Daily Market Analysis By FXOpen

EUR/USD Could Recover, USD/JPY Eyes More Upsides


EUR/USD declined heavily to 1.0800 before it started an upside correction. USD/JPY surged above 115.50 and now consolidating gains.

Important Takeaways for EUR/USD and USD/JPY

• The Euro declined heavily below 1.1200 before it found support near 1.0800.
• There was a break above a key bearish trend line with resistance near 1.0900 on the hourly chart of EUR/USD.
• USD/JPY started a strong upward move above the 115.20 and 115.50 resistance levels.
• There is a major bullish trend line forming with support near 115.70 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started a major decline from well above 1.1200 against the US Dollar. The EUR/USD pair declined heavily below the 1.1120 support zone.

The pair even broke the 1.0980 level and settled below the 50 hourly simple moving average. A low was formed near 1.0805 on FXOpen and the pair is now correcting higher. There was a move above the 23.6% Fib retracement level of the key decline from the 1.1232 swing high to 1.0805 low.

EUR/USD Hourly Chart


There was also a break above a key bearish trend line with resistance near 1.0900 on the hourly chart of EUR/USD. An immediate resistance on the upside is near the 1.0935 level.

The next major resistance is near the 1.0970 level. The main resistance is near the 1.1020 level. It is near the 50% Fib retracement level of the key decline from the 1.1232 swing high to 1.0805 low. An upside break above 1.1020 could set the pace for a steady increase.

If there is no break above 1.0935, the pair might start a fresh decline. An immediate support is near the 1.0880 and the 50 hourly simple moving average. The next major support is near 1.0820, below which the pair could drop to 1.0750 in the near term.

Read Full on FXOpen Company Blog...

Gold approaching record high as instability fuels switch to physical assets


Ever since the very first items were made from gold over 3,500 years ago in the ancient Egyptian period, this particular precious metal has been held in high esteem as a means of storing a potentially appreciating physical asset.

Throughout the ages, whenever an ancient kingdom came under siege, its population would attempt to accumulate gold.

As time developed, and the industrialization of the world began, gold became a benchmark for investment, and has been constantly regarded as one of the most reliable physical commodities available on the global markets. Even in modern times, when a war occurs, or a political catastrophe, people buy gold.

These past few days have been no exception.

During the course of yesterday (March 8, 2022), gold prices rallied and headed toward an all-time high.

In the United States, by 12.10pm Eastern Standard Time (New York), the trading price of gold had risen by a remarkable 3.5% to $2,068.07 an ounce, which brought it near to its record trading value of $2072.50 which was set in the summer of 2020 during the period in which lockdowns were omnipresent across Europe and America, and fears of losing jobs and private property were widespread.

Those fears are here again, this time fueled by heavy-handed sanctions which are decimating the markets across America and Europe. The US stock market is suffering a tech stock obliteration which is beginning to cause analysts to compare it to the 'dot com' collapse of the early 2000s.

This is a very sudden new direction. Tech stocks were the solid, relatively low-risk investment for most investors and traders all the way from those trading part-time from home, to large hedge funds and wealth managers.

Now, with these in decline, the mainstay of the US economy is being measured and global investors are heading for the hard collateral that is precious metal.

Even nickel, which is used in engineering across most heavy industrial applications worldwide from car manufacturing to construction, has been soaring in price to the extent where pricing has become so difficult in the live market that the London Metal Exchange (LME) has suspended its trading.

One report this morning stated that a Chinese investor is facing losses running into the multi-billion-pound range as a result of the volatility in which nickel soared by as much as 111% to a record $101,365, followed by a two-day increase of up to 250% before falling back to $82,250 a tonne.

The London Metal Exchange has been pricing nickel for over 145 years, and yesterday's volatility was an all time record in the entire trading history of the venue.

Precious metals are therefore in huge demand, and gold is unique in that it is primarily used as a store of value, compared to other high-demand metals like copper and nickel whose primary use is in manufacturing and engineering.

Today, Reuters has explained that one particular futures trader had cited the combination of extremely inflationary energy prices, grain prices and base metal prices has contributed the major underlying support behind gold having increased so much in value.

Certainly investors are hanging onto physical assets, and those metals with an engineering use are rocketing due to the difficulties in obtaining them for factories to be able to meet the demand for their products or remain in business without having to halt production, leaving gold as an outright store of value which is heading for all time highs.

Fascinating market moves brought on by highly well analyzed circumstances.

FXOpen Blog

ETHUSD and LTCUSD Technical Analysis – 10th MAR, 2022


ETHUSD: Head and Shoulders Pattern Below $2,700

Ethereum continued to move in a bearish phase last week, having touched a low of $2,448 on March 7th, after which the prices started to consolidate above the level of $2,500.

We can see ETHUSD moving in a bearish momentum because of the Russia-Ukraine war and its effects on the global investor sentiments.

Despite the fact that some correction was seen in the USD, the medium-term outlook for Ethereum remains bearish with a downside projection of $2,200.

We can clearly see a head-and-shoulders pattern below the $2,700 handle which is a bearish pattern signifying the end of a bullish phase and the start of a bearish phase in the markets.

ETH is now trading just below its pivot level of $2,588 and is moving in a bearish channel. The price of ETHUSD is now testing its classic support level of $2,558, and Fibonacci support level of $2,580 after which the path towards $2,300 will get cleared.

The relative strength index is at 34 indicating a WEAKER demand for Ethereum, as well as the continuation of the selling pressure in the markets.

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

All of the moving averages are giving a STRONG SELL signal, and we are now looking at the levels of $2300 to $2200 in the short-term range.

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

• A bearish reversal seen below the $2700 mark in Eth
• Short-term range appears to be strongly BEARISH
• The daily RSI is below 50 at 44 indicating a BEARISH market
• The average true range is indicating LESSER market volatility

Ether: Bearish Momentum Continues Below $2,700


ETHUSD is now moving in a strongly bearish momentum, with the prices trading below the $2,600 handle in the European trading session today.

Both the Stoch and StochRSI are indicating an OVERSOLD market, which means that a pullback in the levels of Ethereum is expected soon.

The Ethereum bulls have retracted, and we can see that the selling pressure has resumed which is expected to push down the prices below the $2,500 handle.

The prices of ETHUSD need to remain above $2,200 for any bullish reversal in the markets.

At present, we are looking for the immediate target of $2,300 after which it is expected to enter into a consolidation and correction phase.

This week, the key support level to watch is $2,200, and the key resistance level is $2,700.

ETH has declined -5.24% with a price change of -143.26$ in the past 24hrs, and has a trading volume of 13.621 billion USD.

We can see an Increase of 16.69% in the total trading volume in the last 24 hrs, which appears to be normal.

The Week Ahead

Ethereum has already exhausted its consolidation channel and is now moving into its next bearish phase towards the level of $2,300.

The ongoing Russia-Ukraine war crisis is continuing to affect the prices of Ethereum, as new investors are not willing to enter into the market because of the global crisis scenario and the waning demand in the global cryptocurrency markets.

If the prices of ETHUSD continue to remain above $2,200 this week, we can expect a bullish reversal next week.

The immediate short-term outlook for Ether has turned strongly BEARISH; the medium-term outlook has turned bearish; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week. Ether is expected to move in a range between $2,200 and $2,700, and next week, it is expected to enter into a consolidation phase above $2,500.

Technical Indicators:

The moving averages convergence divergence (12,26): at -16.78 indicating a SELL

The commodity channel index (14-day): at -117.12 indicating a SELL

The rate of price change: at -4.37 indicating a SELL

The average directional change (14-day): at 45.85 indicating a SELL

Read Full on FXOpen Company Blog...

Gold Price and Crude Oil Price At Risk of Downside Break


Gold price is correcting lower and trading below $2,000. Crude oil price is facing an increase in selling pressure below $105.

Important Takeaways for Gold and Oil

• Gold price started a downside correction after a strong rally to $2,070 against the US Dollar.
• There is a key bullish trend line forming with support near $1,985 on the hourly chart of gold.
• Crude oil price corrected lower, but it found support near $100.00.
• There was a break below a short-term ascending channel with support near $108.10 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a support base near $1,950 and started a fresh increase against the US Dollar. The price gained pace for a move above the $2,000 level to move into a positive zone.

There was a clear move above the $2,020 level and the 50 hourly simple moving average. The price even climbed above the $2,050 resistance level. A high was formed near $2,070 on FXOpen before the price started a downside correction.

Gold Price Hourly Chart


There was a break below the $2,000 level. The price even spiked below the $1,980 level, but it found support near $1,970. A low is formed near $1,970 and the price is now consolidating.

There was a move above the 23.6% Fib retracement level of the recent decline from the $2,070 swing high to $1,970 low. On the upside, the price is facing resistance near the $2,000 level and the 50 hourly simple moving average.

The main resistance is now forming near the $2,020 level. The 50% Fib retracement level of the recent decline from the $2,070 swing high to $1,970 low is also near $2,020. A close above the $2,020 level could open the doors for a steady increase towards $2,050. The next major resistance sits near the $2,070 level.

On the downside, an initial support is near the $1,985 level. There is also key bullish trend line forming with support near $1,985 on the hourly chart of gold. If there is a downside break below the $1,985 level, the price could decline to $1,920.

Read Full on FXOpen Company Blog...

GBP/USD Turns Red, USD/CAD Faces Key Resistance


GBP/USD started a major decline below 1.3200. USD/CAD is rising, but facing a major resistance near the 1.2800 zone.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a fresh decline from the 1.3300 resistance zone.
• There is a key bearish trend line forming with resistance near 1.3055 on the hourly chart of GBP/USD.
• USD/CAD is rising and showing positive signs above the 1.2750 level.
• There are two key bearish trend lines forming with resistance near 1.2790 and 1.2820 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a strong decline from well above 1.3300 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.3200 support.

The pair even broke the 1.3120 support level and the 50 hourly simple moving average. Finally, there was a move below the 1.3050 support. A low is formed near 1.3011 on FXOpen and the pair is now consolidating losses.

GBP/USD Hourly Chart


On the upside, an initial resistance is near the 1.3050 level. There is also a key bearish trend line forming with resistance near 1.3055 on the hourly chart of GBP/USD. The trend line is close to the 23.6% Fib retracement level of the recent decline from the 1.3194 swing high to 1.3011 low.

The next major resistance is near the 1.3100 level. It is near the 50% Fib retracement level of the recent decline from the 1.3194 swing high to 1.3011 low.

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 1.3000 support. If there is a downside break, GBP/USD might test the 1.2950 support. The next major support sits at 1.2880.

Read Full on FXOpen Company Blog...

BTCUSD and XRPUSD Technical Analysis – 15th MAR 2022


BTCUSD: Double Top Pattern Below $39,800

Bitcoin was unable to continue its bullish momentum last week, and after touching a high of $42,566 on March 9th, started its decline against the US dollar.

The downward phase continues today, and we can see BTCUSD touching $37,500 this week.

Today’s bearish momentum is the result of increased selling by long-term investors due to the continuing war between Russia and Ukraine and its global impact on the safe haven currencies like the US dollar and the yen.

The propagation of the bearish trend continues with bitcoin price trading below the $39,000 mark in today’s European trading session.

We can clearly see a double top pattern below the $39,800 handle which is a Bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

The StochRSI is indicating an OVERSOLD level which means that in the immediate short-term, an upwards correction in the prices is expected.

The relative strength index is at 39 indicating a WEAK demand for bitcoin at the current market levels.

Bitcoin is now moving below its 100 hourly simple moving average and below its 200 hourly exponential moving averages.

All of the major technical indicators are giving a STRONG SELL signal, which means that in the immediate short-term we are expecting targets of $37,000 and $36,500.

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

• A bearish reversal is seen in bitcoin below $39,900
• The Williams percent range is indicating an OVERBOUGHT level
• The price is now trading just below its pivot level of $38,490
• All of the moving averages are giving a STRONG SELL market signal

Bitcoin: Bearish Momentum Seen Below $39,900


In today’s European trading session, bitcoin continues to move in a strongly bearish momentum with a downside projection towards the level of $36,000.

In the immediate term we are expecting a continuation of this bearish trend, with the prices of bitcoin ranging between the levels of $35,000 and $38,000 as it is due to enter into a consolidation phase now.

The short-term risks have increased for bitcoin, and the selling pressure is expected to continue pushing down the prices below $38,000 today.

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

The price of BTCUSD is now facing its classic support level of $37,591 and Fibonacci support level of $38,265 after which the path towards $36,000 will get cleared.

We can see that the daily RSI is also printing at 45 which indicates that in the medium-term prices are expected to fall further.

In the last 24hrs BTCUSD has gone down by -1.49% with a price change of 582$ and has a 24hr trading volume of USD 23.987 billion. We can see an increase of 5.93% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The prices of bitcoin are due to enter into a consolidation phase below $38,000. We can see some range-bounded movements between $35,000 to $38,000.

We can see that market volatility is increasing due to the global war crisis between Russia and Ukraine and its ripple effects on the major currencies and oil sector.

In the immediate short-term, bitcoin’s bearish momentum is expected to continue pushing below the $36,000 handle this week.

The prices of BTCUSD will need to remain above the important support levels of $35,000 this week.

Weekly outlook is projected at $36,000 with a consolidation zone of $37,500.

Technical Indicators:

The relative strength index (14-day): at 39.91 indicating a SELL

The average directional change (14-day): at 24.86 indicating a SELL

The rate of price change: at -0.937 indicating a SELL

The moving averages convergence divergence (12,26): at -45.00 indicating a SELL

Read Full on FXOpen Company Blog...

EUR/USD and EUR/JPY Eye Steady Increase


EUR/USD started a recovery wave from the 1.0850 zone. EUR/JPY climbed higher steadily and might rise further above 130.00.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro is attempting an upside correction above the 1.0950 level.
• There is a key bullish trend line forming with support near 1.0940 on the hourly chart.
• EUR/JPY gained bullish momentum after it broke the 127.50 resistance zone.
• There is a major bullish trend line forming with support near 129.55 on the hourly chart.

EUR/USD Technical Analysis

The Euro found support near the 1.0850 zone against the US Dollar. The EUR/USD pair started a recovery wave and was able to climb above the 1.0900 level.

The pair even cleared the 1.0950 level and the 50 hourly simple moving average. Finally, the pair traded spiked to 1.1019 before it corrected gains. A low is formed near 1.0926 on FXOpen and the pair is now moving higher.

EUR/USD Hourly Chart


It moved above the 1.0950 level and tested the 50% Fib retracement level of the recent decline from the 1.1016 high to 1.0926 low.

On the upside, the pair is facing resistance near the 1.1000 level. It is near the 76.4% Fib retracement level of the recent decline from the 1.1016 high to 1.0926 low. The next major resistance is near the 1.1020 level.

A clear break above the 1.1020 resistance could push EUR/USD towards 1.1050. If the bulls remain in action, the pair could rise above the 1.1100 resistance zone in the near term.

On the downside, the pair might find support near the 1.0950 level. There is also a key bullish trend line forming with support near 1.0940 on the hourly chart. If there is a downside break below the 1.0940 support, the pair might accelerate lower. The next major support sits near the 1.0925 level, below which there is a risk of a larger decline.

Read Full on FXOpen Company Blog...

ETHUSD and LTCUSD Technical Analysis – 17th MAR, 2022


ETHUSD: Bullish Engulfing Pattern Above $2,400

Ethereum ended its bearish phase after touching a low of $2,498 on March 14 and moved into a consolidation channel.

On March 15, ETHUSD entered into a bullish phase which pushed its prices above the $2,700 handle in today’s European trading session.

We can clearly see a bullish engulfing pattern above the $2,400 handle which 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 $2,755 and moving in a bullish channel. The price of ETHUSD is now testing its classic resistance level of $2,763 and Fibonacci resistance level of $2,773, after which the path towards $2,900 will get cleared.

The relative strength index is at 59 indicating a STRONG demand for Ethereum and the continuation of the buying pressure in the markets.

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

All of the MAs are giving a BUY signal, and we are now looking at the level of $2,800 to $2,900 in the short-term range.

ETH is now trading above both the 100 Hourly and 200 Hourly SMAs.

• A bullish reversal is seen in ETH above the $2,400 mark
• The short-term range appears to be strongly BULLISH
• The daily RSI is above 50 at 52, indicating a NEUTRAL market
• The average true range is indicating LESSER market volatility

Ether: Bullish Reversal Seen Above $2,400


ETHUSD has gained a strong bullish momentum with the prices trading above the $2,700 handle in the European trading session today.

The StochRSI is indicating an OVERSOLD market, which means that a pullback in the levels of Ethereum can be expected soon.

Ethereum is now moving in a bullish continuation pattern, meaning further appreciation in the prices of ETHUSD.

ETHUSD is now facing its immediate resistance level of $2,775, after which we will see a linear progression towards $2,900.

The key support level to watch is $2,300, and this week’s key resistance level is $2,900.

ETH has gained 4.11% with a price change of 108.62$ in the past 24hrs and has a trading volume of 15.881 billion USD.

We can see a 5.84% increase in the total trading volume in the last 24 hrs. which appears to be normal.

The Week Ahead

Ethereum has entered a consolidation channel above the $2,400 handle and is now moving in a bullish momentum towards $3,000.

For the first time in 3 years, the US Federal Reserve hiked its interest rate by 0.25% which has weakened the US dollar and sparked a rally in some crypto currencies, including Ethereum, which had been weighed down by the Russia-Ukraine war.

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 $2,500 and $2,900, and to enter a consolidation phase above $2,900 next week.

Technical Indicators:

The moving averages convergence divergence (12,26): at 30.92 indicating a BUY

The ultimate oscillator: at 52.02 indicating a BUY

The rate of price change: at 1.712 indicating a BUY

The Williams percent range: at -25.91 indicating a BUY

Read Full on FXOpen Company Blog...

AUD/USD and NZD/USD Eye Additional Upsides


AUD/USD started a fresh increase above the 0.7300 zone. NZD/USD is also showing positive signs and there was a clear move above the 0.6850 resistance.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh increase after it cleared 0.7250 against the US Dollar.
• There was a break above a key bearish trend line with resistance near 0.7235 on the hourly chart of AUD/USD.
• NZD/USD also climbed higher after forming a base above the 0.6720 level.
• There was a move above a major bearish trend line with resistance near 0.6775 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar found support near the 0.7180 zone against the US Dollar. The AUD/USD pair traded as low as 0.71654 on FXOpen before it started a fresh increase.

There was a clear move above the 0.7220 and 0.7250 resistance levels. The pair surged above the 0.7320 level and the 50 hourly simple moving average. Besides, there was a break above a key bearish trend line with resistance near 0.7235 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart


The pair even broke the 0.7380 resistance zone and traded as high as 0.7393. It is now consolidating gains below 0.7350. On the downside, an initial support is near the 0.7345 level. The 23.6% Fib retracement level of the upward move from the 0.7205 swing low to 0.7393 high is also near the 0.7245 level.

The next support could be the 50 hourly simple moving average or 0.7300. It is near the 50% Fib retracement level of the upward move from the 0.7205 swing low to 0.7393 high.

If there is a downside break below the 0.7300 support, the pair could extend its decline towards the 0.7250 level. Any more downsides might send the pair toward the 0.7200 level.

On the upside, the AUD/USD pair is facing resistance near the 0.7395 level. The next major resistance is near the 0.7400 level. A close above the 0.7400 level could start a steady increase in the near term. The next major resistance could be 0.7450.

Read Full on FXOpen Company Blog...

GBP/USD and GBP/JPY Remain Well Supported


GBP/USD started a fresh increase from the 1.3000 support zone. GBP/JPY is also rising and might gain pace above the 157.20 resistance zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a fresh increase from the 1.3000 support zone against the US Dollar.
• There is a key bullish trend line forming with support near 1.3145 on the hourly chart of GBP/USD.
• GBP/JPY also started a fresh increase after it cleared the 155.00 resistance zone.
• There is a short-term rising channel forming with support near 156.65 on the hourly chart.

GBP/USD Technical Analysis

After forming a base above the 1.3000 support zone, the British Pound found started a fresh increase against the US Dollar. The GBP/USD pair gained pace above the 1.3120 resistance zone to move into a positive zone.

There was also a break above the 1.3150 zone and the 50 hourly simple moving average. It even spiked above the 1.3200 level, but failed to continue higher. The recent high was formed near 1.3196 on FXOpen and the pair is now correcting lower.

GBP/JPY Hourly Chart


There was a move below the 1.3175 level. The pair even traded below the 38.2% Fib retracement level of the upward move from the 1.3110 low to 1.3196 high.

It is now approaching the 1.3150 support zone. There is also a key bullish trend line forming with support near 1.3145 on the hourly chart of GBP/USD. It is near the 50% Fib retracement level of the upward move from the 1.3110 low to 1.3196 high.

The next major support is near the 1.3110 level. If there is a break below the 1.3110 support, the pair could test the 1.3050 support. If there are additional losses, the pair could decline towards the 1.3000 level.

If there is a fresh increase, the pair could test the 1.3190 level. The next major hurdle is near 1.3200, above which the pair could surge towards 1.3250 in the near term.

Read Full on FXOpen Company Blog...