Daily Market Analysis By FXOpen

[FXOpen Trader]

LTC and EOS – Correction might have ended but downside potential still present

LTC/USD

The price of Litecoin has been on the rise since yesterday as it came from $118.1 to $132.15 which is an increase of 11.89%. Now it is being traded slightly lower but is still in an upward trajectory.

On the hourly chart, we can see that this recovery came after a decline of around 20.35% from its high on January 25th when it reached $147.8. This was the continuation of the descending move that started on the 7th of January and is part of the corrective structure of a higher degree count. The price found support on the 0.618 Fib extension level and is now looking for support on the 0.5.

If the support is present on those levels we could see the recovery continuing to move to the upside. But if the price doesn’t find support further downside movement could be seen. In either way, since this is the part of the higher degree correction we would expect further downside as there is still more room to go. If the price is to make a five-wave impulse that could be the C wave of the ABC correction we could see Litecoin being traded at around $75 area. However, we could be seeing a different correctional count in which case projecting the length of the first descending impulse we come up with the target of around $91.35.

EOS/USD

From yesterday’s low at $2.465 the price of EOS has increased by 13.61% as it came up to the $2.801 level at its highest point today. The price spiked impulsively to the upside but has since made a minor retracement to the $2.7134 level where it’s currently being traded.

Looking at the hourly chart we can see that the price made a higher low yesterday and has attempted to make a higher high but failed to do so on the current rise. However, considering the impulsiveness seen this might change soon. From its high on the 10th of January made at $3.925 a strong descending move was made which could have been the starting point of the correctional higher degree move.

With the price currently testing the prior high which is the horizontal resistance, it might get rejected causing further downside continuation. In that case, we are to see an immediate retracement which will push the price further down breaking the horizontal support of $2.4237. But if it continues increasing from there it could indicate that the correction ended on the 22nd of January in which case yesterday’s low would be the 2nd wave out of the next five-wave impulse to the upside.

 

[FXOpen Trader]

Gold Price Struggles, Oil Price Consolidates Well above $50

Gold price made an attempt to surpass the $1,860 resistance, but there was a major rejection. Crude oil price seems to be consolidating gains above $51.50 and $51.20.

Important Takeaways for Gold and Oil

• Gold price is still trading below the main $1,860 and $1,880 resistance levels against the US Dollar.
• There is a major bearish trend line forming with resistance near $1,855 on the hourly chart of gold.
• Crude oil price seems to be facing a strong resistance near the $53.50 and $54.00 levels.
• There is likely an expanding triangle forming with support near $52.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price settled below the main $1,900 pivot level to move into a bearish zone against the US Dollar. The price even settled below the $1,880 level and the 50 hourly simple moving average.

On the downside, the price is finding strong bids above the $1,830 and $1,835 levels. Recently, there was a sharp recovery above the $1,850 level and the 50 hourly simple moving average. However, the price failed to clear the $1,860 resistance level.

A high was formed near $1,863 on FXOpen before there was a fresh decline. A low is formed near $1,835 and the price is currently consolidating losses.

There was a break above the 23.6% Fib retracement level of the downward move from the $1,863 swing high to $1,838 low. It is now facing resistance near the $1,845 level and the 50 hourly simple moving average.

The next major resistance is near the $1,850 level. The 50% Fib retracement level of the downward move from the $1,863 swing high to $1,838 low is at $1,850. There is also a major bearish trend line forming with resistance near $1,855 on the hourly chart of gold.

On the downside, there is a connecting bullish trend line forming with support near $1,838. The first key support is near the $1,830 level. The next major support is at $1,820, below which the price might test the $1,800 support level.

Oil Price Technical Analysis

Crude oil price remained in a strong uptrend well above the $50.00 resistance zone against the US Dollar. The price settled nicely above $52.00 and it even made a few attempts to gain strength above the $54.00 level.

The recent high was formed near $53.47 before the price trimmed most gains. It broke the $53.00 support and tested the $52.00 level.

A low is formed near $51.98 and the price is currently consolidating. It tested the 23.6% Fib retracement level of the recent decline from the $53.47 high to $51.98 low. The first major resistance is near the $52.55 level and the 50 hourly simple moving average.

The next key resistance is near the $52.75 level or the 50% Fib retracement level of the recent decline from the $53.47 high to $51.98 low.

Moreover, it seems like there is likely an expanding triangle forming with support near $52.00 on the hourly chart of XTI/USD. If there are more downsides below the triangle support, the price could test the $51.50 support.

The next key support is near the $51.20 level. On the upside, the $53.50 and $54.00 levels are major hurdles. A clear break above $54.00 may possibly lead the price towards the $55.00 level.

 

[FXOpen Trader]

GBP/USD Facing Key Resistance, USD/CAD Remains Supported

GBP/USD gained momentum above the 1.3700 resistance, but it struggled near 1.3745. USD/CAD is holding the 1.2750 support, but it is struggling below 1.2820.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound is holding gains above the 1.3650 and 1.3680 levels.
• There is a connecting bullish trend line forming with support near 1.3690 on the hourly chart of GBP/USD.
• USD/CAD struggled to stay above 1.2820 and corrected lower.
• There is a major bullish trend line forming with support near 1.2770 on the hourly chart.

GBP/USD Technical Analysis

After forming a base above the 1.3620 level, the British Pound started a fresh increase against the US Dollar. The GBP/USD pair broke the 1.3700 resistance level to move into a positive zone.

There was also a break above 1.3720 and the 50 hourly simple moving average. However, the pair seems to be facing a strong resistance near the 1.3745 and 1.3750 levels. The recent high was formed near 1.3751 on FXOpen before the pair corrected lower.

A low is formed near 1.3691 and the pair is currently rising. It broke the 50% Fib retracement level of the recent decline from the 1.3751 high to 1.3691 low.

On the upside, an initial resistance is near the 1.3738 level. It is close to the 76.4% Fib retracement level of the recent decline from the 1.3751 high to 1.3691 low. The main resistance is still near the 1.3750 zone.

To start a strong increase, the pair must clear the 1.3745 and 1.3750 resistance levels. If the bulls succeed, the pair could rise towards the 1.3850 level.

On the downside, the first key support is near the 1.3700 area. There is also a connecting bullish trend line forming with support near 1.3690 on the hourly chart of GBP/USD. If there is a break below 1.3700 and 1.3690, the pair could decline towards the 1.3620 support zone in the near term.

USD/CAD Technical Analysis

The US Dollar followed a bullish path above the 1.2800 level against the Canadian Dollar. The USD/CAD pair even broke the 1.2820 and 1.2850 resistance levels, but it struggled near the 1.2880 level.

There were two attempts by the bulls to clear 1.2880, but there was no upside break. A high was formed near 1.2874 and the pair decline below the 1.2820 support level. A low was formed near 1.2737 and the pair corrected higher.

It broke the 1.2800 resistance level, plus the 50% Fib retracement level of the downward move from the 1.2874 high to 1.2737 swing low. However, the pair faced a strong resistance near the 1.2820 level and the 50 hourly simple moving average.

It also failed to clear the 61.8% Fib retracement level of the downward move from the 1.2874 high to 1.2737 swing low. The pair is currently declining and trading near the 1.2780 level.

On the downside, there is a major bullish trend line forming with support near 1.2770 on the hourly chart. If USD/CAD breaks the trend line support, there is a risk of a larger decline in the coming sessions.

The next major support is near the 1.2700 level. On the upside, the first major resistance is near the 1.2820 level and the 50 hourly simple moving average. The next key resistance is near the 1.2880 level. A clear break above the 1.2820 resistance level may possibly increase the chances of a run above 1.2880 in the near term.

 

[FXOpen Trader]

The USD Shows Signs of Strength Ahead of the NFP Report Next Friday

The trading week started on a strong note for the USD. The greenback gained against the Euro and the CHF, despite the fact that the Euro area manufacturing PMI came out way above the 50 level.

It appears that the weakness in the EURUSD pair, the most important pair as it weighs almost 50% in the dollar index, comes more from a weak Euro rather than from a strong dollar. Nevertheless, if the EURUSD pair keeps the bearish trend, the other dollar markets will eventually follow.

Two Central Banks to Release Their Decisions This Week

Last week we saw the Federal Reserve of the United States (Fed) announcing its interest rate decision. It left the monetary policy unchanged, and at the press conference Jerome Powell, the Fed’s chair, failed to guide markets as to what comes next. The focus was on forward guidance and on any hint from the Fed of a possible tapering of the quantitative easing program currently running at $120 billion ($80 billion asset purchasing and $40 billion mortgage-backed securities).

But the Fed chose to avoid the subject and thus, the markets moved forward. As the chart above shows, the Fed is not the one with the most aggressive balance sheet expansion. The Swiss National Bank (SNB) and the Bank of Japan (BOJ) lead the pack, followed by the European Central Bank (ECB) in the third place. The implications are that the Fed still has room to go, or that the dollar declined too much as if we compare the balance sheet of the four central banks, the dollar should be higher.

This week it is the Reserve Bank of Australia (RBA) and the Bank of England (BOE)’s turn to announce their policy. The British pound (GBP) has been on a strong recovery since the Brexit deal was announced in late December last year. Also, the Australian dollar (AUD) is one of the best-performing currencies during the health crisis.

As always, the first trading week of the month brings the NFP report on Friday. The focus on this week’s report is to see if the U.S. economy continues to lose jobs. If we see a reversal, fueled by the increased vaccination rate, the market may trade in anticipation of a stronger economic recovery than initially expected.

 

[FXOpen Trader]

BTC and XRP – Corrections might have ended but further confirmation still needed

BTC/USD

The price of Bitcoins has been moving sideways in the last couple of days after it made a spike to the upside to $38,637 at its highest point. This increase of around 31.9% came after the price tested the descending triangles support level and was the impulsive move that made a breakout from the triangles on the upside.

As you can see from the hourly chart after a breakout was made the price fell back and retested the triangle’s resistance level for support, which was a pullback to $32,213. Support was present at those levels which is why we have seen further increase but the price didn’t manage to move back up for a higher high compared to the local one.

Even though the breakout was made this increase could still be part of the same correctional structure that started on the 10th of January after the all-time high was made. If this is true then the price is now headed further down for the formation of the Z wave of the complex correction count.

Another possibility would be that the correction ended on the 27th of January in which case this impulse was to be the first wave from the next starting impulse. As the price is now in a downward trajectory we are going to see which count gets validated. If the price continues moving down and enters the territory of the descending triangle then it would be the first bearish one, but if it finds support and continues increasing, further price appreciation would look more likely.

XRP/USD

The price of Ripple has spiked to the $0.755 level yesterday coming from $0.3895 at its lowest point on Sunday, which was an increase of 93.84%. But after the increase ended the price was set in a downfall of 54%, coming to $0.3465 at its lowest point today. Since then recovery has been seen with the price moving sharply to the upside and is currently being traded just slightly below the $0.4 level.

On the hourly chart, you can see that the price fell below the 0.618 Fibonacci level but now managed to pull back above it. The previous upside move was the ending of the five-wave impulse that started before the new year which is why we have seen a retracement. If this impulse was the first wave after the larger correction ended, the price of Ripple is now headed further to the upside but considering the amount of the decrease we have seen since yesterday we are yet to see if the bullish interest is still present.

 

[FXOpen Trader]

EUR/USD Remains at Risk, USD/CHF Gains Bullish Momentum

EUR/USD failed to continue higher and declined below 1.2100. USD/CHF is gaining bullish momentum and it is trading nicely above 0.8900.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a fresh decline below the 1.2120 and 1.2080 support levels against the US Dollar.
• There is a key bearish trend line forming with resistance near 1.2065 on the hourly chart of EUR/USD.
• USD/CHF started a strong increase and climbed above the 0.8900 resistance zone.
• There is a short-term expanding triangle forming with support near 0.8950 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed on many occasions to clear the 1.2200 resistance zone against the US Dollar. As a result, the EUR/USD pair started a fresh decline below the 1.2150 and 1.2120 support levels.

The pair even broke the 1.2080 support level and the 50 hourly simple moving average. It cleared the key 1.2055 support zone and traded as low as 1.2011 on FXOpen.

EUR/USD is currently correcting higher and trading above 1.2025. It is testing the 50% Fib retracement level of the recent decline from the 1.2086 high to 1.2011 low. On the upside, the first resistance is near the 1.2055 level and the 50 hourly simple moving average.

There is also a key bearish trend line forming with resistance near 1.2065 on the hourly chart of EUR/USD. The trend line is close to the 61.8% Fib retracement level of the recent decline from the 1.2086 high to 1.2011 low.

A successful break above the 1.2065 resistance and the 50 hourly simple moving average is must for a steady recovery in the near term.

Conversely, the pair could start a fresh decline from 1.2055. An initial support is near the 1.2025 level. The next major support is near the 1.2000 zone. Any more losses could lead the pair towards the 1.1950 zone.

USD/CHF Technical Analysis

The US Dollar started a steady increase from the 0.8850 support zone against the Swiss franc. The USD/CHF pair broke many important hurdles near 0.8900 to move into a positive zone.

It even cleared the 0.8950 resistance and the 50 hourly simple moving average. The pair traded close to the 0.9000 level and traded as high as 0.8994. It is currently correcting gains and trading below the 0.8980 level.

USD/CHF is testing the 50% Fib retracement level of the recent increase from the 0.8948 swing low to 0.8994 high. The next major support on the downside is near the 0.8960 level or the 50 hourly simple moving average.

There is also a short-term expanding triangle forming with support near 0.8950 on the hourly chart. As long as USD/CHF is above the triangle support, it could climb back towards the 0.9000 resistance level in the near term. The next key resistance could be near the 0.9040 level.

On the downside, the main support is near the 0.8945 level. If the pair fails to stay above the 0.8955 and 0.8945 support levels, there is a risk of a larger decline.

In the stated case, USD/CHF could decline towards the 0.8920 support. There is also a major bullish trend line forming with support near the 0.8900 on the same chart, where the bulls are likely to take a strong stand.

 

[FXOpen Trader]

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Read Full on FXOpen Company Blog...

 

[FXOpen Trader]

LTC and EOS – Pullback or the begging of a downtrend?

LTC/USD

The price of Litecoin has been in a decline from today’s open at $159 which was its highest point so far. It made a decrease of 9.67% at its lowest today but is currently being traded slightly high at is sitting at around $149.11.

On the hourly chart, you can see that today’s open the high made after a breakout from the descending triangle in which the price was since the 10th of January. The price fell from its high of $185.8 to the horizontal support level at $122 on three occasions and after the third test, a higher high was made and then finally a breakout to the upside on Tuesday. As the price continued making a higher high it exceeded the $155 horizontal level which was the mid-range of the correctional structure in the descending triangle but failed to go above the midpoint high at $166.7 before making a pullback.

If the prior correction ended with the breakout being the continuation of the uptrend of the higher degree, then the current retracement would be only a local one. In that case from the 27th of January when another retest of the significant horizontal level at the $120 zone was made we have seen the start of the next five-wave impulse with the breakout wave being its 3rd. Now as the price is going to the downside it should find support on the ending point of the assumed 1st wave which is at $146. This was tested today with the price action showing a wick on the hourly chart it appears that support is present at those level.

However if the price continues to move further to the downside it could mean that this increase seen with a breakout to the upside was the continuation of the corrective count.

EOS/USD

From its highest point on Monday at $3.2787, the price of EOS has fallen by 11.75% on the same day and enter a recovery since. It reached $3.15 yesterday which could have been the end of the recovery as it started decreasing again and is currently being traded just above $3.

As you can see from the hourly chart the price made a breakout below its ascending trendline that dates from the 27th of January. This ascending trendline is the 3rd wave from the upward move that starts on the 22nd of January, but it is still unclear whether or not it is an impulse or a corrective count. Judging by the wave personality it looks more corrective at this point which is why I’ve labeled it as an ABC. This is soon going to be validated as if the price continued moving to the downside below the $2.88 zone it could very well mean that we have seen the correctional ABC count.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

Cryptocurrency CFDs are not available to trade in all jurisdictions.

LTC and EOS – Pullback or the beginning of a downtrend?

LTC/USD The price of Litecoin has been in a decline from today's open at $159 which was its highest point so far. It made a decrease of 9.67% at its lowest today but is currently being ...

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[FXOpen Trader]

AUD/USD and NZD/USD Signaling More Losses

AUD/USD is slowly moving lower and it is now trading well below 0.7650. NZD/USD is also declining and it seems like it could revisit the 0.7100 support zone.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline below the 0.7700 and 0.7650 support levels against the US Dollar.
• There is a key bearish trend line forming with resistance near 0.7615 on the hourly chart of AUD/USD.
• NZD/USD is also moving lower and it is now trading below the 0.7200 support level.
• There was a break below a major bullish trend line with support near 0.7160 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

After struggling to gain momentum above the 0.7750 level, the Aussie Dollar started a fresh decline against the US Dollar. The AUD/USD pair broke the 0.7700 support level to move into a bearish zone.

The pair even cleared the 0.7650 support level and settled below the 50 hourly simple moving average. A low was formed near 0.7563 on FXOpen before the pair corrected higher. It recovered above the 0.7600 level, but there was no clear break above 0.7650.

As a result, the pair started a fresh decline below the 0.7620 support. The pair even traded below the 50% Fib retracement level of the upward move from the 0.7563 low to 0.7647 high.

There is also a key bearish trend line forming with resistance near 0.7615 on the hourly chart of AUD/USD. It is now testing the 0.7585 support, which is close to the 76.4% Fib retracement level of the upward move from the 0.7563 low to 0.7647 high.

If there is a downside break, the pair could test the 0.7550 support. Any more losses may possibly open the doors for a push towards the 0.7500 level.

On the upside, the 0.7615 level is a major resistance along with the 50 hourly simple moving average. A clear break above the 0.7615 and 0.7620 levels may possibly open the doors for a fresh increase towards 0.7700 in the coming sessions.

NZD/USD Technical Analysis

The New Zealand Dollar also followed a similar path after it failed to clear the 0.7220 resistance against the US Dollar. The NZD/USD pair broke the 0.7200 support level to start the current decline.

The pair broke the 0.7180 support level and settled well below the 50 hourly simple moving average. There was also a break below a major bullish trend line with support near 0.7160 on the hourly chart of NZD/USD.

The pair is now trading below the 76.4% Fib retracement level of the upward move from the 0.7135 low to 0.7225 high. It is testing the last swing low at 0.7135 and it is likely to continue lower.

The next key support is near the 0.7110 level. It is close to the 1.236 Fib extension level of the upward move from the 0.7135 low to 0.7225 high. Any more losses could push the pair below the 0.7100 support level.

Conversely, the pair could attempt to correct higher above the 0.7155 and 0.7160 resistance levels. The main resistance is near the 0.7200 zone. A clear break and close above the 0.7200 level could increase the chances of more gains above the 0.7220 resistance.

 

[FXOpen Trader]

GBP/USD and GBP/JPY: British Pound Eyes More Upsides

GBP/USD remained strong above 1.3700, but it is facing hurdles near 1.3750. GBP/JPY is gaining momentum and it is trading well above 144.00.

Important Takeaways for GBP/USD and GBP/JPY

• 
  
• The British Pound settled above the 1.3700 resistance zone against the US Dollar.
• There is a rising channel forming with support near 1.3718 on the hourly chart of GBP/USD.
• GBP/JPY gained momentum after it broke 143.80 and 144.00.
• There was a break below a major declining channel with resistance near 143.30 on the hourly chart.

GBP/JPY Technical Analysis

The British Pound started a strong increase from the 142.80 swing low against the Japanese Yen. The GBP/JPY pair traded above the 143.20 and 143.50 resistance levels to move into a positive zone.

There break below a major declining channel with resistance near 143.30 on the hourly chart. The pair settled nicely above the 144.00 level and the 50 hourly simple moving average. The pair even cleared the 144.50 resistance zone and it traded close to the 145.00.

Read Full on FXOpen Company Blog...

 

[FXOpen Trader]

Weak NFP Report Responsible for USD Bullish Trend Reversal

The U.S. dollar traded with a bullish tone since the start of the trading year. While the move higher is not visible on all markets, the most relevant is the EURUSD as the pair eased from 1.23 to 1.20 in less than a month. Because the Euro has the bigger weight in the dollar index, it led to the dollar rallying against other currencies and even against gold.

However, last Friday the USD reversed course. The February NFP report showed that the U.S. economy added 49k jobs in January. While that was positive, as well as the fact that the unemployment rate dropped to 6.3%, the market sold the USD because the December data was revised lower.




Read Full on FXOpen Company Blog...

 

[FXOpen Trader]

BTC and XRP – Bullish momentum confirmed

BTC/USD

The price of Bitcoin has broken out from its prior resistance and impulsively came to $48,200 at its highest point today. From its lowest point on Sunda when it was sitting around $37,430, this is an increase of 28%. Currently, a minor retracement is being made with the price sitting at $46,604 but is still in an upward trajectoty.

This breakout indicates that the prior correctional formation from the 10th of January has ended and now we have a clear confirmation with the bullish momentum indicating a strong uptrend continuation. After the five-wave move inside the ascending channel was ended we have seen a minor pullback but an immediate breakout to the upside. This was most likely the 3rd sub-wave of the higher degree 3rd wave which is why further upside movement would now be expected.

As the price is to develop its five-wave pattern further higher highs could be seen in the upcoming days with potentially exceeding the $60,000 mark by the end of its development. However not that an impulsive breakout has seen a local correction might form as the 4th wave should develop before further upside. It is still unclear where the 4th wave could land but most likely we are going to see a retest of the prior all-time high before uptrend continuation.

 

[FXOpen Trader]

EUR/USD Showing Positive Signs, USD/JPY Turns Red

EUR/USD started a fresh increase after testing the 1.1950 support zone. USD/JPY declined below the 105.00 support and tested the 104.50 zone.

Important Takeaways for EUR/USD and USD/JPY

• The Euro found support near the 1.1950 region and it started a fresh increase above 1.2050.
• There is a key bullish trend line forming with support near 1.2100 on the hourly chart of EUR/USD.
• USD/JPY declined heavily below the 105.20 and 105.00 support levels.
• There was a break below a major bullish trend line with support at 105.30 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro declined below the 1.2050 and 1.2000 support levels against the US Dollar. The EUR/USD pair traded close to the 1.1950 zone, where it found support.

A low was formed near 1.1952 on FXOpen before the pair started a fresh increase. It climbed back above the 1.2000 level and the 50 hourly simple moving average. There was also a break above the 50% Fib retracement level of the downward move from the 1.2155 swing high to 1.1952 low.

It is now trading above the 76.4% Fib retracement level of the downward move from the 1.2155 swing high to 1.1952 low. There is also a key bullish trend line forming with support near 1.2100 on the hourly chart of EUR/USD.

An immediate resistance is near the 1.2120 level. The main resistance is near the 1.2155, above which EUR/USD is likely to accelerate higher towards the 1.2200 resistance area.

Conversely, the pair could start a fresh decline below the 1.2100 support and the trend line. The first major support is near the 1.2075 level and the 50 hourly simple moving average.

If there is a downside break below the 50 hourly simple moving average, the pair could dive towards the 1.2000 handle in the near term. Any more losses might call for a retest of the 1.1950 support level.

 

[FXOpen Trader]

LTC and EOS – Resistance seen but for how long?

LTC/USD

The price of Litecoin has been increasing in the past week, and from last Thursday when it was sitting at $141.27 at its lowest, we have seen an increase of 37.8$ measured to its highest point yesterday at $194.31. Since then the price made a pullback to $170.54 but is again back in an upward trajectory, currently sitting at $188.

On the hourly chart, we can see that the price broke the prior high made on the 10th of January when the price of Litecoin was sitting at $185.58. This confirmed the impulsiveness behind the move and that the previous correction ended at $118. We have seen the development of the 3rd sub-wave of the higher degree impulse which is why further upside would be expected. However if yesterday’s high was the end of the 3rd wave, now the price might be set for a local correction.

Wave 4 should develop optimally to the 0.382 Fibonacci level which would bring the price of Litecoin to $165. But when the price tested prior resistance for support and confirms the bullish interest it is likely to continue moving past yesterday’s high and end around $230 before the completion of this five-wave move.

 

[FXOpen Trader]

Gold Price Starts Fresh Decline, Oil Price Correcting Gains

Gold price failed to clear the $1,855 resistance and started a fresh decline. Crude oil price is correcting gains and it might test the $57.00 support zone.

Important Takeaways for Gold and Oil

• Gold price started a fresh increase, but it failed near $1,855 and $1,860 resistance levels against the US Dollar.
• There was a break below a major bullish trend line with support near $1,838 on the hourly chart of gold.
• Crude oil price traded to a new multi-month high near $58.75 before correcting lower.
• There was a break below a key bullish trend line with support near $58.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a decent recovery wave from the $1,785 zone against the US Dollar. The price climbed above the $1,820 and $1,840 resistance levels.

However, the price struggled to clear the $1,855 and $1,860 resistance levels. A high was formed near $1,855 before the price started a fresh decline. There was a break below the $1,840 level and the 50 hourly simple moving average.

The price traded below the 38.2% Fib retracement level of the upward move from the $1,784 swing low to $1,855 high. There was also a break below a major bullish trend line with support near $1,838 on the hourly chart of gold.

The price is now approaching the $1,820 support zone. The 50% Fib retracement level of the upward move from the $1,784 swing low to $1,855 high is also near the $1,820 level.

If there is a downside break below the $1,820 support level, the price might continue to move down towards the $1,800 level. Any more losses could lead the price towards the $1,784 swing low.

On the upside, the price is likely to face resistance near the $1,830 level. The next major resistance is probably forming near the $1,840 level and the 50 hourly simple moving average.

 

[FXOpen Trader]

GBP/USD and EUR/GBP: British Pound Gains Momentum

GBP/USD is gaining bullish momentum above the 1.3800 and 1.3840 resistance levels. EUR/GBP is declining and it broke a major support at 0.8745.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a strong increase above the 1.3800 resistance zone.
• There was a break above a major contracting triangle with resistance near 1.3790 on the hourly chart of GBP/USD.
• EUR/GBP started a fresh decline after it failed to clear the main 0.8800 resistance zone.
• There was a break below a key bullish trend line with support near 0.8760 on the hourly chart.

GBP/USD Technical Analysis

After forming a base above the 1.3750 and 1.3780, there was a fresh increase in the British Pound against the US Dollar. The GBP/USD pair broke the 1.3800 and 1.3840 resistance levels to move further into a positive zone.

Moreover, there was a break above a major contracting triangle with resistance near 1.3790 on the hourly chart of GBP/USD. The pair strength and it was able to clear the 1.3850 resistance level.

There was also a break above the 1.3880 level and the pair settled nicely above the 50 hourly simple moving average. A new multi-month high is formed near 1.3901 on FXOpen and the pair is currently consolidating gains.

An initial support on the downside is near the 1.3880 level. The first key support is near the 1.3870 level. It is close to the 23.6% Fib retracement level of the upward move from the 1.3775 low to 1.3901 high.

The next key support is near the 1.3850 level. Any more losses may possibly lead the pair towards the 1.3840 level. It coincides with the 50% Fib retracement level of the upward move from the 1.3775 low to 1.3901 high.

On the upside, the 1.3900 level is a short-term resistance. A close above the 1.3900 level will most likely set the pace for a move towards the 1.4000 level in the near term.

 

[FXOpen Trader]

Equity Indices Remain Bid as America Awaits New Fiscal Stimulus

Last week brought little or no movements on the financial markets. The VIX index, which measures volatility, dropped to levels not seen so far during the pandemic.

The lack of important economic data contributed to this environment. With a few exceptions, like the CPI or the inflation data in the United States, all other data was second- or third-tier. Effectively, it means that the focus was on the stock market’s price action. This week will likely be the same as it starts with a holiday (i.e., Presidents’ Day in the United States) and no important data until next Friday when the European PMIs are released.

 

[FXOpen Trader]

BTC and XRP – New highs expected

BTC/USD

The price of Bitcoin has continued its upward trajectory from last Monday and came up from $37,691 at its lowest point to $49,808 at its highest point on Sunday which was an increase of 32.15%. From Sunday’s high, we have seen a pullback to the $46,000 zone but the price is now once again in an upward trajectory. Currently, it is sitting just slightly above $49,000 mark and is testing its horizontal resistance.

On the hourly chart, you can see that this rise is the next developing 5th wave from the higher degree impulse and from the lower degree one as well. This is why further upside would be expected but is most likely the ending wave from the rise that started on the 27th of January.

The price has been forming an ascending triangle from the 9th of February when the 3rd impulse wave was formed out of the lower degree. Now as the price has reached the apex of the triangle and then retraced back it appears that it made the completion of the 4th wave corrective structure.

If this is true now another impulse to the upside has started with the price leading towards a new all-time high, potentially above $52,000.

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[FXOpen Trader]

EUR/USD and EUR/JPY: Euro Holding Key Supports

EUR/USD declined from the 1.2170 zone, but it is holding the 1.2080 support. EUR/JPY climbed higher towards 128.50 and it is currently correcting gains.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro spiked above the 1.2150 resistance, but it struggled to clear 1.2170.
• There was a break below a connecting bullish trend line with support near 1.2135 on the hourly chart of EUR/USD.
• EUR/JPY started a strong increase above the 126.50 and 127.80 resistance levels.
• There is a major bullish trend line forming with support near 127.70 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro remained stable above the 1.2050 and 1.2080 support levels against the US Dollar. The EUR/USD pair even made an attempt to gain strength above the 1.2150 resistance level.

The pair spiked above 1.2150 and settled above the 50 hourly simple moving average. However, it failed to continue higher above the 1.2170 level. A high was formed near 1.2169 on FXOpen before the pair started a fresh decline.

There was a break below a connecting bullish trend line with support near 1.2135 on the hourly chart of EUR/USD. The pair even broke the 1.2100 support and the 50 hourly simple moving average.

It found support near the 1.2080 zone and traded as low as 1.2083. It is currently consolidating losses above the 1.2080 support level. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 1.2169 high to 1.2083 low at 1.2100.

The next major resistance is near the 1.2125 level and the 50 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the 1.2169 high to 1.2083 low. Any more gains could open the doors for a fresh increase above 1.2150.

If EUR/USD fails to recover, it could break the 1.2080 support level. The next major support is near the 1.2050 level, below which the pair could dive towards the 1.2000 support level.

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[FXOpen Trader]

LTC and EOS – Correction soon to come?

LTC/USD

The price of Litecoin continued increasing since last week. From its lowest point last Thursday when it was sitting at $175.78 we have seen an increase of 36.57% measured to its highest point today at $240. Currently, it is being traded just below $230, but the price is in an upward trajectory overall.

Looking at the hourly chart, you can see that the price of Litecoin was in an upward trajectory from the 27th of January when it made the second test of the horizontal support level which was the lower level of the descending triangle in which it was correcting. As a breakout was made in early February it set the price for a higher high than in January. This is the development of the next five-wave move to the upside.

There is still more room to go before the end of this five-wave impulse but it is still unclear where the price increase could end. If the 3rd wave ended on the $194.31 level then currently we are seeing the development of the final wave’s 3rd sub-wave. In that case, another leg up would be expected of the lower degree. But if the 3rd wave of the higher degree count ended on yesterday’s high, then the price of Litecoin has more increasing potential.




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