FXOpen Daily Analytics forex and crypto trading

[fxoday]

GBP/USD Dives While GBP/JPY Aims More Upsides

GBP/USD started another decline from well above the 1.3120 level. GBP/JPY is rising and might gain pace above the 162.75 resistance zone

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound started a fresh decline after it failed near 1.3150 against the US Dollar.
• There is a key bearish trend line forming with resistance near 1.3030 on the hourly chart of GBP/USD.
• GBP/JPY started a fresh increase after it cleared the 160.00 resistance zone.
• There is a major bullish trend line forming with support near 161.75 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound attempted a recovery wave above the 1.3120 level against the US Dollar. However, the GBP/USD pair failed to gain strength for a move above the 1.3150 resistance.

As a result, the pair reacted to the downside and traded below the 1.3100 level. There was a clear move below the 1.3050 support and the 50 hourly simple moving average. It even spiked below 1.3000 and traded as low as 1.2982 on FXOpen.

GBP/USD Hourly Chart

It is currently attempting an upside correction above 1.3000. There was a move above the 23.6% Fib retracement level of the recent decline from the 1.3106 swing high to 1.2982 low.

However, the pair is facing a major resistance near the 1.3040 and 1.3050 levels. There is also a key bearish trend line forming with resistance near 1.3030 on the hourly chart of GBP/USD. The 50% Fib retracement level of the recent decline from the 1.3106 swing high to 1.2982 low is also above the trend line.

The next major hurdle is near 1.3080, above which the pair could rise towards 1.3150 in the near term. If not, the pair might continue to decline below 1.3000.

The next major support is near the 1.2950 level. If there is a break below the 1.2950 support, the pair could test the 1.2880 support.

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[fxoday]

BTCUSD and XRPUSD Technical Analysis – 12th APR 2022

BTCUSD: Double Bottom Pattern Above $39,000

Bitcoin was unable to continue its last week’s bullish momentum and started to decline after touching a high of $47,184 on April 5th.

Bitcoin broke the $40,000 support and touched a low of $36,210 in today’s Asian trading session.

The selloff continues across the crypto markets, and the global investor sentiments are low due to the continuation of the Russia-Ukraine war and its emerging impacts on the prices of energy and stock markets.

After falling below the $40,000 handle, bitcoin found support and has entered a mildly bullish channel in today’s European trading session.

We can clearly see a double bottom pattern above the $39,000 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

The Stoch and the Williams percent range are indicating an overbought level which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 43 indicating a WEAK demand for bitcoin at the current market levels.

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

Most of the major technical indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of $41,000 and $43,000.

The average true range is indicating LESSER market volatility with a mild bullish momentum.

• Bullish reversal seen in bitcoin above $39,000
• The StochRSI is indicating an OVERSOLD level
• The price is now trading just above its pivot level of $40,236
• Some of the moving averages are giving a BUY market signal

Bitcoin: Bullish Reversal Seen Above $39,000


Bitcoin continues to move in a mildly bullish momentum with an upwards projection towards the level of $41,000 in the European trading session today.

In the immediate term, we are expecting a continuation of this bullish trend with the price of bitcoin ranging between the levels of $42,000 and $44,000 as it has entered into a consolidation phase now.

The drop in the level of BTCUSD that we saw last week was due to the profit-taking by the short-term investors.

The immediate short-term outlook for bitcoin is mildly bullish; the medium-term outlook is neutral; and the long-term outlook remains neutral under present market conditions.

The price of BTCUSD is now facing its classic resistance level of $40,336 and Fibonacci resistance level of $40,454, after which the path towards $41,000 will get cleared.

We can see that the daily RSI is below 50 printing at 38 which indicates that in the medium-term prices are expected to decline further.

In the last 24hrs, BTCUSD has gone down by 3.17% with a price change of -$1319, and has a 24hr trading volume of USD 36.665 billion. We can see an Increase of 60.52% in the trading volume as compared to yesterday, which is due to the selling by the long-term Investors.

The Week Ahead

The price of bitcoin is now moving in a consolidation phase above the level of $40,000. We can see some range-bounded movements between $41,000 and $43,000.

If the prices of bitcoin continue to remain above the important psychological support level of $40,000, next week, we may see some correction in the midrange upwards towards the $42,000 handle.

In the immediate short term, bitcoin’s mildly bullish momentum is expected to continue pushing to above the $41,000 handle this week.

The price of BTCUSD will need to remain above the important support level of $40,000 this week.

The weekly outlook is projected at $42,000 with a consolidation zone of $41,500.

BTC Market Cap

Due to the weak global investor sentiments coupled with the ongoing Russia-Ukraine war and the rising inflation, the BTC market cap has fallen down below $800 billion.

The present total market capitalization of bitcoin stands at $764 billion.

Technical Indicators:

The average directional change (14-day): at 44.90 indicating a BUY

The ultimate oscillator: at 62.26 indicating a BUY

Bull/Bear power (13-day): at 227.32 indicating a BUY

The rate of price change: at 0.88 indicating a BUY

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[fxoday]

EUR/USD Remains At Risk While EUR/JPY Eye More Gains

EUR/USD started a fresh decline from the 1.0940 resistance. EUR/JPY could gain pace if it clears the 136.30 resistance zone.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro failed to clear the 1.0940 resistance and started a fresh decline.
• It broke a key contracting triangle with support near 1.0880 on the hourly chart.
• EUR/JPY gained bullish momentum after it broke the 135.50 resistance zone.
• Recently, there was a break below a major bullish trend line with support near 136.50 on the hourly chart.

EUR/USD Technical Analysis

The Euro made a couple of attempts to clear the 1.0940 resistance zone against the US Dollar. However, the EUR/JPY pair failed to gain strength above 1.0940 and started a fresh decline.

The pair declined below the 1.0900 support and the 50 hourly simple moving average. There was also a break below a key contracting triangle with support near 1.0880 on the hourly chart. The pair even moved below the 1.0840 support level.


EUR/USD Hourly Chart

A low is formed near 1.0811 on FXOpen and the pair is now consolidating losses. It corrected above the 23.6% Fib retracement level of the recent decline from the 1.0903 high to 1.0811 low.

On the upside, the pair is facing resistance near the 1.0850 level. It is near the 50% Fib retracement level of the recent decline from the 1.0903 high to 1.0811 low. The next major resistance is near the 1.0865 level and the 50 hourly simple moving average.

A clear break above the 1.0865 resistance could push EUR/USD towards 1.0900. If the bulls remain in action, the pair could rise revisit the 1.0940 resistance zone in the near term.

On the downside, the pair might find support near the 1.0820 level. If there is a downside break below the 1.0820 support, the pair might accelerate lower. The next major support sits near the 1.0765 level, below which there is a risk of a larger decline.


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[fxoday]

ETHUSD and LTCUSD Technical Analysis – 14th APR, 2022

ETHUSD: Double Bottom Pattern Above $2,900

Ethereum failed to continue its bullish momentum last week, and started to decline after touching a high of 3,299 on April 8th.

It touched an intraday low of 3,093 in the Asian trading session, and an intraday high of 3,142 in today’s European trading session.

We can clearly see a double bottom pattern above the $2,900 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 3,111 and moving in a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 3,120 and Fibonacci resistance level of 3,128, after which the path towards 3,200 will get cleared.

The relative strength index is at 59 indicating a STRONG demand for Ethereum and the continuation of the bullish trend.

Both the average directional change and commodity channel index are indicating a neutral level which means that the prices are due to enter into a consolidation phase.

Most of the technical indicators are giving a STRONG BUY market signal.

Most of the moving averages are giving a STRONG BUY signal, and we are now looking at the levels of $3,300 to $3,350 in the short-term range.

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

• Bullish reversal seen in Ether above the $2,900 mark
• The short-term range appears to be mildly BULLISH
• The daily RSI is below 50 at 48 indicating a NEUTRAL market
• The average true range is indicating LESSER market volatility

Ether: Bullish Reversal Seen Above $2,900

ETHUSD is now moving in a mildly bullish channel with the price trading above the $3,100 handle in the European trading session today.

Ethereum is now slowly preparing for its next move against the US dollar. We can see the formation of a contraction triangle pattern, which shows price building energy, and we can see the A-C and B-D trendlines.

ETHUSD is now facing its immediate resistance levels of $3,128 and $3,300, after which we will see a linear progression towards the level of $3,400.

The key support levels to watch are $2,906 and $3,034, and the prices of ETHUSD need to remain above these levels for the bullish trend to continue.

ETH has gained 2.05% with a price change of $62.64 in the past 24hrs and has a trading volume of 15.476 billion USD.

We can see a decrease of 19.10% in the total trading volume in the last 24 hrs, which appears to be normal.

The Week Ahead

Last week, we saw Ethereum decline from its highs of 3,299 to the lows of 2,951, but now we can see that the prices have entered a consolidation phase above the level of 3,000.

If the price of ETHUSD remains above $3,000, we may see a linear progression towards the levels of $3,200 and $3,350 this week.

The immediate short-term outlook for Ether has turned mildly BULLISH; the medium-term outlook has turned neutral; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week, Ether is expected to move in a range between $3,100 and $3,300, and next week, it is expected to enter a consolidation phase above $3,300.

Technical Indicators:

The Williams percent range: at -44.92 indicating a BUY

The moving averages convergence divergence (12,26): at 15.85 indicating a BUY

The rate of price change: at 0.332 indicating a BUY

Bull/Bear power (13-day): at 16.23 indicating a BUY


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[fxoday]

Gold Price and Oil Price Could Extend Gains

Gold price started a fresh increase above the $1,960 resistance. Crude oil price is also rising and might climb further above the $107.


Important Takeaways for Gold and Oil

• Gold price started a fresh increase above $1,930 and $1,950 against the US Dollar.
• There is a key bullish trend line forming with support near $1,968 on the hourly chart of gold.
• Crude oil price gained pace after it broke the $100 and $102 resistance levels.
• There is a key bullish trend line forming with support near $103.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a support base near $1,910 and started a fresh increase against the US Dollar. The price gained pace for a move above the $1,925 level to move into a positive zone.

There was a clear move above the $1,960 level and the 50 hourly simple moving average. The price even climbed above the $1,975 resistance level. However, it faced resistance near the $1,980 and $1,982 levels.

Gold Price Hourly Chart

A high is formed near $1,981 on FXOpen and the price is now consolidating gains. There was a minor decline below $1,970, but the bulls were active near $1,960.

The price recovered and climbed above the 50% Fib retracement level of the downward move from the $1,981 swing high to $1,960 low. The price is now trading well above $1,960 and the 50 hourly simple moving average.

On the upside, the price is facing resistance near the $1,975 level. The main resistance is now forming near the $1,980 level. A close above the $1,980 level could open the doors for a steady increase towards $1,990. The next major resistance sits near the $2,000 level.

On the downside, an initial support is near the $1,970 level. There is also a key bullish trend line forming with support near $1,968 on the hourly chart of gold.

The next major support is near the $1,960 level, below which there is a risk of a larger decline and the price might even struggle to stay above $1,950.

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[fxoday]

GBP/USD Edge Lower While EUR/GBP Could Surge

GBP/USD started a fresh decline from well above the 1.3120 level. EUR/GBP is rising and might attempt an upside break above the 0.8300 resistance zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh decline from well above 1.3120 against the US Dollar.
• There was a break below a key contracting triangle with support near 1.3060 on the hourly chart of GBP/USD.
• EUR/GBP formed a base above 0.8250 and is currently rising.
• There is a major bearish trend line forming with resistance near 0.8290 on the hourly chart.

GBP/USD Technical Analysis

The British Pound struggled to settle above the 1.3120 resistance zone against the US Dollar. The GBP/USD pair started a fresh decline below the 1.3080 support zone.

There was a clear move below the 1.3050 level and the 50 hourly simple moving average. The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.2972 swing low to 1.3146 high (formed on FXOpen).

GBP/USD Hourly Chart

Besides, there was a break below a key contracting triangle with support near 1.3060 on the hourly chart of GBP/USD.

The pair is now trading near 1.3020. The next major support sits near the 1.3110 level. It is near the 76.4% Fib retracement level of the upward move from the 1.2972 swing low to 1.3146 high. Any more losses could lead the pair towards the 1.2975 support zone or even 1.2950.

On the upside, an initial resistance is near the 1.3040 level. The next main resistance is near the 1.3070 zone and the 50 hourly simple moving average. A clear upside break above the 1.3070 and 1.3100 resistance levels could open the doors for a steady increase in the near term.

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[fxoday]

#MarketNews #Bank #Stocks

2 REASONS TO BUY BANK OF AMERICA STOCK'

Analysts at BofA Securities reported that pessimism among investment managers is at its highest since the 1990s (the beginning of surveys on this subject). Managers are concerned about possible risks of not only a recession, but even stagflation (for the first time since August 2008) in the U.S. economy.

In turn, their colleagues from Goldman Sachs are more optimistic. They still do not believe that recession is inevitable as they have confidence in the Fed's current policy on the back of a normalized labor market.

Yesterday Bank of America (BAC) report data came out, which was a bit more optimistic than expected and that is the first reason to buy the stock.

From the technical point of view, a bullish absorption pattern (1) with high volume was formed on the chart, which can be regarded as a buy signal given that the price is near an important support zone (2). This is the second reason.

Wall Street does not advise selling BAC stock, which Warren Buffett has often spoken positively about. The average forecast is $49 at the current price below $40. That's a nearly +30% outlook.

To invest in BAC, as well as other bank stocks, use the services of a reliable FXOpen (https://www.fxopen.com/en/) broker.


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.

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[fxoday]

EUR/USD Faces Hurdles, USD/JPY Continues To Rally

EUR/USD is attempting an upside correction above 1.0800. USD/JPY rallied above 128.50 and traded to a new 20-year high.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started an upside correction from the 1.0760 zone.
• There was a break above a key bearish trend line with resistance near 1.0805 on the hourly chart of EUR/USD.
• USD/JPY extended rally above 128.00 and traded to a new 20-year high.
• There is a major bullish trend line forming with support near 127.75 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro started saw bearish moves below the 1.0950 level against the US Dollar. The EUR/USD pair declined heavily below the 1.0900 support zone.

The pair even broke the 1.0850 level and settled below the 50 hourly simple moving average. A low was formed near 1.0757 on FXOpen and the pair is now correcting higher. There was a move above the 1.0800 resistance level.

EUR/USD Hourly Chart

Besides, there was a break above a key bearish trend line with resistance near 1.0805 on the hourly chart of EUR/USD. The pair climbed above the 1.0810 zone and the 50 hourly simple moving average.

It tested the 38.2% Fib retracement level of the key decline from the 1.0923 swing high to 1.0757 low. An immediate resistance on the upside is near the 1.0825 level. The next major resistance is near the 1.0840 level.

The 50% Fib retracement level of the key decline from the 1.0923 swing high to 1.0757 low is also near the 1.0840 level. The main resistance is near the 1.0850 level. An upside break above 1.0850 could set the pace for a steady increase.

If not, the pair might drop and test the 1.0800 support. The next major support is near 1.0790 or the 50 hourly simple moving average, , below which the pair could drop to 1.0760 in the near term.

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[fxoday]

ETHUSD and LTCUSD Technical Analysis – 21st APR, 2022


ETHUSD: Bullish Engulfing Pattern Above $2,800

Ethereum entered a consolidation channel last week, after which it started to decline touching a low of $2,883 on April 18th in the US trading session.

Ethereum touched an intraday low of $3,066 in the Asian trading session, and an intraday high of $3,108 in the European trading session today.

We can clearly see a bullish engulfing pattern above the $2,800 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 3,092 and moving in a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 3,111 and Fibonacci resistance level of 3,121, after which the path towards 3,200 will get cleared.

The relative strength index is at 53 indicating a STRONG demand for Ethereum and the continuation of the bullish trend.

Both the StochRSI and Williams percent range are indicating an overbought level which means that the price is due to decline in the short term.

All of the technical indicators are giving a STRONG BUY market signal. All of the moving averages are giving a STRONG BUY signal, and we are now looking at the levels of $3,300 to $3,400 in the short-term range.

ETH is now trading above both the 100 hourly and exponential moving averages.

• A bullish reversal seen in Eth above the $2,800 mark
• The short-term range appears to be mildly BULLISH
• The daily RSI is below 50 at 49 indicating a NEUTRAL market
• The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $2,800

ETHUSD is now moving in a mildly bullish channel with the price trading above the $3,100 handle in the European trading session today.

Ethereum is slowly preparing for its next move against the US dollar. We can see the formation of a bullish harami pattern above the $3,000 handle, and further validates the bullish momentum present in the markets.

ETHUSD is now facing its immediate resistance levels of $3,146 and $3,216, after which we will see a linear progression towards the level of $3,300.

The key support levels to watch are $2,898 and $3,022, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish trend.

ETH has gained 0.07% with a price change of $2.31 in the past 24hrs, and has a trading volume of 16.372 billion USD.

We have seen an increase of 19.21% in the total trading volume in the last 24 hrs. which appears to be normal.

The Week Ahead

This week, the price of Ethereum continues to remain above the 200-day SMA and is now poised towards the formation of a rally into the markets.

As ETH 2.0 is nearing, the projected outlook for Ethereum is close to $5,000 after the successful implementation of the upgrade.

If the price of ETHUSD remains above $3,000, we may see a linear progression towards $3,300 and $3,400 this week.

The immediate short-term outlook for Ether has turned mildly BULLISH; the medium-term outlook has turned neutral; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week, Ether is expected to move in a range between $3,100 and $3,300, and next week, Ether is expected to enter into a consolidation phase above $3,300.

Technical Indicators:

Stoch (9,6): at 57.06 indicating a BUY

The moving averages convergence divergence (12,26): at 2.19 indicating a BUY

The ultimate oscillator: at 54.11 indicating a BUY

Bull/Bear power (13-day): at 20.56 indicating a BUY

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[fxoday]

AUD/USD and NZD/USD At Clear Risk of More Downsides

AUD/USD gained bearish momentum below the 0.7400 support zone. NZD/USD started a major decline after it faced sellers near 0.6815.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline after it struggled near 0.7450 against the US Dollar.
• There was a break below a key bullish trend line with support near 0.7390 on the hourly chart of AUD/USD.
• NZD/USD also started a major decline after it failed to stay above 0.6800.
• There was a move below a key bullish trend line with support near 0.6740 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar faced a strong selling interest near the 0.7450 level against the US Dollar. The AUD/USD pair started a major decline below the 0.7420 level.

There was a clear move below the 0.7400 and 0.7380 support levels. The pair even declined below the 0.7350 support level and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near 0.7390 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart

The pair traded as low as 0.7332 on FXOpen and is currently consolidating losses. On the upside, the AUD/USD pair is facing resistance near the 0.7350 level.

The next major resistance is near the 0.7360 level. It is near the 23.6% Fib retracement level of the recent drop from the 0.7457 swing high to 0.7332 low. The first major resistance is now forming near the 0.7400 level.

The 50% Fib retracement level of the recent drop from the 0.7457 swing high to 0.7332 low is also near the 0.7395 level. A close above the 0.7400 level could start a steady increase in the near term. The next major resistance could be 0.7450.

On the downside, an initial support is near the 0.7330 level. The next support could be the 0.7300 level. If there is a downside break below the 0.7300 support, the pair could extend its decline towards the 0.7250 level. Any more downsides might send the pair toward the 0.7220 level.

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[fxoday]

GBP/USD Takes A Hit, USD/CAD Eyes More Gains

GBP/USD started a major decline below the 1.3000 support. USD/CAD is gaining bullish momentum for a move above the 1.2650 level.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a fresh decline from the 1.3100 resistance zone.
• There is a short-term bearish trend line forming with resistance near 1.2820 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase from well below the 1.2550 zone.
• There was a break above a major bearish trend line with resistance near 1.2550 on the hourly chart.

GBP/USD Technical Analysis

After struggling to clear the 1.3100 resistance zone, the British Pound found started a fresh decline against the US Dollar. GBP/USD traded below the 1.3000 support level to move into a bearish zone.

The bears gained strength for a move below the 1.2900 level and the 50 hourly simple moving average. The pair even spiked below the 1.2800 level and traded as low as 1.2793 on FXOpen. It is now consolidating above the 1.2800 level.

GBP/USD Hourly Chart

An immediate resistance is near the 1.2820 level. There is also a short-term bearish trend line forming with resistance near 1.2820 on the hourly chart of GBP/USD.

The next key resistance is near the 1.2860 level. It is near the 23.6% Fib retracement level of the downward move from the 1.3090 swing high to 1.2793 low. The first major resistance is near the 1.2940 level.

The 50% Fib retracement level of the downward move from the 1.3090 swing high to 1.2793 low is also near the 1.2940 level. If there is an upside break above the 1.2940 zone, the pair could rise towards 1.3000. The next key resistance could be 1.3050, above which the pair could gain strength.

On the downside, the first support is near the 1.2800 area. The first major support is near the 1.2750 level. If there is a break below 1.2750, the pair could extend its decline. The next key support is near the 1.2625 level. Any more losses might call for a test of the 1.2550 support.

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[fxoday]

EUR/USD Resumes Decline, USD/CHF Eyes More Gains

EUR/USD declined heavily below the 1.0850 and 1.0750 levels. USD/CHF could gain pace if there is a move above the 0.9630 resistance.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a major decline from the 1.0935 resistance zone against the US Dollar.
• There is a major bearish trend line with resistance near 1.0670 on the hourly chart of EUR/USD.
• USD/CHF formed a base above the 0.9500 support zone and started a decent increase.
• There is a key bullish trend line forming with support near 0.9600 on the hourly chart.

EUR/USD Technical Analysis

The Euro struggled to gain pace above the 1.0920 resistance level against the US Dollar. The EUR/USD pair started a fresh decline below the 1.0850 and 1.0750 support levels.

There was a clear move below the 1.0700 level and the 50 hourly simple moving average. The pair even declined below the 1.0650 support level. It traded as low as 1.0633 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

On the upside, an initial resistance is near the 1.0665 level. There is also a major bearish trend line with resistance near 1.0670 on the hourly chart of EUR/USD.

The next major resistance is near the 1.0700 level and the 50 hourly simple moving average. It is near the 23.6% Fib retracement level of the key drop from the 1.0936 swing high to 1.0633 low. The next major resistance is near the 1.0750 zone.

A clear upside break above the 1.0750 zone could open the doors for a steady move. In the stated case, the pair might even surpass the 50% Fib retracement level of the key drop from the 1.0936 swing high to 1.0633 low.

On the downside, an immediate support is near the 1.0635 level. The next major support is near the 1.0600 level. A downside break below the 1.0600 support could start another decline.

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[fxoday]

#MarketNews

DOLLAR INDEX FUTURES AT MULTI-YEAR HIGHS

The yen fell to a new two-decade low against the US dollar on Thursday after the Bank of Japan reaffirmed its ultra-low yield policy.

The euro, which has fallen 5% this month, is at a five-year low against the US dollar due to the military conflict in Ukraine. Russia cut off gas supplies to Bulgaria and Poland because the countries refused to pay for gas in rubles. Possible further shutdowns will contribute to problems in the European economy.

The tightening of the FED's monetary policy and the weakening currencies of other countries contributed to the fact that the futures on the dollar index almost reached the level of $104 per contract. In the not-so-distant past, this level served as resistance, from which the price turned down: in the spring of 2020 (in the wake of the spread of the coronavirus), as well as in early 2017.

Most likely, this level will serve as a barrier (probably insurmountable) for the dollar index in 2022 as well. A candlestick on the weekly chart could signify the climax of an uptrend that has been in place since 2021. Under these conditions, one should be prepared for a slowdown in the growth of the dollar.

To benefit from trends in the currency markets, consider enlisting the services of a reliable broker like FXOpen. (https://www.fxopen.com/en/)

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.


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