Daily Market Analysis By FXOpen

EURUSD Analysis: Market Reaction To The Fed's Decision


The Fed raised the rate yesterday by 0.25%, to 5.25%.

→ Now market participants expect a pause in the tightening policy. Moreover, the WSJ is hinting that the rate hike cycle may already be over.

→ According to Powell, it is important to raise the US debt ceiling, but not just raise it, but raise it on time (that is, not drag it out).

→ The Fed believes that the banking system is reliable and there is no cause for concern (by the way, PacWest bank shares fell 50% yesterday — bank management is considering selling it).

Although the decision was expected, it caused increased volatility:

→ US stock market indexes declined.

→ Gold jumped in price.

→ The US dollar index fell to dollar lows. Accordingly, the major currencies rose against the USD.



VIEW FULL ANALYSIS VISIT - FXOpen Blog...

Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

ETHUSD Analysis: Bullish Engulfing Pattern above $1,805


Bulls were able to take control of the market, and after touching a low of $1,805 on May 1, the ETH/USD pair moved upwards, touching a high of $1,916 today in the early Asian trading session. The bullish engulfing pattern is above the $1,805 handle on the H1 timeframe. It's a bullish pattern, which signifies the end of a bearish phase.

The market opened bullish this week. The ETH price remains well supported above the $1,800 level and is back above the pivot point.

The relative strength index is at 61.03, indicating a strong demand for Ether and a continuation of the buying pressure in the market.

Both the STOCH and CCI are neutral, meaning that the price is expected to enter into a consolidation zone in the short-term range.

A bullish reversal pattern with the 50-period moving average in the 2-hour timeframe was formed.

Most of the technical indicators are bullish. Most moving averages are bullish at the current Ethereum price of $1,899.

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

• ETH price is showing a bullish reversal above the $1,805 mark.
• The short-term range is expected to be mildly bullish.
• The average true range indicates low market volatility.
• The ETH price ranges near the support of the channel.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

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.

LTCUSD Analysis: The Morning Star Pattern Is above $85.16


Bulls were able to take control of the market last week, and after touching a low of $85.16 on May 1, the price started to correct upwards against the US dollar, touching a high of $89.82 today in the early Asian trading session.

There is a morning star pattern above the $85.16 handle on the H1 timeframe. It signifies the end of a bearish phase and the start of a bullish phase in the market.

The momentum indicator is back over zero in the H4 timeframe, indicating a bullish trend.

A bullish harami pattern is forming in the 30-minute timeframe.

Also, Litecoin is trading below its 100-hour simple moving average and 200-hour exponential moving average and above its pivot level of $88.5.

The relative strength index is at 51.92, indicating a neural demand for Litecoin and the shift towards consolidation.

Litecoin price remains above some of the moving averages, which are giving a bullish signal at current market levels of $88.20.

Both the ADX and CCI are signaling neutral market conditions, which means that the price is expected to move in a narrow range in the short term.

The short-term outlook for Litecoin has turned mildly bullish.

• Some of the technical indicators are bullish.
• Litecoin bullish reversal is seen above the $85.16 level.
• The RSI is neutral.
• The average true range indicates low market volatility.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

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.

AUD/USD and NZD/USD Target Additional Gains


AUD/USD is moving higher and might climb further higher above 0.6740. NZD/USD is also rising and might rally above the 0.6310 resistance zone.

Important Takeaways for AUD USD and NZD USD Analysis Today

• The Aussie Dollar started a fresh increase above the 0.6670 and 0.6700 levels against the US Dollar.
• There was a break above a major contracting triangle with resistance near 0.6700 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is gaining bullish momentum above the 0.6260 support.
• There is a key bullish trend line forming with support near 0.6260 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis


On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6640 support. The Aussie Dollar was able to clear the 50-hour simple moving average to move into a positive zone against the US Dollar.

There was also a break above a major contracting triangle with resistance near 0.6700 and the 76.4% Fib retracement level of the downward move from the 0.6717 swing high to the 0.6641 low.

The AUD USD chart indicates that the pair is now consolidating near the 1.236 Fib extension of the downward move from the 0.6717 swing high to the 0.6641 low. On the upside, it is facing resistance near the 0.6740 level.

An upside break above the 0.6740 resistance might send the pair further higher. The next major resistance is near the 0.6780 level. Any more gains could open the doors for a move toward the 0.6840 resistance zone.

On the downside, initial support is near 0.6740. The next support could be the 0.6670 level and the 50-hour simple moving average. If there is a downside break below the 0.6670 support, the pair could extend its decline toward the 0.6640 level. Any more losses might signal a move toward 0.6580.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Watch FXOpen's May 1 - 5 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.

• Unexpected interest rate hike in Australia strengthens AUD
• Market reaction to the Fed's decision
• Crude oil is at lowest point in over a month as US economy teeters and supply changes
• The Netflix chill – shares hit one-month low over past few days

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.

#fxopen #fxopenyoutube #fxopenuk #weeklyvideo

GBP/USD Reaches High Since the Beginning of the Year


Today, the British pound has updated its maximum since the beginning of the year. Here are the factors that contributed to this:

→ weakness of the US dollar due to the threat of default. The FT relays Yellen's words that the US Treasury Department's ability to bypass the default is running out;

→ the US dollar's weakness due to the banking crisis. According to media reports, 722 US banks have unrealized losses of more than 50% of capital;

→ the upcoming meeting of the Bank of England (Thursday, at 14:00 GMT+3). A rate increase is expected, which may not be the last.



VIEW FULL ANALYSIS VISIT - FXOpen Blog...

Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

GBP/USD Eyes Bullish Breakout While EUR/GBP Consolidates Losses


GBP/USD is gaining bullish momentum above the 1.2600 resistance zone. EUR/GBP is now consolidating losses below the 0.8740 resistance.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

• The British Pound is showing a lot of bullish signs above the 1.2600 pivot level against the US Dollar.
• There is a key bullish trend line forming with support near 1.2600 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP started a fresh decline from the 0.8835 resistance zone.
• There is a major bearish trend line forming with resistance near 0.8740 on the hourly chart at FXOpen.

GBP/USD Technical Analysis


On the hourly chart of GBP/USD at FXOpen, the pair found support near the 1.2440 zone. The British Pound started a decent increase above the 1.2500 resistance against the US Dollar.

The pair gained bullish momentum above the 1.2550 resistance and climbed above the 50-hour simple moving average. A high is formed near 1.2653 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 1.2557 swing low to the 1.2653 high.

On the downside, there is a major support forming near the 50-hour simple moving average at 1.2600. There is also a key bullish trend line forming along with the 50% Fib retracement level of the upward move from the 1.2557 swing low to the 1.2653 high.

If there is a downside break below the 1.2600 support, the pair could accelerate lower. The next major support is near the 1.2550 level, below which the pair could test 1.2500. In the stated case, GBP/USD may perhaps revisit the 1.2440 support. Any more losses could lead the pair toward the 1.2350 support.

On the upside, resistance is near the 1.2650 zone. The next major resistance is near the 1.2700 level. A clear move above the 1.2700 level could spark a rally toward the 1.2840 level considering the current RSI position on the GBP/USD chart.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

BTCUSD Analysis: Three Black Crows Pattern below $29,829


Bitcoin was unable to continue its bullish momentum from last week, and after touching a high of $29,829 on May 06, we can see a continuous decline in the bitcoin price, with immediate targets located in the range of $26500 and $27000.

We can clearly see a bearish three black crows pattern below the $29,829 handle on the H1 timeframe.

The price of Bitcoin continues to move in a bearish momentum, which is expected to continue towards the $27,000 handle.

Both the STOCH and Williams’s percent range indicate overbought levels, which means that in the immediate short term, a decline in the price is expected.

The Bitcoin chart is ranging near a new record low for 1 month.

The relative strength index is at 39.90, indicating a very weak demand for Bitcoin and the continuation of the selling pressure in the markets.

Bitcoin is now moving below its 100-hour exponential moving average and below its 200-hour exponential moving average.

Most of the major technical indicators are giving a bearish signal, which means that in the immediate short term, we are expecting targets of $26,500 and $27,000.

The average true range indicates less market volatility with mild bearish momentum.

• Bitcoin bearish reversal is seen below $29,829.
• The RSI remains below 50, indicating a bearish market.
• The price is now trading below its pivot level of $27,622.
• The short-term range is mildly bearish.
• The momentum indicator is back under zero.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

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.

XRPUSD Analysis: Bearish Doji Star Pattern below $0.4706


Ripple was unable to continue its bullish momentum from last week, and after touching a high of $0.4706 on May 05, we can see a continuous decline in the Ripple price, with immediate targets located in the range of $0.4000 and $0.3800.

On the hourly chart:

• The relative strength index is at 39.25, which signifies a very weak demand for Ripple at the current market prices and the continuation of the bearish phase in the market.
• Moving averages signal a downward price movement at the current market level of 0.4236.
• The Ultimate oscillator is in the neutral zone, which means the price is expected to consolidate further.
• Ripple is now trading just above its pivot level of 0.4229 and is facing its classic support at 0.4153 and facing Fibonacci support at 0.4211, after which it will be able to move towards 0.4000.
• The markets opened bearish this week.
• Ripple to USD exchange rate is ranging near a new record low for one month.

Some of the major technical indicators are bearish.

• Ripple bearish reversal is seen below 0.4706.
• The price is just above its pivot level.
• Average true range indicates less volatility.
• RSI is back under 50.
• Ichimoku price is under the cloud, indicative of the bearish pressure.

We have also detected the formation of bearish engulfing lines in the 4-hourly timeframe.



VIEW FULL ANALYSIS VISIT - FXOpen Blog...

Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

EUR/USD Dips Again While USD/CHF Turns At Risk of Fresh Decline


EUR/USD started a fresh decline from the 1.1050 resistance. USD/CHF is moving lower and might decline further toward the 0.8860 support.

Important Takeaways for EUR/USD and USD/CHF Analysis Today

• The Euro started a fresh decline from the 1.1050 resistance against the US Dollar.
• There is a major bearish trend line forming with resistance near 1.1000 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing a few bearish signs below the 0.8930 resistance zone.
• There is a key bearish trend line forming with resistance near 0.8925 on the hourly chart at FXOpen.

EUR/USD Technical Analysis


On the hourly chart of EUR/USD at FXOpen, the pair faced rejection near the 1.1050 level. The Euro started a fresh decline from the 1.1053 high against the US Dollar.

There was a move below the 50-hour simple moving average at 1.1000. The pair tested the 1.0945 support. A low is formed near 1.0941 and the pair is now correcting losses. There was a recovery wave above the 23.6% Fib retracement level of the recent decline from the 1.1053 swing high to the 1.0941 low.

The first major resistance is near the 50-hour simple moving average at 1.1000. It coincides with a major bearish trend line and the 50% Fib retracement level of the recent decline from the 1.1053 swing high to the 1.0941 low.

An upside break above the 1.1000 level might send the pair toward the 1.1050 resistance. The next major resistance is near the 1.1090 level. Any more gains might open the doors for a move toward the 1.1120 level.

If there is no move above 1.1050, the pair might start a fresh decline. On the downside, immediate support on the EUR/USD chart is seen near 1.0945.

The next major support is near the 1.0920 level. A downside break below the 1.0920 support could start a steady decline toward the 1.0865 level.

VIEW FULL ANALYSIS VISIT - FXOpen Blog...

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.