Daily Market Analysis By FXOpen

GBP/USD Faces Key Hurdle, USD/CAD Could Rise Further


GBP/USD struggled to clear 1.1500 and corrected lower. USD/CAD is rising and might climb further above the 1.3800 resistance.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound failed to gain strength for a move above the 1.1500 resistance.
• There is a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase above the 1.3600 resistance zone.
• There was a clear move above a major bearish trend line with resistance at 1.3650 on the hourly chart.

GBP/USD Technical Analysis


After forming a base above the 1.0850, the British Pound started a steady recovery wave against the US Dollar. GBP/USD gained pace for a move above the 1.1000 and 1.1200 resistance levels.

There was a move above the 1.1350 resistance and the 50 hourly simple moving average. However, the pair faced a strong resistance near the 1.1500 zone. A high was formed near 1.1496 on FXOpen and recently there was a downside correction.

There was a move below the 1.1350 and 1.1320 support levels. The pair declined below the 38.2% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.

It is now trading below the 1.1200 level and the 50 hourly simple moving average. On the downside, an initial support is near the 1.1020 area. It is near the 50% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.

The next major support is near the 1.0950 level. If there is a break below 1.0950, the pair could extend its decline. The next key support is near the 1.0850 level. Any more losses might call for a test of the 1.0750 support.

An immediate resistance is near the 1.1120 level. There is also a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.

The next resistance is near the 1.1180 level. The main resistance is near the 1.1200 level. If there is an upside break above the 1.1200 zone, the pair could rise towards 1.1280. The next key resistance could be 1.1300, above which the pair could gain strength.

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FTSE 100 approaches lowest point in 12 months


The seemingly continual focus on the ever-decreasing value of the British Pound by analysts and traders has been such a central point across the global markets during the past few months that very little attention has been paid to the dichotomy that has been taking place on the stock market.

The London Stock Exchange is home to some of the world's most long-established blue-chip companies and its performance is a definitive measure of the health of the domestic economy from a corporate and industrial perspective.

As the pound made its way down to rock bottom, an interesting pattern emerged within the FTSE 100 index, which is the index that tracks the 100 most prestigious companies listed on the London Stock Exchange's main market.

During these recent weeks, raw materials and mining companies have been doing well, whereas banks and homebuilders have been doing less well.

That demonstrates the current situation in which the British economy is being viewed by not only investors but also banks themselves, many which have removed mortgage products from the market and are taking preventative measures relating to such lending related products in case the interest rate approaches 5% which is anticipated for January 2023.

Today, the FTSE 100 index begins the morning trading session at an almost 12-month low, with factors including high inflation which is driving up costs causing consumer spending to drop, increasing interest rates which are making access to external capital more expensive, continued supply chain disruptions causing global manufacturing delays, and the tanking Pound damaging earnings reported by listed firms being massive contributors.

It is perhaps not surprising that the overall direction of the FTSE 100 index has been a downward one, however some analysts are taking an optimistic view on some of the pharmaceutical stocks, whereas others are looking at the entire British market through a pessimistic lens.

On September 29, the FTSE 100 went down to 6880 points, its lowest point by far in 12 months, and after a slight rebound it is now declining toward that figure again.

The index opened this morning at 6959 points, still below 7000, and 7000 points has been a yardstick measure since mid-2021 when the market was in full upward swing and the news channels were going overboard on the FTSE 100 index having broken the 7000 points barrier, upwards of which it has remained until now.

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Professional traders go all out for FX market volatility as volumes soar


The apparent economic disarray which has been unfolding across many Western nations for the past two years may well have resulted in a sustained devaluation of key major currencies such as the British Pound and Euro, but it has brought back something that was utterly lacking for more than two decades: volatility.

Ever since the last decade of the Cold War in which much of Eastern Europe was a non-participant in the global free-market economy and much of Western Europe was struggling under austerity and labor union chaos, the emphasis has been on steady growth and a pragmatic rise to prosperity for most members of the European and American public.

Over the past 30 years, we have seen many European nations unite and accept a common currency, we have seen Britain shake off the shackles of post-World War 2 austerity after the boom years of the 1980s transformed it from a tough climate of trade unions and beige attire into a property-owning nation of entrepreneurs and international trade, punctuated only by some high interest rates in the early 1990s and the financial crisis of 2008/2009 which only affected some banks and was swiftly recovered from.

Today, the citizens of Europe and much of North America are in a very different place. Over two years of economically catastrophic government-enforced lockdowns, taxpayer-funded furlough schemes, travel restrictions, the exit from the European Union of Great Britain, supply chain curtailments and geopolitical tensions have created rapidly depreciating currencies and massive holes in national balance sheets.

We hear endless reports about the cost of living crisis, and rocketing inflation, energy bills quadrupling and interest rates set to rise to such worrying levels that British banks have been removing mortgage products from the market.

This cocktail of woes has caused the Pound to tank over recent weeks, and although the Euro held up well, as soon as the European Central Bank began raising interest rates, it too began to sink in value.

The anomaly has been the strength of the US Dollar, which is proving its mettle as the world's most reliable reserve currency as it has held up very well against the Euro and British Pound despite the United States being subject to similar fiscal and political challenges as mainland Europe and the United Kingdom.

Interestingly, reports have focused on all of the doom and gloom, but have not been necessarily quick to note the upside of this, that being the increased interest in FX trading due to such levels of volatility which have not been present for almost 3 decades.

As an example, Euronext, which is a European electronic trading venue which operates exchange-traded funds, warrants and certificates, bonds, derivatives, commodities, foreign exchange as well as indices, has been experiencing a boom in volumes on its specialist FX trading platform Euronext FX to the extent that over 30% more trades took place on Euronext in September this year compared to the same period last year, resulting in an aggregated monthly turnover of $533 billion, which is up 18 percent from $452 billion that changed hands in the previous month.

Additionally, interbank FX trading is at multi-year highs in terms of volume, demonstrating that the Tier 1 banks are attempting to capitalize on the increased levels of volatility.

Today the US Dollar remains strong, as the Pound has begun to decline once again against the greenback, and the EURUSD pair languishes at 0.97, which is almost parity.

Yes, the economic outlook remains bleak across Europe and Britain, but the currency markets are alive with volatility.

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BTCUSD and XRPUSD Technical Analysis – 11th OCT 2022


BTCUSD: Triple Top Pattern Below $20441

Bitcoin was unable to sustain its bullish momentum and after touching a high of 20441 on 06th Oct, it started to decline touching a low of 18977 today in the early Asian trading session.

The prices of bitcoin continue to decline amid the selling pressure that is seen across the cryptocurrency markets globally.

We can see that the prices are ranging near a new record low of 1 month in the weekly time frame.

We can clearly see a triple top pattern below the $20441 handle which is a bearish reversal pattern because it signifies the end of an uptrend and a shift towards a downtrend.

Bitcoin touched an intraday high of 19282 and an intraday low of 18960 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 43 indicating a WEAK demand for bitcoin, and the continuation of the selling pressure in the markets.

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

Some of the major technical indicators are giving a SELL signal, which means that in the immediate short term, we are expecting targets of 18500 and 18000.

The average true range is indicating LESS market volatility with a mild bearish momentum.

• Bitcoin: bearish reversal seen below $20441
• The Williams percent range is indicating an overbought level
• The price is now trading just below its pivot level of $19107
• Some of the moving averages are giving a SELL market signal

Bitcoin: Bearish Reversal Seen Below $20441


The fall in the price of bitcoin is in line with the three failed attempts at breaching the $20500 resistance level. We are now heading towards the important support level of $19000 which if broken will pave the way towards $18000.

We can see the formation of a bearish harami and bearish harami cross pattern in the 15-minute time frame.

The commodity channel index is giving a neutral level and the relative strength index is approaching the 50 level.

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

Bitcoin’s support zone is located at $18656 and the prices need to remain above this level for a potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 19028 and Fibonacci support level of 19087 after which the path towards 18500 will get cleared.

In the last 24hrs BTCUSD has decreased by 0.92% by 176$ and has a 24hr trading volume of USD 28.521 billion. We can see an increase of 45.40% in the trading volume compared to yesterday, due to increased selling pressure in the markets.

The Week Ahead

The price of bitcoin is moving in a mildly bearish zone below the $19500 level. Further downsides are projected at $18500 and $18000 as the immediate targets.

After the recent decline, bitcoin is staging for a recovery once it breaches down the important support level of $19000.

The average direction index and MA5, MA10 are indicating a bullish rebound in the price towards the $20000 level.

The daily RSI is printing at 43 which indicates a neutral level and a move towards the consolidation phase in the markets.

The price of BTCUSD will need to remain above the important support level of $18500 this week.

The weekly outlook is projected at $19000 with a consolidation zone of $18800.

Technical Indicators:

The moving averages convergence divergence (12,26): is at -75.50 indicating a SELL

The ultimate oscillator: is at 44.42 indicating a SELL

The rate of price change: is at -0.661 indicating a SELL

Bull/Bear power (13): is at -10.73 indicating a SELL

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AUD/USD and NZD/USD Gain Bearish Momentum Below Support


AUD/USD is moving lower and approaching the 0.6220 support. NZD/USD is also declining and showing bearish signs below 0.5600.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline from well above the 0.6320 zone against the US Dollar.
• There was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.
• NZD/USD is gaining bearish momentum below the 0.5600 support zone.
• There was a break below a key bullish trend line with support at 0.5595 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar failed to stay above the 0.6400 level and started a fresh decline against the US Dollar. The AUD/USD pair traded below the 0.6350 support zone to move into a bearish zone.

There was a clear move below the 0.6300 level and the 50 hourly simple moving average. During the decline, there was a break below a connecting bullish trend line with support at 0.6265 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart


The pair traded as low as 0.6240 on FXOpen and is currently showing a lot of bearish signs. On the upside, the AUD/USD pair is facing resistance near the 0.6265 level. It is near the 23.6% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.

The next major resistance is near the 0.6290 level and the 50 hourly simple moving average. It coincides with the 50% Fib retracement level of the recent decline from the 0.6346 swing high to 0.62405 swing low.

A close above the 0.6300 level could start a steady increase in the near term. The next major resistance could be 0.6350.

On the downside, an initial support is near the 0.6240 level. The next support could be the 0.6220 level. If there is a downside break below the 0.6220 support, the pair could extend its decline towards the 0.6165 level.

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Traders dump British Pound en masse as BoE pulls plug on pension support


Will there be a run on pension funds? It was inevitable that the Bank of England would curtail its support somewhere when 'support' means literally printing money in order to keep fueling a collapsing economy.

Just a few weeks ago, at the point during which the British Pound was in absolute freefall against the Euro and US Dollar, the Bank of England introduced a £65 billion bond buying program which was aimed at preventing a market rout, which was viewed as a money printing exercise and raised many fears among investors.

Now, as the Pound has continued its downward slide, the Bank of England yesterday hinted at potentially ending its support by exiting its emergency gilt support program to pension companies on Friday, as planned.

Speaking in Washington DC yesterday, Bank of England Governor Andrew Bailey stated publicly that "The rebalancing must be done and my message to the funds involved and all the firms involved managing those funds: you've got three days left now. You've got to get this done."

The result was a significant amount of fear among British investors and private pension contributors who began to raise concerns that their pension funds would become worthless, or that the companies responsible for managing them may face financial difficulties.

Commentary in mainstream news contained viewpoints such as people in their mid-fifties considering withdrawing their pension as a lump sum to protect it.

The market reacted as perhaps expected, with traders dumping the Pound and a further decline in value having taken place.

During the US trading session yesterday, the British Pound dropped to 1.09 against the Euro and further slid against the US Dollar.

This morning, however, messages have become mixed as Bank of England Governor Andrew Bailey stated during private conversations with bank executives that the Bank of England may look at extending its emergency bond-buying program past this Friday’s deadline, according to people briefed on the discussions which made its way into the Financial Times this morning, despite Mr Bailey having already told pension funds that they “have three days left” before the support ends.

Pension funds are now in the process of redefining their investment strategies as the support is set to end in just three days time, however with the British Pound in turmoil, the economy tanking and inflation rampaging, interest rates set to reach between 5% and 6% by January 2023, there is a pinch to be felt for borrowers as well as those who are saving for their retirement.

This double-edged sword has not gone down well with investors and the overall outlook for the Pound is bleak indeed, especially considering that the UK Gilt market is not in the best shape, and internal reports have shown that the pensions industry is in no way ready for the Bank of England to withdraw its support.

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ETHUSD and LTCUSD Technical Analysis – 13th OCT, 2022


ETHUSD: Evening Star Pattern Below $1337

Ethereum was unable to sustain its bullish momentum and after touching a high of 1381 on 06th Oct, the prices started to decline against the US dollar. The prices of Ethereum touched a low of 1267 on 11th Oct after which we can see a shift towards the consolidation phase in the markets.

We have seen a bearish opening of the markets which indicates the bearish trend.

We can clearly see an evening star pattern below the $1337 handle which is a bearish pattern and signifies 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 1277 and is moving in a mildly bearish channel. The price of ETHUSD is now testing its classic support level of 1268 and Fibonacci support level of 1275 after which the path towards 1200 will get cleared.

The relative strength index is at 36 indicating a weaker demand for Ether and a shift towards the consolidation phase in the markets.

We can see that the price is back under the pivot point in the daily time frame indicating a bearish trend.

Both the STOCHRSI and the Williams percent range are indicating an oversold market, which means that the prices are expected to correct upwards in the short-term range.

Most 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 $12500 to $1200 in the short-term range.

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

• Ether: bearish reversal seen below the $1337 mark
• The short-term range appears to be mildly bearish
• ETH continues to remain below the $1300 level
• The average true range is indicating LESS market volatility

Ether: Bearish Reversal Seen Below $1337


ETHUSD is now moving in a mildly bearish channel with the price trading below the $1300 handle in the European trading session today.

ETH touched an intraday high of 1302 in the Asian trading session and an intraday low of 1272 in the European trading session today.

We can see the formation of a bearish harami pattern in the weekly time frame.

The moving average MA50 is giving a bearish trend reversal signal in the 1 hourly time frame.

We have seen that the support of the channel is broken in the 15-minute time frame indicating the bearish nature of the markets.

The daily RSI is printing at 38 indicating a weak demand in the long-term range.

The key support levels to watch are $1223 and $1227, and the price of ETHUSD needs to remain above these levels for any potential bullish reversal in the markets.

ETH has decreased by 2.20% with a price change of 28.61$ in the past 24hrs and has a trading volume of 8.806 billion USD.

We can see an increase of 8.11% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

The price of Ethereum came under heavy selling pressure as it declined below the $1300 level.

Ethereum’s price has now entered a bearish zone against the US dollar and we are now moving towards the $1200 level.

We can see the formation of a major bearish trend line in place from $1337 towards $1265 levels.

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

The prices of ETHUSD will need to remain above the important support level of $1223 this week.

The weekly outlook is projected at $1275 with a consolidation zone of $1250.

Technical Indicators:

The average directional index ADX (14): is at 26.30 indicating a SELL

The rate of price change: is at -1.61 indicating a SELL

Bull/Bear power (13): is at -16.20 indicating a SELL

The commodity channel index (14): is at -125.57 indicating a SELL

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EUR/USD Eyes Steady Recovery While USD/CHF Might Slide


EUR/USD started a recovery wave after a sharp decline post the US CPI release. USD/CHF is declining and might slide below the 0.9975 support.

Important Takeaways for EUR/USD and USD/CHF

• The Euro is slowly moving higher above the 0.9750 resistance zone against the US Dollar.
• There was a break above a major bearish trend line with resistance near 0.9700 on the hourly chart of EUR/USD.
• USD/CHF started a fresh decline after it failed to clear the 1.0075 resistance.
• There is a major bullish trend line forming with support near 0.9985 on the hourly chart.

EUR/USD Technical Analysis

This week, the Euro saw a major decline below the 0.9750 support against the US Dollar. The EUR/USD pair declined below the 0.9700 support level to move further into a bearish zone.

The pair formed a base above the 0.9640 level and recently started an upside correction. There was a move above the 0.9680 and 0.9700 resistance levels. There was a break above a major bearish trend line with resistance near 0.9700 on the hourly chart of EUR/USD.

EUR/USD Hourly Chart


The pair even broke the 50% Fib retracement level of the downward move from the 0.9926 swing high to 0.9631 low. The pair climbed above the 0.9750 level and the 50 hourly simple moving average.

An immediate resistance is near the 0.9815 level. It is near the 61.8% Fib retracement level of the downward move from the 0.9926 swing high to 0.9631 low. The next major resistance is near the 0.9850 level.

A clear move above the 0.9850 resistance zone could set the pace for a larger increase towards 1.0000. The next major resistance is near the 1.0050 zone.

On the downside, an immediate support is near the 0.9750 level. The next major support is near the 0.9720 level and the 50 hourly simple moving average. A downside break below the 0.9720 support could start another decline.

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Watch FXOpen's October 10-14 Weekly Digest Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

• GBP/USD faces key hurdle, USD/CAD could rise further
• Professional traders go all out for FX market volatility as volumes soar
• Traders dump British pound en masse as BoE pulls plug on pension support
• Yen tests 1998 lows

Watch our short and informative video, and stay updated with FXOpen.



FXOpen YouTube

Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

GBP/USD and GBP/JPY Eye Additional Gains


GBP/USD started a decent recovery wave above the 1.1200 resistance. GBP/JPY is also rising and might climb further higher above the 167.25 zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a fresh upward move above the 1.1200 resistance against the US Dollar.
• There is a key bullish trend line forming with support near 1.1210 on the hourly chart of GBP/USD.
• GBP/JPY gained pace after it was able to clear the 164.00 resistance zone.
• There is a major bullish trend line forming with support at 166.85 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.0950 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.1120 level.

There was a clear move above the 1.1200 resistance and the 50 hourly simple moving average. The pair even traded above the 1.1320 level. A high was formed near 1.1380 and recently started a downside correction.

GBP/USD Hourly Chart


There was a move below the 1.1320 support zone. The pair declined below the 1.1250, but the bulls were active near 1.1150. A low is formed near 1.1152 and the pair is now rising.

There was a move above the 1.1200 level. The pair climbed above the 23.6% Fib retracement level of the recent decline from the 1.1380 swing high to 1.1150 level. An immediate resistance on the upside is near the 1.1265 level.

It is near the 50% Fib retracement level of the recent decline from the 1.1380 swing high to 1.1150 level. The next major resistance is near the 1.1320 level, above which the pair could start a steady increase towards 1.1380.

An upside break above 1.1380 might start a fresh increase towards 1.1450. Any more gains might call for a move towards 1.1500 or even 1.1550.

An immediate support is near the 1.1220. There is also a key bullish trend line forming with support near 1.1210 on the hourly chart of GBP/USD. The next major support is near the 1.1150 level. If there is a break below the 1.1150 support, the pair could test the 1.0050 support. Any more losses might send GBP/USD towards 1.0000.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.