FXOpen Daily Analytics forex and crypto trading

[fxoday]

Trading schedule for the 2021-2022 Winter Holiday period

Dear Traders,

Please be aware of the trading schedule changes for the 2021 Christmas and New Year holiday period (all times are GMT+2):
Thursday, December 23

Indices:

• #ESX50 (Europe 50) — trading ends at 23:00
• #GDAXIm (Germany 30) — trading ends at 23:00.

Friday, December 24

Commodities CFDs:

• XBRUSD (UK Brent) — trading closed
• XTIUSD (US Crude) — trading closed
• XNGUSD (US Natural Gas) — trading closed

Metal CFDs:

• XAUUSD (GOLD vs. US dollar) — trading closed
• XAGUSD (SILVER vs. US dollar) — trading closed

Indices:

• #AUS200 (Australia 200) — trading ends at 05:00
• #ESX50 (Europe 50) — trading closed
• #FCHI (France 40) — trading ends at 14:55
• #GDAXIm (Germany 30) — trading closed
• #HSI (Hong Kong 50) — trading ends at 06:00
• #J225 (Japan 225) — trading closed
• #UK 100 (UK 100) — trading ends at 15:00
• #SPXm (US SPX 500 (Mini)) — trading closed
• #NDXm (US Tech 100 (Mini)) — trading closed
• #WS30m (Wall Street 30 (Mini)) — trading closed

Stock CFDs: trading closed.

Monday, December 27

Indices:

• #AUS200 (Australia 200) — trading closed
• #ESX50 (Europe 50) — trading starts at 02:15
• #FCHI (France 40) — trading starts at 09:00
• #GDAXIm (Germany 30) — trading starts at 02:15
• #HSI (Hong Kong 50) — trading closed
• #UK 100 (UK 100) — trading closed.

Tuesday, December 28

Indices:

• #AUS200 (Australia 200) — trading closed
• #HSI (Hong Kong 50) — trading starts at 03:15
• #UK 100 (UK 100) — trading closed.

Wednesday, December 29

Indices:

• #UK 100 (UK 100) — trading starts at 03:00.

Thursday, December 30

Indices:

• #ESX50 (Europe 50) — trading ends at 23:00
• #GDAXIm (Germany 30) — trading ends at 23:00.

Friday, December 31

Commodities CFD:

• XBRUSD (UK Brent) — trading ends at 21:45

Indices:

• #AUS200 (Australia 200) — trading ends at 05:30
• #ESX50 (Europe 50) — trading closed
• #FCHI (France 40) — trading ends at 14:55
• #GDAXIm (Germany 30) — trading closed
• #HSI (Hong Kong 50) — trading ends at 06:00
• #UK 100 (UK 100) — trading ends at 15:00.

Monday, January 3

Indices:

• #AUS200 (Australia 200) — trading closed
• #ESX50 (Europe 50) — trading starts at 02:15
• #FCHI (France 40) — trading starts at 09:00
• #GDAXIm (Germany 30) — trading starts at 02:15
• #HSI (Hong Kong 50) — trading starts at 03:15
• #UK 100 (UK 100) — trading closed.

Tuesday, January 4

Indices:

• #UK 100 (UK 100) — trading starts at 03:00.

Please consider this information when you plan your trading.

Read more...

[fxoday]

GBP/USD Continues To Struggle, USD/CAD Gains Momentum


GBP/USD failed to recover and declined below the 1.3250 support. USD/CAD is rising and is showing positive signs above the 1.2850 support.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a fresh decline from the 1.3375 resistance zone.
• There was a break below a key bullish trend line with support near 1.3235 on the hourly chart of GBP/USD.
• USD/CAD started a major increase above the 1.2780 and 1.2800 resistance levels.
• There is a major bullish trend line forming with support near 1.2810 on the hourly chart.

GBP/USD Technical Analysis

After a major decline, the British Pound found support above 1.3180 against the US Dollar. GBP/USD started a recovery wave above the 1.3300 level, but it failed to continue higher.

A high was formed near 1.3374 on FXOpen and the pair started a fresh decline. There was a break below the 1.3320 and 1.3300 support levels. The pair traded below the 50% Fib retracement level of the upward move from the 1.3173 swing low to 1.3374 high.


Grafik Per Jam GBP/USD

It is now trading below the 1.3250 level and the 50 hourly simple moving average. There was a break below a key bullish trend line with support near 1.3235 on the hourly chart of GBP/USD.

An immediate resistance is near the 1.3250 level. The first major resistance is near the 1.3300 level. If there is an upside break above the 1.3300 zone, the pair could rise towards 1.3350.

The next key resistance could be 1.3375, above which the pair could gain strength. On the downside, the first key support is near the 1.3220 area. It is near the 76.4% Fib retracement level of the upward move from the 1.3173 swing low to 1.3374 high.

If there is a break below 1.3220, the pair could decline extend its decline. The next key support is near the 1.3200 level. Any more losses might call for a test of the 1.3150 support.

Read more...

[fxoday]

Will 2022 Be the Year of the Japanese Yen?

The Japanese yen (JPY) was one of the currencies that depreciated the most this year. Even in the late December trading, the JPY is at its yearly lows, especially against the dollar.

This is somehow surprising, considering the Fed’s tapering, but stocks outperformed during the year, justifying the weakness in the JPY pairs.

The yen is viewed as a safe-haven currency that appreciates in times of uncertainty and depreciates when the stock market is bullish. But recently, the JPY pairs’ rally has been stalling. For instance, the USD/JPY pair had difficulty finding buyers above 115, while the EUR/JPY found sellers above 133.

Is the change in leadership good for the JPY? The newly appointed Prime Minister Fumio Kishida has big spending plans to stimulate Japanese economic growth, which might be key to how the JPY will perform in 2022.


Three Reasons to Buy the JPY in 2022

To start with, the economic recovery in Japan lagged the one in other parts of the world. A late vaccination campaign led to a delay in the economic reopening. Thus, the economy may move near to its full potential going forward.

A brighter economic outlook should bode well for inflation. Forecasts point to inflation moving higher in the period ahead but to remain far from the 2% target. In any case, inflationary problems are not exacerbated in Japan, compared to rival economies, which may further spur economic growth, thus favoring the currency.

Finally, there is a whopping accumulation of 3.7% of GDP in excess savings. Consumers choose to save for various reasons, such as the COVID-19 pandemic uncertainties, but, when injected into the economy, these funds will support further economic expansion.

For many years, the JPY has been perceived as a safe-haven currency, just like the Swiss franc. Is it time for the JPY to start reflecting the strength of the local economy? If that is the case, stronger than expected economic growth should trigger a more dominant JPY in the year ahead.
Read more...

[fxoday]

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.

Read more...

[fxoday]

#MarketNews

FTSE 100 strength increases gulf between large and small enterprises

The ever-widening gulf between small enterprise and large corporations is once again in full view as the FTSE 100 index is continuing to flourish.

Investor confidence in the highly diversified index which is represented by Britain's most prestigious 100 publicly listed companies is very high indeed, which is remarkable considering the potential government-imposed restrictions that are lurking in the background over the forthcoming holiday period.

Currently, the FTSE 100 index is trading at 7,302 which is a 0.07% increase over yesterday's already high performance, and represents a 0.056% rise over the course of a month's trading period.

This should be of interest to a number of people with vested interests, and traders and investors would likely be able to correlate the high confidence in this blue-chip index to the current unexpected lack of restrictions to British businesses which have gone alongside the government's continual propagation of medications.

Whilst other non-related stocks within the FTSE 100 such as engineering, mining and manufacturing are all doing well, it's likely that the combination of hospitality, tourism and airline stocks have been instrumental in maintaining the high levels of value currently being displayed by the FTSE 100 index.

The combination of solidly performing engineering and mining stocks in an age during which a move to renewable energy and electric vehicles has driven a need for some of the FTSE 100-listed giants to explore and extract precious metals for battery manufacturing, the big pharma giants such as Moderna and AstraZeneca and the surprise lease of life the hospitality sector and airlines has been given by no lockdowns being imposed have contributed to a stellar performance.

Of course, there is no guarantee that the British government will not go against the will of the public and the business community once again and invoke restrictions before New Year's Day, and if that does happen it is likely that market volatility could be a side effect as investors could take a cautious view on airline and hospitality stocks.

There is a very important matter to consider, however, and that is the viewpoint from within smaller businesses that are not listed on public exchanges.

Whilst the FTSE 100 blue chip giants show massive strength and have so far been able to weather the storm that has been inflicted on them by governments over the past two years, smaller firms are not in such a position and there is more than a degree of discourse relating to what has been regarded by many small businesses as a 'lockdown by stealth' as many people voluntarily began canceling their plans leaving venues, hospitality companies and many customer-facing businesses high and dry with no customers.

Quite a number of leaders of large hospitality businesses have hit out at British Chancellor of the Exchequer Rishi Sunak's offer of a £6,000 grand to cover periods of time during which loss of revenue has taken place due to mass cancelations.

These have been large companies, many of which are listed on the London Stock Exchange and to whom £6,000 is inconsequential, but for smaller privately owned businesses the loss of £6,000 in revenue could be catastrophic.

The mere fact that this is being highlighted by senior executives of large publicly listed companies means that the hospitality business is generally afraid of its future. That in turn means that investors could begin looking closely at the stock prices of the larger listed firms and begin to take a very conservative view on them.

Should this occur, it may have an effect on the overall performance of the FTSE 100 stocks. Tim Rumney, CEO of Best Western Hotels told the Telegraph newspaper this morning: “Rishi’s support is like a dud cracker on Christmas day. It’s just so disappointing and underwhelming in every sense.”

Best Western is a privately held company, but is one of the larger ones in the United Kingdom. To have this type of sentiment being aired in the public domain from a large business such as Best Western demonstrates the anguish.

Listed giants in the pub trade including JD Wetherspoons and Mitchells & Butlers, along with hotels groups Intercontinental and Whitbread are make-or-break stocks at the moment. Should restrictions not be invoked, they may well continue to do well, but they could be large enough to have an impact on London's markets in general if there are restrictions.

IAG, British Airways' owner, lost 9% in value in the lockdowns of 2020, so we have previous history of this dynamic, however easyJet and Ryanair's boards have had enough and made their intentions clear to plough on, but if there are fewer passengers due to choice, it is difficult to see a possible rise in values.

The crossroads is currently being approached, and the next few days will be very interesting for followers of the FTSE 100 index.


Read more...

[fxoday]

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.

Read more...

[fxoday]

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.

Read more...

[fxoday]

FXOpen is wishing you a Merry Christmas and a Happy New Year


Dear Traders and Partners,

As 2021 draws to a close, FXOpen would like to take this opportunity to wish happiness and prosperity to you and your family, as well as continued success in your trading for 2022.

Let us state the obvious: 2021 was a rough year for many. But we believe these challenges have made us tougher, more resilient, and thoughtful in our decision-making as individuals — which are integral and vital traits for any trader.

As your trusted partner in trading, we will strive to live up to our excellent reputation and continue creating the safest and best possible trading conditions for you, with spreads from 0.0 pips, low commissions and ultra fast execution.

Finally, don’t forget about our special Christmas offer to you: trade commission-free for the rest of December*.

Here’s to a brighter 2022!

*Terms and conditions apply

Read more...

[fxoday]

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

Read more...

[fxoday]

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.

Read more...

[fxoday]

#MarketNews #S&P500

END OF 2021: TECH STOCK INDEX LOSES TO S&P 500

As of the last days of 2021, the high-tech Nasdaq Composite has gone up by 23% YTD — still inferior to the S&P 500’s 28%. It is unlikely that this balance will change as the last minutes of the trading year are ticking by, although the opposite situation may be observed in derivatives markets.

The last two times the S&P 500 outperformed the Nasdaq Composite were in 2016 and 2011.

In the S&P 500, the most profitable subgroup in 2021 was energy, following skyrocketing oil and gas prices.

The main concern for Nasdaq is that companies have overextended their huge market caps in 2020 and failed to keep pace in 2021. Indeed, in 2020, Nasdaq climbed by 44%, while the S&P 500 managed to grow “just” by 16%.

Another sign that the market for tech companies looks overheated is graph #1, which shows that the share of techs is at its highest since 2000 when the dot-com crisis occurred.

Whichever index you choose for investing, Nasdaq or the S&P 500, FXOpen, an EU-licensed and regulated broker, is ready to remain your reliable partner in 2022.


This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice


Source FXOpen Telegram.channel

[fxoday]

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.

Read more...

[fxoday]

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

Read more...

[fxoday]

EUR/USD Struggle Continues, USD/JPY Extends Rally


EUR/USD started a fresh decline from well above 1.1350. USD/JPY started a major increase above the 115.00 and 115.50 resistance levels.

Important Takeaways for EUR/USD and USD/JPY

• The Euro failed to gain strength above the 1.1350 and 1.1380 resistance levels.
• There is a key bearish trend line forming with resistance near 1.1300 on the hourly chart of EUR/USD.
• USD/JPY started a fresh increase above the 115.00 resistance zone.
• There was a break above a major rising channel with resistance near 115.55 on the hourly chart..

EUR/USD Technical Analysis

Recently, the Euro failed to clear the 1.1385 zone against the US Dollar. The EUR/USD pair started a fresh decline and traded below the 1.1320 support zone.

The pair even broke the 1.1300 level and settled below the 50 hourly simple moving average. A low was formed near 1.1272 on FXOpen and the pair is now consolidating. An immediate resistance on the upside is near the 1.1300 level.

EUR/USD Hourly Chart

It is near the 23.6% Fib retracement level of the recent decline from the 1.1388 swing high to 1.1272 low. The next major resistance is near the 1.1305 level.

There is also a key bearish trend line forming with resistance near 1.1300 on the hourly chart of EUR/USD. The main resistance is near the 1.1320 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the 1.1388 swing high to 1.1272 low.

If there is no break above 1.1320, the pair might start a fresh decline. An immediate support is near the 1.1275. The next major support is near 1.1260, below which the pair could dive to 1.1220 in the near term.

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THE DOLLAR STRENGTHENS

Positive news bits on the US employment front. The stats released yesterday suggest that the increase in the employed population is the largest in the last 6 months. Such dynamics are viewed as a support for the US dollar.

Another piece of good news is contained within the minutes from the Fed's December 15 meeting, where they talk about the strength of the US economy and high inflation.

Together, these factors stimulate the Fed to raise interest rates earlier than previously expected. The news triggered a decline in stock prices (primarily the tech ones).

Such a development should strengthen the dollar against other currencies.

For example, in the EURUSD market, the rate is falling to the December support line (1). Substantial buy orders are located at the level of 1.2750 (2). If the strengthening dollar can “bench press" the support block (1 + 2), then the 1.2750 level will most likely act as important resistance.

You can benefit from fluctuations in the currency market with a trusted broker like FXOpen. (https://www.fxopen.com/en-gb/)

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice


Source FXOpen Telegram channel