily gainer. Monero (9.75%) and Cosmos (7.98%) also did great. On the other hand, Loopring lost 7.99%, making it the most prominent daily loser. It is followed by StorJ’s loss of 6.76% and PumaPay’s loss of 6.54%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has decreased slightly since our last report, with its value currently being 60.66%. This value represents a 0.67% difference to the downside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has gained quite a bit of value over the course of the weekend. Its current value is $358.48 billion, representing an increase of $14.33 billion compared to our previous report.

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What happened in the past 24 hours?

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Technical analysis

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Bitcoin

The largest cryptocurrency by market cap has continued its push towards the upside on Friday/Saturday, reaching as high as $11,500. The move has died out since, and Bitcoin is now trading in a narrow range between the $10,300 support level and $10,500 resistance level (61.8% Fib retracement). The volume seems to be dying off, while the RSI is descending, which may indicate a short window where traders shouldn’t expect much volatility, but rather trade within this range. However, Bitcoin cannot stay locked up in such a narrow range for too long and will have to make another move in the short future.


BTC/USD 4-hour Chart

Bitcoin’s technical overview is tilted towards the buy-side overall, but its short-term (4-hour and 1-day) technicals are a bit mixed up, with oscillators questioning the bullishness. However, its long-term outlook is completely bullish

BTC/USD 1-day Technicals

Technical factors (4-hour Chart):
  • Price is above both its 50-period EMA and 21-period EMA
  • Price is near the middle Bollinger band
  • RSI is descending from almost-overbought levels (66.90)
  • Volume is descending
Key levels to the upside          Key levels to the downside

1: $11,500                                 1: $11,300

2: $11,630                                 2: $11,180

3: $12,000                                  3: $11,000

Ethereum

Ethereum’s movement over the weekend was similar to Bitcoin’s, with its price skyrocketing on Friday/Saturday, only to consolidate after the move ended. Ethereum bulls reached exhaustion after the price hit the 38.2% Fib retracement, and started consolidating right below it. Just as with Bitcoin, Ethereum is stuck within a range, bound by $371 to the downside and $378 to the upside.

Ethereum’s flat (and nearly overbought) RSI and descending volume indicate that Ethereum is preparing for a move.

ETH/USD 4-hour Chart

Ethereum’s short-term technicals are somewhat unclear, with its 4-hour overview turning to bullish and 1-day overview still being tilted towards the sell-side quite heavily. On the other hand, its long-term technicals are quite bullish.

ETH/USD 1-day Technicals

Technical Factors (4-hour Chart):
  • The price is above both its 50-period and 21-period EMA
  • The price is near its middle Bollinger band
  • RSI is flat and nearly overbought(66.85)
  • Volume is below average
Key levels to the upside          Key levels to the downside

1: $378                                     1: $371

2: $400                                     2: $360

3: $415                                      3: $334

Ripple

While XRP has also moved over the weekend, its move was not as significant as Bitcoin’s or Ethereum’s move. This is simply because it did not break any recent resistances, but rather got stuck at the same one it couldn’t get past on Oct 6. XRP is now consolidating at around $0.255, and we may possibly see a pullback to the orange ascending line as a retest of this upward-facing trend.

XRP has two possibilities now: it will either push towards $0.266 (less likely) or pull back towards the ascending line (more likely). Traders should keep in mind both of these scenarios when attempting to trade XRP.

XRP/USD 4-hour Chart

XRP’s 4-hour, 1-day, and weekly technicals are practically the same and are all tilted towards the buy-side (with oscillators being more or less neutral), while its monthly overview is heavily tilted towards the sell-side.

XRP/USD 1-day Technicals

Technical factors (4-hour Chart):
  • The price is above its 50-period EMA and at its 21-period EMA
  • Price is at its middle Bollinger band
  • RSI is descending (52.16)
  • Volume is average (descending)
Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227