Daily Market Analysis By FXOpen

EUR/USD Eyes Upside Break While USD/CHF Consolidates Gains


EUR/USD is struggling to climb above the 0.9920 resistance zone. USD/CHF is consolidating gains above the 0.9950 support zone.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a fresh decline and traded below the 0.9950 zone against the US Dollar.
• There is a major bearish trend line forming with resistance near 0.9905 on the hourly chart of EUR/USD.
• USD/CHF started a fresh increase after it was able to clear the 0.9920 resistance.
• There is a key bullish trend line forming with support near 0.9950 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro saw a major decline below the 0.9980 support against the US Dollar. The EUR/USD pair declined below the 0.9920 support level to move into a bearish zone.

The pair even tested the 0.9850 support zone. It is now forming a base above the 0.9850 level and is currently consolidating losses from the 0.9852 low formed on FXOpen. There was a minor recovery wave above the 0.9880 level.

EUR/USD Hourly Chart


The pair climbed above the 23.6% Fib retracement level of the downward move from the 0.9954 swing high to 0.9852 low. An immediate resistance is near the 0.9900 level and the 50 hourly simple moving average.

There is also a major bearish trend line forming with resistance near 0.9905 on the hourly chart of EUR/USD. It is near the 50% Fib retracement level of the downward move from the 0.9954 swing high to 0.9852 low.

The next major resistance is near the 0.9920 level. A clear move above the 0.9920 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 0.9865 level. The next major support is near the 0.9850 level. A downside break below the 0.9850 support could start another decline.

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ETHUSD and LTCUSD Technical Analysis – 03rd NOV, 2022


ETHUSD: Bullish Engulfing Pattern Above $1483

Ethereum was unable to sustain its bearish momentum and after touching a low of 1488 on 28th Oct, the prices started to correct upwards against the US dollar. The prices of Ethereum touched a high of 1642 on 29th Oct after which we can see a shift towards the consolidation phase in the markets.

We can see that the MACD indicator is giving a bullish divergence signal in the 4-hour time frame

We can clearly see a bullish engulfing pattern above the $1483 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 1544 and is moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance levels of 1548 and Fibonacci resistance level of 1552 after which the path towards 1600 will get cleared.

The relative strength index is at 48 indicating a neutral market and the shift towards a correction and consolidation phase in the markets.

We can see that the commodity channel index is giving a neutral signal which indicates a range bound movement for some time in the markets.

The STOCHRSI is indicating an overbought market, which means that the prices are expected to decline in the short-term range.

Some of the technical indicators are giving a BUY market signal.

Some of the moving averages are giving a BUY signal and we are now looking at the levels of $1650 to $1700 in the short-term range.

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

• Ether: bullish reversal seen above the $1483 mark
• The short-term range appears to be mildly bullish
• ETH continues to remain above the $1500 levels
• The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $1254


ETHUSD is now moving into a mildly bullish channel with the prices trading above the $1500 handle in the European trading session today.

ETH touched an intraday low of 1502 in the Asian trading session and an intraday low of 1558 in the European trading session today.

The RSI indicator is back over 50 indicating a bullish scenario.

We can see a bullish price crossover pattern with moving averages MA20 and MA100.

We can also see the formation of a bullish harami pattern in both the 2-hour and 4-hour time frames.

The MA20 is also indicating a bullish trend reversal signal in the weekly timeframe.

The daily RSI is printing at 60 indicating a strong demand for Ether in the long-term range.

The key support level to watch is $1427 which is a 50% retracement from a 4-week high/low and 1482 which is a 38.2% retracement from 4 week high/low.

ETH has decreased by 0.70% with a price change of 11.14$ in the past 24hrs and has a trading volume of 22.835 billion USD.

We can see an increase of 53.42% in the total trading volume in the last 24 hrs which is due to the continued buying seen at lower levels.

The Week Ahead

ETH price continues to remain in a bullish zone against the US dollar and bitcoin. ETHUSD is expected to move higher towards the $1600 and $1700 levels this week.

We can see the formation of a major bullish trendline in place from $1483 towards $1640 level.

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

The prices of ETHUSD will need to remain above the important support level of $1513 which is a 38.2% retracement from 13-week low.

Weekly outlook is projected at $1750 with a consolidation zone of $1650.

Technical Indicators:

The STOCH (9,6): is at 77.85 indicating a BUY.

The rate of price change: is at 0.983 indicating a BUY.

The bull/bear power (13): is at 4.55 indicating a BUY.

High/lows(14): is at 9.01 indicating a BUY.

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

Gold Price Recovers While Crude Oil Price Aims Upside Break


Gold price started an upside correction from the $1,615 zone. Crude oil price is rising and might clear the $90 resistance zone.

Important Takeaways for Gold and Oil

• Gold price found support near the $1,616 level and corrected higher against the US Dollar.
• There is a key bearish trend line forming with resistance near $1,650 on the hourly chart of gold.
• Crude oil price is showing positive signs above the $87.20 support zone.
• There was a break below a connecting bullish trend line with support near $88.30 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price failed to gain strength for a move above the $1,665 resistance against the US Dollar. The price started a fresh decline and traded below the $1,650 support level.

There was a clear move below the $1,635 support zone and the 50 hourly simple moving average. The price traded as low as $1,616 on FXOpen and recently there was a recovery wave. The price was able to clear the $1,630 resistance zone.

Gold Price Hourly Chart


The price even climbed above the 38.2% Fib retracement level of the downward move from the $1,669 swing high to $1,616 low. It is now facing resistance near the $1,640 level and the 50 hourly simple moving average.

The first major resistance is near the $1,644 level. It is near the 50% Fib retracement level of the downward move from the $1,669 swing high to $1,616 low.

There is also a key bearish trend line forming with resistance near $1,650 on the hourly chart of gold. The main resistance is now forming near the $1,655 level, above which it could even test $1,670. A clear upside break above the $1,670 resistance could send the price towards $1,700.

An immediate support on the downside is near the $1,630 level. The next major support is near the $1,620 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,600 support zone.

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Watch FXOpen's October 31 - November 4 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.

• FTSE 100 rockets as oil giant reaps the profits
• The Fed shook the market. What's next?
• UK Interest Rate announcement
• Will the Oil price rise?

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



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GBP/USD and GBP/JPY Eye Key Upside Break


GBP/USD started a decent recovery wave above the 1.1250 resistance. GBP/JPY is also rising and might climb further higher above the 167.00 zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a recovery wave above the 1.1250 resistance against the US Dollar.
• There is a key bearish trend line forming with resistance near 1.1395 on the hourly chart of GBP/USD.
• GBP/JPY declined heavily before it found support near the 165.00 zone.
• There is a major bearish trend line forming with resistance near 167.00 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.1150 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.1200 level.

There was a clear move above the 1.1250 resistance and the 50 hourly simple moving average. The pair even traded above the 38.2% Fib retracement level of the main decline from the 1.1564 swing high to 1.1146 low.

GBP/USD Hourly Chart


An immediate resistance on the upside is near the 1.1355 level. It is near the 50% Fib retracement level of the main decline from the 1.1564 swing high to 1.1146 low.

The next major resistance is near the 1.1380 level. There is also a key bearish trend line forming with resistance near 1.1395 on the hourly chart of GBP/USD, above which the pair could start a steady increase towards 1.1450.

An upside break above 1.1450 might start a fresh increase towards 1.1550. Any more gains might call for a move towards 1.1600 or even 1.1640.

An immediate support is near the 1.1300. The next major support is near the 1.1270 level and the 50 hourly simple moving average. If there is a break below the 1.1270 support, the pair could test the 1.1200 support. Any more losses might send GBP/USD towards 1.1150.

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House prices in the UK take a nosedive hinting at depth of recession


Whilst it certainly is true that house prices in the UK do not bear a direct relation to the capital markets or world of multi-asset electronic trading, it is most certainly a point of interest that when house prices move up or down, it is an indicator of the confidence in, and security of the domestic economy.

Britain is a home-owning nation. The phrase 'An Englishman's home is his castle' has been very appropriate for many generations and more than just a home, many residents in the United Kingdom see their home as a solid investment which should appreciate steadily over time.

Therefore, when house prices actually decrease, especially by some significant amount, such a decrease can be used as a measure of the weakening condition of the overall economy, which in turn may affect currency and stock markets.

The decreasing value of the British Pound against Western major currencies during the course of mid-2022 until very recently has been a case in point.

Just a few days after the shortest tenure for any Prime Minister in British history was held by Liz Truss for just 44 days, replacement Prime Minister Rishi Sunak took office and the new Chancellor of the Exchequer reversed Ms. Truss and former chancellor Kwasi Kwarteng's budget, with some commentators having even ventured their opinion that had it not been reversed, severe fiscal damage may have been done to the British economy.

Now, as the economy continues to flounder, house prices are at their lowest point since February 2021, this time caused by the increasing cost of borrowing money from banks in the form of mortgages, and the removal of a series of mortgage products from the market by no less than 10 British banks.

Those with mortgages are set for in some cases substantial increases in monthly payments as the interest rates continue to rise, with an expectation of 5 to 6% being reached by January 2023.

Average house prices slid 0.4 per cent between September and October, the most they have fallen since February 2021 and following a 0.1 per cent decline in September according to data from Halifax, one of the UK's largest mortgage lenders.

In February 2021, house prices were at a low point after a brutal period of lockdowns during which many people found their place of employment closed by the government, and payment holidays were commonplace as were fears of unaffordability of monthly commitments.

During the middle of 2021, the British government canceled stamp duty (property purchase tax) for buyers of properties under a certain value, which boosted the market and prices of lower valued properties increased tremendously, largely bolstered by 'buy-to=let' landlords picking up properties with no purchase tax.

That has long since ended, and now with the economy in a sustained state of recession, house prices are once again an indicator of the overall health of the fiscal position in the United Kingdom.

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US Tech stocks under scrutiny as layoffs make presence felt


During the course of last year, the previously very steady 'big tech' stocks became very volatile.

Big tech - a term often used to describe large-cap, publicly listed technology giants with their origins in Silicon Valley such as Meta, Alphabet (Google), Twitter, Tesla, Netflix and Amazon - is an area of the US stock market indices which has over recent years attracted steady, conservative investment due to overall lack of sudden movements.

The past 12 months have turned that on its head, and there have been times at which the Dow Jones and S&P500 indices, along with the overall performance of the two major New York-based stock exchanges, NYSE and NASDAQ having been affected noticeably by larger moves than had previously been the case.

One of the reasons for the sudden volatility had been the need for US tech firms to have to pay their suppliers and employees in different countries more, due to inflation and the depreciation of certain currencies against the US Dollar, however there had been a few more reasons and some of them are down to internal corporate policy. For example, Elon Musk's recent attempts to purchase Twitter have been surrounded by speculation that he may fire a substantial proportion of the existing workforce.

Overall, however, the staff redundancies in the big tech sector have not been limited to high profile speculation about Elon Musk's plans at Twitter. They have been far more widespread than this, as depicted by last week's employment figures released by the US Government.

Whilst some 261,000 new jobs were filled in the United States in October, blowing away analyst expectations of 200,000, the tech sector has been slowing down recruitment, and in some cases laying off existing staff.

Amazon, Apple and Facebook (Meta) have all announced hiring freezes, and in some cases are making redundancies.

Californian ride-sharing app developer Lyft is about to lay off 13% of its staff, and among the bigshots, Facebook is looking at reducing its workforce at subsidiaries WhatsApp and Instagram.

On a Year on Year basis, Amazon stock is down over 40% and Apple stock is down 25%, partly caused by production delays of its new iPhone 14 which is produced in China and has been subject to factory closures due to the Chinese government's draconian lockdowns which are still in force.

If the sensationalist news is to be believed, Twitter would look to lay off half of its entire payroll under Elon Musk's leadership.

Interestingly, despite the clear downturn in tech company revenues and their intention to reduce headcount compared to the 'low tech' American industries actually hiring more than expected in October, the S&P500 is actually up to 3,800 today compared to yesterday's low point of less than 3,700 which represented a five-day low.

The NASDAQ composite index is up a little too, at 10,560 over yesterday's 10,294 but today's increases still do not take it back to the high points at the beginning of last week.

It appears as though these possible layoffs are currently lingering in the background and until they have actually taken place, corporate performance is still being taken at face value.

What this does show, however, is that tech stocks are still quite steady and not so easily affected by news and are more affected by actions from within the firms themselves.

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BTCUSD and XRPUSD Technical Analysis – 08th NOV 2022


BTCUSD: Shooting Star Pattern Below $21470

Bitcoin was unable to sustain its bullish momentum and after touching a high of 21470 on 05th Nov, the price started to correct lower against the US dollar and is now trading below the $20000 handle in the European trading session.

We can see that the price is declining due to heavy selling pressure seen across the global crypto markets, and the price of bitcoin is expected to break below the $19000 handle this week.

We have seen a bearish opening of the markets this week.

We can see the formation of bearish engulfing lines in the 1-hour time frame.

The price of bitcoin is below the pivot point and camarilla S3 support level, indicating the bearish trends present in the market.

We can clearly see a shooting star pattern below the $21470 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 20666 and an intraday low of 19413 in the Asian trading session today.

Both the STOCH and Williams percent range 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 27 indicating a VERY WEAK demand for bitcoin, and the continuation of selling pressure in the markets.

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

Most of the major technical indicators are giving a STRONG SELL signal, which means that in the immediate short term, we are expecting targets of 19000 and 18500.

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

• Bitcoin: bearish reversal seen below $21470
• The STOCHRSI range is indicating an oversold level
• The price is now trading below its pivot level of $19818
• Most of the moving averages are giving a STRONG SELL market signal

Bitcoin: Bearish Reversal Seen Below $21470


We can now see that the price of bitcoin failed to clear the $22000 handle and is now moving towards the $19000 level.

The MACD has crossed down its moving average in the daily time frame indicating a bearish trend.

The parabolic SAR indicator is giving a bearish reversal signal in the daily time frame.

We can see the formation of a bearish price crossover pattern with adaptive moving average AMA20 and AMA50 in the daily time frame.

We have also seen a black evening star in the weekly time frame.

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

Bitcoin’s support zone is located at $19475 which is a 38.2% retracement from a 4 week low, and the price needs to remain above these levels for any potential bullish reversal in the markets.

The price of BTCUSD is now facing its classic support level of 19646 and Fibonacci resistance level of 19700 after which the path towards 19000 will get cleared.

In the last 24hrs, BTCUSD has decreased by 4.68% by 970$ and has a 24hr trading volume of USD 66.898 billion. We can see an increase of 51.65% in the trading volume compared to yesterday, which is due to the heavy selling pressure seen in the global markets.

The Week Ahead

The price of Bitcoin is moving in a strongly bearish zone below the $20000 level. Further downsides are projected at $19000 and $18500 as the immediate targets.

Now we are aiming for $19385which is an 18-day moving average.

The daily RSI is printing at 45 which indicates a neutral demand for bitcoin and a shift towards the consolidation phase in the markets.

The price of BTCUSD has already crossed below $19855 which is a 50% retracement from a 4-week high/low.

The weekly outlook is projected at $19000 with a consolidation zone of $19250.

Technical Indicators:

The moving averages convergence divergence MACD (12, 26): is at -303.10 indicating a SELL

The commodity channel index CCI (14): is at -107.49 indicating a SELL

The rate of price change ROC: is at -4.53 indicating a SELL

The bull/bear power (13): is at -775.38 indicating a SELL

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EUR/USD and EUR/JPY Aim More Upsides


EUR/USD is gaining pace above the 1.0000 resistance. EUR/JPY is also rising and might climb further higher above the 147.00 zone.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro started a fresh increase and was able to clear the 0.9950 resistance zone.
• There is a key bullish trend line forming with support near 1.0040 on the hourly chart.
• EUR/JPY started a strong increase and settled well above the 146.00 zone.
• There is a major bearish trend line forming with resistance near 146.65 on the hourly chart.

EUR/USD Technical Analysis

The Euro formed a base above the 0.9740 zone and started recovery wave against the US Dollar. The EUR/USD pair was able to clear the 0.9820 and 0.9900 resistance levels.

There was a clear move above the 0.9950 level and the 50 hourly simple moving average. The pair even climbed above 1.0000 and traded as high as 1.0096 on FXOpen. It is now consolidating gains near the 1.0080 zone.

EUR/USD Hourly Chart


On the downside, the pair might find support near the 1.0050 level. Besides, there is a key bullish trend line forming with support near 1.0040 on the hourly chart. The trend line is near the 50% Fib retracement level of the upward move from the 0.9972 swing low to 1.0096 high.

The next major support sits near the 1.0020 level and the 50 hourly simple moving average, below which the pair could even test the 76.4% Fib retracement level of the upward move from the 0.9972 swing low to 1.0096 high.

If there is a downside break below the 1.0000 support, the pair might accelerate lower in the coming sessions. In the stated case, it could even test 0.9920.

On the upside, an immediate resistance is near the 1.0095 level. The next major resistance is near the 1.0125 level. The main resistance is near the 1.0150 level. A clear move above the 1.0150 resistance might send the price towards 1.1200. If the bulls remain in action, the pair could revisit the 1.1320 resistance zone in the near term.

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Tesla stock takes very mild downturn as Musk sells $4 billion worth of stock


Tesla has proven itself to be an extremely unusual force to be reckoned with not only by way of the disruptive influence it has had on the traditional motor industry which is suddenly rallying to transition from internal combustion to electric power, but also on the world of large corporate industry.

As recently as 10 years ago, most motorists worldwide would have continued their long-held belief that electric cars are awful contraptions and that there is nothing like a powerful internal combustion engine to reinforce the fun and experience of car ownership and the driving experience, and motoring groups and media mocked the gormless 'milk float' stature of the attempts to go electric that had gone before.

Suddenly from outside the car industry came Tesla, with no heritage and no 120 years of automotive pedigree and took the world by storm.

Now, Tesla has ten times the market capitalization of Ford Motor Company and is considered to be among America's 'big tech' band of commercial giants such as Amazon and Google.

Yesterday, CEO Elon Musk sold $4 billion worth of Tesla stock. That is a lot of money. It is also a big move by a CEO who is well known for his self-starting, 'my way or the highway' approach to running businesses and influencing entire market sectors and industries.

Surely if Elon Musk cashes out to such a degree, the direction of the company may be diluted and it would take a downturn?

Not really. Yes, the stock has decreased in value slightly but not by very much at all.

Today, Tesla stock is down 2% to 1.91, however when looking over the 5 day period, it is down an unbelievable 34%, so perhaps Elon Musk is cashing out at a time during which the firm's stock is crashing in value over a longer period of time.

Perhaps Tesla has made its point, and now with the rental car fleets, taxi companies and lease market totally flooded with the Model 3, it is no longer considered a novelty, especially considering that the traditional car manufacturers are making arguably much better electric cars. Porsche is selling more fully electric Taycans than all of its other models, and today Volvo launches its fully electric SUV the EX90. BMW and Mercedes Benz have gone fully electric across the range, and the Audi e-Tron is universally popular.

Elon Musk is a savvy investor as much as he is a savvy innovator.

Perhaps he is pulling some capital to safety at a time during which Tesla stock is declining and he has long since made his point.

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