Daily Market Analysis By FXOpen

BTC and XRP – Correction developing but for how long?


BTC/USD

The price of Bitcoin has continued increasing from last week and came to $24,310 at its highest points yesterday from which it decreased by 10.11% at first, but is now making a recovery and is currently sitting at $23,478 level. This minor pullback we have seen yesterday could have been the beginning of the higher degree descending move as the prior impulse to the upside ended but since the price is starting to increase again we are yet to see.


On the hourly chart, you can see that it came up in a five-wave manner from the 11th of December when it was sitting at $17,500 at its lowest point which was a higher low compared to the one made on the 26th of November.

This higher lower could have been the ending point of the corrective 4th wave from the higher degree in which case the price has formed now the 5th wave. In that case, we are now to see the start of the descending move, but another possibility would be that this higher low on the 11th was the 2nd sub-wave of the new higher degree impulse. If the second is true, then the five-wave impulse from the 11th is the 3rd wave which means that the current corrective structure is the 4th wave and that the price is going to continue increasing again after.

Now as the price is making a recovery we are going to see the validation of either scenario from its behavior. If it manages to exceed yesterday’s high it would indicate that another increase is going to the develop before the starting higher degree decline, but if finds resistance here and starts decreasing again it would mean that the increase ended.

XRP/USD

The price of Ripple has been in a decline from the 17th of December when it was sitting at $0.66413 and fell to $0.4509 today, which is a decrease of 32.1% but has since started making a minor recovery and is currently sitting at $0.4943.


Looking at the hourly chart, we can see that the price made an impulsive rise after the completion of the descending triangle like expected and has broken out above the prior lower high. This was a bullish sign but however, it made it back to the same levels from which it started its upward trajectory.

This could indicate that the correction is still in place with the previous impulsive rise being the second wave X from the prolonged WXYXZ complex correction. If this is true then the price is now going to make another lower low for the development of the Z wave.

Another possibility could be that this is another starting five-wave impulse with the last decline being its 2nd sub-wave.

GBP/USD and GBP/JPY: British Pound Gains Bullish Momentum


GBP/USD started a strong increase above the 1.3500 resistance zone. GBP/JPY also gained traction and it gained pace above the 140.00 resistance zone to move into a positive zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound climbed higher above the 1.3500 and 1.3550 resistance levels.
• There is a key bullish trend line forming with support near 1.3555 on the hourly chart of GBP/USD.
• GBP/JPY also climbed higher steadily above the 139.50 and 140.00 resistance levels.
• There is a major bullish trend line forming with support near 140.30 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound saw a strong increase from the 1.3300 support zone against the US Dollar. The GBP/USD pair broke the 1.3500 resistance zone to move further into a positive zone.

The upward move was such that the pair even broke the 1.3550 resistance and settled above the 50 hourly simple moving average. It traded as high as 1.3618 on FXOpen and it is currently consolidating gains.


It corrected lower towards 1.3520 and traded as low as 1.3522. Recently, there was a minor increase above the 1.3540 level. The pair climbed above the 1.3550 level, and tested the 50% Fib retracement level of the recent decline from the 1.3618 high to 1.3522 low.

The first major resistance is near the 1.3580 level. It is close to the 61.8% Fib retracement level of the recent decline from the 1.3618 high to 1.3522 low.

On the upside, a clear break above the 1.3600 resistance level is needed for more upsides. The next major resistance is near the 1.3650 level, above which the pair could rise towards the 1.3680 and 1.3700 levels.

On the downside, there is a key bullish trend line forming with support near 1.3555 on the hourly chart of GBP/USD. If there is a downside break below the trend line support, the pair could continue to move down towards the 1.3500 support level in the near term.

GBP/JPY Technical Analysis

The British Pound also climbed nicely from the 137.50 support level against the Japanese Yen. The GBP/JPY pair climbed above the 138.50 level to start a steady increase.

It gained pace above the 139.20 resistance and settled above the 50 hourly simple moving average. It even spiked above the 141.00 level and traded as high as 141.21 before correcting lower. There was a break below the 140.50 support level.


However, the pair remained stable above 140.00 and a low is formed near 140.07. The pair is currently rising and trading above the 23.6% Fib retracement level of the recent decline from the 141.21 high to 140.07 low.

The pair is now facing hurdles near the 140.50 and 140.60 levels. The 50% Fib retracement level of the recent decline from the 141.21 high to 140.07 low is also near the 140.60 zone.

A clear break above the 140.60 resistance could open the doors for a fresh increase. In the stated case, the pair could rise above the 141.00 and 141.20 resistance levels.

On the downside, there is a major bullish trend line forming with support near 140.30 on the hourly chart. If there is a downside break below the trend line support, GBP/JPY could retest the 138.50 support level.

AUD/USD and NZD/USD Signaling Upside Continuation


AUD/USD remained in a positive zone and climbed above the 0.7700 resistance. NZD/USD is also showing positive signs and it is likely to continue higher above 0.7220.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar extended its rally above the 0.7600 and 0.7700 resistance levels against the US Dollar.
• There is a major bullish trend line forming with support near 0.7695 on the hourly chart of AUD/USD.
• NZD/USD climbed higher towards the 0.7240 level before correcting lower.
• A key bullish trend line is forming with support near 0.7160 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

In the past few weeks, the Aussie Dollar remained in a bullish zone above the 0.7500 pivot level against the US Dollar. The AUD/USD pair even broke the 0.7650 resistance level to move further into a positive zone.

The pair followed a bullish path and it even broke the 0.7700 resistance and the 50 hourly simple moving average. A new multi-month high is formed near 0.7742 on FXOpen and the pair is currently correcting lower.


There was a break below the 0.7720 support level. The pair even spiked below the 23.6% Fib retracement level of the recent wave from the 0.7557 swing low to 0.7742 high.

However, the pair is finding a strong support near the 0.7700 zone. There is also a major bullish trend line forming with support near 0.7695 on the hourly chart of AUD/USD. The 50 hourly simple moving average is also following the trend line at 0.7690.

If there is a downside break below the trend line and the 50 hourly simple moving average, there is a risk of more downsides towards the 0.7670 support. The next major support is near 0.7650 or the 50% Fib retracement level of the recent wave from the 0.7557 swing low to 0.7742 high.

On the upside, the 0.7740 level is a decent resistance. A clear break above the 0.7740 and 0.7750 levels may possibly open the doors for a larger increase in the coming sessions.

NZD/USD Technical Analysis

The New Zealand Dollar also followed a bullish path above the 0.7100 region against the US Dollar. The NZD/USD pair remained well bid and it even climbed above the 0.7200 resistance.

The pair traded close to the 0.7250 level and a new multi-month high was formed near 0.7241. Recently, there was a downside correction below the 0.7220 support. The pair traded below a connecting bullish trend line with support at 0.7220 on the hourly chart.


There was also a spike below 0.7200, the 50 hourly simple moving average, and the 50% Fib retracement level of the upward move from the 0.7139 swing low to 0.7241 high.

However, the pair remained well bid near the 0.7180 level. It also remained stable above the 61.8% 50 hourly simple moving average. There is also a key bullish trend line forming with support near 0.7160 on the hourly chart of NZD/USD.

If there is a downside break below the trend line support, there is a risk of more losses towards the 0.7140 and 0.7120 support levels.

Conversely, the pair could start a fresh increase above the 0.7220 and 0.7225 resistance levels. In the stated case, NZD/USD might even test the 0.7300 level in the coming days.

BTC and XRP – Consolidation developing but for how long?


BTC/USD

The price of Bitcoin has been in a decline since Sunday when it reached $34,716 at its highest point. We have seen a downfall to $30,367 but the price spiked further to $27,774 at its lowest wick before snapping back above the 0 Fib level. Currently, it is being consolidated above it and is moving sideways, sitting at $31,901 and is in an upward trajectory.


Looking at the hourly chart, we can see that the price completed another five-wave impulse to the upside that started on the 21st of December. This rise was most likely the ending wave of the higher degree count which is why now we are seeing some consolidation. The price action may continue to move sideways for some time now but if the 5th wave of a higher degree is in, then the price is now likely to decline further in a corrective manner.

From Sunday’s high, we have seen a three-wave decrease which could have been a local correction which would mean that another minor higher high could come, but in that case, the current move should be the developing lower degree impulse which doesn’t look like one. This is why it is more likely that now we are seeing a corrective increase before further impulsive moves to the downside.

XRP/USD

The price of Ripple has been in a recovery attempt since the 29th of December when it fell to the $0.18 area, but it hasn’t moved that much to the upside, only reaching $0.2588 on yesterday’s high. Since then another move to the downside was made to around $0.225 level, slightly above which it is currently being traded.


On the hourly chart, you can see that the price of Ripple is moving around its significant horizontal support zone as its attempting to establish support. This lookout for support is being made after a sharp and impulsive decline ended which was the Z wave from the complex correction count.

This is why now another wave to the upside is to start, but it is still uncertain whether or not it’s going to be an impulsive move or another corrective increase before a further decline. Considering the amount of decrease we have seen prior it is more likely that the price is now going to make a recovery but the bearish sentiment is still holding it behind the general market. This is why the price now has to establish a new bottom, potentially revisiting the lower range of the support zone in order to activate buying and chasing of the price that could cause a recovery.

LTC and EOS – Establishing support before new highs


LTC/USD

The price of Litecoin has been increasing since last week and came up from $124.2 at its lowest point on Saturday to $170 at its highest on Monday. This week has started with a pullback to $147.2 but the price is back on the same levels as on Monday.


Looking at the hourly chart, you can see that the price made an interaction with the horizontal resistance found at the $170 level and fell back to its ascending trendline. As it found support there again it is currently making another breakout attempt.

If the price makes a higher high and continued moving past the $170 level it would serve as an early indication that the price is going to continue its bullish trajectory past the upper ascending trendline as well.

But if it fails to do so we might be seeing the completion of the higher degree ending diagonal which formed on the 24th of December. If this is the case then the currently seeing breakout attempt might end as a slightly higher high just making an interaction with the upper ascending trendline before we see a downturn.

However, currently, there are more signs of bullishness than bearishness which is why the uptrend continuation looks more likely.

EOS/USD

From the start of January when the price of EOS was sitting at $2.55 we have seen an increase of 35.68% measured to its highest point at $3.4617 made yesterday. Since then the price made a minor pullback to $3.11 but is now back above $3.315 again.


On the hourly chart, you can see that the price action made a cup and handle formation since the 20th of December and has now made a higher high compared to the one then. We are now seeing the formation of the handle pattern which is set to consolidate the price and establish support before it can move to the upside again.

From the start of the year, the price has moved parabolically to the upside so its upward trajectory would be expected to continue, but not before it makes a revisiting to the zone below $3.27. It could continue to its more significant horizontal zone at around $2.9 but that doesn’t look as likely considering the bullish momentum seen. More likely we are to see another spike to the downside like we have from yesterday’s high potentially coming to the $3 mark which is both a psychological level and the local horizontal support.

After this, a further upside would be expected for the price of EOS in the same impulsive manner as it did from the start of the new year. The next significant price point would be at $3.84 where the price made the previous high on November 25th.

GBP/USD Could Decline Further, USD/CAD Is Eyeing Upside Break


GBP/USD started a fresh decline after it failed to clear the 1.3700 resistance. USD/CAD is rising and it is currently eyeing an upside break above 1.2750.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a major downside correction from well above 1.3650.
• There is a major bearish trend line forming with resistance near 1.3610 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase after forming a support base near the 1.2660 level.
• There was a break above a key bearish trend line with resistance at 1.2700 on the hourly chart.

GBP/USD Technical Analysis

After a decent increase, the British Pound faced resistance near 1.3680-1.3700 against the US Dollar. As a result, the GBP/USD pair started a fresh decline and broke a couple of important supports near 1.3650.

The pair gained bearish momentum below the 1.3600 level and the 50 hourly simple moving average. It even broke a major support zone at 1.3540 to move into a bearish zone. It traded as low as 1.3496 on FXOpen, and the pair is currently consolidating losses.


An initial resistance on the upside is near the 1.3525 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.3635 high to 1.3496 low.

The first major resistance is near the 1.3540 level (the recent breakdown zone). The next resistance is near the 1.3565 zone and the 50 hourly simple moving average. It is also close to the 50% Fib retracement level of the recent decline from the 1.3635 high to 1.3496 low.

Finally, there is a major bearish trend line forming with resistance near 1.3610 on the hourly chart of GBP/USD. Clearly, the pair is likely to face many hurdles if it starts an upside correction from the recent low of 1.3496.

On the downside, the first key support is near the 1.2500 area. The next major support is near the 1.3470 level, below which there is a risk of a sharp decline.

USD/CAD Technical Analysis

The US Dollar traded as low as 1.3629 before starting a decent upward move against the Canadian Dollar. The USD/CAD pair broke the 1.3650 and 1.3665 resistance levels to move into a short-term bullish zone.

The pair gained pace above the 1.3700 level and the 50 hourly simple moving average. Moreover, there was a break above a key bearish trend line with resistance at 1.2700 on the hourly chart.


The pair even broke 1.2720, and climbed above the 50% Fib retracement level of the downward move from the 1.2797 high to 1.2629 swing low. It is now attempting an upside break above another bearish trend line with resistance at 1.2750 on the same chart.

The next key resistance is near the 1.2760 level. It is close to the 76.4% Fib retracement level of the downward move from the 1.2797 high to 1.2629 swing low.

A clear break above the 1.2750 and 1.2760 resistance levels may possibly increase the chances of a strong upward move in the coming sessions. The next key resistance sits at 1.2800.

Conversely, USD/CAD might start another decline if it fails near 1.2750. An initial support is near the 1.2700 level and the 50 hourly SMA. The main support seems to be forming near 1.2665.

BTC and XRP – Has the correction ended?


BTC/USD

From yesterday’s low at $30,340 the price of Bitcoin has increased by 20.71% as it came to $36,743 at its highest point today. Since then it has made a minor retracement and is currently sitting at around $35,340 and is in a downward trajectory.


Looking at the hourly chart, you can see that the price increase that ended on Friday was the ending wave from the higher degree count. This is why now we are seeing the development of the five-wave descending move. As it might have ended the price would now be expected to recover but as this is most likely the beginning of the descending move from the downside we are to see the downtrend continuation after the recovery has been made.

If we are seeing the development of the ABC correction the price of Bitcoin could fall back to the $23,500 range before the correction ends. There could be a possibility that this would be a five-wave impulse rather than the ABC correction in which case the decrease could continue below $23,500.

In the short-term, we are expecting that the price establishes support around the $30,000 area before a recovery to $37,550 which would be the 0.618 Fib level.

XRP/USD

The price of Ripple has also been increasing and came up from $0.2575 at its lowest point yesterday to $0.308 at its highest today which was an increase of around 20%, but since today’s high made a pullback to the $0.29 area where is currently being traded.


On the hourly chart, we can see that this increase was the formation of the first five-wave impulse to the upside after a sharp and steep decline from $0.36 which is a 26.7% decrease measured to yesterday’s low.  This decrease made from Sunday was made after the price broke out from the forming triangle in which it was consolidating and was retesting its horizontal resistance level on which the price came up at its prior high.

The downfall seen could be the corrective wave to the downside after which now we are seeing the next impulse to the upside forming. As a lower degree five-wave count has been completed it will now be seen if this is the start of the higher degree wave 5 or the corrective ABC before further downside movement. The price is now likely to make another five-wave move in either way to the upside from whose momentum we are to evaluate either possibilities.

GBP/USD and GBP/JPY: British Pound Could Correct Lower


GBP/USD gained strength above 1.3600, but it struggled to continue higher above 1.3700. GBP/JPY also corrected lower after forming a short-term top near 142.25.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound tested the 1.3700 resistance zone before correcting lower.
• There was a break below an ascending channel with support near 1.3638 on the hourly chart of GBP/USD.
• GBP/JPY also corrected lower from 142.25 and declined below 141.50.
• There was a break below a major bullish trend line with support near 141.20 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound saw a steady increase above the 1.3550 resistance against the US Dollar. The GBP/USD pair even broke the 1.3600 resistance zone to move further into a positive zone.

The pair climbed above the 1.3650 and 1.3680 resistance levels, but it struggled to gain momentum above 1.3700. A high was formed near 1.3710 on FXOpen and the pair recently started a downside correction.


There was a break below the 1.3650 and 1.3620 support levels. There was also a close below the 1.3620 level and the 50 hourly simple moving average. Moreover, there was a break below an ascending channel with support near 1.3638 on the hourly chart of GBP/USD.

The pair traded as low as 1.3565 and it is currently consolidating losses. An initial resistance on the upside is near the 1.3600 zone. It is close to the 23.6% Fib retracement level of the recent decline from the 1.3710 high to 1.3565 low.

The first key resistance is forming near the 1.3620 level. The next major resistance is near the 1.3640 level and the 50 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the 1.3710 high to 1.3565 low.

If there is an upside break above 1.3620 and 1.3640, GBP/USD could easily drift towards the 1.3700 zone. On the downside, the 1.3565 level is a decent support. If there is a downside break below the recent low, the pair could continue to move down towards the 1.3500 support level in the near term.

GBP/JPY Technical Analysis

The British Pound formed a short-term top near the 142.25 before it started a downside correction against the Japanese Yen. The GBP/JPY pair traded below the 141.80 support level to start the recent decline.

There was a clear break below the 141.50 support level and the 50 hourly simple moving average. There was also a break below a major bullish trend line with support near 141.20 on the hourly chart. The pair cleared the 50% Fib retracement level of the upward move from the 140.34 low to 142.25 high.


It is now trading well below the 141.20 level. It is testing the 76.4% Fib retracement level of the upward move from the 140.34 low to 142.25 high.

The next major support is near the 140.60 level, below which the pair could dive towards the 140.00 support zone in the coming sessions. On the upside, the previous support near 141.30 might act as a resistance.

The first major resistance is near the 141.50 level and the 50 hourly simple moving average. If GBP/JPY climbs above 141.30 and 141.50, it could revisit the 142.25 zone in the coming sessions.