Daily Market Analysis By FXOpen
ETHUSD and LTCUSD Technical Analysis – 01st DEC, 2022
ETHUSD: Piercing Pattern Above $1151
Ethereum was unable to sustain its bearish momentum and after touching a low of 1151 on 23rd Nov, the price started to correct upwards against the US dollar crossing the $1300 handle today in the Asian trading session.
After touching $1300 handle we can see some downward correction in the levels of Ethereum which is expected to enter into a consolidation phase now.
We can see the formation of bullish engulfing lines in the 2-hour time frame.
We can clearly see a piercing pattern above the $1151 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 below its pivot level of 1284 and is moving into a consolidation channel. The price of ETHUSD is now testing its classic resistance level of 1290 and Fibonacci resistance level of 1296 after which the path towards 1300 will get cleared.
The relative strength index is at 67 indicating a STRONG demand for Ether and the continuation of the buying pressure in the markets.
We can see both the bullish harami and bullish harami cross pattern in the 15-minute time frame.
Both the STOCH and STOCHRSI are indicating overbought levels, which means that the prices are expected to decline in the short-term range.
Most of the technical indicators are giving a STRONG BUY market signal.
Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1300 to $1350 in the short-term range.
ETH is now trading above its 100 hourly simple and exponential moving averages.
[*] Ether: bullish reversal seen above the $1151 mark
[*] The short-term range appears to be mildly bullish
[*] ETH continues to remain above the $1200 level
[*] The average true range is indicating HIGH market volatility
Ether: Bullish Reversal Seen Above $1151
ETHUSD is now moving into a mildly bullish channel with the prices trading above the $1200 handle in the European trading session today.
ETH is now preparing to enter into a consolidation phase above the $1250 handle, after which fresh upside waves are expected.
ETHUSD touched an intraday high of 1304 in the Asian trading session and an intraday low of 1277 in the European trading session today.
We can see a bullish trend reversal signal with adaptive moving averages AMA20 and AMA50 in the 15-minute time frame.
The resistance of the channel is broken in the daily time frame indicating a bullish trend.
The daily RSI is printing at 52 indicating a neutral demand for Ether in the long-term range.
The key support levels to watch are $1202 which is a 14-3 day raw stochastic at 70% and $1211 at which price crosses 18 day moving average.
ETH has increased by 1.19% with a price change of 15.13$ in the past 24hrs and has a trading volume of 7.849 billion USD.
We can see a decrease of 2.57% in the total trading volume in the last 24 hrs which appears to be normal.
The Week Ahead
ETH price continues to remain under bullish pressure and after the current consolidation wave is over, we can expect fresh upsides in the ranges of $1300 and $1400 this week.
We can see the formation of a major bullish trendline in place from $1151 towards $1295 levels.
The immediate short-term outlook for Ether has turned bullish, the medium-term outlook has turned neutral, and the long-term outlook for Ether is neutral in present market conditions.
The price of ETHUSD will need to remain above the important support level of $1208 at which the price crosses the 9-day moving average stalls.
The weekly outlook is projected at $1400 with a consolidation zone of $1350.
Technical Indicators:
The relative strength index (14): is at 67.69 indicating a BUY
The rate of price change: is at 9.65 indicating a BUY
The bull/bear power (13): is at 46.55 indicating a BUY
The high/lows (14): is at 33.40 indicating a BUY
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Gold Price and Crude Oil Price Aim More Upsides, Bulls In Control
Gold price climbed higher and traded above the $1,780 resistance. Crude oil price is also rising and might climb further higher above $82.50.
Important Takeaways for Gold and Oil
[*] Gold price found support near the $1,720 level and started a fresh increase against the US Dollar.
[*] There is a key bullish trend line forming with support near $1,792 on the hourly chart of gold.
[*] Crude oil price gained bullish momentum above the $80.00 resistance zone.
[*] There is a major bullish trend line forming with support near $81.00 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a base above the $1,720 level against the US Dollar. The price started a fresh increase and was able to clear the $1,750 and $1,765 resistance levels.
There was a clear move above the $1,780 resistance and the 50 hourly simple moving average. The price even broke the $1,800 level and traded as high as $1,804 on FXOpen. Recently, there was a downside correction below the $1,800 level.
Gold Price Hourly Chart
An immediate support on the downside is near the $1,792 level. There is also a key bullish trend line forming with support near $1,792 on the hourly chart of gold.
The trend line is close to the 23.6% Fib retracement level of the upward move from the $1,745 swing low to $1,804 high. The next major support is near the $1,775 level or the 50 hourly simple moving average.
The 50% Fib retracement level of the upward move from the $1,745 swing low to $1,804 high is also near $1,775, below which there is a risk of a larger decline.
In the stated case, the price could decline sharply towards the $1,750 support zone. On the upside, the first major resistance is near the $1,800 level.
The main resistance is now forming near the $1,805 level, above which it could even test $1,820. A clear upside break above the $1,820 resistance could send the price towards $1,840.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Watch FXOpen's November 28 - December 2 Weekly Market Wrap Video
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
[*] How energy markets are reacting to the COVID surge in China
[*] GBP rises to 1.21 against USD in bizarre twist
[*] Brazil to legalize cryptocurrencies
[*] The US dollar suffers biggest fall in 12 years.
Watch our short and informative video, and stay updated with FXOpen.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
GBP/USD Rallies Further, EUR/GBP Takes A Hit
GBP/USD started a fresh increase above the 1.2150 resistance. EUR/GBP failed to stay above the 0.8600 support and declined towards 0.8550.
Important Takeaways for GBP/USD and EUR/GBP
[*] There was a break above a major bearish trend line with resistance near 1.2000 on the hourly chart of GBP/USD.
[*] EUR/GBP started a fresh decline after it failed to surpass the 0.8675 resistance zone.
[*] There was a break below a major contracting triangle with support near 0.8615 on the hourly chart.
GBP/USD Technical Analysis
The British Pound found support near the 1.1920 zone against the US Dollar. The GBP/USD pair started a fresh increase and was able to clear the 1.2000 resistance zone.
There was a also a break above a major bearish trend line with resistance near 1.2000 on the hourly chart of GBP/USD. The pair even surpassed the 1.2150 resistance zone and the 50 hourly simple moving average.
GBP/USD Hourly Chart
Recently, there was a minor downside correction from the 1.2300 zone. The pair dipped below the 1.2200 level. A low was formed near 1.2134 on FXOpen and the pair started a fresh increase.
There was a clear move above the 1.2250 resistance. The pair surpassed the 76.4% Fib retracement level of the downward move from the 1.2310 swing high to 1.2134 low. It is now trading above the 1.2310 swing high.
On the upside, an initial resistance is near the 1.2350 level. It is near the 1.236 Fib extension level of the downward move from the 1.2310 swing high to 1.2134 low.
The next main resistance is near the 1.2400 zone. A clear upside break above the 1.2400 and 1.2420 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2500 level.
On the downside, an initial support is near the 1.2300 level, below which it could test the 1.2250 support. The next major support is near the 1.2230 level and the 50 hourly simple moving average. Any more losses could lead the pair towards the 1.2200 support zone.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Brent Crude Oil is on the up as G7 price cap deals blow
The price of Brent Crude oil is once again on the rise, after a slow and steady decline during early to mid November bottomed out at $76.28 per barrel on November 26.
Since then, the price has been increasing, and today Brent Crude Oil (WTI) is trading at $81.41 per barrel which is a two week high.
This could partly be down to the price cap for oil purchases from Russia having been set by the European Union at $60 per barrel.
This was set late last week in the form of a limit on the price of Russian seaborne crude and therefore constrain revenues the Kremlin makes from the commodity.
However, the market price of crude oil was at the time around $79 per barrel, meaning that the Russian oil companies refused to sell oil to European Union member states which adhered to this price cap, because it is far below the market value.
As a result, demand increased as the potential supply of crude oil to Europe could be affected by the price cap in which European oil purchasers would be expected to adhere to a policy of paying approximately $20 per barrel less than market value for oil imported from Russian oil giants, an offer which of course has been declined by said oil giants as there is no way they will sell oil to commercial clients for three quarters of its real value.
At the end of last week, Russian energy industry had issued a warning that an oil price cap could wreak havoc on the energy markets and push commodity prices even higher. They weren't wrong.
According to an official document from the European Union, this price limit would be subject to regular review in order to monitor its market ramifications. The document stated that the price should be “at least 5% below the average market price" however the $60 that the cap is currently set at is more than 20% less than the average market value of crude oil.
Given that Russia is an OPEC nation and one of its major national industries is the extraction, refinement and export of raw materials for energy generation, there is no likelihood that Russian energy firms would accept this price for oil products.
The raw materials that the Russian economy relies so heavily on are consumable commodities, traded on global exchanges and with the ability to be used as collateral to back economic asset classes and against national debts. These are liquid gold and therefore will be valued and treated as such.
Volatility in the oil market is here once again.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
UK's recession bites again as Pound dives to 1.22 against US Dollar
After a long period of declining values which blighted the British Pound during the course of the late summer and early autumn period, resulting in it plummeting to a low of 1.18 against the US Dollar at one point, the British sovereign currency managed to pick itself up during November.
The economic chaos that has been clearly visible across Britain reached melting point when the shortest ever prime ministerial post, held for just 44 days by Liz Truss, ended with her catastrophic budget having been completely reversed once she left office.
With an unstable government and confidence in the domestic economy which is now encumbered by double-figure inflation, the Pound had been at its lowest point for many years, until November when it began to steadily rise again.
By the end of last week, the British Pound was at 1.24 against the US Dollar, which is not a bad comeback considering that the British economy continues to flounder, however this week it has been plummeting again.
Yesterday, the Confederation of British Industries (CBI) told CNN that the United Kingdom faces a “lost decade” of low growth if action isn’t taken to address slumping business investment and worker shortages.
“Britain is in stagflation — with rocketing inflation, negative growth, falling productivity and business investment. Firms see potential growth opportunities but a lack of ‘reasons to believe’ in the face of headwinds are causing them to pause investing in 2023,” CBI director general Tony Danker said in a statement.
Energy prices are once again soaring, and the likelihood that interest rates may reach as high as 5% in the real market by early 2023 are indicators that those who are already feeling the pinch may have yet more to come, thus investor confidence remains low and caution is in place.
An interesting metric is that due to the sustained period of high inflation, wage depreciation has been a metric which has been looked at carefully by analysts and economists.
It may well be that the drop in wages in the United Kingdom in the third quarter of 2022 was lower than the previous two quarters of the year, but it has still been one of the largest since this metric began being measured in 2001.
Lower purchasing power due to decreasing wages combined with potentially higher interest rates indicate a possibility of lower spending and therefore potentially lower sales figures in all areas across the entirety of the United Kingdom's consumer markets.
Bearishness is an inevitable byproduct of such dynamics, hence the Pound now languishing once again with a steep decline to 1.22 during the past two days.
Volatility in the major currency market is certainly back.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
BTCUSD and XRPUSD Technical Analysis – 06th DEC 2022
BTCUSD: Inverted Hammer Pattern Above $16009
Bitcoin was unable to sustain its bearish momentum and after touching a low of 16009 on 28th Nov, the prices started to correct upwards against the US dollar crossing the $17000 handle on 06th Dec.
We have seen a continued escalation in the prices of bitcoin due to the increasing global demands and buying at lower levels.
The resistance of the channel is broken in the 15-minute time frame indicating bullish trends.
We can see a bullish trend reversal pattern with the adaptive moving averages, AMA5, in the 15-minute time frame, and AMA20 in the 30-minute time frame.
We can clearly see an inverted hammer pattern above the $16009 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.
Bitcoin touched an Intraday low of 16924 and an intraday high of 17098 in the Asian trading session today.
Both the STOCH and STOCHRSI are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.
The relative strength index is at 50 indicating a NEUTRAL demand for bitcoin, and the shift towards the consolidation channel in the markets.
Bitcoin is now moving below its 100 hourly simple moving average and its 200 hourly exponential moving averages.
Most of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short term, we are expecting targets of 18000 and 18500.
The average true range is indicating LESS market volatility with a mildly bullish momentum.
[*] Bitcoin: bullish reversal seen above $16009
[*] The Williams percent range is indicating an overbought level
[*] The price is now trading just below its pivot level of $17093
[*] Some of the moving averages are giving a BUY market signal
Bitcoin: Bullish Reversal Seen Above $16009
We can now see that the price of bitcoin is moving in a mildly bullish momentum and we are expecting moves towards the consolidation phase before any upwards rebound this week.
The RSI indicator is back over 50 indicating a bullish scenario in the daily time frame.
The ichimoku – bullish crossover: tenkan & kijun pattern is seen in the daily time frame indicating bullish trends.
We can see the formation of an inverted hammer / white gravestone pattern in the weekly time frame.
The price of bitcoin has crossed the $17000 handle today ranging near to a three-week High.
The immediate short-term outlook for bitcoin is mildly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.
Bitcoin’s support zone is located at $16716 at which the price crosses the 9-day moving average.
The price of BTCUSD is now facing its classic resistance level of 17300 and Fibonacci resistance level of 17627 after which the path towards 18000 will get cleared.
In the last 24hrs BTCUSD has decreased by 1.85% by 320$ and has a 24hr trading volume of USD 18.733 billion. We can see a decrease of 12.48% in the trading volume compared to yesterday, which appears to be normal.
The Week Ahead
The price of Bitcoin is expected to enter the super bullish zone above the $17000 handle. There is an ascending channel forming with current support at $16395 on the hourly chart of BTCUSD.
We are now preparing to enter the super bullish zone in bitcoin and the prices are expected to gain 100% from the current market levels of $17000 towards $34000 in the starting of next year.
We can see a continuous progression of a bullish trend line formation from $16009 towards the $17169 levels.
The daily RSI is printing at 47 which indicates a NEUTRAL demand for bitcoin and the possibility of a shift towards the consolidation/correction phase for a short term in the markets.
The price of BTCUSD is now facing its resistance zone at $17810 at which the price crosses 18-day moving average stalls.
The weekly outlook is projected at $18500 with a consolidation zone of $18000.
Technical Indicators:
The average directional index, ADX (14): is at 27.55 indicating a BUY
The commodity channel index, CCI (14): is at 84.15 indicating a BUY
The rate of price change, ROC: is at 4.84 indicating a BUY
Bull/bear power (13): is at 410.57 indicating a BUY
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
EUR/USD Corrects Lower While USD/JPY Aims Fresh Increase
EUR/USD gained pace and tested the 1.0600 resistance zone. USD/JPY is rising and might rally if it clears the 137.50 resistance zone.
Important Takeaways for EUR/USD and USD/JPY
[*] The Euro started a downside correction from the 1.0600 resistance zone.
[*] There is a key bearish trend line forming with resistance near 1.0490 on the hourly chart of EUR/USD.
[*] USD/JPY declined sharply after it traded below the 142.00 support zone.
[*] There is a major bearish trend line forming with resistance near 137.50 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro found support near the 1.0300 zone against the US Dollar. The EUR/USD pair started a steady upward move above the 1.0400 and 1.0450 resistance levels.
There was a steady increase above the 1.0500 resistance zone and the 50 hourly simple moving average. The pair even climbed above the 1.0550 resistance zone. A high was formed near 1.0591 on FXOpen and the pair is now correcting gains.
EUR/USD Hourly Chart
There was a move below the 1.0550 support zone and the 50 hourly simple moving average. The pair traded below the 50% Fib retracement level of the upward move from the 1.0428 swing low to 1.0591 high.
An initial support on the downside is near the 1.0450 level. The first major support is near the 1.04250 level. The main support sits near the 1.0380 zone or the 1.236 Fib extension level of the upward move from the 1.0428 swing low to 1.0591 high, below which the pair could start a major decline.
On the upside, an immediate resistance is near the 1.0490 level. There is also a key bearish trend line forming with resistance near 1.0490 on the hourly chart of EUR/USD.
The next major resistance is near the 1.0520 level. An upside break above 1.0520 could set the pace for another increase. In the stated case, the pair might revisit 1.0580. Any more gains might send the pair towards 1.0650.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
S&P500 closes lower for fourth day as recession fears bite
The S&P500 index closed yesterday at its lowest point in four days following a steady decline as investors in American stocks concern themselves with the possibilities of a recession.
The prestigious index which contains some of Wall Street's most heralded blue chip giants lost 1.44% to close at 3,941.26, while the Nasdaq Composite sank 2% to finish at 11,014.89. The Dow Jones Industrial Average dropped 350.76 points, or 1.03%, to settle at 33,596.34.
The majority of the losses in this week's retraction in US stock values have been caused by bank stocks as well as shares in some media companies, which is perhaps in line with the concern about exposure to unserviceable debt by individuals and businesses should a recession bite.
Investment banks are taking a cautious stance, and Morgan Stanley this week released news that it plans to make redundancies amounting to approximately 2% of its workforce, and whilst inflation in the United States has actually decreased and is now standing at around 7.7%, it is well over 10 in the UK and in some parts of Europe, where many large American corporations have substantial operations and have to fork out more capital to keep pace with the increasing price of everything from materials to logistical costs and wages.
When considering yesterday's declines, the S&P is now down 3.2% this week and the NASDAQ has decreased in value by 3.9%.
The Federal Reserve is still looking at interest rates and has taken a very conservative approach, but it appears that analysts and investors have not ruled out the possibility of a recession taking place across the United States in 2023, even if it is not likely to be to the same extent as the impending recessions in Europe and the United Kingdom.
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
ETHUSD and LTCUSD Technical Analysis – 08th DEC, 2022
ETHUSD: Double Bottom Pattern Above $1218
Ethereum was unable to sustain its bearish momentum and after touching a low of 1211 on 07th Dec, the price started to correct upwards against the US dollar moving into a consolidation channel above the $1200 handle today in the European trading session.
We can see the formation of a bullish harami pattern in the 15-minute time frame indicating a bullish trend.
The Williams percent range indicator is back over -50 in the 2-hour time frame.
We can clearly see a double bottom pattern above the $1218 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 below its pivot level of 1232 and moving into a consolidation channel. The price of ETHUSD is now testing its classic resistance level of 1234 and Fibonacci resistance level of 1235 after which the path towards 1300 will get cleared.
The relative strength index is at 53 indicating a NEUTRAL demand for Ether and the continuation of the consolidation phase in the markets.
We can see both the bullish harami and bullish harami cross pattern in the daily time frame.
Both the relative strength index and the average directional index are indicating neutral levels, which means that the prices are expected to remain in a narrow range in the short-term range.
Most of the technical indicators are giving a STRONG BUY market signal.
Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1300 to $1400 in the short-term range.
ETH is now trading below its 100 hourly simple and 200 hourly exponential moving averages.
[*] Ether: bullish reversal seen above the $1218 mark
[*] The short-term range appears to be mildly bullish
[*] ETH continues to remain above the $1200 levels
[*] The average true range is indicating LESS market volatility
Ether: Bullish Reversal Seen Above $1218
ETHUSD is now moving into a mild bullish channel with the price trading above the $1200 handle in the European trading session today.
ETH is now preparing to enter into a consolidation phase above the $1230 handle, after which fresh upside waves are expected.
ETHUSD touched an intraday high of 1234 and an intraday low of 1223 in the Asian trading session today.
We have seen a bullish opening in the markets this week.
The daily RSI is printing at 47 indicating a neutral demand for Ether in the long-term range.
The key support levels to watch are $1191, which is a 14-3 day raw stochastic at 50%, and $1215 at which price crosses 18 Day Moving Average.
ETH has increased by 0.09% with a price change of 1.07$ in the past 24hrs and has a trading volume of 4.698 billion USD.
We can see a decrease of 24.01% in the total trading volume in the last 24 hrs which appears to be Normal.
The Week Ahead
ETH price continues to remain under mild bullish pressure and the prices are expected to remain in a bullish traction this week.
After the current wave of consolidation gets over, we are expecting fresh buying pressure above the $1200 handle which will push the price above the $1300 level.
The immediate short-term outlook for Ether has turned bullish, the medium-term outlook has turned neutral, and the long-term outlook for Ether is neutral in present market conditions.
The price of ETHUSD will need to remain above the important support level of $1199 at which the price crosses 9-day moving average stalls.
The weekly outlook is projected at $1400 with a consolidation zone of $1350.
Technical Indicators:
The relative strength index (14): is at 53.20 indicating a NEUTRAL.
The STOCH (9,6): is at 69.01 indicating a BUY
The MACD (12,26): is at 0.350 indicating a BUY
Bull/bear power (13): is at 1.498 indicating a BUY
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Disclaimer: This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.