Daily Market Analysis By FXOpen

EUR/USD and USD/CHF: Dollar Bulls In Control


EUR/USD is still struggling to gain momentum above the 1.1320 zone. USD/CHF is rising, and it might extend gains above the 0.9250 level.

Important Takeaways for EUR/USD and USD/CHF

• The Euro is trading well below the 1.1320 and 1.1350 resistance levels against the US Dollar.
• There is a key bearish trend line forming with resistance near 1.1288 on the hourly chart of EUR/USD.
• USD/CHF started a decent increase from the 0.9190 support zone.
• There was a break above a major bearish trend line with resistance near 0.9230 on the hourly chart.

EUR/USD Technical Analysis

The Euro attempted an upside break above the 1.1350 resistance zone against the US Dollar. The EUR/USD pair failed to gain strength above 1.1350 and started a fresh decline.

There was a clear break below the 1.1320 and 1.1300 support levels. The pair even broke the 1.1280 support and the 50 hourly simple moving average. It traded as low as 1.1235 on FXOpen and is correcting losses.

EUR/USD Hourly Chart


On the upside, an initial resistance is near the 1.1285 level. The 38.2% Fib retracement level of the recent drop from the 1.1360 swing high to 1.1235 low is also near 1.1285.

There is also a key bearish trend line forming with resistance near 1.1288 on the hourly chart of EUR/USD. The next major resistance is near the 1.1300 zone. It is near the 50% Fib retracement level of the recent drop from the 1.1360 swing high to 1.1235 low.

A clear upside break above the 1.1300 zone could open the doors for a steady move. The next major resistance sits near the 1.1350 level. On the downside, an immediate support is near the 1.1255 level. The next major support is near the 1.1235 level.

A downside break below the 1.1235 support could start another decline. The next major support sits near 1.1200.

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ETHUSD and LTCUSD Technical Analysis – 23rd DEC, 2021


ETHUSD: Head and Shoulders Pattern Below $4,000

Ethereum was unable to sustain its bullish momentum and started its decline below the $4,000 handle in the Asian trading session today.

ETHUSD touched an intraday low of $3,894; the selling pressure continues in the European trading session. We can clearly see a head-and-shoulders pattern below the $4,000 handle which signifies that the prices will break out into a bearish downtrend.

ETH is now trading just below its pivot level of $3,926 and is moving in a bearish descending channel. The price of ETHUSD is about to break its classic support level of $3,890 and its Fibonacci support level of $3,903, after which the path towards $3,800 will get cleared.

All the major technical indicators are giving a STRONG SELL signal.

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

• Ethereum trend reversal is seen below the $4,000 mark
• Short-term range appears to be bearish for ETHUSD
• All the moving averages are giving a STRONG SELL signal
• The average true range is indicating LESSER market volatility

Ether Bearish Trend Below $4,000 Confirmed


ETHUSD continues to move in a bearish channel with the price breaking below the important psychological support level of $4,000.

The relative strength index is below 50 today, which signifies a continuation of the bearish trend.

The amount of selling that is seen in Ethereum can also be attributed to the liquidation of crypto assets by global investors before the end of this financial year.

The average true range is indicating a low market volatility, and we can see an increase of 10.67% in the trading volume, as compared to yesterday.

We can also see Ethereum’s decoupling from bitcoin which means that the correlation between BTC and ETH is dropping.

ETH has lost -2.67% with a price change of 107.06$ in the past 24hrs, and has a trading volume of 15.165 billion USD.

The Week Ahead

Ether is printing below the $4,000 mark today, and we can expect the downtrend to continue this week pushing its price down to the levels of $3,800 and $3,750.

The immediate short-term outlook for Ether has turned negative, but the medium to long-term outlook remains bullish with the next month target of above $5,000. The recent downturn has also led to the decline in the market capitalization of Ethereum to 467.11 billion USD.

We are now looking at the end-of-the-year market liquidation where many of the investors are selling their long-term holdings in Ethereum; they are expected to be back in the markets in the month of January 2022.

Technical Indicators:

Ultimate oscillator: at 48.80 indicating a SELL

Moving averages convergence divergence (14-day): at -19.80 indicating a SELL

StochRSI (14-day): at 26.95 indicating a SELL

Commodity channel index (14-day): at -132.99 indicating a SELL

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Gold Price and Crude Oil Price Could Extend Gains


Gold price is gaining pace above the $1,800 resistance zone. Crude oil price is also rising and the bulls could attempt an upside break above $74.00.

Important Takeaways for Gold and Oil

• Gold price is gaining pace and trading above the $1,800 zone against the US Dollar.
• There was a break above a major bearish trend line with resistance near $1,794 on the hourly chart of gold.
• Crude oil price started a fresh increase above the $70.00 and $72.00 levels.
• There was a break above a key bearish trend line with resistance near $69.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh increase from the $1,785 support zone against the US Dollar. The price gained pace above the $1,800 level to move further into a positive zone.

The price settled well above the $1,800 level and the 50 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $1,794 on the hourly chart of gold. Finally, there was a break above the $1,810 level.

Gold price hourly chart


A high is formed near $1,812 on FXOpen and the price is now consolidating gains. On the downside, an initial support is near the $1,807 level. It is near the 23.6% Fib retracement level of the upward move from the $1,785 swing low to $1,812 high.

The first major support is near the $1,800 level. It is near the 50% Fib retracement level of the upward move from the $1,785 swing low to $1,812 high. A downside break below the $1,800 support zone may possibly spark a steady decline. In the stated case, the price could test the $1,785 support.

On the upside, the price is facing resistance near the $1,812 level. The main resistance is near the $1,815 level. A close above the $1,815 level could open the doors for a steady increase towards $1,825. The next major resistance sits near the $1,840 level.

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GBP/USD and GBP/JPY Target Additional Gains


GBP/USD started a fresh increase from the 1.3180 zone and climbed above 1.3300. GBP/JPY is also rising and trading above the 152.00 resistance.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a fresh increase above the 1.3200 and 1.3300 resistance levels against the US Dollar.
• There is a major bullish trend line forming with support near 1.3365 on the hourly chart of GBP/USD.
• GBP/JPY also started a steady increase above the 151.50 and 152.00 resistance levels.
• There is a key bullish trend line forming with support near 152.75 on the hourly chart.

GBP/USD Technical Analysis

After a major decline, the British Pound found support near the 1.3180 zone against the US Dollar. The GBP/USD pair started a fresh increase above the 1.3220 and 1.3300 resistance levels to move into a positive zone.

There was also a break above the 1.3350 zone and the 50 hourly simple moving average. It traded as high as 1.3427 on FXOpen and is currently consolidating gains.

GBP/USD Hourly Chart


There was a minor decline below the 1.3420 level. On the downside, an immediate support is near the 1.3380 level. It is near the 23.6% Fib retracement level of the upward move from the 1.3173 swing low to 1.3427 high.

There is also a major bullish trend line forming with support near 1.3365 on the hourly chart of GBP/USD. The next major support is near the 1.3300 level.

The 50% Fib retracement level of the upward move from the 1.3173 swing low to 1.3427 high is also near the 1.3300 zone. If there is a break below the 1.3300 support, the pair could test the 1.3250 support. If there are additional losses, the pair could decline towards the 1.3150 level.

On the upside, the pair is facing resistance near the 1.3420 level. A close above the 1.3420 level could open the doors for more gains. The next major hurdle is near 1.3450, above which the pair could surge towards 1.3500.

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BTCUSD and XRPUSD Technical Analysis – 28th DEC, 2021


BTCUSD: Double Top Pattern Below $52,000

Bitcoin was unable to sustain its bullish moves this week. After touching a high of $52,008, it declined to a low of 48740 in the Asian trading session today.

At present, the markets are ranging in a consolidation phase below the $50,000 handle, and we may see more downward pressure in the coming days.

Bitcoin has gone back into a bearish channel and is trading below the $50,000 handle. We can see more downsides in the range of $49,000 to $48,500 later today.

We can clearly see a double top pattern below the $52,000 level, which signifies the end of an uptrend and a shift towards a downtrend.

Both the Stoch and Williams percent ranges are indicating an OVERBOUGHT level, meaning that in the immediate short-term a decline in the prices is expected.

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

The average true range is indicating a high market volatility which means that markets are due to decline further.

• Bitcoin trend reversal is seen below $52,000
• Ultimate oscillator is indicating a NEUTRAL level
• The price is now trading just above its pivot level of $49,227
• All the moving averages are giving a STRONG SELL signal at the current market level of $49,370

Bitcoin: Bearish Reversal Below $52,000 Confirmed


Bitcoin is forming a bearish trend pattern which means that the prices can start declining further due to the selling pressure that is coming into global cryptocurrency markets.

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 $49,000 and $48,000.

The price of BTCUSD is now facing its classic support level of $49,077 and Fibonacci support level of $49,111 after which the path towards $48,500 will get cleared.

In the last 24hrs, BTCUSD has gone DOWN by -2.83% with a price change of 1436$, and has a 24hr trading volume of USD 30.797 billion. We can see an Increase of 49.60% in the trading volume as compared to yesterday.

This increase in the trading volume of BTC is happening because of the increased selling pressure which, in turn, has been triggered by the end-of-the-year market liquidation and profit taking by global investors.

The Week Ahead

Bitcoin has now started its downside correction as the bears managed to bring its price below the important psychological support level of $50,000.

The short-term outlook is negative, but the medium to long-term outlooks remain BULLISH for bitcoin, with targets of $55,000 to $60,000 in 2022.

The relative strength index is below the 35 mark indicating a weaker demand for bitcoin and a heavy selling pressure in the BTCUSD market.

We can expect to see the level of $48,500 before the end of 2021.

BTC Options Market

As 2021 comes to an end, bitcoin is facing a huge options expiration on 31st Dec 2021.

Around 5.7 billion USD worth of BTC options will expire on the Deribit exchange, which will increase the liquidity in the bitcoin markets globally.


The total combined value of bitcoin options will be valued at 10.7 billion USD.

Technical Indicators:

Relative strength index (14-day): at 32.33 indicating a SELL

Average directional change (14-day): at 46.25 indicating a SELL

Rate of price change: at -4.503 indicating a SELL

Moving averages convergence divergence (12,26): at -411.70 indicating a SELL

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EUR/USD Could Recover, EUR/JPY Extends Rally


EUR/USD is facing a major resistance near the 1.1335 and 1.1350 resistance levels. EUR/JPY is rising and showing positive signs above the 129.50 level.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro is struggling to gain pace for a move above the 1.1350 resistance zone.
• There is a key bullish trend line forming with support near 1.1300 on the hourly chart.
• EUR/JPY gained pace for a strong move above the 130.00 resistance level.
• There was a break below a major bullish trend line with support near 129.80 on the hourly chart.

EUR/USD Technical Analysis

The Euro made a few attempts to gain strength above the 1.1335 and 1.1350 resistance levels against the US Dollar. The EUR/USD pair struggled to gain pace and started a fresh decline from the 1.1335 zone.

The pair traded below the 1.1320 support and settled below the 50 hourly simple moving average. A low was formed near 1.1290 on FXOpen and the pair is now correcting losses. There was a break above the 1.1300 level.

EUR/USD Hourly Chart


The pair spiked above the 50% Fib retracement level of the downward move from the 1.1335 swing high to 1.1290 low.

It is now facing resistance near the 1.1310 level. The next major resistance is near the 1.1320 level. It is near the 76.4% Fib retracement level of the downward move from the 1.1335 swing high to 1.1290 low. The main resistance is forming near the 1.1335 and 1.1350 levels.

A clear break above the 1.1350 resistance could push EUR/USD towards 1.1400. On the downside, the 1.1300 level is a major support. There is also a key bullish trend line forming with support near 1.1300 on the hourly chart.

Any more losses might lead EUR/USD towards the 1.1220 support zone in the near term. The next major support sits near the 1.1200 level.

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Inflation fears rising as 6% looks possible: Will interest rates rise?


Today is the first working day for many people within the world's most developed financial markets centers after the festive holidays, and among predictions of interesting potential market movements for the year ahead and optimism relating to interesting new blockchain technology which is part of the revolutionary direction in finance at the moment, a nagging elephant in the room lurks.

That elephant in the room is inflation, that age-old consideration which, no matter how high the technology that powers the world's financial system these days has become, is a metric that still remains one of the most important measures of economic circumstances.

As the markets begin to open across Europe today for the first time in a few days, many analysts are predicting further rises in inflation, which in the United Kingdom, one of the world's largest financial markets economies and home to the most valuable major currency in the world - the Pound - has been at an 11 year high of 5.1% for a few weeks.

Today's rather alarming predictions from Resolution Foundation, which is a government think tank, have demonstrated that inflation could rise to 6% in the United Kingdom, a rate which has already been reached in the United States. Should this happen, it would be the highest inflation Britain's economy will have experienced since 1992.

Should this occur, the economy will likely be affected by a combination of stalled real wages and rising costs of services and everyday products, and if Resolution Foundation's predictions are correct and a 6% rate of inflation occurs by April 2022, the average British household's costs are likely to rise by approximately £1,200 which will be another woe to accompany the energy price rises and tax hikes that have been noticeable over recent months.

Resolution Foundation's 11-page report which was published this morning explains that the beginning of the year is likely to be a period in which the pressure on living standards that many households are already facing could evolve in an environment in which price rises outstrip pay growth.

The think tank has branded the Spring of 2022 to be a period of a 'broad-based cost of living catastrophe affecting the vast majority of households'

Looking forward a few years, it is possible that real wages could be £740 per year lower than they would have been if there had been no lockdowns or disruptions to the economy since March 2020.

Where does this leave interest rates?

So far, the Bank of England has not increased interest rates, despite that being a priority subject at the Bank of England meetings recently.

Perhaps this is because the Bank of England understands that when interest rates are increased, it potentially cripples the economy. The last time this was done in ernest was in 1991 when the interest rate was over 10% and mass home repossessions took place due to mortgage payment unaffordability.

The Bank of England has tried to stave that off so far, however the question remains as to how long businesses can swallow the cost of inflation and not be able to pass it on to their already cash-strapped customers.

Interestingly, the Pound is up against the US Dollar this morning at 1.34, showing that the currency markets are not fazed by this news.

The same applies to the Pound's value against the Euro, which is now at 1.19. These increases in values by the Pound against its major counterparts occurred specifically as the news broke, which is interesting considering that the British economy could be in serious trouble this coming year.

Perhaps those with an analytical focus have noticed that the United States has been battling with even higher inflation for some time now yet it has not become a flagging economy to the extent that such a high rate of inflation has caused in the past... yet!

Given the uncertainty of the effect of these high levels of inflation in a modern world in which the financial economy is very different to how it was 30 years ago, the way it will be overcome is unknown. Perhaps comparisons with the Eurozone and the US have paved the way for a reasonably buoyant Pound which appears to have gone the opposite way to what would be expected on the arrival of such news.

Additionally, there has been no lockdown in England, whereas there has in Scotland and Wales, when many were expecting the British government to lock down the entire United Kingdom as a routine matter of course, which did not happen.

The hospitality businesses across England are about to welcome a deluge of residents of Wales and Scotland who have vowed to go across the border to celebrate New Year, giving that industry a much needed boost.

Perhaps 2022 will be a year of volatility and changing circumstances. Either way, this is a very interesting start and something of a white knuckle ride.

FXOpen Blog

ETHUSD and LTCUSD Technical Analysis – 30th DEC, 2021


ETHUSD – Rounding Bottom Pattern Above $3,600

Ethereum continued its bearish trend this week, and touched a low of $3,584 in the Asian trading session today, after which the prices have stabilized above the $3,600 handle.

Most of the selling witnessed in Ethereum was due to the end-of-the-year profit-taking by long-term investors, and at current levels, we can now see some buying in the markets.

ETHUSD continues to recover from its losses today and entered into a consolidation phase above $3,600.

We can clearly see a rounding bottom pattern above the $3,600 handle which signifies a trend reversal towards a bullish uptrend.

ETH is now trading just below its pivot levels of $3,706 and moving in a bullish consolidation channel. The price of ETHUSD is about to break its classic resistance level of $3,722 and its Fibonacci resistance level of $3,734, after which the path towards $3,800 will get cleared.

All the major technical indicators are giving a BUY signal.

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

• Ethereum trend reversal is seen above the $3,600 mark
• Short-term range appears to be mildly bullish for ETHUSD
• Commodity channel index is indicating a NEUTRAL market
• Average true range is indicating LESS market volatility

Ether: Mild Bullish Trend Reversal seen Above $3,600


ETHUSD is on its way to recover from its losses this week, and has entered into a consolidation phase above $3,600.

We can see a mildly bullish channel in progression today which if confirmed will push the prices of ETHUSD above $3,800 before the end of 2021.

Overall market scenario for Ethereum appears to be NEUTRAL.

StochRSI is indicating an OVERBOUGHT level which means more downward correction could also take place in the prices before the start of an upswing trend.

The average true range is indicating low market volatility, and we can see an increase of 12.16% in the trading volume as compared to yesterday.

ETH has lost -2.00% with a price change of -75.26$ in the past 24hrs and has a trading volume of 17.005 billion USD.

The Week Ahead

Ether is slowly recovering from its losses, and the price continues to uptick in the European trading session today.

We have detected an MA 10 and MA 5 crossover pattern which indicates a bullish reversal of the trend, and if this pattern continues, we can test levels of $3,800 to $3,850 very soon.

The immediate short-term outlook for Ether has turned positive; the medium to long-term outlook for Ether remain bullish with the target of above $5,000 in January 2022

The recent downturn has also led to the decline in the market capitalization of Ethereum to 439.44 billion USD.

Ethereum’s Transformation in 2022

In 2022, Ethereum will transition to Proof of Stake, which will bring in many advantages to the underlying network. The most notable are lower energy consumption, decentralization and scalability.

The change to the Proof of Stake will eliminate Ethereum’s mining and reduce the power consumption required to sustain the network. This change is expected to bring down the total energy level consumption by 99%. The change will also implement sharding and scalability that will lower the transaction costs of Ethereum.

Technical Indicators:

Ultimate oscillator: at 54.93 indicating a BUY

STOCH (9,6): at 66.95 indicating a BUY

Williams percent range: at -37.68 indicating a BUY

Average directional change (14-day): at 36.62 indicating a BUY

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GBP/USD Gains Momentum While EUR/GBP Eyes Recovery


GBP/USD gained pace and there was a move above the 1.3500 resistance. EUR/GBP is attempting an upside break above the 0.8420 resistance zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a steady upward move above the 1.3450 and 1.3480 levels.
• There is a key rising channel forming with support near 1.3490 on the hourly chart of GBP/USD.
• EUR/GBP found support near 0.8365 and started a recovery wave.
• There was a break above a major bearish trend line with resistance near 0.8400 on the hourly chart.

GBP/USD Technical Analysis

The British Pound formed a support base above the 1.3400 zone against the US Dollar. The GBP/USD pair started a steady upward move after it broke the 1.3450 resistance zone.

The pair recovered above the 1.3500 resistance level and the 50 hourly simple moving average. A high was formed near 1.3550 and the pair is now correcting gains. There was a break below the 1.3540 and 1.3520 levels.

GBP/USD Hourly Chart


The pair traded below the 50% Fib retracement level of the upward move from the 1.3465 low to 1.3550 high. The pair is now trading near the 1.3500 level.

There is also a key rising channel forming with support near 1.3490 on the hourly chart of GBP/USD. The channel is near the 61.8% Fib retracement level of the upward move from the 1.3465 low to 1.3550 high.

On the upside, an initial resistance is near the 1.3520 level. If there is an upside break above the 1.3520 resistance, the price could surpass 1.3550. The next main resistance is near the 1.3600 zone.

If there is no upside break, the pair could start a fresh decline below 1.3500. An immediate support is near the 1.3480 level.

The first key support is near the 1.3450 level. Any more losses could lead the pair towards the 1.3400 support zone. The next major support sits near the 1.3320 level.

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BTCUSD and XRPUSD Technical Analysis – 04th JAN 2022


BTCUSD: Double Bottom Pattern Above $45,000

Bitcoin started this week on a bearish tone, and the price continued to slide touching a low of $45,725 on 3rd January, after which we can see some fresh buying in bitcoin markets globally.

Some pullback action can be observed in the European trading session today, and the prices of BTCUSD are ranging above the $46,000 handle.

We can clearly see a double bottom pattern above $45,000, which signifies the end of a downtrend and a shift towards an uptrend.

Both Stoch and StochRSI are indicating an OVERBOUGHT level, meaning that in the immediate short-term, a decline in the prices is expected.

With global cryptocurrency markets staging mixed trading signals we will have to wait before entering into any buying positions in bitcoin.

The relative strength index is at 52 indicating a NEUTRAL market and a move towards a market consolidation phase.

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

The average true range is indicating a lesser market volatility which means that markets are due to enter into a consolidation phase.

• Bitcoin trend reversal is seen above $45,000
• Williams percent range is indicating an OVERBOUGHT level
• The price is now trading just above its pivot levels of $46,489
• All moving averages are giving a NEUTRAL market signal

Bitcoin: Bullish Reversal Above $45,000 Confirmed


Bitcoin is forming a bullish trend pattern which means that the prices can start moving upwards due to the buying pressure that is coming into the global cryptocurrency markets.

The moving averages are giving a NEUTRAL signal; however, we have detected a MA 20 crossover pattern which is an indication for the bullish reversal of the markets. This bullish trend is mild and will have to wait till we can see a STRONG BUY signal from the moving averages.

All of the major technical indicators are giving a STRONG BUY signal, which means that in the immediate short-term we are expecting targets of $47,000 and $48,000.

The price of BTCUSD is now facing its classic resistance level of $46,639 and Fibonacci resistance level of $46,731, after which the path towards $47,000 will get cleared.

In the last 24hrs, BTCUSD has gone DOWN by -1.01% with a price change of 477$, and has a 24hr trading volume of USD 34.438 billion. We can see an Increase of 19.26% in the trading volume as compared to yesterday. This increase is due to the increased buying pressure seen after the recent decline in bitcoin.

The Week Ahead

We can see that bitcoin has started its upside correction after the decline and continues to trade above $46,500.

The recent decline we saw from the high of $68,984 reached on 10th November, 2021, happened due to the profit taking and the market liquidation by big investors and the global hedge funds.

The downside wave correction now seems to be finally over and we are ready for an upswing move towards the $50,000 handle in January 2022.

The short-term outlook is positive; the medium to long-term outlook remains BULLISH for bitcoin with targets of $55,000 to $60,000 in 2022.

BTC Gains in 2021

In 2021, we saw a 66% gain in bitcoin, which was lower than Ethereum’s 421% jump.

In contrast, we saw a marginal decline in the value of gold without any gains, whereas the US S&P 500 saw gains of 31% during the same period.

Bitcoin still remains the topmost cryptocurrency of the world with a total market capitalization of 881.48 billion USD.

Technical Indicators:

Commodity channel index (14-day): at 161.63 indicating a BUY

Average directional change (14-day): at 36.94 indicating a BUY

Rate of price change: at 0.399 indicating a BUY

Bull/bear power (13-day): at 316.27 indicating a BUY

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