Daily Market Analysis By FXOpen

[FXOpen Trader]

BTCUSD and XRPUSD Technical Analysis – 22nd MAR 2022

BTCUSD: Bullish Engulfing Pattern Above $38,000

Bitcoin's bearish phase has ended after touching a low of $37,649 on March 14th. As of now, the price of BTCUSD is moving in a bullish momentum above the $40,000 handle.

A renewed interest in bitcoin is observed as an alternative means of currency in Russia after the global bans imposed against Russian banks. This is one of the reasons why many investors are now buying bitcoin at present market levels.

In today's European trading session, the propagation of the bullish trend continues with bitcoin trading above $42,000.

We can clearly see a bullish engulfing pattern above the $38,000 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

The Stoch and Williams percent range are indicating an overbought level which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 60 indicating a STRONG demand for bitcoin at the current market levels.

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

All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term we are expecting targets of $43,000 and $45,000.

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

• A bullish reversal is seen in bitcoin above $38,000
• The Williams percent range is indicating an OVERBOUGHT level
• The price is now trading just below its pivot level of $42,357
• All of the MAs are giving a STRONG BUY market signal

Bitcoin: Bullish Reversal Seen Above $38,000

Bitcoin continues its strong bullish momentum with an upwards projection towards the level of $43,000 in the European trading session today.

In the immediate term, we are expecting a continuation of this bullish trend with the price of bitcoin ranging between $41,000 and $44,000 as it is due to enter into a consolidation phase.

The surge in the prices of bitcoin can also be explained by the optimism around the widespread usage of bitcoin in international cross border transactions between Russia and its trade partners.

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

The price of BTCUSD is now facing its classic resistance level of $42,703 and Fibonacci resistance level of $43,197, after which the path towards $44,000 will get cleared.

We can see that the daily RSI is also printing at 56 which indicates that in the medium-term prices are expected to appreciate further.

In the last 24hrs, BTCUSD has gone UP by 2.45% with a price change of $1,009, and has a 24hr trading volume of 33.989 billion USD. We can see an increase of 53.18% in the trading volume as compared to yesterday, which is due to its increased global demands.

The Week Ahead

The price of bitcoin is due to enter a consolidation phase below $43,000. We can see some range-bound movements in its levels between $41,000 and $44,000.

The on-chain metrics are also indicating a bullish outlook for bitcoin in the short-term range.

In the immediate short term this week, bitcoin's bullish momentum is expected to continue pushing its levels above the $44,000. Also this week, the price of BTCUSD will need to remain above the important support level of $40,000.

The weekly outlook is projected at $44,000 with a consolidation zone of $42,500.

Technical Indicators:

The relative strength index (14-day): at 56.28 indicating a BUY

The average directional change (14-day): at 20.49 indicating a BUY

The rate of price change: at 9.16 indicating a BUY

The MA convergence divergence (12,26): at 420.80 indicating a BUY

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[FXOpen Trader]

EUR/USD Faces Hurdle, USD/CHF Could Gain Pace

EUR/USD is facing resistance near the 1.1050 and 1.1080 levels. USD/CHF could gain pace if there is a move above the 0.9375 resistance.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a downside correction from the 1.1140 resistance zone against the US Dollar.
• There is a key bearish trend line with resistance near 1.1040 on the hourly chart of EUR/USD.
• USD/CHF formed a base above the 0.9300 support zone and corrected higher.
• There was a break above a major bearish trend line with resistance near 0.9330 on the hourly chart.

EUR/USD Technical Analysis

The Euro gained pace above the 1.1000 resistance level against the US Dollar. The EUR/USD pair even gained pace above the 1.1100 resistance level.

It traded as high as 1.1139 on FXOpen before the pair started a downside correction. There was a sharp decline below the 1.1100 and 1.1020 support levels. The pair even spiked below 1.1000 and traded as low as 1.0916.

EUR/USD Hourly Chart

EUR/USD is now rising and trading above 1.1000. There was a break above the 50% Fib retracement level of the recent decline from the 1.1071 swing high to 1.0961 low.

It is now consolidating above the 1.1020 level and the 50 hourly simple moving average. On the upside, an initial resistance is near the 1.1040 level. There is also a key bearish trend line with resistance near 1.1040 on the hourly chart of EUR/USD.

The next major resistance is near the 1.1070 zone. A clear upside break above the 1.1070 zone could open the doors for a steady move. The next major resistance sits near the 1.1140 level.

On the downside, an immediate support is near the 1.1015 level. The next major support is near the 1.0950 level. A downside break below the 1.0950 support could start another decline.

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[FXOpen Trader]

ETHUSD and LTCUSD Technical Analysis – 24th MAR, 2022

ETHUSD: Double Bottom Pattern Above $2,800

Ethereum continues its upwards momentum from last week and has managed to cross the $3,000 levels in today's European trading session.

The continued appreciation in the price of ETHUSD is a result of an increased demand for holding ETH amid its transition to ETH 2.0.

In today's early Asian trading session, Ethereum touched an intraday high of $3,078 and an intraday low of $2,972.

We can clearly see a double bottom pattern above the $2,800 handle, which is bullish, and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just below its pivot level of $3,055 and moving within a bullish channel. The price of ETHUSD is testing its classic resistance level of $3,067 and Fibonacci resistance level of $3,079 after which the path towards $3,200 will get cleared.

The relative strength index is at 57 indicating a STRONG demand for Ethereum and the continuation of buying pressure in the markets.

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

All of the moving averages are giving a BUY signal, and we are now looking at the levels of $3,200 to $3,300 in the short-term range.

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

• Ether continues its bullish momentum above the $2,800 mark
• The short-term range appears to be strongly BULLISH
• The daily RSI is above 50 at 61, indicating a BULLISH market
• The average true range is indicating LESSER market volatility

Ether Continues Bullish Momentum Above $2,800

ETHUSD has gained a strong bullish momentum with the price trading above the $3,000 handle in the European trading session today.

We can see continued gains in the prices of Ethereum since it touched a low of $2,171 on January 24th, which translates to a gain of 39% in 2 months.

Ethereum is now moving in a bullish continuation pattern which indicates further appreciation in the prices of ETHUSD this week.

ETHUSD is now facing its immediate resistance level of $3,070, after which we will see a linear progression towards $3,200.

This week's key support level to watch is $3,000, and key resistance level is $3,100.

ETH has gained 3.06% with a price change of 90.27$ in the past 24hrs, and has a trading volume of 17.442 billion USD.

We can see a 25.59% increase in the total trading volume in the last 24 hrs. as more long-term investors are coming back into the markets.

The Week Ahead

At present, Ethereum bulls have managed to push the prices of ETHUSD above $3,000. If the price of ETHUSD remains above these levels, we may see a linear progression towards $3,200 and $3,300 this week.

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

This week, Ether is expected to move in a range between $3,000 and $3,200, and next week, Ether is expected to enter a consolidation phase above $3,200.

ETH 2.0

Ethereum is to enter into a proof-of-stake consensus mechanism which will eliminate the high energy mining requirements and also bring down the ETH transaction fees.

This Ethereum 2.0 upgrade will happen in phases. The final transition will reduce the total energy requirements by 99% and at the same time scale the network capacity by increasing the number of transactions to 100,000 transactions per second (TPS). In comparison, at present, the leading payment service network VISA can process up to 65,000 TPS.

Technical Indicators:

The moving averages convergence divergence (12,26): at 15.93 indicating a BUY

The ultimate oscillator: at 54.44 indicating a BUY

Rate of price change: at 2.514 indicating a BUY

The Williams percent range: at -31.74 indicating a BUY

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[FXOpen Trader]

Gold Price and Crude Oil Price Eye Additional Gains

Gold price started a fresh increase above the $1,950 resistance. Crude oil price could regain traction if it stays above the $105 support zone.

Important Takeaways for Gold and Oil

• Gold price started a fresh increase above $1,930 and $1,950 against the US Dollar.
• There was a break above a key bearish trend line with resistance near $1,932 on the hourly chart of gold.
• Crude oil price also started a fresh increase from the $95 support zone.
• Recently, there was a break below a major bullish trend line with support near $113.30 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a support base near $1,910 and started a fresh increase against the US Dollar. The price gained pace for a move above the $1,930 level to move into a positive zone.

There was a clear move above the $1,950 level and the 50 hourly simple moving average. The price even climbed above the $1,960 resistance level. Besides, there was a break above a key bearish trend line with resistance near $1,932 on the hourly chart of gold.

Gold Price Hourly Chart

A high was formed near $1,965 on FXOpen and the price is now consolidating gains. On the downside, an initial support is near the $1,958 level. The first major support is near the $1,952 level. It is near the 23.6% Fib retracement level of the upward move from the $1,910 swing low to $1,965 high.

The next major support is near the $1,950 level. The main support sits near the $1,938 level. It is near the 50% Fib retracement level of the upward move from the $1,910 swing low to $1,965 high.

On the upside, the price is facing resistance near the $1,965 level. The main resistance is now forming near the $1,980 level. A close above the $1,980 level could open the doors for a steady increase towards $2,000. The next major resistance sits near the $2,030 level.

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[FXOpen Trader]

GBP/USD and EUR/GBP Remain At Risk of More Losses

GBP/USD started a fresh decline from well above the 1.3250 level. EUR/GBP is also declining and trading below the 0.8350 support zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh decline from well above 1.3250 against the US Dollar.
• There was a break below a key contracting triangle with support near 1.3170 on the hourly chart of GBP/USD.
• EUR/GBP failed to stay above 0.8380 and started a fresh decline.
• There was a move below a major rising channel with support near 0.8335 on the hourly chart.

GBP/USD Technical Analysis

The British Pound struggled to settle above the 1.3280 resistance zone against the US Dollar. The GBP/USD pair started a fresh decline below the 1.3250 support zone.

There was a clear move below the 1.3220 level and the 50 hourly simple moving average. The bears pushed the pair below the 1.3200 level. There was a break below the 50% Fib retracement level of the upward move from the 1.3120 swing low to 1.3298 high (formed on FXOpen).

GBP/USD Hourly Chart

Besides, there was a break below a key contracting triangle with support near 1.3170 on the hourly chart of GBP/USD.

The pair is now trading below the 76.4% Fib retracement level of the upward move from the 1.3120 swing low to 1.3298 high. It seems like the pair might continue to move down towards the 1.3130 support zone.

The next major support sits near the 1.3120 level. Any more losses could lead the pair towards the 1.3050 support zone. On the upside, an initial resistance is near the 1.3175 level.

The next main resistance is near the 1.3185 zone (the previous support) or the 50 hourly simple moving average. A clear upside break above the 1.3185 and 1.3200 resistance levels could open the doors for a steady increase in the near term.

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[FXOpen Trader]

BTCUSD and XRPUSD Technical Analysis – 29th MAR 2022

BTCUSD: Bullish Engulfing Pattern Above $42,000

We can see continuous appreciation in the price of BTCUSD from last week, and today it has managed to cross the $47,000 handle in the European trading session.

Due to increased buying pressure, the price of bitcoin has been rising for 7 consecutive days, and the upwards growth also suggests that we are aiming for the level of $50,000.

The strong wave of this bullish trend continues, with the price of bitcoin trading above the $47,500 mark in the European trading session today.

We can clearly see a bullish engulfing pattern above the $42,000 handle, which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

The Stoch and Williams percent range are indicating an overbought level, which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 57 indicating a STRONG demand for bitcoin at the current market levels.

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

All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term, we are expecting targets of 46,000 and 48,000.

The average true range is indicating LESSER market volatility with a strongly bullish momentum.

• A bullish continuation pattern is seen above $42,000
• The StochRSI is indicating an OVERSOLD level
• The price is now trading just below its pivot levels of $47,585
• All of the moving averages are giving a STRONG BUY market signal

Bitcoin: Bullish Continuation Pattern Seen Above $42,000

Bitcoin continues to move in a strong bullish momentum with an upwards projection towards the level of $48,000 in the European trading session today.

In the immediate short term, we are expecting a continuation of this bullish trend with the price ranging between $46,000 and $49,000 as it is due to enter into a consolidation phase.

We can see optimism among bitcoin traders, as it has managed to continue its upwards trend in the short-term range.

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

The price of BTCUSD is now facing its classic resistance level of 47,668 and Fibonacci resistance level of 47,726, after which the path towards 48,000 will get cleared.

We can see that the daily RSI is printing at 70 which indicates that in the medium-term prices are expected to appreciate further.

In the last 24hrs BTCUSD has gone UP by 1.39% with a price change of 653$, and has a 24hr trading volume of USD 35.173 billion. We can see an increase of 2.78% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The price of bitcoin is due to enter a consolidation phase below the level of $48,000. We can see some range-bound movement in its levels between $46,000 to $48,000.

On January 24th bitcoin touched a low of $32,950, after which it has managed to rise by more than 41% to its current market level of $47,456.

In the immediate short term, bitcoin's bullish momentum is expected to continue pushing its levels above the $48,000 handle this week. The price of BTCUSD will need to remain above the important support level of $45,000.

The weekly outlook is projected at $49,000 with a consolidation zone of $46,500.

Technical Indicators:

The relative strength index (14-day): at 56.33 indicating a BUY

The average directional change (14-day): at 29.23 indicating a BUY

Bull/Bear power(13-day): at 72.28 indicating a BUY

The moving averages convergence divergence (12,26): at 275.90 indicating a BUY

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[FXOpen Trader]

EUR/USD Attempts Recovery While USD/JPY Trims Gains

EUR/USD started a fresh increase from the 1.0940 support zone. USD/JPY rallied above 124.50 before it faced sellers near 125.00.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started an upside correction from the 1.0940 zone.
• There was a break above a key bearish trend line with resistance near 1.1025 on the hourly chart of EUR/USD.
• USD/JPY started a strong upward move above the 122.00 and 123.50 resistance levels.
• Recently, there was a move below a major bullish trend line with support near 123.00 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started saw bearish moves below the 1.1050 level against the US Dollar. The EUR/USD pair declined heavily below the 1.1000 support zone.

The pair even broke the 1.0980 level and settled below the 50 hourly simple moving average. A low was formed near 1.0944 on FXOpen and the pair is now correcting higher. There was a move above the 1.1000 resistance levels.

EUR/USD Hourly Chart

Besides, there was a break above a key bearish trend line with resistance near 1.1025 on the hourly chart of EUR/USD. The pair climbed above the 1.1050 resistance and the 50 hourly simple moving average.

It formed a high near 1.1136 and is currently consolidating gains. It tested the 23.6% Fib retracement level of the recent increase from the 1.0944 swing low to 1.1136 high.

An immediate support is near the 1.1080. The next major support is near 1.1040 or the 50% Fib retracement level of the recent increase from the 1.0944 swing low to 1.1136 high, below which the pair could drop to 1.1000 in the near term.

An immediate resistance on the upside is near the 1.1120 level. The next major resistance is near the 1.1140 level. The main resistance is near the 1.1150 level. An upside break above 1.1150 could set the pace for a steady increase.

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[FXOpen Trader]

ETHUSD and LTCUSD Technical Analysis – 31st MAR, 2022

ETHUSD: Bullish Engulfing Pattern Above $3,100

Ethereum continues its bullish momentum from last week and has managed to touch the $3,400 handle in the European trading session today.

Ethereum touched an intraday high of 3,423 and an intraday low of 3,372 in the early Asian trading session today.

We can clearly see a Bullish engulfing pattern above the $3,100 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 3,400 and is moving in a strongly bullish channel. The price of ETHUSD is now testing its classic resistance level of 3,407 and Fibonacci resistance level of 3,411, after which the path towards 3,500 will get cleared.

The relative strength index is at 54 indicating a NEUTRAL demand for Ethereum and the move towards the consolidation phase.

Both the Stoch and RSI are indicating a neutral level which means that the prices are due to enter into a consolidation zone.

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

All of the moving averages are giving a STRONG BUY signal, and we are now looking at the levels of $3,500 to $3,600 in the short-term range.

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

• Ether continues its bullish momentum above the $3,100 mark
• The short-term range appears to be strongly BULLISH
• The daily RSI is above 50 at 72 indicating a BULLISH market
• The average true range is indicating LESSER market volatility

Ether Continues Bullish Momentum Above $3,100

ETHUSD is now moving in a strongly bullish momentum with the prices trading above the $3,300 handle in the European trading session today.

We can see the Ichimoku bullish crossover pattern in the 1-hour timeframe which further validates the bullish momentum.

Ethereum is now moving in a bullish continuation pattern which indicates further appreciation in the prices of ETHUSD this week.

ETHUSD is now facing its immediate resistance level of $3,461 and $3,508, after which we will see a linear progression towards the level of $3,600.

The key support levels to watch are $3,351 and $3,229, and the price of ETHUSD needs to remain above these levels for the continuation of the bullish trend.

ETH has gained 0.08% with a price change of 2.61$ in the past 24hrs, and has a trading volume of 14.183 billion USD.

We can see a decrease of 27.33% in the total trading volume in the last 24 hrs. as Ethereum braces to enter into a consolidation zone.

The Week Ahead

At present, Ethereum bulls have managed to push the prices of ETHUSD above the level of $3,300. If the price of ETHUSD remains above these levels, we may see a linear progression towards the level of $3,500 and $3,600 this week.

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

This week, Ether is expected to move in a range between $3,300 and $3,500, and next week, Ether is expected to enter in a consolidation phase above $3,300.

Technical Indicators:

The commodity channel index (14-day): at 60.38 indicating a BUY

Bull/Bear power (13-day): at 14.53 indicating a BUY

The rate of price change: at 0.160 indicating a BUY

The Williams percent range: at -41.74 indicating a BUY

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[FXOpen Trader]

Gold Price Could Rally While Oil Price Extends Decline

Gold price started a fresh increase above the $1,920 resistance. Crude oil price is declining and remains at a risk of more losses below $97.50

Important Takeaways for Gold and Oil

• Gold price started a fresh increase above $1,910 and $1,920 against the US Dollar.
• There is a key bearish trend line forming with resistance near $1,942 on the hourly chart of gold.
• Crude oil price started a fresh declined below the $105 support zone.
• There is a major bearish trend line forming with resistance near $102.50 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a support base near $1,890 and started a fresh increase against the US Dollar. The price gained pace for a move above the $1,900 level to move into a positive zone.

There was a clear move above the $1,920 level and the 50 hourly simple moving average. The price even climbed above the $1,932 resistance level. However, it faced resistance near the $1,948 and $1,950 levels.

Gold Price Hourly Chart

There is also a key bearish trend line forming with resistance near $1,942 on the hourly chart of gold. A high is formed near $1,949 and the price is now consolidating gains.

It tested the 23.6% Fib retracement level of the upward move from the $1,890 swing low to $1,949 high. On the downside, an initial support is near the $1,992 level and the 50 hourly simple moving average. The next major support is near the $1,925 level.

The main support sits near the $1,920 level. It is near the 50% Fib retracement level of the upward move from the $1,890 swing low to $1,949 high.

On the upside, the price is facing resistance near the $1,948 level. The main resistance is now forming near the $1,950 level. A close above the $1,950 level could open the doors for a steady increase towards $1.980. The next major resistance sits near the $2,000 level.

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[FXOpen Trader]

GBP/USD and USD/CAD Face Key Hurdles

GBP/USD is struggling below the 1.3200 resistance. USD/CAD is rising, but it must clear 1.2530 to start a fresh increase in the near term.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a fresh decline from the 1.3240 resistance zone.
• There is a key bearish trend line forming with resistance near 1.3140 on the hourly chart of GBP/USD.
• USD/CAD is rising and showing positive signs above the 1.2500 level.
• There is a major bullish trend line forming with support near 1.2505 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a strong decline from well above 1.3320 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.3250 support.

The pair even broke the 1.3200 support level and the 50 hourly simple moving average. Finally, there was a move below the 1.3100 support. A low was formed near 1.3051 on FXOpen and the pair is now correcting losses.

GBP/USD Hourly Chart

The recent swing low was near 1.3086 and the pair is now consolidating. It is trading above the 23.6% Fib retracement level of the recent decline from the 1.3175 swing high to 1.3086 low.

An immediate resistance is near the 1.3130 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the 1.3175 swing high to 1.3086 low. Besides, there is a key bearish trend line forming with resistance near 1.3140 on the hourly chart of GBP/USD.

The next major resistance is near the 1.3150 level. Any more gains could lead the pair towards the 1.3200 barrier in the near term.

If not, the pair could continue to move down and might even break the 1.3050 support. If there is a downside break, GBP/USD might test the 1.3000 support. The next major support sits at 1.2950.

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[FXOpen Trader]

Fed Plans To Accelerate Monetary Tightening. Is It a Good Time To Buy US Dollars?

The currency market moves mainly on the interest rate differential between various central banks around the world. The Federal Reserve of the United States is the most influential central bank, as it sets the rates over the world's reserve currency.

In April, the Fed began a tightening cycle. It hiked the federal funds rate by 25bp in light of rising inflation and strong economic growth. Moreover, it warned that it is ready to hike even more aggressively should the data support it.

Following the rate hike, the Fed Chair Jerome Powell suggested that the Fed is ready to hike the federal funds rate by 50bp at their next meeting in May. In light of rising rates in the US as the economy grows and inflation runs hot, is it a good time to buy US dollars?

US Dollar Trades With A Mixed Tone

Despite the Fed's hawkishness, the US dollar trades with a mixed tone. On the one hand, it has gained against its European peers, such as the euro and the British pound, and against the Japanese yen. On the other hand, it trades with a weak tone against the New Zealand and the Australian dollar.

Interestingly enough, the RBA and RBNZ have not raised the rates from their lower boundary. Yet, the two currencies down under are being bid against the dollar.

One explanation might be the inflation rate differential. Inflation in the US is at a four decade high, outpacing the one in Australia and New Zealand.

As such, despite the Fed's intentions to speed up the rate hikes, the rising inflation rate is eroding the dollar's strength. In other words, inflation is rising much higher than the Fed is hiking the rates; thus, the US dollar remains weak against its Australian and New Zealand peers.

The conflict in Europe scared investors away from the common currency. While not declining as many have thought, the euro remains weak as investors keep selling any rally.

All in all, the US dollar remains bid against the JPY and European currencies while offered against the Australian and New Zealand dollars. Traders will find out more details about the Fed's plans on Wednesday when the previous meeting's minutes are scheduled for release.

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[FXOpen Trader]

BTCUSD and XRPUSD Technical Analysis – 05th APR 2022

BTCUSD: Double Bottom Pattern Above $44,000

Bitcoin touched a high of $48,164 on March 28th , after which we saw some correction that pushed its price below the $45,000 handle.

We can see fresh buying pressure coming back into the markets, and bitcoin is trading above the $46,000 handle in the European trading session today.

We can see a rising trend channel in the medium term, which is expected to push the prices of BTCUSD towards the $50,000 handle.

We can clearly see a double bottom pattern above the $44,000 handle, which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

The Stoch and the Williams percent range are indicating an overbought level, which means that in the immediate short term, a decline in the price is expected.

The relative strength index is at 55, indicating a STRONG demand for bitcoin at the current market levels.

Bitcoin is now moving above its 100 hourly simple Ma, and its 200 hourly exponential MA.

All of the major technical indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of 48,000 and 50,000.

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

• A bullish reversal is seen in bitcoin above $44,000
• The StochRSI is indicating an OVERSOLD level
• The price is now trading just below its pivot level of $46,663
• All of the moving averages are giving a BUY market signal

Bitcoin: Bullish Reversal Seen Above $44,000

Bitcoin continues to move in a mildly bullish momentum with an upwards projection towards the level of 48,000 in the European trading session today.

In the immediate short term, we are expecting a continuation of this bullish trend, with the prices of bitcoin ranging between $48,000 and $49,000 as it has entered into a consolidation phase now.

The drop in the level of BTCUSD that we saw last week happened due to the profit-taking by short-term investors.

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

The price of BTCUSD is now facing its classic resistance level of 46,735, and Fibonacci resistance level of 46,802, after which the path towards 48,000 will get cleared.

We can see that the daily RSI is also printing at 62 which indicates that in the medium-term, the prices are expected to appreciate further.

In the last 24hrs, BTCUSD has gone UP by 1.51% with a price change of $692, and has a 24hr trading volume of USD 30.612 billion. We can see an increase of 8.03% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The price of bitcoin is now moving into a consolidation phase below $48,000. We can see some range-bound movements in the levels between $46,000 to $48,000.

The hourly RSI has also confirmed the rising trend channel which indicates that in the medium-term, prices are expected to move closer to the level of $50,000.

The on-chain metrics are also suggesting that after the present consolidation phase is over, we are aiming towards crossing the $50,000 handle.

In the immediate short term, bitcoin's bullish momentum is expected to continue pushing above the $49,000 handle this week.

The prices of BTCUSD will need to remain above the important support level of $47,500 this week.

Weekly outlook is projected at $50,000 with a consolidation zone of $48,500.

Technical Indicators:

The rate of price change: at 10.13 indicating a BUY

The ultimate oscillator: at 51.55 indicating a BUY

Bull/Bear power(13-day): at 2289 indicating a BUY

The moving averages convergence divergence (12,26): at 1490 indicating a BUY

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[FXOpen Trader]

EUR/USD Faces Hurdle, USD/CHF Could Gain Pace

EUR/USD declined heavily below the 1.1000 and 1.0980 levels. USD/CHF could gain pace if there is a move above the 0.9320 resistance.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a major decline from the 1.1180 resistance zone against the US Dollar.
• There is a major bearish trend line with resistance near 1.0925 on the hourly chart of EUR/USD.
• USD/CHF formed a base above the 0.9220 support zone and started a decent increase.
• There is a key rising channel forming with support near 0.9270 on the hourly chart.

EUR/USD Technical Analysis

The Euro struggled to gain pace above the 1.1180 resistance level against the US Dollar. The EUR/USD pair started a fresh decline below the 1.1150 and 1.1100 support levels.

There was a clear move below the 1.1000 level and the 50 hourly simple moving average. The pair even declined below the 1.0940 support level. It traded as low as 1.0890 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

On the upside, an initial resistance is near the 1.0915 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.0988 swing high to 1.0890 low.

The next major resistance is near the 1.0920 zone. There is also a major bearish trend line with resistance near 1.0925 on the hourly chart of EUR/USD. A clear upside break above the 1.0925 zone could open the doors for a steady move.

The next major resistance sits near the 1.0940 level. It is near the 50% Fib retracement level of the recent decline from the 1.0988 swing high to 1.0890 low. A close above 1.0940 and 1.0950 could send EUR/USD further higher.

On the downside, an immediate support is near the 1.0890 level. The next major support is near the 1.0880 level. A downside break below the 1.0880 support could start another decline.

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[FXOpen Trader]

ETHUSD and LTCUSD Technical Analysis – 07th APR, 2022

ETHUSD: Double Bottom Pattern Above $3,100

Ethereum failed to continue its bullish momentum last week, and after touching a high of 3578 on April 4th, has started to decline.

Ethereum touched an intraday low of $3,143 in the Asian trading session, and an intraday high of $3,233 in the European trading session today.

We can clearly see a double bottom pattern above the $3,100 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of $3,223 and moving in a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of $3,235 and Fibonacci resistance level of $3,246, after which the path towards $3,400 will get cleared.

The relative strength index is at 44 indicating a WEAK demand for Ethereum and the move towards consolidation.

Both the StochRSI and the Williams percent range are indicating an overbought level which means that the price is due to decline further.

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

Some of the moving averages are giving a BUY signal, and we are now looking at the levels of $3,400 to $3,550 in the short-term range.

ETH is now trading below both the 100 hourly and 200 hourly simple moving averages.

• A bullish reversal seen in Ether above the $3,100 mark
• The short-term range appears to be mildly BULLISH
• The daily RSI is near 50 at 53, indicating a NEUTRAL market
• The average true range is indicating LESSER market volatility

Ether: Bullish Reversal Seen Above $3,100

ETHUSD is now moving into a mildly bullish channel with the price trading above the $3,200 handle in the European trading session today.

We saw last week that the bullish move was invalidated above the $3,500 handle, and this week, we are looking at the level of $3,400. If ETH manages to cross and remain above these levels, then we can see $3,500 and $3,600 next week.

Ethereum is now slowly recovering against the US dollar, and we can see the formation of an ascending contraction triangle which means that the prices are due to break out upwards.

ETHUSD is now facing its immediate resistance levels of $3,337 and $3,417, after which we will see a linear progression towards $3,600.

The key support levels to watch are $3,175 and $3,153, and the prices of ETHUSD need to remain above these levels for the bullish trend to continue.

ETH has lost -4.00% with a price change of -133.99$ in the past 24hrs, and has a trading volume of 22.874 billion USD.

We can see a 8.29% decrease in the total trading volume in the last 24 hrs, which appears to be normal.

The Week Ahead

Last week, we saw Ethereum decline from its highs of $3,579 to the low of $3,143, but now we can see that the prices have entered into a consolidation phase above $3,200.

If the price of ETHUSD remains above $3,200, we may see a linear progression towards the level of $3,400 and $3,500 this week.

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

This week, Ether is expected to move in a range between $3,200 and $3,400, and next week, Ether is expected to enter into a consolidation phase above the level of $3,400.

On-Chain Metrics

We can see that the number of active Ethereum addresses are increasing, and it also points to an increase in the price of ETH next week.

The simple moving average (14-day) of the active receiving addresses also suggests that more buyers are now coming back into the markets, which has led to an increase in the number of Ethereum transactions.

Technical Indicators:

The Stoch (9,6): at 74.29 indicating a BUY

The average directional Change (14-day): at 54.71 indicating a BUY

The commodity channel index (14-day): at 74.31 indicating a BUY

The ultimate oscillator: at 62.37 indicating a BUY

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[FXOpen Trader]

AUD/USD and NZD/USD Turn Red, Risk of More Losses

AUD/USD gained bearish momentum below the 0.7550 support zone. NZD/USD started a major decline after it faced sellers near 0.7030.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline after it struggled near 0.7660 against the US Dollar.
• There was a break below a key bullish trend line with support near 0.7530 on the hourly chart of AUD/USD.
• NZD/USD also started a major decline after it failed to stay above 0.7000.
• There was a move below a key bullish trend line with support near 0.6950 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar faced a strong selling interest near the 0.7660 level against the US Dollar. The AUD/USD pair started a major decline below the 0.7600 level.

There was a clear move below the 0.7600 and 0.7580 support levels. The pair even declined below the 0.7550 support level and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near 0.7530 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart

The pair traded as low as 0.7466 on FXOpen and is currently consolidating losses. On the upside, the AUD/USD pair is facing resistance near the 0.7500 level.

The next major resistance is near the 0.7515 level. It is near the 23.6% Fib retracement level of the recent decline from the 0.7660 swing high to 0.7466 low. The first major resistance is now forming near the 0.7550 level.

The 50% Fib retracement level of the recent decline from the 0.7660 swing high to 0.7466 low is also near the 0.7565 level. A close above the 0.7565 level could start a steady increase in the near term. The next major resistance could be 0.7660.

On the downside, an initial support is near the 0.7460 level. The next support could be the 0.7420 level. If there is a downside break below the 0.7420 support, the pair could extend its decline towards the 0.7350 level. Any more downsides might send the pair toward the 0.7300 level.

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[FXOpen Trader]

EUR/USD Remains At Risk While EUR/JPY Eye More Gains

EUR/USD started a fresh decline from the 1.0940 resistance. EUR/JPY could gain pace if it clears the 136.30 resistance zone.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro failed to clear the 1.0940 resistance and started a fresh decline.
• It broke a key contracting triangle with support near 1.0880 on the hourly chart.
• EUR/JPY gained bullish momentum after it broke the 135.50 resistance zone.
• Recently, there was a break below a major bullish trend line with support near 136.50 on the hourly chart.

EUR/USD Technical Analysis

The Euro made a couple of attempts to clear the 1.0940 resistance zone against the US Dollar. However, the EUR/JPY pair failed to gain strength above 1.0940 and started a fresh decline.

The pair declined below the 1.0900 support and the 50 hourly simple moving average. There was also a break below a key contracting triangle with support near 1.0880 on the hourly chart. The pair even moved below the 1.0840 support level.

EUR/USD Hourly Chart

A low is formed near 1.0811 on FXOpen and the pair is now consolidating losses. It corrected above the 23.6% Fib retracement level of the recent decline from the 1.0903 high to 1.0811 low.

On the upside, the pair is facing resistance near the 1.0850 level. It is near the 50% Fib retracement level of the recent decline from the 1.0903 high to 1.0811 low. The next major resistance is near the 1.0865 level and the 50 hourly simple moving average.

A clear break above the 1.0865 resistance could push EUR/USD towards 1.0900. If the bulls remain in action, the pair could rise revisit the 1.0940 resistance zone in the near term.

On the downside, the pair might find support near the 1.0820 level. If there is a downside break below the 1.0820 support, the pair might accelerate lower. The next major support sits near the 1.0765 level, below which there is a risk of a larger decline.



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[FXOpen Trader]

ETHUSD and LTCUSD Technical Analysis – 14th APR, 2022

ETHUSD: Double Bottom Pattern Above $2,900

Ethereum failed to continue its bullish momentum last week, and started to decline after touching a high of 3,299 on April 8th.

It touched an intraday low of 3,093 in the Asian trading session, and an intraday high of 3,142 in today’s European trading session.

We can clearly see a double bottom pattern above the $2,900 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 3,111 and moving in a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 3,120 and Fibonacci resistance level of 3,128, after which the path towards 3,200 will get cleared.

The relative strength index is at 59 indicating a STRONG demand for Ethereum and the continuation of the bullish trend.

Both the average directional change and commodity channel index are indicating a neutral level which means that the prices are due to enter into a consolidation phase.

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

Most of the moving averages are giving a STRONG BUY signal, and we are now looking at the levels of $3,300 to $3,350 in the short-term range.

ETH is now trading below both the 100 hourly and exponential moving averages.

• Bullish reversal seen in Ether above the $2,900 mark
• The short-term range appears to be mildly BULLISH
• The daily RSI is below 50 at 48 indicating a NEUTRAL market
• The average true range is indicating LESSER market volatility

Ether: Bullish Reversal Seen Above $2,900

ETHUSD is now moving in a mildly bullish channel with the price trading above the $3,100 handle in the European trading session today.

Ethereum is now slowly preparing for its next move against the US dollar. We can see the formation of a contraction triangle pattern, which shows price building energy, and we can see the A-C and B-D trendlines.

ETHUSD is now facing its immediate resistance levels of $3,128 and $3,300, after which we will see a linear progression towards the level of $3,400.

The key support levels to watch are $2,906 and $3,034, and the prices of ETHUSD need to remain above these levels for the bullish trend to continue.

ETH has gained 2.05% with a price change of $62.64 in the past 24hrs and has a trading volume of 15.476 billion USD.

We can see a decrease of 19.10% in the total trading volume in the last 24 hrs, which appears to be normal.

The Week Ahead

Last week, we saw Ethereum decline from its highs of 3,299 to the lows of 2,951, but now we can see that the prices have entered a consolidation phase above the level of 3,000.

If the price of ETHUSD remains above $3,000, we may see a linear progression towards the levels of $3,200 and $3,350 this week.

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

This week, Ether is expected to move in a range between $3,100 and $3,300, and next week, it is expected to enter a consolidation phase above $3,300.

Technical Indicators:

The Williams percent range: at -44.92 indicating a BUY

The moving averages convergence divergence (12,26): at 15.85 indicating a BUY

The rate of price change: at 0.332 indicating a BUY

Bull/Bear power (13-day): at 16.23 indicating a BUY



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[FXOpen Trader]

Gold Price and Oil Price Could Extend Gains

Gold price started a fresh increase above the $1,960 resistance. Crude oil price is also rising and might climb further above the $107.

Important Takeaways for Gold and Oil

• Gold price started a fresh increase above $1,930 and $1,950 against the US Dollar.
• There is a key bullish trend line forming with support near $1,968 on the hourly chart of gold.
• Crude oil price gained pace after it broke the $100 and $102 resistance levels.
• There is a key bullish trend line forming with support near $103.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a support base near $1,910 and started a fresh increase against the US Dollar. The price gained pace for a move above the $1,925 level to move into a positive zone.

There was a clear move above the $1,960 level and the 50 hourly simple moving average. The price even climbed above the $1,975 resistance level. However, it faced resistance near the $1,980 and $1,982 levels.

Gold Price Hourly Chart

A high is formed near $1,981 on FXOpen and the price is now consolidating gains. There was a minor decline below $1,970, but the bulls were active near $1,960.

The price recovered and climbed above the 50% Fib retracement level of the downward move from the $1,981 swing high to $1,960 low. The price is now trading well above $1,960 and the 50 hourly simple moving average.

On the upside, the price is facing resistance near the $1,975 level. The main resistance is now forming near the $1,980 level. A close above the $1,980 level could open the doors for a steady increase towards $1,990. The next major resistance sits near the $2,000 level.

On the downside, an initial support is near the $1,970 level. There is also a key bullish trend line forming with support near $1,968 on the hourly chart of gold.

The next major support is near the $1,960 level, below which there is a risk of a larger decline and the price might even struggle to stay above $1,950.



Daily Market Analysis By FXOpen

 

[FXOpen Trader]

GBP/USD Edge Lower While EUR/GBP Could Surge

GBP/USD started a fresh decline from well above the 1.3120 level. EUR/GBP is rising and might attempt an upside break above the 0.8300 resistance zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh decline from well above 1.3120 against the US Dollar.
• There was a break below a key contracting triangle with support near 1.3060 on the hourly chart of GBP/USD.
• EUR/GBP formed a base above 0.8250 and is currently rising.
• There is a major bearish trend line forming with resistance near 0.8290 on the hourly chart.

GBP/USD Technical Analysis

The British Pound struggled to settle above the 1.3120 resistance zone against the US Dollar. The GBP/USD pair started a fresh decline below the 1.3080 support zone.

There was a clear move below the 1.3050 level and the 50 hourly simple moving average. The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.2972 swing low to 1.3146 high.

GBP/USD Hourly Chart

Besides, there was a break below a key contracting triangle with support near 1.3060 on the hourly chart of GBP/USD.

The pair is now trading near 1.3020. The next major support sits near the 1.3110 level. It is near the 76.4% Fib retracement level of the upward move from the 1.2972 swing low to 1.3146 high. Any more losses could lead the pair towards the 1.2975 support zone or even 1.2950.

On the upside, an initial resistance is near the 1.3040 level. The next main resistance is near the 1.3070 zone and the 50 hourly simple moving average. A clear upside break above the 1.3070 and 1.3100 resistance levels could open the doors for a steady increase in the near term.


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[FXOpen Trader]

US Dollar Strengthened Ahead of the Federal Reserve’s May Meeting

The main event of the Easter week was the European Central Bank (ECB) meeting that ended last Thursday. The central bank left the monetary policy unchanged and even though it sounded more hawkish than expected, the euro lost ground against the US dollar.

The ECB announced that it would end its asset purchases in the third quarter of this year but acknowledged that the ECB and the Fed are on different paths in their policy normalization plans.

While the ECB may deliver one or two rate hikes this year, the Fed already hiked once. Moreover, many voices inside the FOMC Committee favor a 50bp rate hike in May, thus widening the gap between the interest rates on the two sides of the Atlantic.

Since COVID-19 started two years ago, many have been shocked by the Fed’s and other central banks’ responses to the pandemic. Monetary and fiscal policies expansion have led to excessive inflation, hurting savings and driving investors into inflation-protecting assets.

Some bought cryptocurrencies such as Bitcoin and Ethereum in the hope that they will keep their value intact. Some other ones bought gold, the traditional hedge against inflation.

But the one currency that did appreciate was the US dollar. With all the doom and gloom over the years, the US dollar remains the de-facto world’s reserve currency.

The greenback has no rival, as almost 60% of the world’s reserves are in dollars. The euro comes in a distant second place, while the Japanese yen is in third place.

This is an important statistic ahead of the Fed’s May meeting. The three central banks (the Fed, the ECB, and the Bank of Japan) have different and divergent monetary policies.

As mentioned earlier, the Fed started to tighten the monetary policy. Excessive inflation will push the Fed to hike at every meeting in 2022 and, most likely, more than 25bp.

Moreover, the Fed has begun the process of shrinking its balance sheet. Quantitative tightening is the opposite of quantitative easing, thus contributing to even tighter financial conditions.

The ECB, as argued above, is nowhere near the Fed in terms of policy normalization. While inflation in Europe is above the ECB’s target, the war in Ukraine prevents the central bank from raising rates too fast.

As for the Bank of Japan is involved in a yield curve control process that led to one of the fastest depreciation on record for the Japanese yen.

Therefore, the central banks of the three top currencies in which reserves are kept have divergent policies. They all favor a stronger dollar ahead of the Fed’s May meeting and beyond.


FXOpen Blog