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Daily Market Analysis By FXOpen

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GBP/USD Climbs above 1.4000, USD/CAD Turns Red

Daily Market Analysis By FXOpen in Fundamental_GBPUSD-Cable-Sterling

GBP/USD gained momentum above the 1.3900 resistance and it even broke 1.4000. USD/CAD is declining and it traded below the 1.2650 support zone.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound started a steady increase above the 1.3950 and 1.4000 resistance levels.
  • There is a key rising channel forming with support near 1.4000 on the hourly chart of GBP/USD.
  • USD/CAD started a steady decline below the 1.2700 and 1.2650 support levels.
  • There is a major bearish trend line forming with resistance near 1.2710 on the hourly chart.

GBP/USD Technical Analysis

After forming a base above the 1.3800 level, the British Pound extended its increase against the US Dollar. The GBP/USD pair broke the 1.3900 resistance level to move further into a positive zone.

The bulls gained pace above the 1.3920 level and the 50 hourly simple moving average. As a result, there was a clear break above the key 1.4000 resistance level. The pair traded to a new yearly high at 1.4051 on FXOpen and it is currently correcting lower.

Daily Market Analysis By FXOpen in Fundamental_gbpusd-chart-3

There was a break below the 1.4020 support level. The pair traded below the 23.6% Fib retracement level of the recent wave from the 1.3952 swing low to 1.4051 high.

On the downside, the first key support is near the 1.4000 area. There is also a key rising channel forming with support near 1.4000 on the hourly chart of GBP/USD. The trend line is close to the 50% Fib retracement level of the recent wave from the 1.3952 swing low to 1.4051 high.

If there is a break below 1.4010 and 1.4000, the pair could decline towards the 1.3980 support zone or the 50 hourly simple moving average. Any more losses might call for a test of 1.3920.

On the upside, an initial resistance is near the 1.4040 level. The main resistance is now near the 1.4050 zone, above which the pair is likely to accelerate higher towards the 1.4100 and 1.4120 levels.


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#61 - February 22, 2021, 06:29:01 AM

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Bitcoin Surge Continues as More Institutional Investors Turn to Digital Assets

Daily Market Analysis By FXOpen in Fundamental_btc

The price of Bitcoin reached $57,000 over the weekend. The extent of the current bull run is so aggressive that earlier forecasts that Bitcoin will reach 200k and more in less than a year do not sound improbable anymore.

If that is going to be the case, it remains to be seen. What is important now is that the price of Bitcoin is disconnected completely from reality in the sense that the technology itself has no use and that the asset is purely speculative.

Why Do People Turn to Cryptocurrencies?

Distrust in the financial system appears to be the main reason. People are sick-entire of the same old ?medicine? applied to broken economies (i.e., printing more money to solve for either excessive debt or economic recessions.

And they are right. Unfortunately, so are the policymakers. No one wished for two economic recessions less than ten years apart, but here we are. Moreover, the current one is far more impactful when compared to the 2008-2009 Great Financial Crisis for the simple reason that the health crisis affected the entire world and not just parts of it.


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#62 - February 22, 2021, 01:44:06 PM

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BTC and XRP ? Correction or the end of the increase altogether?

Daily Market Analysis By FXOpen in Fundamental_btc-xrp

BTC/USD

From its all-time high at $58,360, the price of Bitcoin has made a decrease of 22.8% today as it fell to $45,058 at its lowest spike. Currently, it is being traded at $47,251 and the price is in a steep downward trajectory.

Daily Market Analysis By FXOpen in Fundamental_btcusd-1h-3

Looking at the hourly chart, we can see that the price ended its 3rd wave out of the impulse that started on the 27th of January. This is why the seen decrease is still considered correctional in nature but is still unclear where this downfall could end. If this is the developing 4th wave would have seen its first sub-wave which is why now a short-term recovery would be expected.

But after a short-term recovery, we can see its 3rd sub-wave making a lower low, potentially somewhere around its all-time high of $40,000. But if the price goes to those levels it could indicate the possibility that the upward move has ended altogether.  If this is true then we have seen the completion of the five-wave impulse at the $58,000 area in which case now a longer-term correction could play out.

For the signs of confirmation, we are going to look at what happens at the current levels as if this is the 4th wave the price should start an immediate recovery. But if it continues moving to the downside further in a straight line the second scenario would look more likely.


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#63 - February 23, 2021, 02:46:35 PM

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EUR/USD and USD/CHF Showing Signs of More Upsides

Daily Market Analysis By FXOpen in Fundamental_EURUSD

EUR/USD settled above 1.2100 and it is now facing hurdles near 1.2200. USD/CHF is rising and it is likely to accelerate higher above 0.9065.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro started a fresh increase above the 1.2100 and 1.2120 resistance levels against the US Dollar.
  • There is a key bullish trend line forming with support near 1.2140 on the hourly chart of EUR/USD.
  • USD/CHF started a steady increase and climbed above the 0.9000 resistance zone.
  • There was a break above a major rising channel with resistance near 0.9045 on the hourly chart.

EUR/USD Technical Analysis

The Euro remained stable above the 1.2000 support and it started a fresh increase against the US Dollar. The EUR/USD pair broke the 1.2100 and 1.2120 resistance levels to move into a positive zone.

The pair even broke the 1.2150 resistance and settled above the 50 hourly simple moving average. It traded as high as 1.2179 on FXOpen and it is currently consolidating gains. It corrected below 23.6% Fib retracement level of the recent wave from the 1.2091 low to 1.2179 high.

Daily Market Analysis By FXOpen in Fundamental_eurusd-chart-3

However, the pair found a strong support near the 1.2135 level. It coincides with the 50% Fib retracement level of the recent wave from the 1.2091 low to 1.2179 high.

There is also a key bullish trend line forming with support near 1.2140 on the hourly chart of EUR/USD. The pair is now trading nicely above 1.2140 and the 50 hourly simple moving average. If there is a downside break below the trend line support, there could be a sharp decline below 1.2120.

The next key support is near the 1.2100 level, below which EUR/USD could decline towards the 1.2040 support. Conversely, the pair could rise further above 1.2180.

A successful break above the 1.2180 and 1.2200 resistance levels could lead the pair towards the 1.2250 and 1.2280 levels in the near term.

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#64 - February 24, 2021, 05:28:31 AM

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LTC and EOS ? Further downside more likely

Daily Market Analysis By FXOpen in Fundamental_ltc

LTC/USD

The price of Litecoin has been in a decline from Saturday?s high when it came up to  $247. From there we have seen a downfall of 35.8% measured to its lowest point of the week made on Tuesday at $158.56. We have seen a minor recovery as the price made a rise to the $190 area but has since pulled back again and is currently sitting just below $180.

Daily Market Analysis By FXOpen in Fundamental_ltcusd-1h-3

Looking at the hourly chart, you can see that the price of Litecoin has fallen back to the 0.236 Fib level which was the horizontal resistance point of the prior high made on the 10th of January. It dipped below it which could serve as an early indication that the previous uptrend ended, but it managed to go back above it and is currently testing it for support. If the support gets validated at these levels we could see further uptrend continuation of the impulse wave that started on the 27th of January.

However, if the price continues moving to the downside again and makes it into the lower range it would be a stronger indication that the price of Litecoin has ended its previous impulsive move and is now headed towards a correction of the higher degree out of which the downfall from last Saturday was only its 1st sub-wave.


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#65 - February 25, 2021, 12:36:39 PM

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does the movement of BTC influence the price against LTC?
#66 - February 25, 2021, 01:26:24 PM

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EUR/JPY and GBP/JPY Approaching Important Supports

Daily Market Analysis By FXOpen in Fundamental_Euro-Yen-Pound

The Euro and British Pound started a steady increase in the past few days against the Japanese Yen. Both EUR/JPY and GBP/JPY are correcting gains, but approaching important supports.

Important Takeaways for EUR/JPY and GBP/JPY

  • The Euro gained pace above 129.00 before correcting lower against the Japanese Yen.
  • There was a break below a connecting bullish trend line with support at 129.10 on the hourly chart of EUR/JPY.
  • GBP/JPY spiked above the main 150.00 resistance before correcting lower.
  • There was a break below a major bullish trend line with support at 148.75 on the hourly chart.

EUR/JPY Technical Analysis

Daily Market Analysis By FXOpen in Fundamental_eurjpy-chart-1

After forming a base above the 127.50 level, the Euro started a steady increase against the Japanese Yen. The EUR/JPY pair broke many hurdles near the 128.50 level to move into a positive zone.

There was also a break above a key contracting triangle with resistance near 128.00 on the hourly chart of EUR/JPY. The pair surged above the 129.00 level and the 50 hourly simple moving average. It traded to a new monthly high at 129.97 on FXOpen and it is currently correcting gains.

There was a break below the 129.50 support. The pair broke the 38.2% Fib retracement level of the upward move from the 127.70 swing low to 129.97 high. There was also a break below a connecting bullish trend line with support at 129.10 on the same chart.

The pair is now approaching the 128.80 support level and the 50 hourly simple moving average. The 50% Fib retracement level of the upward move from the 127.70 swing low to 129.97 high is also near the 128.82 level.

If there is a downside break below the 128.80 support, the pair could continue to move down towards the 128.40 support. Conversely, it might start a fresh increase from 128.80.

An initial resistance on the upside is near the 129.20 level. The main resistance sits at 129.50, above which the pair could rise towards the 130.00 level.


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#67 - February 26, 2021, 06:27:09 AM

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GBP/USD and EUR/GBP: British Pound Corrects Gains

Daily Market Analysis By FXOpen in Fundamental_GBPUSD-Cable

GBP/USD rallied above the 1.4200 level before correcting lower. EUR/GBP is declining, but it is might find bids near the 0.8635 zone in the near term.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound surged above the 1.4200 level and recently corrected lower.
  • There was a break below a major bullish trend line with support at 1.4140 on the hourly chart of GBP/USD.
  • EUR/GBP climbed above the 0.8700 level before it faced sellers and corrected lower.
  • There was a break below a key bullish trend line with support near 0.8660 on the hourly chart.

GBP/USD Technical Analysis

Daily Market Analysis By FXOpen in Fundamental_gbpusd-chart

After a successful close above the 1.4000 level, the British Pound started a strong increase against the US Dollar. The GBP/USD pair a few key hurdles near 1.4080 and 1.4100 to move further into a positive zone.

The pair climbed above the 1.4200 level and traded close to 1.4240 on FXOpen. Recently, there was a downside correction, and the pair declined below the 1.4100 support zone and the 50 hourly simple moving average.

There was also a break below a major bullish trend line with support at 1.4140 on the hourly chart of GBP/USD. The pair even broke the 1.4000 support and traded as low as 1.3887. It is currently consolidating and trading above the 1.3950 level.

There was a break above the 23.6% Fib retracement level of the downward move from the 1.4181 high to 1.3887 low. The first major resistance on the upside is near the 1.4040 level and the 50 hourly simple moving average.

The 50% Fib retracement level of the downward move from the 1.4181 high to 1.3887 low is also near the 1.4040 level. A successful break above the 1.4040 level and the 50 hourly SMA could open the doors for a fresh increase. In the stated case, the pair could revisit the 1.4150 level.

On the downside, the 1.3950 level is a decent support. The next major support sits near the 1.3900 level, below which the pair could slide towards the 1.3820 level.


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#68 - March 01, 2021, 07:23:33 AM

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Rising Yields Spark Dollar?s Rally

Daily Market Analysis By FXOpen in Fundamental_usd

Financial market participants were taken by surprise last week. The US dollar, on a steady decline since April of last year, has pared losses and started to rally.

It gained across the board, trading higher against the euro, the pound, or the Australian dollar. The move higher in the dollar comes against all forecasts at the end of last year. Investment banks across the world forecasted a lower dollar to be the theme for the entire 2021, but that trend lasted only for the first two months of the year.

The move higher in the dollar was sparked by a dramatic increase in the US 10y yields. The Treasury yield is already at the end-2021 forecast, with only two months ended in the trading year.

Daily Market Analysis By FXOpen in Fundamental_1

Higher Yields, Higher Dollar

The rising yields pose a threat to the reflation theme and the risk-on environment. Whenever yields are rising, the rise brings an unwanted tightening in financial conditions.

At this point, investors are speculating that the tightening of financial conditions during a pandemic will trigger more action from some central banks. However, the Fed looks trapped due to higher inflation and the Treasury issuance plan. Therefore, the chances are that other central banks, in particular the ECB and the RBA, will likely ease, further fueling the move higher in the dollar.

The EURUSD and the AUDUSD pairs lows over two big figures last week, and the trend lower continues. At the time of writing this article, the EURUSD traded close to 1.20, after only last Thursday it was as high as 1.2240. The move lower is almost vertical, and the same is seen on the AUDUSD pair.

In other words, this is a higher dollar move triggered by financial tightening and the risk-on environment changed. Should we see, yields continuing to rise, the dollar?s strength will continue as well.

This is the NFP week, and trading is tricky until the jobs data is released next Friday. However, this time the release may not be so relevant for markets unless the yields give away some of the recent games.

Also, investors will focus on what the RBA will do tomorrow, as well as the signals from the ECB. Any signs of further easing should trigger a new leg lower in the EURUSD and AUDUSD pairs.


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#69 - March 01, 2021, 12:58:55 PM

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BTC and XRP ? Breakout seen but first resistance encountered

Daily Market Analysis By FXOpen in Fundamental_btc-xrp

BTC/USD

From Sunday?s low at around  $43,070, the price of Bitcoin came up $49,579 at its highest point today which was a recovery of 15%. Since today?s high, we have seen a minor pullback but the price is still in an upward trajectory overall.

Daily Market Analysis By FXOpen in Fundamental_btcusd-1h

This recovery of 15% was a breakout from the descending triangle that formed from the 25th of February and was the 3rd sub-wave from the correctional move that started on the 21st. The price found support on the 0.5 Fib level on Sunday which led to the price increase and ultimately to a breakout but now new resistance has been encountered above the prior local high at the significant horizontal level.

We could have seen the completion of the 4th corrective wave from the higher degree count with the wave structure implying that the descending triangle from which it broke was the C wave from the lower degree count. If this is true, then the current rise is the next starting impulse that is going to push the price of Bitcoin above its prior all-time high onto the next one.  But first, there must be a validation which would come in a form of a breakout from the currently interacted horizontal resistance level. This is why now the pullback might continue to the 0.382 Fib level where if the price finds support, further uptrend continuation would be expected.


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#70 - March 02, 2021, 01:08:27 PM

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