Tag: Trade Idea

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Forex Signals

Gold bounces off the Linear Regression line and heads up to meet the top of the channel

The idea

The idea

The idea

Gold has been having a corrective movement lately. The price has created a slightly descending channel. If we draw a linear regression channel we can easily see the consensus of price, represented by the mean line, which is the average line of the price set for the range, and the edges of the channels are set at ±2 Sigmas (standard deviation) of the centerline.

On the 2H chart we see that, after the price did a higher low below the centerline, it went up, and consolidated for a while above that line. Today it made an engulfing figure that broke through the recent range and is heading up.

A long position was entered at 1,711.12 with a stop-loss at $1,699.12 and a take profit of 1,725.12, which gives a reward to risk ratio of 1.17, which is less than the usual, but also the target can be reached easier, as it is not set at the top of the channel but at the recent high of the price, made on May 08.

Main levels:

  • Long entry: 1,711.12
  • Stop-Loss: 1,699.12
  • Take-profit: 1,725.12

Reward/Risk Ratio: 1.17

Dollar Reward and Risk

  • Risk:$1200 per lot, $120 per mini lot, 12 per micro lot
  • Reward: 1400 per lot, $140 per mini lot, $12 per micro lot.

 

 

Categories
Forex Market Analysis

Overbought gold Seems to Head for 38.2% Fib – Quick Trade Plan! 

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Gold prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential collision on global economic growth pushed safe-haven buying.

Japan has recorded 837 coronavirus cases, including 691 cases related to the “Diamond Princess” cruise ship, with a fatality number of four. The number of confirmed cases in South Korea surged to 602 (6 deaths) as the country raised its infectious-disease warning to the highest level. 

Italy said there were over 150 cases across five regions (3 deaths). Meanwhile, in China, official numbers showed nearly 77,000 cases and over 2,400 deaths. The World Health Organization announced it is concerned about the growing number of problems without any apparent connection to China. Consequently, investors are moving funds into gold due to its safe-haven demand.

Gold – XAU/USD – Daily Technical Levels

Support     Resistance 

1,629.58    1,653.22

1,615.82    1,663.11

1,592.18    1,686.76

Pivot Point 1,639.47

On the technical side, the XAU/USD is trading at 1,679 and has entered the overbought zone where the chances of bearish corrections pretty solid. On the lower side, gold may show bearish correction until 1,658, which marks 38.2%. On the higher side, resistance continues to stay around 1,690. A bullish breakout of 1,690 may lead to gold prices to prices 1,710 resistance. Let’s consider taking sell trades to capture the correction below 1,680 until 1,670/1,668. Good luck! 

   

Categories
Forex Market Analysis

Crude Oil’s Ascending Triangle Pattern Breakout – What’s Next?

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The WTI crude oil prices dropped mainly due to falling demand in the wake of intensifying coronavirus fears. The U.S. Crude Oil fell 0.6% to trade at $51.99during the European session.

The crude oil prices recently dropped despite China’s report that the pace of virus infection in the region continued to decrease. It is worth to mention that the Chinese health authorities confirmed 1,886 new cases of coronavirus and 98 further deaths as per yesterday’s report.

China recently imposed tighter restrictions on travel and movement within the country to control the spread of the virus. The International Energy Agency announced this month that the virus could reduce oil demand by 435,000 barrels per day in the first 3-months of the year. In contrast, global experts stated it is yet too immature to announce the outbreak is being controlled.

The equity market risk-tone is getting worse, and U.S. stock futures slipped from record levels after tech giant Apple said on Monday that it would not reach its revenue target of the March quarter, due mainly to slower iPhone production and weaker demand in China, as a side effect of the coronavirus outbreak. 

Looking forward, the traders are also awaiting news from the Organization of the Petroleum Exporting Countries and its allies about deepening production cuts to support oil prices.

    

Daily Support and Resistance

  • S1 51.57
  • S2 52
  • S3 52.28

Pivot Point 52.44

  • R1 52.72
  • R2 52.88
  • R3 53.31

On the technical front, the WTI crude oil prices have violated the ascending triangle pattern on the lower side to trade at 51.45 level. The breakout patterns open further room for selling until 50.50 and 49.45. While the MACD has recently started forming histograms below zero level, which are suggesting odds of more selling in the WTI crude oil prices. In case the WTI crude oil violates 52.30 resistance mark, we may see crude oil prices heading towards 53.50. Good luck! 

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Forex Market Analysis

Gold’s Symmetric Triangle Remisn Intact – Investors Eye for a Breakout!

ouldThe precious metal gold traded bullish again since the inception of the trading day, topping the $1,576 level after the price dropped to the $1562 through the session. That has happened despite the words by the Chinese president that the corona situation is under control and that the disease is at its top; thus, the situation would be entirely contained by next April.

ouldThe precious metal gold traded bullish again since the inception of the trading day, topping the $1,576 level after the price dropped to the $1562 through the session. That has happened despite the words by the Chinese president that the corona situation is under control and that the disease is at its top; thus, the situation would be entirely contained by next April.

ouldThe precious metal gold traded bullish again since the inception of the trading day, topping the $1,576 level after the price dropped to the $1562 through the session. That has happened despite the words by the Chinese president that the corona situation is under control and that the disease is at its top; thus, the situation would be entirely contained by next April.

In addition to this, the U.S. Labor Department announced its U.S. Consumer Price Index increased 0.1% in January, following a 0.2% increase in December. The U.S. CPI figures were weaker than anticipated, as forecasts were for a growth rate of 0.2%.

The U.S. core CPI data increased in line with forecast, rising 0.2% during the previous month, following December’s surge of 0.1%. Annual core inflation climbed 2.3% last month, the report declared.



Support Resistance
1,561.75 1,570.37
1,557.54 1,574.77
1,548.92 1,583.38
Pivot Point 1,566.15

On the technical front, the precious metal gold is trading within a symmetric triangle pattern, which is keeping the yellow metal prices in a sideways range of 1,577 – 1,552. Typically, the symmetric triangle pattern signals the indecision among traders and demonstrates that the investors are looking for a solid reason to trigger a breakout while this breakout can be on either side. With that being said, we need to keep a close eye on the 1,577 level as the bullish breakout of this level can extend buying until 1,585 level. Good luck!

Categories
Forex Market Analysis

Crude Oil Completes 23.6% Retracement – Who’s Up for Selling?

The WTI crude oil is trading with a bearish bias at 53.85 level, which marks the 23.6% Fibonacci retracement level. Most of the bullish recovering in oil prices came in response to the inventory report released by the API. 

The WTI crude oil is trading with a bearish bias at 53.85 level, which marks the 23.6% Fibonacci retracement level. Most of the bullish recovering in oil prices came in response to the inventory report released by the API. 

The WTI crude oil is trading with a bearish bias at 53.85 level, which marks the 23.6% Fibonacci retracement level. Most of the bullish recovering in oil prices came in response to the inventory report released by the API. 

The inventories of U.S. crude sank dramatically during the previous week. The API posted a dip of 4.3 million for the week concluded Jan. 24 versus the build of 1.6 million announced last week.

The WTI crude oil prices grew 1.6% in response to the report in post-settlement trading. For now, the eyes will remain on the Energy Information Administration report, which is due at 10:30 AM ET Wednesday. The economists are expecting a build in crude stocks of 482,000.


Daily Support and Resistance

S3 50.85
S2 52.21
S1 53.1
Pivot Point 53.58
R1 54.47
R2 54.95
R3 56.32

The WTI finally dispensed some bullish momentum. However, it still lingers beneath 55.30. The leading technical indicators such as the RSI and Stochastics are in the oversold area, though it’s attempting to come out of the oversold territory. 

Currently, U.S. Oil may find support nearby 51.30. So we can watch for bearish trades beneath 55.30 and bullish over 53.50.

Good luck!

Categories
Forex Market Analysis

Gold Flashing Green – China’s Coronavirus Outbreak Threats! 

The safe-haven-metal prices continued to flash green and rose to $1,588.70, mainly due to the risk-off market sentiment in the wake of China coronavirus outbreak threats. It is worth to mention that the gold prices recently got love from the fears of China’s coronavirus outbreak, as well as the headlines from the Middle East and the global trade news also add in the risk tone in the market.

The safe-haven-metal prices continued to flash green and rose to $1,588.70, mainly due to the risk-off market sentiment in the wake of China coronavirus outbreak threats. It is worth to mention that the gold prices recently got love from the fears of China’s coronavirus outbreak, as well as the headlines from the Middle East and the global trade news also add in the risk tone in the market.

The safe-haven-metal prices continued to flash green and rose to $1,588.70, mainly due to the risk-off market sentiment in the wake of China coronavirus outbreak threats. It is worth to mention that the gold prices recently got love from the fears of China’s coronavirus outbreak, as well as the headlines from the Middle East and the global trade news also add in the risk tone in the market.

According to the recent statement, the death toll in China due to coronavirus has risen to more than 80 from the 57. Meanwhile, Chinese authorities have recently updated the number of people affected by coronavirus as 30,400. Besides, more cases are also found in the United States, Japan, and Sydney. Whereas, the World Health Organization is likely to change its statement of delaying to call the coronavirus as International emergency amid the worldwide spread of the virus.

On the other hand, the renewed fears of the United States and Iran war also threatened the market risk-tone after repeated attacks on the US troops in Iraq on Sunday. The Sanctions on Iran from US Trump’s Administration has also added in the risk-off sentiment of the market.

Meanwhile, the US ten-year treasury yields hit the lowest from October 09 to 1.63%, whereas the S&P 500 decline more than 1.0% to 3,258 by the press time.

Looking forward, the traders will keep their eyes only on the trade and geopolitical news for fresh clues due to the lack of major data and events on the economic calendar in the wake of Australia and China’s holiday.

Daily Support and Resistance

  • S3 1529.51
  • S2 1548.81
  • S1 1560.32

Pivot Point 1568.11

  • R1 1579.62
  • R2 1587.41
  • R3 1606.71

On Monday, the boosted safe-haven demand has prompted a huge surge in the gold prices as it has opened with a gap from 1,572 to 1,581. Even now, gold prices are staying over 1,577 support zone, and bearish breakout of such level can prolong bearish trend unto 1,572 level. The general trend is bullish presently, but this gap should be swelled here we see further buying in gold. Good luck! 

Categories
Forex Market Analysis

Gold Rose Slightly As Fear of Virus Continue To Raise – Trade Idea!

The safe-haven-metal prices slightly rose, mainly due to the spread of China’s coronavirus. There were reports that the virus has almost killed 17 people in China, and officials have completely closed the Wuhan city to prevent the infection from further spread. However, China is looking up to other nations as well for finding the cause behind this virus. It has been found so far that the virus is contagious and can be transmitted from person to person, and this has resulted in an increase of risk-tone in the financial market.

The safe-haven-metal prices slightly rose, mainly due to the spread of China’s coronavirus. There were reports that the virus has almost killed 17 people in China, and officials have completely closed the Wuhan city to prevent the infection from further spread. However, China is looking up to other nations as well for finding the cause behind this virus. It has been found so far that the virus is contagious and can be transmitted from person to person, and this has resulted in an increase of risk-tone in the financial market.

The safe-haven-metal prices slightly rose, mainly due to the spread of China’s coronavirus. There were reports that the virus has almost killed 17 people in China, and officials have completely closed the Wuhan city to prevent the infection from further spread. However, China is looking up to other nations as well for finding the cause behind this virus. It has been found so far that the virus is contagious and can be transmitted from person to person, and this has resulted in an increase of risk-tone in the financial market.

The latest coronavirus has refreshed the memories of the SARS virus, which was also started in China in 2002-2003 and resulted in dented economic growth and a slump of the travel business. The market’s risk sentiment has increased due to the possible effects of the virus on the world’s second-largest economy.

At the Sino-US trade font, the uncertainty regarding trade tensions eased around the globe when the US reported that it has decided to roll back some tariffs on Chinese products on Valentine’s Day.

On the other hand, US President Donald Trump gave the warning to impose 25% tariffs on the EU cars if it fails to deliver any trade deal. The EU Chief Von Der Leyen may visit Washington in early February to discuss the possibility of the trade deal.

Whereas, the Lower export figures from Japan in December also supported the safe-haven metal today. As well as the country’s exports fell 6.3% in December from a year earlier, the Ministry of Finance data showed on Thursday. Meanwhile, Imports decreased by 4.9% in the year to December, against the median estimate for a 3.4% decrease. They fell 15.7% in the previous month.



Daily Support and Resistance
S3 1538.86
S2 1547.56
S1 1553.22
Pivot Point 1556.26
R1 1561.92
R2 1564.96
R3 1573.66

Gold is trading with a neutral bias, keeping the trading rangebound within 1,566 – 1,549. On the 4 hour chart, it has produced a series of Doji and Spinning top candles, which indicates uncertainty among investors.

At the moment, gold may find immediate support nearby 1,555 levels, which is expected to keep it in a buying mode until the subsequent resistance level of 1.561.

A bullish violation of this level can encourage more buying to 1,565. On the lower side, the breach of 1,555 support level can spread selling unto 1,551 level today.

Categories
Forex Market Analysis

AUD/USD Currency Pair Seesaws Near 0.6900 As Traders Want More Clarity Regarding Sino-US Trade deal.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

Apart from the Sino-US trade deal, China also cheered Trump administration as the U.S. removed China from the currency manipulator list. Besides, the latest comments from the United States Senate leader McConnell who sent optimism that the latest United States–Mexico–Canada Agreement (USMCA) will pass the house on Friday, also supported the Aussie.

While the U.S. Vice President Mike Pence said that Phase 2 talks had already started and officials are struggling to resolve disputes. As in result, the risk-on sentiment improved in the market, and ultimately riskier assets also got support.

Looking forward, November month Home Loans and Investment Lending for Homes from Australia will be followed by China’sChina’s December month House Price Index to offer a fresh direction to the pair.

Daily Support and Resistance

S3 0.682
S2 0.686
S1 0.6881
Pivot Point 0.6899
R1 0.6921
R2 0.6939
R3 0.6978

Technically speaking, the AUD/USD is trading bullish at 0.6920 within a bullish channel, which is keeping the Aussie on the higher side. The AUD/USD pair is likely to find resistance around 0.6930, but the latest higher’s high pattern may drive more buying in the AUD/USD pair.

The MACD and RSI are crossing over in the bullish zone, and these may underpin the demand for AUD/USD. On the higher side, the bullish breakout of 0.6930 is likely to lead Aussie prices towards 0.6960, while support continues to stay around 0.6900. Let’sLet’s stay bullish above 0.6910 today. Good luck!

Categories
Forex Market Analysis

Gold Sideways Pattern Intact – Brace for a Breakout! 

The safe-haven-metal prices flashed green and rose by 0.6% to $1,553.15, mainly due to fresh uncertainty surrounding the United States and China phase-one trade deal.

The safe-haven-metal prices flashed green and rose by 0.6% to $1,553.15, mainly due to fresh uncertainty surrounding the United States and China phase-one trade deal.

The safe-haven-metal prices flashed green and rose by 0.6% to $1,553.15, mainly due to fresh uncertainty surrounding the United States and China phase-one trade deal.

At the Sino-US front, the United States decided that it will not remove tariffs on Chinese imports until the 2020 presidential elections. As a result, uncertainty surrounding the signing ceremony of phase one of the trade deal between the US and China emerged in the market. The meeting to sign the agreement is scheduled for today, while no details have yet been revealed regarding the contents of the trade deal.

It should be noted that the market traders are cautious and await for any detail release regarding the Sino-US phase-one trade deal ceremony for taking new directions. The meeting will take place today at the White House between the US & China (reportedly 11:30 am NY time but not confirmed).

The yellow metal rose at the starting of this week in the wake of U.S.-Iran tensions. However, risk sentiment recovered after when the two nations said they did not seek an intensification of the war. Therefore, we can say Iran-US war matter was the big reason behind the bullish gold rally last week.

On the other hand, the declining Treasury bond yields seem to push the greenback lower as well. The US Dollar Index, which tested the 97.50 marks earlier in the day, is now down 0.03% at 97.35. 

    


Daily Support and Resistance

  • S3 1518.31
  • S2 1531.09
  • S1 1538.79

Pivot Point 1543.86

  • R1 1551.57
  • R2 1556.64
  • R3 1569.41

Gold surged as the US Core CPI number undershot economists anticipate and poorly performed, sending bullish reversal in the gold. Currently, precious metal gold is trading over a strong support level of 1,551, and the extension of trading over this level can encourage further buying in the gold. 

Alternatively, the next resistance is expected to appear nearby 1,556 and 1,559. The breach of 1,551 can lead to gold towards 1,546. The bullish bias remains active today. Good luck! 

Categories
Forex Market Analysis

EUR/JPY Completes 50% Fibo Retracement – 61.8% Mark In Eyes!

The EUR/JPY is trading with a bearish bias at 120.950 areas in the wake of the U.S. Iran trade war. Iran immediately called a parliament to decide whether US troops should remain in Iran soil or not. The parliament voted the US troop withdrawal from Iran, which was criticized by the US.

The EUR/JPY is trading with a bearish bias at 120.950 areas in the wake of the U.S. Iran trade war. Iran immediately called a parliament to decide whether US troops should remain in Iran soil or not. The parliament voted the US troop withdrawal from Iran, which was criticized by the US.

The EUR/JPY is trading with a bearish bias at 120.950 areas in the wake of the U.S. Iran trade war. Iran immediately called a parliament to decide whether US troops should remain in Iran soil or not. The parliament voted the US troop withdrawal from Iran, which was criticized by the US.

The US President Trump said that they had invested billions of dollars in building an airbase in Iran, and they would not leave until Iran pay them back. US army denied the troop withdrawal from Iran.
Iran then announced that it would no longer follow the 2015 nuclear contract with the world powers. According to that provision, Iran was bound to follow the uranium enrichment limits mentioned under the 2015 Nuclear Agreement.

In response to what, US President tweeted that Iran would never become a Nuclear Power. He then said that the US military would attack 52 Iranian Historical values if they make US troops to leave Iran. This has increased the geopolitical tensions throughout the globe and has increased the uncertainty as to which extent these countries could go further.

On the other hand, the FOMC meeting minutes for the December meeting were released on Sunday, which showed that US Fed policymakers were in favor of further easing. However, Federal Reserve has already announced that no further rate cuts would be made in 2020, and the interest rates will remain unchanged throughout the year.


EUR/JPY – Daily Technical Levels

Support Resistance
121.16 121.35
121.06 121.44
120.87 121.64
Pivot Point 121.25

The EUR/JPY pair has already completed 38.2% Fibonacci retracement around 120.950, and it’s now likely to head towards 61.8% Fibo levels. Immediate support is expected to be found around 120.800 level, while the MACD and RSI support the bearish bias. The idea is to trade bearish below 121.005 to complete 61.8% Fibonacci retracement around 120.650 today.

Good luck!

Categories
Forex Price-Action Strategies

Daily-H4 Timeframe Combination – The Market Sometimes Makes You Wait More Than You Think

In today’s lesson, we are going to demonstrate an example of an entry derived from the daily-H4 combination. Usually, the daily-H4 combination does not take that long to offer an entry once the price makes a breakout on the daily chart. In today’s example, things are a bit different. Let us find out how it starts and ends.

In today’s lesson, we are going to demonstrate an example of an entry derived from the daily-H4 combination. Usually, the daily-H4 combination does not take that long to offer an entry once the price makes a breakout on the daily chart. In today’s example, things are a bit different. Let us find out how it starts and ends.

In today’s lesson, we are going to demonstrate an example of an entry derived from the daily-H4 combination. Usually, the daily-H4 combination does not take that long to offer an entry once the price makes a breakout on the daily chart. In today’s example, things are a bit different. Let us find out how it starts and ends.

The figure above shoes the daily chart. After a strong bullish impulse, the price action gets choppy for several days. Do you notice anything here?

The price gets caught within a rectangle. Since it has been choppy for quite a while, it makes some traders think not to keep the pair on their watch list.

There is a saying in price action trading “the more it ranges, the harder it breaks’. Thus, the next breakout may be a very strong one.

The breakout candle looks good. However, it is not that strong a breakout as we have expected. Nevertheless, it is a valid daily breakout, so traders are to flip over to the H4 chart to take a long entry.

The figure above shows the H4 chart. The price has been heading towards the North with an average bullish momentum. Traders are to wait for the price to find its support and make an upside breakout to offer them a long entry.

The price keeps being choppy on the H4 chart as well. It neither has consolidated nor produced a bullish reversal candle on which buyers could take a long entry. It has instead been within another bullish rectangle. This time it is, of course, an H4 bullish rectangle. Let us proceed to find out which way it makes its next breakout.

The price makes an upside breakout again. A bullish engulfing candle with long lower shadow makes the breakout. The buyers have been waiting for it, so a long entry may be triggered right after the candle closes. The Stop Loss shall be set below the rectangle support. There is no visible swing high. This suggests that the profit taking should be managed manually.

The plan has worked wonderfully well. The price goes straightway towards the North with extreme bullish momentum. The buyers may trail their Stop Loss in the middle of the big candle or at least above the breakeven point. As it has been going, it may keep pushing towards the North further. Let us find out what happens next.

The chart produces a bearish reversal candle. It is an Inside Bar, but it is time for the buyers to close the entry.

The price takes so long to make a breakout on the daily chart. It also takes a long time to offer entry on the H4 chart as well. This situation does not happen frequently, but sometimes it may occur. Thus, traders are to be mentally prepared for it.

Categories
Forex Market Analysis

Gold Choppy Trend Continues – What Next to Expect?

On Friday, the precious metal gold trade sideways in the wake of mixed fundamentals. Despite this, gold is still on track to post its most vital monthly drop in 3

On Friday, the precious metal gold trade sideways in the wake of mixed fundamentals. Despite this, gold is still on track to post its most vital monthly drop in 3

On Friday, the precious metal gold trade sideways in the wake of mixed fundamentals. Despite this, gold is still on track to post its most vital monthly drop in 3 years, as traders solicited evidence on the U.S.-China trade progress after the United States withdrew anti-government protesters in Hong Kong.

Earlier, the U.S. Section of Hong Kong law got criticized by China and Hong Kong as well. But we noticed only a limited reaction due to the thanksgiving day holiday in the United States. 

Furthermore, the criticism from the China State Council that Beijing will adequately resolve the trade disputes, and they will step up punishment for intellectual property infringement, seems to have played their role, keeping the safe-haven demand diminished.  

XAU/USD – Daily Technical Levels

Support Resistance 

1454.29    1459.19

1451.77    1461.58

1446.86    1466.48

Pivot Point 1456.67

Gold continues to trade within a narrow trading range of 1,463 – 1,451 as investors await for a fundamental reason to determine further trends in the market. In the meantime, the XAU/USD is likely to continue trading in the same trading range. 

On the downside, gold is presumed to find support at 1,452 area, and the violation of this could initiate further selling unto 1,442. The MACD is still holding in the buying zone, but the latest histograms are smaller than the previous one, signaling chances of a further bearish trend. 

Good luck! 

Categories
Forex Market Analysis

Descending Triangle In AUD/USD – Brace to Trade Breakout! 

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend in Aussie came after the Westpac Banking Corp announced on Wednesday in its forecast that the Reserve Bank of Australia (RBA) is expected to lower interest rates twice until it reaches 0.25% by June 2020. Later they will go for launching quantitative easing (Q.E.), 

The Construction figures for the (Q3) appeared in at -0.4% – the fifth straight quarterly drop. The numbers add to the gross domestic product, which will be released next week. However, the actual figure was unexpectedly better than the 1% decline. 

On the other hand, the United States President Donald Trump continues its hopes of a phase-one deal with China even after the media releases from Beijing that blamed the U.S. for unfair behavior. Moreover, the greenback stays on the bullish track across the board because investors still trust on the U.S. dollar during the risk-on sentiment.

Thus, the stronger dollar and weaker Aussie is causing bearish trends in the AUD/USD pair. 

Technically, the AUD/USD pair is trading sideways within a narrow trading range of 0.6800 – 0.6765. That’s the descending triangle pattern, which is keeping the pair in a consolidation. Mostly, this kind of pattern violates on the lower side, and if this happens, we may see AUD/USD prices going towards 0.6735.


Daily Support and Resistance

  • S3 0.6718
  • S2 0.675
  • S1 0.6763
  • Pivot Point 0.6781
  • R1 0.6795
  • R2 0.6813
  • R3 0.6844

Today, consider taking sell positions below 0.6800 until 0.6765, and then if 0.6765 also gets violated, we will have a chance to add further selling until 0.6735. All the best! 

Categories
Forex Market Analysis

USD/CAD Completes 50% Retracement – Investor’s Eye Triple Top! 

The USD/CAD closed at 1.32993 after placing a high of 1.33014 and a low of 1.32542. Overall the movement of pair remained Bullish that day.

At 18:30 GMT, the

The USD/CAD closed at 1.32993 after placing a high of 1.33014 and a low of 1.32542. Overall the movement of pair remained Bullish that day.

At 18:30 GMT, the

The USD/CAD closed at 1.32993 after placing a high of 1.33014 and a low of 1.32542. Overall the movement of pair remained Bullish that day.

At 18:30 GMT, the Core Retail Sales from Canada came in favor of Canadian Dollar as 0.2% against the expectations of -0.1%, and the Retail Sales also supported the Loonie when came in as -0.1% against the expectations of -0.3%.

The Stronger than expected Retail Sales & Core Retail Sales data from Canada gave the impression of a robust Canadian economy in this time of global slowdown. The stronger Canadian Dollar pushed USD/CAD prices to the low of 1.32524 on Friday.

However, the pair USD/CAD got support from Strong US Dollar on Friday after the release of PMI from the United States. At 19:45 GMT, the Flash Manufacturing PMI of the United States showed an increase to 52.2 from the expectations of 51.5 for November. The Flash Services PMI was also increased to 51.6 for November from October’s 50.6. 

Stronger than expected PMI was very beneficial in raising the dropped USD/CAD on Friday. However, the upward trend for the pair continued and was further supported when the Consumer confidence from the University of Michigan was seen as favoring the USD. At 20:00 GMT, the Revised UoM Consumer Confidence Sentiment also raised to 96.8 from the expectations of 95.8.

The Crude Oil prices on Friday also dropped due to increased selling pressure by profit-taking activities of the traders who bought Crude Oil after the news of OPEC cut extension on Thursday. The fall in crude oil prices pressed the Commodity-linked Loonie, and hence, USD/CAD was further raised to place a high of 1.33014 at the ending day of the week.


USD/CAD – Daily Technical Levels

Support Resistance 

1.3269     1.3318

1.3237     1.3335

1.3187     1.3385

Pivot Point 1.3286

The commodity currency USD/CAD has completed 50% Fibonacci retracement at 1.3258. On the 2 hour graph, the pair has closed bullish engulfing candle, which is signaling bullish bias among traders. 

For the moment, the USD/CAD is facing strong support at 1.3290, along with a resistance at 1.3325. At the same time, the pair is also trading in a bullish channel, which is keeping the USD/CAD trading sentiment bullish.  

Consider staying bullish above 1.3286 with a stop loss below 1.3250 and take profit around 1.3325. All the best! </span

Categories
Forex Market Analysis

USD/CAD Completes 38.2% Fibo Retracement – Retail Sales Surpries!

The USD/CAD closed at 1.32846 after placing a high of 1.33249 and a low of 1.32694. Overall the trend for USD/CAD remained Bearish that day. Last month, the Central Bank

The USD/CAD closed at 1.32846 after placing a high of 1.33249 and a low of 1.32694. Overall the trend for USD/CAD remained Bearish that day. Last month, the Central Bank

The USD/CAD closed at 1.32846 after placing a high of 1.33249 and a low of 1.32694. Overall the trend for USD/CAD remained Bearish that day. Last month, the Central Bank of Canada held its Interest rates at 1.75% as expected and left the door open to a potential cut in later months. The Bank of Canada has not changed its monetary policy since October 2018, even its counterpart Banks, including the Federal Reserve of United States, has lowered its interest rates.

On Thursday, Stephen Poloz, the Governor of Central Bank of Canada, said that Canada’s monetary conditions were about right in the current economic situation, which has been challenged throughout by global trade tensions. He added that the central bank of Canada was watching whether the trade uncertainties affect the confidence of the economy in order to decide its future plans. In his views, the monetary conditions were about right in given situations.

He also compared the Canadian economic state with American and said that Federal Reserve cut its rates three times and was now down to where the Canadian rates were. He further added that Bank of Canada was concerned that the Canadian economy relies heavily on exports, and the global trade disputes, including the US-China trade war, were affecting it.

Stephen Poloz also mentioned about the new models that Bank of Canada was built on understanding the significant consequences climate change could impose on financial stability. The positive comments about the Canadian economy from Poloz gave strength to the Canadian Dollar and weighed on USD/CAD prices on Thursday.
On Data front, the ADP Non-Farm Employment change from Canada came in as -22.6K against the previous 25.7K.

Furthermore, the Crude Oil WTI prices rose on Thursday amid the hopes of OPEC cut extension and supported the rising Commodity Linked Currency – Loonie, which added in the Bearish trend of USD/CAD.

The downward trend of USD/CAD was also supported by the weak macroeconomic data from the American side on Thursday. At 18:30 GMT, the US Unemployment Claims for this week exceeded the expectations of 215K and came in as 227K and gave pressure to US dollars. At 20:00 GMT, the CB Leading Index came in as -0.1%, which was as expected. The Existing Home Sales also gave pressure to US Dollars when it came in as 5.46M against the expectations of 5.49M.

Besides, the Canadian retail sales data has just come out, and it may drive sell-off in the USD/CAD pair in the wake of optimistic data. Retail sales surged by 0.2% vs. a drop of 0.1% during the previous month.


USD/CAD- Daily Technical Levels
Support Resistance
1.326 1.3315
1.3237 1.3348
1.3182 1.3403
Pivot Point 1.3293

Technically, the USD/CAD has a complete 38.2% retracement at 1.3274, but the MACD histogram is holding below 0 levels suggesting further selling bias. The bearish breakout pattern can trigger a sell-off until 50% and 61.8% Fibo level of 1.3260 and 1.3240 level. Let’s consider staying bearish under .13293 level today. All the best!

Categories
Forex Market Analysis

Gold’s Bullish Channel In Test – Can We See a Breakout?

On Thursday, the gold prices y eased from the last session’s two-week high after a report that China has invited top U.S. negotiators for a new round of face-to-face talks

On Thursday, the gold prices y eased from the last session’s two-week high after a report that China has invited top U.S. negotiators for a new round of face-to-face talks

On Thursday, the gold prices y eased from the last session’s two-week high after a report that China has invited top U.S. negotiators for a new round of face-to-face talks, and is seeking to reach a primary trade treaty with the United States.

Safe-haven demand is also dominating the market as it was further disturbed after the U.S. Senate passed a bill against China and in favor of Hong Kong on Wednesday. Both the U.S. House and Senate signed the Bill via a veto-proof majority. 

According to the act, annual certification of Hong Kong’s autonomy would be required, and punishment will be imposed on Beijing against suppressing protestors. China demanded the United States to stop interfering in its internal affairs and said that it would retaliate.

Later, on Wednesday, FOMC October’s Meeting minutes were released and showed that there would not be any further rate cut this year. 

The holding of monetary policy and rate cuts by federal reserve was already expected, so it didn’t make much impact on the precious metal gold. 

Minutes revealed that most officials of Federal Reserve were against the 4th rate cut this year. Some officials supported rate cut but also said that it was a close call. 

Officials were concerned that some banks had decreased the capital buffers when they should be rising. Minutes also revealed that risks to the economic outlook remained tilted to the downside. Many officials said that rate cut was warranted due to global weaknesses and trade uncertainty.


XAU/USD – Technical Levels

Support    Resistance 

1,465.41    1,478.36

1,459.2      1,485.1

1,446.25    1,498.05

Key Trading Level: 1,472.15

On the technical side, gold prices are trading within a bullish channel, which is supporting the XAU/USD above 1,466 level. The MACD and RSI are holding below 0 and 50, respectively, suggesting changes of a bearish breakout. If this happens, gold prices may drop further until the 1,456 level. Therefore, consider taking sell positions below 1,465 level today. 
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Forex Basics Forex Daily Topic

The Simpler the Better

Financial traders follow many charts, patterns, and trading strategies. Each one has its own advantages and disadvantages. Nevertheless, there is a saying, ‘the simpler, the better.’ In the financial markets

Financial traders follow many charts, patterns, and trading strategies. Each one has its own advantages and disadvantages. Nevertheless, there is a saying, ‘the simpler, the better.’ In the financial markets

Financial traders follow many charts, patterns, and trading strategies. Each one has its own advantages and disadvantages. Nevertheless, there is a saying, ‘the simpler, the better.’ In the financial markets, especially in the Forex market, a trader cannot deny this truth.

Let us demonstrate an example of this.

The price heads down with strong bearish momentum. The sellers are to wait for an upside correction and a breakout at the support to make it more bearish. Let us proceed with what happens next.

The price has an upside correction, but it did not make a breakout at the support. It instead produces a huge bullish engulfing candle at Double Bottom support. Things are different now. Traders are to look for a long opportunity on the chart.

The price is bullish, but it gets caught within an ascending channel. A breakout at either side attracts traders to trade in this chart. The chart shows that the price makes an explicit breakout towards the upside. Ideally, the buyers shall flip over to their trigger chart to find a long entry. Let us find out whether they find any on the next candle.

The price does not make a breakout at the highest high of the breakout candle. Thus, the traders do not find an entry on the triggered chart. However, see the second candle (bullish candle). It makes a breakout (horizontally) at the highest high of those two candles. The buyers are to flip over the trigger chart again to find an entry. Do they see an entry this time? Let us find out.

 

Yes, they do. The price heads towards the North with good bullish momentum, and it does not come down to the support of the breakout candle. By flipping over to the trigger chart for an upside breakout to trigger an entry, a trader makes some green pips.

In this chart, the price makes a breakout at ascending channel’s resistance just a candle earlier. That breakout does not create bullish momentum. However, when it makes a breakout at the horizontal resistance, it creates the momentum that the buyers look for. I am not saying a breakout at ascending channel’s support/resistance does not offer entry at all. It does. A breakout at horizontal support/resistance offers more entries than the channel’s support/resistance breakout. It is because; it is simple and easy to be noticed by most of the traders.

The Bottom Line

Does that mean we stop looking entries on a channel or other pattern breakout? No, we shall eye on those breakouts; flip over to the trigger chart and trigger an entry if the trigger candle makes a new higher high or lower low. It is just the probability that a breakout at horizontal support/resistance offers more than any other chart pattern. After all, it is simple, and we know “the simpler, the better’.

Categories
Forex Market Analysis

Gold’s Ascending Triangle Plays – Is It Good Time to Buy?

On Tuesday, gold slid erasing profits from 1,470 t0 1,464 level earlier in the session, as a temporary respite from Washington for China’s Huawei increased confidence for a

On Tuesday, gold slid erasing profits from 1,470 t0 1,464 level earlier in the session, as a temporary respite from Washington for China’s Huawei increased confidence for a

On Tuesday, gold slid erasing profits from 1,470 t0 1,464 level earlier in the session, as a temporary respite from Washington for China’s Huawei increased confidence for a trade agreement between the nations and increased risk sentiment.

The yellow-metal prices dropped during the last week mainly due to the Commerce Secretary Wilbur Ross and White Hosue’s economic adviser Larry Kudlow hinting that the United States and China were close to signing the deal. That sent the three major stocks indexes to record highs on Wall Street.

On the other hand, Donald Trump met with Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin at the White House overnight to discuss the economy and the greenback weakness.

Powell’s remarks were consonant with his statements at his congressional hearings last week the Fed said in a statement released after the meeting. In contrast, the United States President Donald Trump said the meeting was “very good.”

Risk appetite was shaken due to the news that Trump and Fed Chairman Powell had met to discuss the tendency of the dollar. There were rumors of a CNBC report that Chinese officials were involved over prior comments concerning tariffs from Trump.


XAU/USD – Daily Technical Levels

Support Resistance 

1,460.54    1,478.16

1,449.67    1,484.91

1,432.05    1,502.53

Pivot Point 1,467.29

Gold is trading at 1,468 level, bouncing off above 1,464 support level. On the 4 hour timeframe, it has formed an ascending triangle pattern, which is extending its resistance around 1,474. While the bullish trendline is likely to support the pair around 1,464 level. 

The recent bullish closing above 1,464 level is suggesting the market to retrace back upward until 1,472 level. While on the flip side, a bearish breakout of 1,464 can lead gold prices towards 1,456.

All the best!

Categories
Forex Market Analysis

Gold’s Bullish Channel Supports – U.S. China Sentiments Remains Mixed!

On Friday, gold prices declined the demand for safe-haven assets fell remarks from White House economic adviser Larry Kudlow that the United States is pretty close to settling an interim

On Friday, gold prices declined the demand for safe-haven assets fell remarks from White House economic adviser Larry Kudlow that the United States is pretty close to settling an interim

On Friday, gold prices declined the demand for safe-haven assets fell remarks from White House economic adviser Larry Kudlow that the United States is pretty close to settling an interim trade agreement with China.

Fresh certainties regarding the United States and China trade deal returned after the goodwill gestures by the Dragon nation as China lifts the restrictions on the United States poultry imports. Additionally, the headlines of the restart trade talks later on the day also improve the risk-on market.

At the Kudlow front, the latest comments from the White House Economic Adviser Kudlow announce that we are very close to getting the trade deal with China, so in the consequences, the bounce-back came in the U.S. Treasury yields and S&P 500 futures.


XAU/USD – Daily Technical Levels
Support Resistance
1,465.42    1,476.06
1,459.45    1,480.73
1,448.81    1,491.37
Pivot Point 1,470.09

On the 2 hour chart, the yellow metal gold is trading in a bullish channel, which is supporting it around 1,461 level along with a resistance level of 1,473. The new 2-hour candle is bullish marabou, which signals the chances of a bullish trend in gold.

The leading indicators, such as MACD and RSI, are still trading below 0 and 50 level, supporting the bearish bias in gold. With that being said, gold prices may drop further until 1,452 level of it manages to give us closing below 1,460 level.

Likewise, the bullish breakout of 1,473 resistance opens further room for buying until 1,479.

Categories
Forex Market Analysis

Daily FX Brief, November 15 – Major Trade Setups – Core Retail Sales In Focus! 

The US greenback has stretched back a little versus the Japanese yen, as risk-off sentiment dominated the market. That being said, this market is highly sensitive to risk appetite, so

The US greenback has stretched back a little versus the Japanese yen, as risk-off sentiment dominated the market. That being said, this market is highly sensitive to risk appetite, so

The US greenback has stretched back a little versus the Japanese yen, as risk-off sentiment dominated the market. That being said, this market is highly sensitive to risk appetite, so with the multitude of problems that the global economy has right now/ Friday is a calm day ahead of the data aspect. There are no economic figures due from the United Kingdom to give the Sterling with direction.

Economic Events to Watch Today

Let’s took at these fundamentals.

 

 

   

EUR/USD – Daily Analysis

A day before, the EUR/USD currency pair traded on the bearish track as on the way a stable support level of 1.0990 was there to stop its movement. As we know, the German Q3 GDP showed the Eurozone’s largest member miss entering Techincal slowdown but overall look still darker. 

As of writing, the EUR/USD currency pair seen on the bearish track and losing almost 160 ticks during the last ten trading session. At the starting of the month, we observed the 200-day Moving Average as a robust range for the EUR/USD pair to hit, which it proved, and any support from the 50 and 20-day Moving Average proved short-lived.

As of now, the EUR/USD currency pair continues to move lower with the 1.1000. The EUR/USD currency pair on the overselling track, but this may well slow down and not change its direction. A double at the 1.0879, while these targets remain near and achievable. 

Daily Support and Resistance

S3 1.0936

S2 1.0974

S1 1.0998

Pivot Point 1.1013

R1 1.1037

R2 1.1052

R3 1.109

EUR/USD– Trading Tips

The EUR/USD continues to trade lower, maintaining a bearish bias after violating the support level of 1.1000. On the 4 hour timeframe, the EUR/USD has inside down candlestick pattern, which is signaling chances of further sell-off in the market. 

For the moment, the EUR/USD is holding above a crucial trading level of 1.0990 as below this; the pair can continue falling until 1.0960. So consider staying bearish below 1.0990 level today.

GBP/USD– Daily Analysis

The GBP/USD currency pair sideways and taking round to 12840 mainly due to optimism surrounding the United Kingdom political plays face the greenback strength ahead of the United Kingdom Retail Sales Data for October. 

Friday is a calm day ahead of the data aspect. There are no economic figures due from the United Kingdom to give the Sterling with direction. The shortage of fundamentals leaves the Pound firmly in support of UK politics and the general voting opinion polls. At the moment, the Pound was down by 0.02% to $1.2879.

The GBP/USD was range-bound since Monday, in what has been a dull week, but the Cable showed a dramatic surge to 1.2880 level. The pair is still finding support around 1.2870, and below this, the GBP/USD can drop until 1.2860 level. On the higher side, we see resistance at 1.2925, which is defending the symbolic level of 1.3000.

Daily Support and Resistance

S3 1.2767

S2 1.2806

S1 1.2829

Pivot Point 1.2845

R1 1.2868

R2 1.2884

R3 1.2923

GBP/USD– Trading Tips

The GBP/USD has come out of a broad trading range of 1.2970 – 1.2780 to trade at 1.2870 level. The MACD and RSI are holding in an overbought zone as their values stay at 0 and 50, respectively. With this, the odds of bearish correction are becoming very strong. 

At the time, the GBP/USD trades at 1.2880 level, and it may find support immediate support around 1.2870. I will consider taking buying positions above 1.2875 and bearish positions if this level breaks on the lower side. 

USD/JPY – Daily Analysis

The US greenback has dropped a bit versus the Japanese yen, tearing through the 200 day EMA but has a vital sum of support just below as well. I think we maintain the very slovenly trading, as markets have multiple concerns to trade with at the same time.

The US greenback has stretched back a little versus the Japanese yen, as risk-off sentiment dominated the market. That being said, this market is highly sensitive to risk appetite, so with the multitude of problems that the global economy has right now, it’s not difficult to imagine a situation where the Japanese yen remains to be a market that traders jump in and out of.

The latest update on the global macro figures is presenting a not so definite hint of the pernicious influence the protracted US-China trade war is becoming on the global economy.

Daily Support and Resistance

S3 107.87

S2 108.37

S1 108.57

Pivot Point 108.86

R1 109.06

R2 109.36

R3 109.85

USD/JPY – Trading Tips

The USD/JPY is trading at 108.50, right below the 38.2% Fibonacci retracement level. This level also marks double bottom support and may keep the USD/JPY pair supported today.

The violation of the 108.500 level can extend selling until 108.200. The MACD and RSI are also supporting the bearish trend in the USD/JPY pair. 

All the best!>

Categories
Forex Market Analysis

Gold’s Bearish Channel Breakout Drives Bulls – What’s Next?

 

On Thursday, the precious metal gold surged to trade around 1,468 level extending gains to a third session, as soft Chinese figures and risk about whether Beijing and

 

On Thursday, the precious metal gold surged to trade around 1,468 level extending gains to a third session, as soft Chinese figures and risk about whether Beijing and

 

On Thursday, the precious metal gold surged to trade around 1,468 level extending gains to a third session, as soft Chinese figures and risk about whether Beijing and Washington will strike a trade agreement anytime soon depressed demand for riskier assets.

China and the United States are enduring “in-depth” talks on a first-phase trade deal, and cutting tariffs is a crucial requirement for settling, the Chinese commerce ministry stated.

The report came from the Wall Street Journal that the United States and China hit a snag over farm purchases. Notably, President Trump recently said that China committed to buying up to $50 billion in U.S. soybeans, pork, and other agricultural products as part of a phase one trade agreement.

However, China is unwilling to quantify its farm purchases now, as in result, instantly activated a risk-off sentiment in the American markets that destroyed the Wall Street party.

XAU/USD – Daily Technical Levels

Support     Resistance
1,458.56      1,467.83
1,453.59      1,472.13
1,444.32      1,481.4
Pivot Point 1,462.86

Gold has crossed over a triple top resistance level of 1,466. CLosing of the bullish candle above this level is suggesting the bullish trend is still strong. While the MACD and RSI are also supporting the buying trend in gold.

At the moment, gold has immediate support around 1,466 and above this, gold has the potential to target 1,472 and 1,479. Let’s consider staying bullish above 1,466 today. All the best!

Categories
Forex Market Analysis

Gold Violates Bearish Channel – Positive CPI Weights 

During the European session, the yellow metal gold prices climbed following a speech by U.S. President Donald Trump. Most of the safe-haven appeal triggered after President Trump denies rolling back

During the European session, the yellow metal gold prices climbed following a speech by U.S. President Donald Trump. Most of the safe-haven appeal triggered after President Trump denies rolling back

During the European session, the yellow metal gold prices climbed following a speech by U.S. President Donald Trump. Most of the safe-haven appeal triggered after President Trump denies rolling back tariffs, denting the hopes for a positive indication on a U.S.-China trade agreement, provoking traders to explore safe-haven assets.

Just a few minutes back, the U.S. Consumer Price Index accelerated 0.4% in October on a seasonally adjusted data after being stable in September. 

Over the year, the all items index grew 1.8% ere seasonal changes. The energy index rose 2.7% in October following recent monthly drops and deemed for more than half of the rise in the seasonally adjusted all items index. The positive surge in CPI is weighing on the gold prices, and it may keep gold bearish during the U.S. session until the release of Fed Chair Powell. 

XAU/USD – Daily Technical Levels

Support     Resistance 

1,447.89     1,462.71

1,439.38     1,469.02

1,424.57     1,483.83

Pivot Point 1,454.2

Technically, gold prices have violated the bearish channel, which was extending resistance at 1456 area. The bullish breakout has lead gold prices below 1,466 level, which also marks the double top level. The RSI and MACD here are in favor of a bullish bias. 


So here’s a thing, the buyers may enter for further buying above 1,467 level to target 1,474. Elsewhere, gold can trade bearish below 1,466 level today. On the lower side, support can be seen around 1,454. All the best!  

Categories
Forex Market Analysis

Gold Bearish Channel Dominates – U.S. China Trade Issue Trending!

On Tuesday, the precious metal gold prices edged lower as forecasts of resolute trade discussions between the United States and China supported risk desire, while traders pocketed profits ahead of

On Tuesday, the precious metal gold prices edged lower as forecasts of resolute trade discussions between the United States and China supported risk desire, while traders pocketed profits ahead of

On Tuesday, the precious metal gold prices edged lower as forecasts of resolute trade discussions between the United States and China supported risk desire, while traders pocketed profits ahead of further updates.

The precious metal gold also sank 0.2%, to $1,454.20 per ounce as investors moved their funds into the stock markets, the higher-yielding assets these days. Consequently, the global stock indices surged higher on Tuesday as traders anticipated a speech by President Trump on trade policy during the U.S. session.

Investors will be closely following Trump’s speech to have a clear stance on the U.S. China tariff rollover, and the EU auto industry tariffs delay.

EU leaders said Trump was supposed to declare this week he was holding the tariff ruling on cars and auto parts shipped from the European Union probably for another six months. That’s raising anticipations about the president’s speech following in the day about the long-drawn trade war with China.

XAU/USD – Daily Technical Levels

Support Resistance
1,452.53    1,469.27
1,446.03    1,479.51
1,429.29    1,496.25
Pivot Point 1,462.77

Gold is trading in a bearish channel, which is keeping it supported around 1,448 level. It’s also extending resistance at 1,456 area. The bearish channel clearly suggests strong chances of further sell-off in the gold prices.

On the lower side, the bearish breakout of 1,448 level can extend selling further until 1,444 level. But for the bearish breakout, we need a solid reason that we can’t expect after looking at today’s economic calendar.

Therefore, consider staying bearish below 1,456 and bullish above 1,448 to capture choppy trading in gold. All the best!

Categories
Forex Price-Action Strategies

An Engulfing Candle at a Flipped Resistance

An Engulfing candle is a strong bearish reversal candlestick. This makes traders look for trading opportunities. In today’s lesson, we are going to demonstrate an example of how an Engulfing

An Engulfing candle is a strong bearish reversal candlestick. This makes traders look for trading opportunities. In today’s lesson, we are going to demonstrate an example of how an Engulfing

An Engulfing candle is a strong bearish reversal candlestick. This makes traders look for trading opportunities. In today’s lesson, we are going to demonstrate an example of how an Engulfing candle creates an entry. Let us proceed.

This is a daily chart. The price heads towards the downside with good bearish momentum. Traders shall wait for the price to have consolidation or an upside correction followed by a bearish reversal candle or pattern.

The price starts having the correction. It produces a bearish reversal candle after three consecutive bullish candles. The bearish reversal candle is an Inside Bar. This is not a strong bearish reversal candle. However, we still may flip over to the H4 chart (this is a daily chart) and wait for an entry.  The H4 chart does not produce any bearish momentum. Thus, the price goes towards the upside instead. Have a look at the chart below.

This is one strong bullish candle. However, the candle closed within the level, which the price breached earlier. Traders must be patient here to find out what the price does around this level. Does it make an upside breakout or produce a bearish reversal pattern?

It produces a Doji candle right at the flipped resistance followed by an Engulfing candle. This surely attracts traders to keep an eye on the pair to look for short opportunities. The question is, how do we find out entries? When the price is at correction, if we have such a bearish reversal candle at the valuable area, we shall flip over to a minor chart. This is a daily chart. Thus, we shall flip over to the H4 chart. Let us flip over to the H4 chart and find out how that looks.

The H4 chart looks bearish. We are to wait for consolidation and a downside breakout to take a short entry. This is what comes out after a while.

The price produces two bearish candles followed by a bullish one. Any bearish reversal candle breaches the support of the consolidation is the signal to go short here.

This is it. A bearish engulfing candle breaches the support of consolidation. A short entry may be triggered right after the candle closes. Let us find out how the trade looks like in a nutshell.

We may set our Stop Loss above the resistance of consolidation. The Entry-level is very explicit, as it has been explained a bit earlier. We may set our Take Profit at the last lowest low where the price started its correction on the daily chart. Alternatively, we may wait for the price to produce a bullish reversal candle. In this chart, we may come out with our profit right after the last candle (bullish) closes. The choice is yours regarding ‘Take Profit.’ Both have merits and demerits.

The Bottom Line

In the above examples, we have learned what to wait for when to flip over a chart, and on what entry shall be triggered. It does look and sound easy. Trust me. It’s never as easy as it looks when you are to deal with the live market. However, having a lot of practice, and with experience, it surely becomes easier.

Categories
Forex Market Analysis

Gold’s Bearish Trend Continues – Eyes On Double Bottom Pattern

On Friday, the precious metal gold prices crept lower, exhibiting one of the sharpest weekly drops in two and a half years. The stronger greenback pressured on gold prices while

On Friday, the precious metal gold prices crept lower, exhibiting one of the sharpest weekly drops in two and a half years. The stronger greenback pressured on gold prices while

On Friday, the precious metal gold prices crept lower, exhibiting one of the sharpest weekly drops in two and a half years. The stronger greenback pressured on gold prices while confidence about U.S.-China trade negotiations depressed bullion’s safe-haven bid.

Gold is declining as the buck is performing great, and few traders who purchased gold as a haven are running out. The dollar index was directed for a weekly profit as it profited from the report that China and the United States had admitted to rolling back taxes as part of a possible preliminary agreement to settle their trade war.

Nonetheless, some uncertainties arose as administrators inside and outside the White House rejected the idea of bending up punitive tariffs. The uncertainty limited bullion’s decline.

Meantime, European stock benchmarks departed from the prior session’s speak as contradictory signs from China and the United States on development made in trade discussions collapsed market expectations of a near-term truce.

Gold – XAU/USD – Daily Technical Levels

Support Resistance 

1,484.27    1,495.6

1,477.98    1,500.64

1,466.65    1,511.97

Pivot Point: 1,489.31

On Friday, gold prices may find immediate support around 1,457 level. This level is extended by a double bottom level on the 4-hour chart. The MACD and RSI are exhibiting sharp bearish bias. 

Today, the closing of the 4-hour candle above 1,457 area is likely to offer us a bullish retracement. Until then, we can stay bearish below 1,467 area. All the best! 

Categories
Forex Basics

Do not be Biased with Your Anticipation

Financial markets keep going up and down. Traders make money out of those moves. To take an entry, a trader is to do a lot of calculations, such as detecting

Financial markets keep going up and down. Traders make money out of those moves. To take an entry, a trader is to do a lot of calculations, such as detecting

Financial markets keep going up and down. Traders make money out of those moves. To take an entry, a trader is to do a lot of calculations, such as detecting a trend, waiting for the price to go to the right zone, market psychology, and signal candle, etc.

In trading, we often find ourselves in a situation in which we were waiting for a long entry from a support zone, all of a sudden the price makes a breakout at the support and heads towards the South instead. We feel deprived. However, this should not be like this. In trading, we are to get ready to sell and to buy since the market can go anywhere. We are to stick with the rules to take an entry.

Let us demonstrate an example.

The price heads towards the North with good buying pressure. It seems that the price finds its resistance as well. The buyers are to wait for a bullish reversal candle and a breakout at the resistance to go long again on the pair.

The price keeps being bearish. It seems that the price is going to have a long correction instead of consolidation. The price is at a flipped support. This is where a battle is going to take place between the bull and the bear. Traders are to wait for a downside breakout to sell the pair. On the other hand, a bullish reversal candle is going to attract them to keep an eye for an upside breakout and buy the pair.

The bull wins here. An engulfing bullish candle right at the flipped support means traders shall wait for an upside breakout to buy the pair. The momentum looks good. If the breakout takes place within the next candle, it will be an excellent buy signal. If it takes two candles to make the breakout, that will be a good buy signal as well. Let us proceed to find out what happens next.

The bull has lost the momentum. Traders are to wait for an upside breakout to go long. A good-looking bullish engulfing candle at the support area shall attract the buyers on the minor time frames to push the price towards the upside. That would eventually help the price make an upside breakout on this chart. Let us wait and find what happens next.

What do you see here? A bearish engulfing candle is right at the resistance level. This is a Double Top resistance level as well. If you have been waiting to go long, please change your mind. Get ready to look for short opportunities. This is how the market changes its complexion. You know what you have to do to deal with it. Yes, you must not be biased with your anticipation/calculation — Trade what you see, not what you think.

 

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Forex Market Analysis

Gold Retests $1,514 Amid Trade War Concerns – Wait for Breakout! 

On Monday, the precious metal gold prices consolidate below the crucial trading level of 1,514 today. The growing risk appetite amongst traders, encouraged by confidence in U.S.-China trade discussions

On Monday, the precious metal gold prices consolidate below the crucial trading level of 1,514 today. The growing risk appetite amongst traders, encouraged by confidence in U.S.-China trade discussions

On Monday, the precious metal gold prices consolidate below the crucial trading level of 1,514 today. The growing risk appetite amongst traders, encouraged by confidence in U.S.-China trade discussions and diminishing fears of a global economic slowdown. Overall, the precious metal gold dropped 0.1% to $1,511.44 during the Asian session, while gold edged 0.2% higher at $1,513.70.

The U.S. Non-Farm Payroll of US rose above expectations, and the Manufacturing PMI was also increased but came in below expectations. Both these reports were highly awaited by the traders as they were leading indicators of the economy. The increased payrolls in October and modest improvement in the Business activities were notable developments and pointed the calm journey of the US economy in prevailing uncertainties.

Some optimism from US-China Trade talks also appeared in the market after the reports suggested that China & US trade representatives were under a constructive talks session on Friday. The conversation held between Treasury Secretary Mnuchin and Chinese Vice President Liu regarding the next steps in the trade truce phase one deal.

XAU/USD – Daily Technical Levels

Support Resistance 

1506.24 1519.68

1498.06 1524.94

1484.62 1538.38

Pivot Point 1511.5

At the moment, gold is facing substantial resistance at 1,514 level, and this level may decide the fate of precious metal today. Below 1,514 level, we may see gold prices falling towards 1,507, and the violation of 1,507 level can extend sell-off until 1,503. 

All the best! 

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Forex Market Analysis

Gold Triple Top Plays Well – NFP Figures Drive Sell-off! 

On Friday, gold prices slid as influential figures from China faded the risk appetite, while the U.S. labor market figure was robust. U.S. Bureau of Labor Statistics announced total nonfarm

On Friday, gold prices slid as influential figures from China faded the risk appetite, while the U.S. labor market figure was robust. U.S. Bureau of Labor Statistics announced total nonfarm

On Friday, gold prices slid as influential figures from China faded the risk appetite, while the U.S. labor market figure was robust. U.S. Bureau of Labor Statistics announced total nonfarm payroll (NFP) employment increased by a 128k jobs in October, surpassing forecast of 89k. Besides this, the headline number for the previous month witnessed an upward correction to 180k from 136k. 

Hence, the unemployment rate observed 0.1ppt growth to 3.6%, meeting forecast with the uptick associated with the increase in the labor force participation rate.

Next month, the U.S. & China were supposed to meet at APEC Summit in Chile to discuss a potential Phase-one Trade agreement between both economies. U.S. President Donald Trump and Chinese President Xi Jinping were expected to sign the phase-one deal on that Summit. But due to domestic unrest, the meeting was canceled.

Trump announced that both countries would continue the negotiations and would sign a portion of that deal in the coming weeks.

On Thursday, Chinese Officials showed doubts on the prospects for an agreement and revealed that they were concerned about Trump’s impulsive nature and said that Trump might back out of even a limited deal at the last minute.



Gold – XAU/USD – Daily Technical Levels

Support     Resistance 

1501.56    1519.33

1490.17    1525.71

1472.4      1543.48

Pivot Point 1507.94

Gold is still facing triple top resistance at 1,514, which is keeping gold bearish below this level. On the lower side, gold has already completed 38.2% Fibonacci retracement at 1,50 area. But price reversed right after to close the candle above 23.6% Fibonacci retracement level of 1,507. Therefore, let’s consider staying bearish below 1,513 level today. All the best! 

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Forex Market Analysis

USD/CAD Trade Plan, While BOC Keeps Rate Unchanged!

The USD/CAD closed at 1.30856 after placing a high of 1.31003 and a low of 1.31420. The overall movement of the pair remained Bullish that day. Central Bank of Canada

The USD/CAD closed at 1.30856 after placing a high of 1.31003 and a low of 1.31420. The overall movement of the pair remained Bullish that day. Central Bank of Canada

The USD/CAD closed at 1.30856 after placing a high of 1.31003 and a low of 1.31420. The overall movement of the pair remained Bullish that day. Central Bank of Canada and Federal Reserve of United States both will hold their Policy Meeting on Wednesday. Ahead policy meeting, both currencies remained under pressure on Tuesday.

Loonie remained under pressure because of falling Crude Oil prices on Tuesday and supported the USD/CAD upward trend. The traders took repositioning ahead policy meetings to gain profit on Wednesday.
The BOC has not cut its rates since 2015, and there are no chances for further rate cuts this month.

However, the Federal Reserve is anticipated to cut its rates by 25 basis points in the meeting of October. But the chances for the third rate cut by fed are also decreased due to the raised optimism of the US-China trade deal & Brexit Extension.

Although there are no chances of rate cuts from Bank of Canada in October, the December cut is not out of the board. Some analysts suggest that the labor markets are stronger, inflation is on target, and the rates are already lower than US rates, but some factors indicate the need for December cut, and they can’t be ruled out.

Despite the weak Consumer Confidence form United States, the pair continued to move in an upward direction. USD/CAD rose sharply on Tuesday and crossed 1.31 level, but it dropped after reaching that point.



USD/CAD – Daily Technical Levels

Support Resistance
0.6846    0.6875
0.683      0.6888
0.68        0.6918
Pivot Point 0.6859

The USD/CAD is staying steady below 1.3100 level, and closing below this level is suggesting strong chances of a bearish trend. Closing above this level can trigger buying until 1.3120 today.
All the best!

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Forex Price-Action Strategies

What Is Rectangle and How to Trade on It

The price after making a strong bullish or bearish move, it makes correction/ consolidation. The price consolidates within two horizontal lines. In the financial market, this is called Rectangle. In

The price after making a strong bullish or bearish move, it makes correction/ consolidation. The price consolidates within two horizontal lines. In the financial market, this is called Rectangle. In

The price after making a strong bullish or bearish move, it makes correction/ consolidation. The price consolidates within two horizontal lines. In the financial market, this is called Rectangle. In today’s lesson, we are going to demonstrate some examples of the bullish and bearish rectangle.

Let us start with a bullish rectangle.

The price heads towards the upside with good bullish momentum. At the top, the price seems to start having consolidation. A buyer may want to keep an eye for an upside breakout to go long from here. However, the price continues to consolidate.

The price consolidates within two horizontal lines. We can draw a rectangle here since the price produces the rectangle after a bullish move, so it is called ‘Bullish Rectangle.’ Traders are to wait for a breakout to take an entry. A downside breakout offers a short entry, and an upside breakout offers a long entry. Let us find out which way the next breakout takes place and the price heads to.

The price makes a downside breakout and heads towards the South. At rectangle breakout, the price usually travels at least the same distance of the consolidation length. It seems the price travels 1.5X distance of the consolidation length here. Let us concentrate on the next chart below.

The price consolidates getting trapped within horizontal support and resistance. Do you find anything interesting here? Yes, we find another rectangle. This time it is a bearish rectangle. Let us draw those two lines here.

Again, traders must wait for a breakout to find out its next direction. The price has several bounces and rejections within those two horizontal lines. It is a bearish rectangle, but we know a breakout can take place either way. There is no point in guessing. Let us wait and find out.

The price makes a downside breakout and heads toward the South with good enough selling momentum.

We have demonstrated two examples here. The first one is a bullish rectangle where the price makes a downside breakout. The second one is a bearish rectangle, on which the price makes a downside breakout as well. Breakout direction does not depend on the bullish or bearish rectangle. Trader’s job is to wait for the breakout and breakout confirmation. Entry is to be taken only when the breakout is confirmed. We can spot rectangles almost in all the time frames. However, it is often seen on the H1, H4, and Daily charts. Have some practice on the demo account or do some backtesting to get well acquainted with the pattern to make green pips.

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Forex Market Analysis

Gold’s Bullish Trendline Breaks Lower – What’s Next?

Gold prices were closed at $1492.540 after placing a high of $1508.2 and a low of $1489.96. The overall trend for Gold remained Bearish at the starting day of the

Gold prices were closed at $1492.540 after placing a high of $1508.2 and a low of $1489.96. The overall trend for Gold remained Bearish at the starting day of the

Gold prices were closed at $1492.540 after placing a high of $1508.2 and a low of $1489.96. The overall trend for Gold remained Bearish at the starting day of the week.

At 17:30 GMT, the International Goods Trade Balance of the United States for September came in as -70.4B against the expectations of -73.5B and supported the US Dollar on Monday. The negative Prelim Wholesale Inventories from the United States for September also helped the US Dollar. It showed a decline to -0.3% from the previous month’s 0.2%.

The robust macroeconomic data from the US at the starting day of the week gave strength to the US Dollar and weighed on Yellow Metal prices in Financial Markets.

The drop in Gold Prices was boosted on Monday after the positive comments from US President, Donald Trump on Trade Deal talks between US & China. Trump told the reporters on Monday that he was expecting to sign a significant portion of the Phase-one deal ahead of schedule. Although he did not mention the time for signing the part of the agreement, the hint of pre-schedule deal signing itself created a large fluctuation in the market.


XAU/USD – Daily Technical Levels

Support Resistance 

1,485.65    1,503.9

1,478.72    1,515.22

1,460.47    1,533.47

Pivot Point 1,496.97

Gold has recently violated the bullish trendline, which was extending Gold an excellent support around 1490. Below this, the market is likely to stay bearish below 1490. On the lower side, the additional support stays at 1,481 today. Whereas, the resistance remains at 1,495.

All the best

Categories
Forex Basics

Even a Combination of Double Top and Engulfing Fails

Double Top/Double Bottom is one of the most robust patterns that price action traders wait to take entries. When the price is rejected twice at a resistance level, it forms

Double Top/Double Bottom is one of the most robust patterns that price action traders wait to take entries. When the price is rejected twice at a resistance level, it forms

Double Top/Double Bottom is one of the most robust patterns that price action traders wait to take entries. When the price is rejected twice at a resistance level, it forms a Double Top. As far as the candlestick pattern is concerned, an engulfing candle is the most reliable reversal candle that traders usually love to take an entry from a value area.

A combination of Double Top and a bearish engulfing candle attracts sellers to go short. Since it is an outstanding price action combination, it does not usually go wrong. However, in today’s lesson, we are going to demonstrate that even a great flourishing price action combination can go wrong, as well.

The price consolidates at the marked resistance and heads towards the downside. It then goes back towards the resistance. The sellers are to get ready to get a bearish reversal candle. The red-marked level is the resistance level, where we don’t consider the upper shadows. Since the price has several rejections at the marked level, and it is a valuable area for the sellers, the price most probably may respect the area and produce the bearish reversal candle.

The price does not respect the red-marked level, but it does not make an upside breakout either. Instead, it closes within the upper shadows. Traders are to adjust here. Let us see how it looks now.

The level where the last candle closes has some significance. One of the bullish candles closes within the marked level. This level may work as a resistance level and ends up producing a bearish reversal candle.

Here it comes. The Double Top’s resistance level produces a bearish engulfing candle. We have found the resistance level at last. So all the equations to go short from here seem to match as far as price action trading is concerned.

  1. The price produces a Double Top.
  2. The price produces a bearish engulfing candle right at the resistance of the Double Top.

The swing low is far enough, which offers good Risk-Reward as well. All seems to be okay to trigger a short entry.

After triggering the entry, the next candle comes out as a bearish Doji candle. Things still look good. The sellers are going to grab some green pips!

No! The next candle comes out as a bullish Marubozu candle, which breaches the resistance of the Double Top. It wipes off the Sellers Stop Loss. The buyers may take control once the breakout is confirmed.

The Lesson

It does not matter how good a trade setup looks: it may fail. Thus, there is no reason to be too optimistic about any entry. We must calculate our Risk-Reward and have immaculate risk management with every single entry that we take in the market.

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Forex Market Analysis

WTI Crude Oil Exhibits a Weekly Gain – Supply Concern Weights!

On Friday, the WTI crude oil prices continue to hold bullish bias maintaining substantial weekly gains as support from a surprise draws in U.S. inventories and possible action from OPEC

On Friday, the WTI crude oil prices continue to hold bullish bias maintaining substantial weekly gains as support from a surprise draws in U.S. inventories and possible action from OPEC

On Friday, the WTI crude oil prices continue to hold bullish bias maintaining substantial weekly gains as support from a surprise draws in U.S. inventories and possible action from OPEC and its allies to increase production cuts burdened broader economic interests.

The strong buying in crude oil was mostly underpinned by the surprise plunge in U.S. stockpile data. The U.S. crude oil inventories fell by about 10 million barrels during the previous week.

Whereas, the officials at the Organization of the Petroleum Exporting Countries (OPEC) remarked to extended supply cut is an option to balance the softer demand outlook in 2020, hence extending another reliable support to the WTI crude oil prices.

Technically, the WTI has violated an asymmetric triangle pattern, which keeps the crude oil prices on hold between 54.75 to 53.50. The violation of this range has pushed crude oil higher towards 56.50 area.

WTI Crude Oil – Daily Technical Levels

Support Resistance
55.5 56.59
54.91 57.1
53.82 58.19
Pivot Point 56.01

At the moment, crude oil is facing stiff resistance at 56.50 area. However, the WTI is looking to complete bearish retracement on the 240 mins chart. Crude oil has already completed 23.6% Fibonacci retracement at 55.85 area, and below this, further sell-off is expected until 55.50.

Despite the bearish correction, I would suggest looking for a bullish trades above 55.30 level today. All the best!

Categories
Forex Price-Action Strategies

When A Breakout Occurs by More than One Candle

Price action traders’ main job is to watch the price action and find out the message out of it. The message comes from candles, various charts, momentum, as well as

Price action traders’ main job is to watch the price action and find out the message out of it. The message comes from candles, various charts, momentum, as well as

Price action traders’ main job is to watch the price action and find out the message out of it. The message comes from candles, various charts, momentum, as well as the attributes of breakouts. In this lesson, we are going to demonstrate an example of a breakout, which occurs with more than one candle. Let us find out whether a breakout with multiple candles gives us any message or not.

The price finds its support at the marked level and heads towards the North with good buying pressure. Price action traders start eyeing on the pair to go long on the pair. The first thing they would want is consolidation. Let us proceed to the next chart.

It seems that the price may have started having a pullback. The price is to come about 38% of the trend’s length to attract the buyers to watch for an upside breakout. Let us see what happens next.

The last candle seems to have covered a good distance. The buyers are going to be keen to get a bullish reversal candle on the chart now. If a reversal candle makes a breakout itself, it attracts traders more. Eventually, it pushes the price towards the trend’s direction at a good pace. Let us find out what happens here.

Here it comes. The bullish reversal candle is here. It is a ‘Track Rail,’ which is the second strongest reversal candle after the Engulfing candle. Traders are to wait for an important event. You know what that is, right?

‘The Breakout’!

The breakout occurs here by a Marubozu candle. Price action trader shall trigger a long entry right after the candle closes. Before triggering the entry, a trader must know where to set his Stop Loss and Take Profit. Stop Loss level is obvious here, which is below the support of the consolidation zone. Where the Take Profit level is to be set? Ideally, a 1:1 risk-reward ratio is the first target in any entry. However, there seems to be enough space for the price to travel. We may go for 1:2 risk-reward here. Does a trader go for a 1:3 risk-reward ratio or even more here? We get the answer later. Meanwhile, let us continue watching the drama.

The plan seems to be working amazingly well. The price heads towards the North with good buying momentum. 1:1 risk and reward ratio is easily achieved within the next candle. 1:2 risk-reward is achieved as well. Some may start splitting the hair for not setting the target with a 1:3 risk-reward ratio. Let us proceed.

The price has produced an Evening Star. This surely is not a good sign for the buyers. Those who set their Take Profit with a 1:3 risk-reward ratio must be in a pensive mood.

The price does not hit the Stop Loss, but there is no profit left for the buyers that are holding the positions. Targeting a 1:3 risk-reward ratio does not bring more pips. It rather makes them lose some pips that they could have earned.

Price Action breakout attributes suggest that if a breakout occurs with multiple candles, the trend often loses its impetus early. Thus, it is best to target 1:1 (in most cases), 1:2 (if there is enough space) risk-reward ratio when a breakout occurs by more than one candle.

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Forex Price-Action Strategies

Breakout by a Single Candle Generate More Impetus

Breakout is one of the most important factors in trading. Attributes of a breakout give clues with what traders can manage their opened position to make more profit. Price action

Breakout is one of the most important factors in trading. Attributes of a breakout give clues with what traders can manage their opened position to make more profit. Price action

Breakout is one of the most important factors in trading. Attributes of a breakout give clues with what traders can manage their opened position to make more profit. Price action traders, in particular, love to compute the attributes of a breakout to determine their take profit level.

In this section, we are going to demonstrate an example of a single candle breakout and its impact afterwards. Have a look at the chart below.

The price finds support at the red market level and heads towards the North. The price action suggests that the buyers are going to control the pair. A downward correction/consolidation followed by a bullish reversal candle at a value zone is what they need to wait for. Let us find out what happens next.

The price seems to have started having a pullback. The first corrective candle comes out as an Inside Bar, which is a good sign for the buyers. The buyers wait for the price to come back at a level of support with a reasonable distance from the resistance. Let us see how far it comes up to.

The price has crossed a good distance from resistance. The buyers are to wait for a bullish reversal candle. Ideally, a bullish engulfing candle is the first choice for the buyers. Other candles such as Inside bar, Spinning Top do the job as well, but an engulfing candle’s signal attracts more traders, and it brings more liquidity. Let us see what happens next.

Price action traders dream of such a reversal candle. This is not only a bullish engulfing candle but also an engulfing candle, which breaches the highest high of the last wave. Let us draw the consolidation zone on the chart.

The reversal candle makes the breakout with good momentum. A trader shall trigger a buy entry shall right after the candle closes. When a reversal candle itself makes a breakout, it makes the fore coming move go towards the trend’s direction with good momentum. Look at the chart below.

Look at the pace of the bullish move after the breakout. Here is another very important factor that traders must remember. A single candle breakout usually offers a 1:2 risk-reward ratio. This means traders shall add some extra pips with their profit target when they get such price action. The drama remains. Have a look at the chart below.

The price makes a correction and seems to have found support again. It suggests that the buyers are still in control. Smart buyers take their Partial profit and let the rest of the trade run to earn more pips.

As mentioned, breakout attributes give clues about the trend’s strength. Eventually, this helps traders manage their trade nicely and make more money out of trading.

Categories
Forex Market Analysis

Daily FX Brief, October 23 – Major Trade Setups – Stronger Dollar Plays

On Wednesday, the dollar rose versus its peer currencies as a risk spread ahead of the British parliament’s vote on the Withdrawal Agreement Bill, which will reflect light on when

On Wednesday, the dollar rose versus its peer currencies as a risk spread ahead of the British parliament’s vote on the Withdrawal Agreement Bill, which will reflect light on when

On Wednesday, the dollar rose versus its peer currencies as a risk spread ahead of the British parliament’s vote on the Withdrawal Agreement Bill, which will reflect light on when and how Britain will exit the Eurozone.

The British Pound currency was found on the selling track, although Prime Minister Boris Johnsons Brexit bill gained the parliamentary support, the government timeline of just three-days discussion on the bill was rejected.

The European Union Consumer Confidence is scheduled to release at 14:00 GMT. Hence, the European Central Bank, Andrea Enria, is expected to deliver the speech at an event in Madrid at 08:45GMT.

Economic Events to Watch Today

Let’s took at these fundamentals.

GBP/USD– Daily Analysis

The GBP/USD currency pair came under pressure, and the pair is currently trading below the 1.2850. As well as, the pair failed to hit the critical support range on Tuesday, mainly due to Brexit uncertainty and delay. The 50-hour and 100-hour Moving Averages are found at 1.2940 and 1.2905, respectively.

The British Pound currency was found on the selling track, although Prime Minister Boris Johnsons Brexit bill gained the parliamentary support, the government timeline of just three-days discussion on the bill was rejected.

The chances of Britain departing the European Union before the deadline date of October 31 has dropped sharply, mainly due to parliamentary failure.

On the other hand, the headline came from the Prime Minster Boris Johnson office said that if the European Union agree to a delay until January, then the only way to shift from Britain’s Brexit crisis is a new election.

Forecast view, the ongoing uncertainty regarding Brexit could continue to push the GBP lower. Moreover, the pair is trading well below the 100-hour Moving Average for the 1st time since October 11.

It should be noted that the greenback may gain some haven buying due to the risk-off sentiment in the equity markets and trade uncertainty.



Daily Support and Resistance

S3 1.264

S2 1.278

S1 1.2839

Pivot Point 1.292

R1 1.2979

R2 1.306

R3 1.32

GBP/USD– Trading Tips

The GBP/USD has violated the bullish channel, which was supporting the pair around 1.2945. The formation fo a bearish engulfing candle is suggesting chances of a bearish reversal in the GBP/USD pair. 

On the lower side, the Sterling may find support at 1.2785 level, which also marks a double bottom on the 4-hour chart. Besides, the resistance stays at 1.2945 level. Consider staying bearish below 1.2920 today. 

 

EUR/USD – Daily Analysis

During the early Asian session, the EUR/USD currency pair hit the bearish track, having gained acceptance below the 100-day M.A. yesterday. The EUR currency came under selling pressure, mainly due to the decline in the GBP currency as the Brexit obstacle.

If talking about the past movement of EUR, Brexit certainty has sent the shared currency above the 100-day Moving Average on October 18. 

On the technical side, the EUR/USD currency pair found on the inverted hammer on Monday and ended well below the inverted hammers low of 1.1139 on Tuesday.

So, the EUR currency could drop further, notably if the German ten-year bond yields extend Tuesdays 4-basis-points decline to -0.38%. 

Moreover, the greenback may gain some haven buying, adding to the bearish pressures near the EUR/USD currency due to the risk-off sentiment in the equity markets.

On the other hand, the European Union Consumer Confidence is scheduled to release at 14:00 GMT. Hence, the European Central Bank, Andrea Enria, is expected to deliver the speech at an event in Madrid at 08:45GMT.


Daily Support and Resistance

    

S3 1.1056

S2 1.1096

S1 1.1113

Pivot Point 1.1135

R1 1.1153

R2 1.1175

R3 1.1214

EUR/USD – Trading Tips

The EUR/USD currency was trading 1.1116 and 1.1157 yesterday, hit the lowest range. As for today, the EUR will likely to continue consolidating in the narrow range of 1.1110 – 1.1150.

The EUR/USD is also facing double bottom support at 1.1110 area, and above this, we can expect to buy a trend in the EUR/USD until 1.1150 and 1.1180. On the other hand, selling can be expected below 1.1110 until the 1.1065 area. 

USD/JPY – Daily Analysis

The USD/JPY currency pair is flashing red and representing 0.16% declines on the day. As of writing, the USD/JPY currency pair currently trading at 108.30, as the time of writing, the pair traveled from a high range of 108.51 to a low range of 108.25.

The USD/JPY currency pair may end with a much higher daily loss, as the four-hour chart is showing a head-and-shoulders breakdown. 

Such as Prime Minister Boris Johnsons Brexit bill gained the parliamentary support, but the government timeline of just three-days discussion on the bill was rejected.

Notably, Prime Minister Boris Johnson made a plan to meet with European Union leaders once again to discuss the timeline, and the chances of an early election are increasingly, but Brexit delayed beyond the elections. 

At the data front, the Oct Richmond Fed manufacturing survey rose firmly to +8 (est. -7, prior -9). Increases were comprehensive, with noted raises in employment and new orders with expectations edging higher in addition to stronger current conditions. United Step Sep existing home sales slid -2.2%m/m (est. -0.7%m/m). However, at 5.38mn (est. 5.45mn), the annualized level continues close to post record highs, and NAR’s chief economist continues to cite a shortage of stock and supply.

The United States’ two-year Treasury yields were moving between 1.59% and 1.63, whereas the ten-year yield traveled between 1.76% and 1.80%. Markets are expecting 22-basis points of a rate cut at the October 30 meeting and a terminal rate of 1.24% against % currently.


Daily Support and Resistance

S3 108.09

S2 108.31

S1 108.41

Pivot Point 108.53

R1 108.63

R2 108.75

R3 108.97

USD/JPY – Trading Tips

Recalling our previous update, the USD/JPY was trading in the bullish channel, which was extending support at 108.350. This bullish channel is now violated. As anticipated, the violation of 108.350 is extending bearish rally until the 108 level. 

The MACD and Stochastics are consistently pointing into the selling zone, signaling odds of a bearish bias.

The USD/JPY may attain a critical resistance at 108.57, along with support at 108.300. Today, the violation fo 108.270 can help us capture a quick sell position until 107.950. 

All the best!  

 

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 23 – Stablecoins may be considered securities, crypto markets in the red today

The cryptocurrency market is in the red for the past 24 hours. Most of the day has passed by without any downside resistance whatsoever. There has not been any new

The cryptocurrency market is in the red for the past 24 hours. Most of the day has passed by without any downside resistance whatsoever. There has not been any new

The cryptocurrency market is in the red for the past 24 hours. Most of the day has passed by without any downside resistance whatsoever. There has not been any new money coming into the markets as volume seems to be a bit lower than average. However, the downward-facing moves were not weak, but rather steady and stable. The market is now trying to find a price level to consolidate. As for the top3 cryptocurrencies, Bitcoin went down 3.03%, while Ethereum lost 4.3% of its value and. XRP was down 3.01% in the past 24 hours. Out of the top50 cryptocurrencies, BAT performed the best with its gains reaching over 7.5%.

 


Bitcoin’s dominance increased a fraction of a percent when compared to yesterday’s value. It now sits at 66.5%, which represents a 0.01% increase from the previous day.

 

Most cryptocurrencies ended up being in the red in the past 24 hours. This, of course, slightly increased the value of the cryptocurrency market as a whole. The industry now has a market capitalization of $217.4 billion, which represents a $5 billion decrease from the previous day.

What happened in the past 24 hours

Cryptocurrencies have had both positive and negative news in the past 24 hours.

As reported by CoinDesk, Morgan Creek Digital managed to raise $60.9 million for its second blockchain venture capital fund. It seems that two pension funds invested $50 million into the project. This is more than double what they initially started with ($21 in the first blockchain fund).

The US Congress may consider a bill which would classify stablecoins as securities. This bill draft was published on Tuesday by Rep. Sylvia Garcia. The bill wants to regulate stablecoins under the Securities Act of 1933, seeking to provide clarity in an area the bill suggests lacks regulatory guidance.

Technical analysis

Bitcoin



Bitcoin has managed to break a bull flag downwards, making quite a bearish announcement to the market. If we take a look at the charts, the downtrend that started on Sep 30 ended up with a bull flag that broke upwards and increased in price right to the 161.8% of the downwards-facing move. After that, another similar downtrend started and we’ve come to the point when a bull flag was starting to rise. Everyone was expecting it to break upwards and Bitcoin to attempt to reach new highs (a 161.8% increase would mean a price of $9,440).

However, Bitcoin managed to fail the pattern and broke it downwards. Its price stabilized at just below $8,000.

Ethereum

Ethereum has lost over 4% of its value in the past 24 hours. It seems to be forming a falling wedge pattern on the daily chart. One more descending move is to be expected before Ethereum could attempt a price increase. However, if that does not happen, even a price of $110 is not excluded.


At the moment, Ethereum is sitting at $167, with a big support line being at $157. Its volume is at extremely low levels and RSI is approaching oversold territory.

XRP

XRP broke its ascending trend range and fell to $0.288. After creating a range that it moved in all the way from Sep 19 until now, XRP managed to break it downwards. It is now trying to recover and get back into the range, but the attempt has been unsuccessful so far.


XRP’s volume is average while its RSI is neither oversold nor overbought. It would take a significant increase in bull power in order for XRP to get back in its lane. If that does not happen, however, XRP has strong support sitting at $0.266.

Categories
Crypto Market Analysis

Today´s Crypto Events 25.07.2018

Here you can find all the news about the upcoming hard fork, releases, exchange listings, updates, conferences, new launches, etc. We gather the most relevant events and conferences for you to pick from.

Today´s Crypto Events 25.07.2018

 

  • POA Network (POA) — Las Vegas Government Blockchain Group – Speaker Series
  • Maecenas (ART) — Fine Art Blockchain Auction Beta Launch
  • Syscoin (SYS) — AiBB Token Pre Sale
  • NEM (XEM) — Meetup in Cali
  • Creativecoin (CREA) — Weeklys Challenge
  • Cindicator (CND) — Meetup in Berlin
  • SophiaTX (SPHTX) — Mainnet Launch
  • LoyalCoin (LYL) — Crypto Seminar in Mandaluyong
  • Decentraland (MANA) — NIFTY Conference and Hackathon in Hong Kong
  • 0x (ZRX) — NIFTY Conference and Hackathon in Hong Kong
  • Digix Gold Token (DGX) — NIFTY Conference and Hackathon in Hong Kong
  • Ethereum (ETH) — NIFTY Conference and Hackathon in Hong Kong
  • Trinity (TTY) — NIFTY Conference and Hackathon in Hong Kong
  • BitShares (BTS) — Indodax Exchange Listing
  • Dash (DASH) — Indodax Exchange Listing
  • NEM (XEM) — Indodax Exchange Listing
  • Dogecoin (DOGE) — Indodax Exchange Listing
  • Silent Notary (SNTR) — CryptalDash Exchange Listing
  • ZenCash (ZEN) — Livestream on YouTube
  • SwissBorg (CHSB) — Q&A on YouTube and Facebook
  • Ark (ARK) — CoinBene Exchange Listing
  • Nexty (NTY) — CoinBene Exchange Listing
  • Pundi X (NPXS) — Meetup in Geneva
  • Bitcoin Private (BTCP) — Public Development Meetings on Discord
  • Switcheo (SWTH) — Exchange V2 Launch
  • Polymath (POLY) — Blockchain Society Conference in Toronto
Categories
Crypto Market Analysis

Today´s Crypto Events 24.07.2018

Here you can find all the news about the upcoming hard fork, releases, exchange listings, updates, conferences, new launches, etc. We gather the most relevant events and conferences for you to pick from.

Today´s Crypto Events 24.07.2018

  • TokenCard (TKN) — Blockchain Meetup in London
  • WandX (WAND) — Airdrop Starts
  • Waves (WAVES) — DEX and Wallet Release
  • DATA Streamr DATAcoin (DATA) — AMA on YouTube
  • Fitrova (FRV) — Fitness Tracker App Alpha Release
  • EOS (EOS) — Bitpanda Exchange Listing
  • SwissBorg (CHSB) — Q&A on Reddit
  • Banca (BANCA) — CoinTong Exchange Listing
  • Electroneum (ETN) — CoinBene Exchange Listing
  • aelf (ELF) — AMA on Telegram
  • RLC iExec RLC (RLC) — Workerdrop 2
  • Holo (HOT) — Binance Exchange Listing
  • Soarcoin (SOAR) — Soar Cryptocurrency Exchange Launch
  • Civic (CVC) — AMA on Telegram
  • CPChain (CPC) — KuCoin Exchange Listing
  • IOTA (MIOTA) — DAHO.AM Conference in Munich
Categories
Crypto Market Analysis

Daily Crypto Update 06.07.2018 – Market Can’t Keep Bullish Momentum

Recently, the market has seen a moderate downward trend in most of the cryptocurrencies and the last hours are showing a small correction in the pairs we are going to

Recently, the market has seen a moderate downward trend in most of the cryptocurrencies and the last hours are showing a small correction in the pairs we are going to

Recently, the market has seen a moderate downward trend in most of the cryptocurrencies and the last hours are showing a small correction in the pairs we are going to see today in this update. Only 3 of the top ten cryptos report positive numbers right now (BTC-ETH-XLM).

General Overview

Market Cap: $271.699.753.396

24h Vol: $15.382.782.187

BTC Dominance: 42.1%

Cryptos Report:

News

Why India And China Won’t Lift Their Crypto Bans
The highest court in India this week upheld the Reserve Bank’s decree prohibiting the country’s banks and other regulated lenders from dealing with or supporting any cryptocurrency-related services, including allowing customers to buy crypto with credit cards.
Source: barchart.com

Coinbase UK CEO Interview: Huge Interest From Institutional Investors Toward Crypto
Coinbase UK CEO Zeeshan Feroz is working to achieve a crypto revolution amidst hesitant bankers in a city torn over Brexit. Last week, he made a speech on blockchain’s potential to connect the unbanked and rebuild the entire financial system. Today, in an interview with NewsBTC, he said that Coinbase is looking to roll out GBP wires in the next few weeks, where London could be the next blockchain hub and that Brexit may even speed up clarification over regulatory uncertainties.
Source: barchart.com

Digital Collectible On Ethereum Network Sold For $1 Million On Valentine’s Day 
A group of ten collectors split the million dollar price tag for a digital photo of a red rose digital collectable on valentines day launched on the Ethereum network. The piece is thought to have fetched the highest price yet paid for a piece of virtual art. Forever Rose, produced by Kevin Abosch and GIFTO, exists on the blockchain just as Bitcoin and other virtual currencies do.
Source: newsbtc.com

Analysis

XRP/USD

The price of XRP had a considerable drop today from $0.5063 and broke the $0.50 support area, the drop was only stopped by the Pivot S1 at $0.4624. Now the price is moving around the 0.50% Fib Retracement while the bears keep showing strength.



There is a crucial support broken at $0.475 and if a break below the Pivot S1 happens, we could see declines towards the $0.4547 and the Pivot S2 at $0.4477.

Market sentiment

4-H chart technicals signal a sell sentiment.

Oscillators are showing buy signals and pointing up.

Pivot points

R3 0.5299
R2 0.5163
R1 0.4966
PP 0.4830
S1 0.4634
S2 0.4498
S3 0.4301

ADA/USD

The price of ADA has been recovering from the last drop from $0.1614, bouncing on the Pivot S1 at $ 0.1408. The bears have lost momentum and now the price has been recovering with three consecutive green candles. It seems the price reacted to news from the Cardano Foundation that stated the company is releasing a new roadmap.



Although the EMA-100 appears at this moment as the resistance to break, added to that, the Central Pivot Point is very close to it. We should also consider that a new bearish pressure could send the price to look for the 0.50% Fib Retracement close to $0.1369.

Market sentiment

4-H chart technicals signal a Bullish sentiment.

Oscillators are showing buy signals.

Pivot points

R3 0.1693
R2 0.1627
R1 0.1550
PP 0.1483
S1 0.1408
S2 0.1382
S3 0.1265

EOS/USD

EOS tries to recover the losses of the beginning of today’s session and bounced the price in the Pivot S2 at $8.36 that converges with the lower trend line of this ascending channel in the 4-H graph. At this moment it is trying to beat the Pivot S1 at $8.60. If the price can cross down the channel we could see pronounced sales in the short term.



Market sentiment

4-H chart technicals signal a Bullish sentiment.

Oscillators are showing buy signals.

Pivot points

R3 9.68
R2 9.45
R1 9.13
PP 8.89
S1 8.59
S2 8.36
S3 8.06

Conclusion

Cryptos Report: The expected trend change has not yet shown and that’s why sellers are still taking intraday profits in the market rebounds.

Categories
Crypto Market Analysis

Daily Crypto Update 28.06.2018

The Crypto Market is trying to recover slowly from 2 negative days this week. While 6 of the top ten cryptos are still in red, for the first day in

The Crypto Market is trying to recover slowly from 2 negative days this week. While 6 of the top ten cryptos are still in red, for the first day in

The Crypto Market is trying to recover slowly from 2 negative days this week. While 6 of the top ten cryptos are still in red, for the first day in this week the market capitalisation has gone up though only by 2 billion in the last 24 hours. Although the volume has dropped by a little bit, the price of BTC comes strangely in a narrow range during the session and stuck to the central pivot point at $6,098.

General Overview

Market Cap: $245.415.147.783

24h Vol: $10.177.260.767

BTC Dominance: 42.4%

The market continued to perform small ups and downs in the last hours, BTC remains calmed and just above the $6,100 level at the time of writing this update.

News

There is no significant news today that can make the market move significantly, however, the cryptocurrencies always have informative material every day that we summarise here.

An Interview: “Governments Can’t Prevent People from Choosing Crypto”
When you visit a crypto event, like the Block Forum in Vilnius, you take the chance to talk to anyone and everyone who will stop for a chat. This is a foolproof way to learn more about what’s going on in the cryptoverse from the big players themselves. Cryptonews.com talked to Miko Matsumura, co-founder of crypto exchange Evercoin, speaker, initial coin offering (ICO) advisor and investor.

Vitalik Vs. Apple: App Store Is Restrictive & Nobody Is Complaining
Vitalik Buterin, co-founder of the Ethereum platform, is quite active on Twitter and absolutely does not hold back when there is something that needs to be said. This time, Apple’s app store was on the receiving end of his criticism: he thinks that it is strange that they get so much power and almost nobody complains.

20% of UK Millenials Prefer Bitcoin Over Real Estate – Survey
20% of the surveyed UK millennials, a group of the population aged between 21 and 35, would rather invest in Bitcoin than in real estate, the UK-based build-to-rent developer Get Living said in its report “Millenial Living in 2018”
Source: cryptonews.com

As Tezos Prepares for Launch, a Year in Review
In an email sent out to investors, the Tezos foundation stated: “Preparations for the launch of the Betanet are being finalised.”. After running the alphanet, a test network, for over a year now Tezos is expected to launch its beta network in the next few days. The main network launch would follow soon with transactions from the beta network transferred over.

Source: ccn.com

Analysis

BTC/USD

Bitcoin is trading around $6,100 at the moment of this publication, losing -0.17% over the last 24-hours. The price remains in range during the session and still stuck to the central pivot point in this 1H chart. Nervousness and uncertainty, are the words that could describe the market currently and the bearish trend continues to break it, BTC needs to climb at least up to the level of $7,000 which seems quite unlikely.



I’m still thinking that the important level to beat for the bears is $6000; if this level is crossed the pair could be looking again for the yearly minimums around $5781.

Market sentiment

4-H chart technicals signal a Bullish sentiment.

Oscillators are showing neutral signals.

Pivot points

R3 6415.65
R2 6301.73
R1 6217.96
PP 6104.03
S1 6020.26
S2 5906.34
S3 5822.57

LTC/USD

Litecoin price has lost -0.74% in the last 24H and we can see here in this 1-H chart how a symmetrical triangle pattern is formed with the price still stuck in the central pivot point around $79.20, very close to testing the resistance and ready to make another move to the support.



The 50 EMA is also following the price as a dynamic resistance and the 100 SMA keeps below the 200 EMA. Technically speaking this means that the selloff is more likely to resume than to reverse. My expectation is that a stronger selling pressure is coming and LTC/USD would probably break the support line of this triangle as well.

Market sentiment

1-H chart technicals signal a Bullish sentiment.

Oscillators are showing buy signals and pointing up.

Pivot points

R3 90.3521
R2 86.0960
R1 83.4095
PP 79.1534
S1 76.4670
S2 72.2108
S3 69.5244

ETH/USD

Ethereum is forming a Falling Wedge Pattern on this 4-H chart. The price is currently very stable and without much volatility due to nervousness in the market and the current risk aversion of the investors. The price moves to $435.66 at this time, just a little below the central pivot point for almost all day, the 100 SMA is moving below the 200 EMA, technically speaking this means that the selloff is more likely to resume than to reverse.



However, we see that the RSI indicator as much as the Stochastic are pointing up, so it is possible that there is a new entry of buyers that give a bit of dynamism to the boring market today. The most important support is Pivot S1 at $424.

Market sentiment

4-H chart technicals signal a Bearish sentiment.

Oscillators are showing buy signals and pointing up.

Pivot points

R3 479.19
R2 462.80
R1 452.19
PP 435.80
S1 425.18
S2 408.79
S3 398.18

Conclusion

The market has been quiet except for a few coins, the main ones have kept little volume and short movements when this happens, usually, sudden movements can come in any direction so we should be vigilant.

Categories
Crypto Market Analysis

Daily Crypto Update 26.06.2018

The Crypto Markets were Recovering yesterday after Weekend Losses but today we are seeing negative 24h numbers in the top 10 currencies. Bitcoin is trading around $6,173 at the moment of this publication, down around -0.45% over the last 24-hours. Yesterday, BTC raised to $6.342 but since then, the price started to go down, crossed the 100-50 EMAs and seems to be bearish for the remaining time of the trading session, according to the indicators. As we said it, the ten first currencies of the market are in red and the one that loses the most at this moment is Ethereum with -3.16%

General Overview

Market Cap: $251.594.440.275

24h Vol: $17.855.718.044 .

BTC Dominance: 42.0%

Suddenly the market that came a little inactive has become bearish and there are some lost in major cryptos, we must be alert to a possible drop.

The market is turning negative in the last hours but it has only lost a Billion in the capital in 24H, contrary to what we were thinking, apparently the market is not going to have a long setback and would like to resume the low levels of the weekend.

News

20 Percent? Japan’s Finance Minister Ponders Crypto Tax Policy Change
Japan’s minister of finance has discussed the possibility of changing the country’s current capital gains policy which sees crypto investors face between 15 and 55 per cent in taxes.

Breaking New Ground: South Africa Gets Its First Bitcoin Atm
South Africa, whose citizens are increasingly interested in investing and trading in cryptocurrencies, is to have its first functional bitcoin Automated Teller Machine (ATM), following up on Zimbabwe and Djibouti.

Crypto Market Remains Relatively Stable: Theta Surges 30% as Tokens Record Big Gains
The crypto market has slightly rebounded by $4 billion over the past 24 hours, providing investors with a breathing room in a major mid-term sell-off and downtrend.

Robinhood Aims to Disrupt Further by Launching a Cryptocurrency Wallet
If established cryptocurrency exchanges didn’t take notice when commission-free trading app Robinhood started offering free cryptocurrency trading earlier in the year, they are likely to now.

Source: ccn.com

Analysis

BTC/USD

Bitcoin is trading around $6,173 at the moment of this publication, down around -0.45% over the last 24-hours. Yesterday, BTC raised to $6,342 but since then, the price started to go down, crossed the 100-50 EMAs and seems to be bearish for the remaining time of the trading session, according to the indicators in this 1H chart. The immediate support is $ 6,131 and next to the Pivot S1 around $6,096.



Market sentiment

4-H chart technicals signal a sell sentiment.

Oscillators are showing sell signals and pointing down.

Pivot points

R3 6637.76
R2 6491.77
R1 6370.11
PP 6224.12
S1 6102.47
S2 5956.47
S3 5834.82

LTC/USD

Litecoin price has lost -1.99% in the last 24H after touching yesterday highs around $84.18. The price was moving over the central pivot point during the beginning of the session but this support was lost and now the price is testing the pivot S1 at $78.81 in this 1H chart.



Market sentiment

1-H chart technicals signal a Strongly Bearish sentiment.

Oscillators are showing sell signals and pointing down.

Pivot points

R3 90.0820
R2 87.2371
R1 84.4182
PP 81.5733
S1 78.7544
S2 75.9096
S3 73.0906

XRP/USD

XRP has lost -1.17% in the last 24h after finding a strong resistance in the central pivot point around $0.4817 and now is testing the pivot S1 in $0.4711. As like some of the main currencies, XRP comes negative in the last hours. If the Pivot S1 can support the price pressure we could see a bounce to $0.4793, if a breakout happens, a considerable drop can come for the pair.



Market sentiment

1-H chart technicals signal a Strongly Bearish sentiment.

Oscillators are showing sell signals and pointing down.

Pivot points

R3 0.5097
R2 0.5006
R1 0.4905
PP 0.4814
S1 0.4713
S2 0.4622
S3 0.4520

Conclusion

There is a new bearish and unexpected scenario today. Although the losses have not been so big, the market is feeling nervous again, which may lead us to go back to the weekend minimums very soon if the selling pressure is still active.

Categories
Forex Market Analysis

June 19 – Global Stocks Slips on Risk off Sentiment – Trump Strikes

U.S. stocks slouched on Tuesday, with the Dow-Jones Industrial Average erasing its gains for the year, as markets were confused by a sharp escalation of the trade dispute between the

U.S. stocks slouched on Tuesday, with the Dow-Jones Industrial Average erasing its gains for the year, as markets were confused by a sharp escalation of the trade dispute between the

U.S. stocks slouched on Tuesday, with the Dow-Jones Industrial Average erasing its gains for the year, as markets were confused by a sharp escalation of the trade dispute between the United States and China. The US President, Donald Trump warned to impose a 10% tariff on $200 billion of Chinese goods and Beijing threatened it would retaliate.

S&P 500 – Daily Outlook

The U.S. stock market index SPX is trading at 2,664, down -15.25 points and -0.58%. The index is trading in the oversold zone and has already completed 50% retracement at 2,746. At the moment, SPX is likely to pull back to fill the early morning gap.



 

Support Resistance 
2761.79 2775.45
2757.58 2779.66
2750.75 2786.49
Key Trading Level: 2768.62

 

Nikkei – Daily Outlook

Japanese stocks plunged to 2-1/2-week lows on Tuesday and posted the biggest daily percentage decline in three months after Chinese stocks were sold piercingly amid intensifying global trade tussles.

Japan’s Nikkei dipped -401.85 points to trade at 22,278.48 on today. Most of the selling began in response to a risk-off sentiment. Technically, the Japanese index has come out of the asymmetric triangle pattern which supported Nikkei near 22,290. For now, the same level is working as a resistance. Whereas, the support is likely to prevail near 21,952.



Support Resistance 
22617.52 22774.72
22568.96 22823.28
22490.36 22901.88
Key Trading Level: 22696.12

That’s it for now, you are advised to monitor three speeches from the world central bankers. ECB President Draghi, BOJ’s Kuroda and Fed’s Chair Powell are due to participate in a panel discussion at the European Central Bank Forum on Central Banking, in Portugal on Wednesday at 13:30 (GMT). All the best!

Categories
Crypto Market Analysis

DASH/BTC Imminent Breakout

Dash (DASH)

Market Cap: $2.17B

Circulating Supply: 8.13M DASH

Max Supply: 18.9M DASH

Volume (24H) $114.09

DASH/USD = $268.17

DASH Technical Analysis

DASH/BTC is trading right below some very, very important resistance levels. It seems somehow motivated to pass above them, but it remains to be seen if the buyers will have enough energy to push the rate higher. The rate moves in a range in the short term after the failure to move towards the downside line of the down channel and after the false breakdowns below the lower median line (LML) of the major descending pitchfork and below the outside sliding line (sl)of the ascending pitchfork.


 

Right now you should stay away and wait for a valid breakout from the down channel, above the lower median line (lml) and above the 0.041780 static resistance (support turned into resistance). It is very important for the price to make a valid breakout from this minor accumulation because if it stays too much within it, it could turn into a distribution and the rate could drop further.

DASH/BTC has shown an oversold sign when it has failed to approach the down channel’s downside line, but we still need a confirmation that we may have another leg higher.

 Conclusion 

DASH Technical Analysis: A valid breakout above the mentioned near-term resistance levels will give us a great chance to go long on this crypto pair. It could find temporary resistance at the 50% lines, but the major target remains around the median line (ML) of the major descending pitchfork and at the median line (ml) of the ascending pitchfork.

 

Categories
Crypto Market Analysis

Metaverse ETP – Is This A Temporary Drop?

Metaverse ETP (ETP)

Market Cap: $26.12M

Circulating Supply: 35.84M ETP

Max Supply: 100M ETP

Volume (24h) $4.50M

Technical Analysis

ETP/USD continues to move sideways somehow in the short term but it remains to be seen what will really happen after the rate will reach the major and critical support. The price drops in the short term as all the major cryptocurrencies have crashed in the short term. The rate continues to stay above some very important support levels, so we may still have a rebound on the short term.

 


 

Unfortunately, the rate failed to make a valid breakout above the outside sliding parallel line (sl) of the minor descending pitchfork and now it has slipped below the upper median line (uml) again. It is pressuring the upper median line (UML) of the major descending pitchfork, so a rejection from here and from the 0.6000 psychological level will signal a rebound and a potential breakout above the outside sliding line (sl).

Right now it is very important for the rate to stay above the UML of the major descending pitchfork and above the 0.6000 psychological level because a breakdown will send the rate at least till the upside 50% Fibonacci line of the descending pitchfork.

Conclusion

We may have a great buying opportunity only if the rate will make a valid breakout above the outside sliding line (sl). This scenario will be invalidated if the rate will resume the downside movement and if will close and stabilise below the 0.5701 static support.

Categories
Crypto Market Analysis

Litecoin – Could It Reach The Median Line Again?

Litecoin (LTC)

Litecoin Market Cap: $5.67B

Circulating Supply: 56.96M LTC

Max Supply: 84M LTC

Volume (24h): $321.53M

Technical Analysis

Litecoin is trading in the red and seems too heavy to be stopped in the short term. Right now it is pressuring a dynamic support and could take it out as well. It should drop further if it will close below this downside obstacle.

The crypto market has started to drop aggressively and could resume the downward movement in the upcoming days, so, Litecoin is somehow expected to drop further as well.

 


 

Technically, it is expected to drop further after the breakdown from the major triangle pattern and below the 109 – 106 support zone. Right now it is pressuring the 150% Fibonacci line, so a breakdown will signal a drop at least until the upside 50% Fibonacci line of the descending pitchfork. The major downside target remains at the median line (ML) of the descending pitchfork.

We would have a great selling opportunity if the rate had retested the broken levels, but the rate moved down very quickly and I don’t know if we’ll have a retest.

It is somehow expected to drop after another failure to reach and retest the upper median line (UML) of the descending pitchfork. Litecoin also failed to stabilise above the sliding line (sl) of the descending pitchfork, so all the signs are bearish.

Conclusion

Technically, Litecoin market cap is expected to drop further even if we have a minor rebound and a retest. If you decide to sell it, then you should place a Stop Loss above the 129.870 former high and a Take Profit near the median line (ML), somewhere around $50.

Categories
Crypto Market Analysis

XMR/USD You Can Still Catch The Sell-Off

Monero (XMR)

Monero Market Cap: $2.16B

Circulating Supply: 16.12M XMR

 Max Supply: 0 XMR

Volume (24h) $36.49M

Technical Analysis

 The cryptocurrency could extend the sell-off in the upcoming period after the crucial breakdown.  The rate passed below a major support area signalling that the bears are in full control. Right now it remains to be seen if the rate will come back to retest the broken zone or it will drop further without a rebound.

Monero drops as all the major cryptocurrencies have started another bearish momentum. The crypto market could resume the major downtrend.


 

You can see that the rate has made a valid breakdown below the first warning line (WL1) of the ascending pitchfork, it has retested the lower median line (lml) of the other ascending pitchfork and now is trading much below the 150.00 psychological level.

It has also retested the uptrend line failing to close on it, so the current drop is natural and was expected. If you read the latest trade setup on this crypto, you’ll notice that I’ve talked about a significant drop after the rate will make a valid breakdown below the 150.00 level and below the 145.810 low.

XMR/USD could be attracted by the confluence area formed between the 250% Fibonacci line (descending dotted line) with the 150% of the ascending pitchfork.

Conclusion

If you want to go short on this you should place your Stop Loss above the 177.78 high. Personally, I still believe that the rate could move towards the first warning line (wl1) of the minor descending pitchfork. A further drop will be confirmed only by a valid breakdown below the 250% line and below the 150% lines.

Categories
Forex Market Analysis

June 11 – U.S. Indices Soars As Risk-on Sentiment Heads Up

On the first trading day of the fresh week, most of the markets opened with huge gaps on the back of the uncertainty driven by the G7 meeting. However, the

On the first trading day of the fresh week, most of the markets opened with huge gaps on the back of the uncertainty driven by the G7 meeting. However, the

On the first trading day of the fresh week, most of the markets opened with huge gaps on the back of the uncertainty driven by the G7 meeting. However, the markets soon recovered despite unease after U.S. President Donald Trump inflated the threat of higher import tariffs at a rough G7 meeting. Did you miss an opportunity? No worries the game has just begun…

S&P 500 – Daily Outlook

The U.S. stock market index is trading bullish at 2,791.25, up +8.75 points and +0.31%. The S&P500 has come out of the asymmetric triangle pattern at $2,712, indicating the bull bias of investors. At the moment, the SPX is likely to face resistance near the $2,795 level.



Support    Resistance

2767.96    2780.04
2764.24    2783.76
2758.2      2789.8
Key Trading Level: 2774

 

Nikkei – Daily Outlook

Japan’s Nikkei soared more than 375 points to trade at 22,975 on Monday. Most of the bullish trend began in response to the rise in risk appetite. The risk on sentiment kicked in as the investors are very optimistic about the U.S.- North Korea meeting tomorrow.

Technically, the bearish trendline is extending a solid resistance to Nikkei at $22850. At the same time, the RSI has entered the oversold zone which is signifying the chances of a bearish reversal.



 

Support    Resistance
22184.88   22303.38
22148.28   22339.98
22089.03  22399.23
Key Trading Level: 22244.13

That’s pretty much it for now. I hope you are ready for some action tomorrow. We’ve got to deal with the U.S.-North Korea updates and the markets can remain volatile throughout the session.

Categories
Crypto Market Analysis

NEO Could Hit The Floor

NEO (NEO)

Market Cap: $3.39B

Circulating Supply: 65M NEO

Max Supply: 100M NEO

Volume (24h) $79.80

Technical Analysis

NEO/USD is trading in the red and seems determined to extend the current drop. It has failed to stay higher and now moves towards important support levels. The major cryptocurrency drops as the crypto market is in the red again.

It could drop further in the upcoming days if Bitcoin, Ethereum, etc. will resume the bearish momentum. Several false breakdowns and some rejections have signalled that the crypto pair could drop further in the short term.


 

The price has escaped from the ascending pitchfork’s body and now could drop towards the 50.00 psychological level. The drop was confirmed by the false breakout above the lower median line (lml) of the ascending pitchfork and after the valid breakdown below the sliding line (sl) of the ascending pitchfork.

Right now we need a confirmation that the crypto will drop further. It has slipped below the SL of the major descending pitchfork and below the 150% Fibonacci line of the ascending pitchfork. Only a valid breakdown below the mentioned lines and below the upside 50% Fibonacci line of the minor descending pitchfork will signal and will really confirm a drop towards the UML of the major descending pitchfork and towards the sliding line (sl1) of the minor descending pitchfork.

I’ve drawn a descending pitchfork to show you that the rate is trapped within a down channel. A further drop could be invalidated only by a valid breakout above the upside sliding line (sl) of the minor descending pitchfork.

Conclusion

NEO/USD will drop further if it will close below the 51.81 yesterday’s and today’s low and could reach the sliding line (sl1) and the median line (ml). The Stop Loss could be placed somewhere above the sl2.

Categories
Crypto Market Analysis

Is Bitcoin Already Exhausted?

Bitcoin (BTC)

Market Cap: $130.38B

Circulating Supply: 17.08M BTC

Max Supply: 21M BTC

Volume (24h) $ 4.29B

Bitcoin Price Analysis

Bitcoin has rebounded on the short term, but the upside movement seems completed.  The cryptocurrency is showing some exhaustion signs and could attract the sellers again. The next days could be crucial because a significant decrease will confirm a drop at least to the 6000 psychological level. The major cryptocurrencies have increased a little since last week, but this may be only a temporary rebound before the prices will drop again.


 

If you read my articles and editorials about Bitcoin, you’ll notice that I’ve talked about the importance of the outside sliding parallel line (SL) of the ascending pitchfork. I’ve said that the rate could drop after the retest of the downtrend line and after the failure to make a valid breakout above the third warning line (WL3) and above the SL2.

The sliding line (SL) represented a crucial dynamic support and I’ve mentioned that a valid breakdown will invalidate a potential leg higher and will confirm a further drop. The minor rebound could validate the breakdown if the rate will stay below it and if it will drop again.

Technically, the rate was somehow expected to increase after the valid breakout from the minor down channel, but Bitcoin remains under huge pressure as long as it is trading below the sliding line (SL), the fourth warning line (WL4) and much below the downtrend line.

Conclusion

Bitcoin Price Analysis: You can sell it again if it stays below the SL and below the 7779.0 static resistance with a first downside target at the 150% line of the ascending pitchfork. The Stop Loss could be placed around 7900 level.