Daily Market Analysis By FXOpen

ETHUSD Technical Analysis on April 13, 2023

The Morning Star Pattern Is Above $1,824


Bears couldn’t keep control of the market, and ETH/USD started to correct upwards after touching a low of $1,763 on 9 April.

ETHUSD is now moving under a strong bullish momentum after crossing the $2,000 resistance and may touch $2,100 and $2,200 levels.

The morning star pattern is above the $1,824 handle on the H1 timeframe. It’s a bullish pattern, which signifies the end of a bearish phase.

The relative strength index is at 78.57, indicating a strong demand for Ether and a continuation of the buying pressure in the markets.

The STOCHRSI and Williams’s percent range give an overbought signal, meaning that the price is expected to decline in the short-term range.

Most of the technical indicators are bullish. Most moving averages are bullish.

ETH is now trading above the 100-hour simple and 200-hour exponential moving averages.

• Ether bullish reversal is seen above the $1,824 mark.
• The short-term range is expected to be strongly bullish.
• The average true range indicates low market volatility.

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LTCUSD Technical Analysis on April 13, 2023


Tweezer Bottom Pattern Is Above $89.15

Bears couldn't pull the market further down last week, and after touching a low of $89.15 on 9 April, LTC started to correct upwards against the US Dollar, touching a high of $96.85 on 11 April.

There is a tweezer bottom pattern above the $89.15 handle on the H1 timeframe. It signifies the end of a bearish phase and the start of a bullish phase in the market.

The price of Litecoin is near the channel's support, indicating upcoming bullish movement. Also, Litecoin is trading above its 100-hour simple moving average and 200-hour exponential moving average, and it's above the pivot level of $93.76.

The relative strength index is at 67.54, reflecting a very strong demand for Litecoin and the continuation of the buying pressure in the markets.

Litecoin remains above all moving averages, so the market is still bullish at the current market level of $94.23.

Both Williams’s percent range and STOCHRSI are signalling overbought market conditions, which means that the price is expected to decline in the short-term range.

The short-term outlook for Litecoin has turned as strongly bullish.

• Technical indicators are bullish.
• Litecoin bullish reversal is seen above the $89.15 level.
• The average true range indicates low market volatility.

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ETHUSD Rose by 10% in a Day on the Background of Shanghai Upgrade


Shanghai, an important upgrade to the Ethereum blockchain, has been a success. Against the backdrop of the news, the ETHUSD rate rose by 10% per day, breaking the psychological level of $2,000. As of Friday morning, ETH is trading above $2,100, something that has not happened since May 2022. Since the beginning of the year, ETHUSD has risen in price by about 77% (for comparison, Bitcoin, by about 86%).



In the long run, the Shanghai (also known as Shapella) upgrade has the advantage of providing more freedom to invest. But in the short term, a collapse in the value of ETH could occur, as investors got the opportunity to withdraw funds from staking. According to on-chain metrics, after the update, more than 1 million ETH tokens were requested for withdrawal. “[This] is much lower than what was previously expected,” Matt Maximo, an analyst with Grayscale, told CNBC.

The growth of the ETHUSD rate was also facilitated by the lower US dollar index — it fell to the lows of the current year after the release of March producer price index on Thursday, which showed signs of weakening inflation.

On the daily chart of ETHUSD, there was a bullish breakout (1) of the upper boundary of the rising channel that was active in 2023 – which suggests that the market is overbought, and a technical pullback with a breakout test of the $2k psychological level will be a likely scenario.

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Gold Price Inches Higher While WTI Crude Oil Aims Fresh Increase


Gold price is rising and trading above the $2,030 resistance. WTI is consolidating and might aim for a fresh increase above $83.25.

Important Takeaways for Gold and Oil

• Gold price started a fresh increase above the $2,020 resistance against the US Dollar.
• A key bullish trend line is forming with support near $2,030 on the hourly chart of gold at FXOpen.
• Crude oil price also gained pace and was able to climb above the $82.00 resistance.
• There is a key contracting triangle forming with support near $82.00 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis


On the hourly chart of gold at FXOpen, the price formed a base above the $1,990 support zone against the US Dollar. The price started a decent increase and was able to clear the $2,000 resistance zone.

The upward move gained pace above the $2,020 and $2,030 resistance levels. Finally, the bears appeared near $2,050. A high is formed at $2,048, and the price is now consolidating gains.

Initial support on the downside is near the 23.6% Fib retracement level of the recent increase from the $2,001 swing low to the $2,048 high. The first major support is forming near a key bullish trend line at $2,030.

If there is a downside break below the trend line, the price might slide toward the 50-hour simple moving average at $2,025. The next major support is near the 61.8% Fib retracement level of the recent increase from the $2,001 swing low to the $2,048 high at $2,020.

On the upside, the bulls are facing resistance near $2,048. An upside break above the $2,048 resistance could send the price toward $2,060. Any more gains may perhaps set the pace for an increase toward the $2,080 level.

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Watch FXOpen's April 10-14 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.

• USD: Q1 results
• USDJPY: Are the bulls trying to revive the long-term trend?
• Tech stocks are back in vogue as a sudden rally grabs the attention
• British pound remarkably remains the best performing G10 currency in 2023

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




FXOpen YouTube


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.

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GBP/USD Corrects Gains While USD/CAD Eyes Recovery


GBP/USD faced resistance near 1.2540 and started a downside correction. USD/CAD is recovering and might gain pace if it clears the 1.3370 resistance.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a downside correction below the 1.2500 zone.
• There was a break below a key bullish trend line with support at 1.2455 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD declined below the 1.3450 and 1.3400 support levels.
• A major bearish trend line is forming with resistance near 1.3370 on the hourly chart at FXOpen.

GBP/USD Technical Analysis


On the hourly chart of GBP/USD at FXOpen, the pair was able to climb above the 1.2455 resistance zone. However, the bears were active near the 1.2540 zone.

As a result, the pair started a downside correction below a key bullish trend line with support at 1.2455. Finally, it spiked below the 1.2400 support. A low is formed near 1.2383 and the pair is now consolidating losses.

Immediate resistance is forming near the 23.6% Fib retracement level of the downward move from the 1.2545 swing high to the 1.2383 low at 1.2425.

The next resistance is near 1.2455 (the recent breakdown zone). With an upside break above the 1.2455 zone, the pair could rise toward the 50-hour simple moving average at 1.2485. It coincides with the 61.8% Fib retracement level of the downward move from the 1.2545 swing high to the 1.2383 low.

An upside break above the 1.2485 resistance might send the pair toward 1.2540. Any more gains might open the doors for a test of 1.2600.

On the downside, initial support is near the 1.2400 area. The next major support is near the 1.2345 level. If there is a break below 1.2345, the pair could extend its decline. The next key support is near the 1.2300 level. Any more losses might call for a test of the 1.2250 support.

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Gold Formed an Important Bearish Pattern


A bearish engulfing pattern (1) has formed on the gold price chart. Two facts make it important:

→ the pattern has formed at the line (2) of the resistance of the trend channel, originating at the end of 2019;

→ the pattern was formed against the background of the discussed news about the US economy, which affected the value of the US dollar.

On Thursday, the price of gold rose (and the US dollar index fell to the lows of the year) after the publication of the Producer Price Index, and on Friday, gold fell sharply in price (and the US dollar index recovered accordingly) after the publication of data on retail sales which turned out to be below expectations (forecast: - 0.2%; actual: -1.0%).

The mixed movements can be interpreted as market participants trying to determine when the Fed can pause the tightening of monetary policy in order to curb high inflation. So far, it is expected that on May 3 the rate will be increased by 0.25%, after which a pause may follow.

From the lows of March, gold has risen in price by almost 13%. Having defined this movement as an impulse, we can assume that the bearish pattern is a sign of an incipient correction. In this case, the price of gold may drop to the $1,927-1,950 zone, formed by the support line (3) and the level of 50% of the impulse.




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Why Is the Czech Koruna So Strong Against the US Dollar?


Two decades ago, it was very much in vogue for the newly administered member states of the European Union to adopt the Euro currency.

Introduced in January 1999, just six years after the formation of the European Union, the Euro currency was a hot property among nations wishing to leverage their position in a continental common market, gain ‘major currency’ status overnight, and remove all borders when doing business with neighbouring countries.

Some nations, for reasons of their own choice or by virtue of their position in that they have been unable to join the single European currency due to admission criteria, have maintained their own sovereign currencies despite being fully subscribed members of the European Union.

Interestingly, whereas twenty years ago, those which did not adopt the Euro were considered outliers, now they have their heyday.

The Czech Republic is one such country. Located in Central Europe, with a strong manufacturing industry and diversified economy, it is a well-respected national economy which ranks well among the European benchmarks.

Whilst the Czech Republic has for some time admitted that it is preparing to adopt the Euro, this has not yet taken place, and there is no set date; therefore, it is still in the balance.

The Czech economy’s stoic resilience has certainly displayed itself through the strength of the country’s sovereign currency, as the Koruna is trading today against the US Dollar at 21.29, which is its highest point in over a year, and one of its highest points over the past five years.

The Czech Koruna is not pegged against any other currency, and despite the Czech Republic’s status as a European Union member state, the Koruna does not have any pegging arrangement with the European Central Bank; therefore, economic conditions within the Czech Republic itself determine the value and demand for the national currency.

The US Dollar has been performing surprisingly well over recent months, but as with most majors, there is not much in the way of volatility and as the United States economy has managed to bring itself out of double-digit inflation some time ago and is now at 5%, which is the lowest it has been since 2021 compared to many European nations which are between 10 and 22%.

Therefore, the Czech Koruna’s performance against a very strong major, which has been further stabilised by the US Federal Reserve, considering no further interest rate rises for the foreseeable future, is of great interest.

Currently, according to Statistica, inflation in the Czech Republic is at around 11% but is forecast to drop to 5.82% in 2024. According to CEIC Data, the national debt was 44.1% of GDP by the end of 2022, whereas the United States had a 123.4% national debt to GDP ratio for the same period.

Thus, the Czech Republic’s steady output of good quality export products and a diversified domestic market with a stable backdrop set the Koruna in good stead.

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BTCUSD Technical Analysis on April 18, 2023


BTCUSD Formed a Bullish Spinning Top Pattern above $29,138


Bitcoin continues its bullish momentum from last week, and after touching a low of $29,138 on April 18, it moved towards a consolidation phase, after which we expect an upward movement to the $30,500-$32,000 range.

The market opened bullish this week. There is a bullish spinning top pattern above the $29,138 handle on the H1 timeframe.

Bitcoin continues to move up in a mild bullish momentum and is now aiming to cross the $30,000 psychological barrier.

Both the STOCH and STOCHRSI are in overbought zones, meaning that a decline in the price is expected in the immediate short term.

Bitcoin continues to range near a new 1-year high in the weekly timeframe.

The relative strength index is at 63.29, indicating a strong demand for Bitcoin and the continuation of the buying pressure in the markets.

Bitcoin is now moving above the 100-hour exponential and 200-hour exponential moving averages.

Most of the major technical indicators are bullish; the targets for the immediate short term are $30,500 and $32,000.

The average true range indicates low market volatility with mild bullish momentum.

• Bitcoin bullish continuation is seen above $29,138.
• The RSI remains above 50, indicating a bullish market.
• The price is now trading above its pivot level of $29,926.
• The short-term range is mildly bullish.
• Some major technical indicators signal that the price may move to $30,500 and $31,500 soon.

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XRPUSD Technical Analysis on April 18, 2023


XRPUSD Formed an Inverted Hammer Pattern Above $0.5041


Last week, the market sentiment turned bullish after Ripple touched a low of $0.5041 on April 13 and started to correct. The market opened bullish this week.

On the hourly chart:

• The relative strength index is at 61.54, which signifies a strong demand for Ripple at the current market prices and the continuation of the bullish phase in the market.
• Moving averages signal an upward price movement at the current market level of $0.5200.
• Both the STOCHRSI and Williams’s percent range are in the overbought zones, which means the price is expected to decline.
• Ripple is now trading just above its pivot level of $0.5158. It has already crossed its classic resistance at $0.5188, and it is facing Fibonacci resistance at $0.5271, after which it will be able to move towards $0.5500.

Some of the major technical indicators are bullish.

• Ripple bullish reversal is seen above $0.5041.
• The price is above its pivot level.
• The average true range indicates low volatility.

We have also detected a bullish price crossover with 50- and 100-period moving averages in the daily time-frame.

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