Daily Market Analysis By FXOpen

British Pound at 20 year low as new Prime Minister takes office

The somewhat lethargic attempt to replace outgoing Prime Minister of the United Kingdom Boris Johnson has come to an end, and Liz Truss has been inaugurated by the current government as the Prime Minister who will replace Boris Johnson.

The result of this selection process concluded yesterday to a varied discourse among the business community and the electorate, however it has been marked by the already flagging British economy having reached an unenviable milestone, this being the British Pound having sunk to its lowest point in 20 years.

Although the value of the Pound against its major peers turned around on Monday, reversing some of its earlier losses to return to the flatline, it still languishes at 1.16 against the US Dollar today, having risen only slightly from the upper end of the 1.15 range yesterday which is its lowest value in two whole decades.

Faced with inflation that may reach 20% by January, and a total lack of confidence in the economic conditions in the United Kingdom by many investors and a large proportion of the cash-strapped public who have seen the national coffers plundered during the period in which Boris Johnson was in office to the tune of hundreds of billions on lockdown-related schemes, green initiatives and his voluntary involvement in the geopolitical turmoil facing Russia and Ukraine.

It appears that the overall global FX market has become used to the similarly escalating levels of inflation across Europe and North America, and have begun to focus on specific differences between these economic centers rather than on a common issue surrounding inflation which affects all of the West relatively equally.

Therefore, the volatility in the currency markets that is surrounding the majors is stemming from another set of metrics, because if it was all about inflation, there would be similar considerations on all currencies and therefore not much volatility.

The Eurozone has managed to stay ahead during the period at which the Pound has been tanking, and the US Dollar has been the strong currency to measure the extent to which the Pound has been tanking.

Uncertainty looms as the relatively unproven Liz Truss takes office, her views already having been cast on involvement in the Ukraine/Russia political situation where she rather rashly stated that she would like to ‘destroy the Russian economy’. Not really the words that should be coming from an elected official.

In fact, the sanctions have strengthened the ruble, and created extreme demand for oil, therefore adding to the economic woes faced by Western markets.

These are uncertain times, and as summer gives way to autumn, all eyes are on energy prices, the affordability of domestic heating in the winter being another major factor toward the weakening of the Pound.

Volatility is abound, folks!

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EUR/USD Tumbles While EUR/JPY Gains Bullish Momentum

EUR/USD remained in a bearish zone below 1.0000. EUR/JPY is rising and there was a clear move above the 142.00 resistance zone.

Important Takeaways for EUR/USD and EUR/JPY

· The Euro started a major decline below the 1.0000 and 0.9980 support levels.

· There is a key bearish trend line forming with resistance near 0.9940 on the hourly chart.

· EUR/JPY started a fresh increase and jumped above the 142.00 resistance.

· There is a major bullish trend line forming with support near 141.60 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to start a steady recovery wave above the 1.0000 resistance against the US Dollar. The EUR/USD pair remained in a bearish zone and traded below the 0.9950 support.

There was a clear move below the 0.9940 level and the 50 hourly simple moving average. The pair even settled below the 0.9940 level. A low was formed near 0.9864 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

The pair recovered above 0.9900 and the 38.2% Fib retracement level of the downward move from the 0.9986 swing high to 0.9864 low.

However, the bears were active near the 0.9925 level and the 50 hourly simple moving average. They protected gains above the 50% Fib retracement level of the downward move from the 0.9986 swing high to 0.9864 low.

There is also a key bearish trend line forming with resistance near 0.9940 on the hourly chart. On the upside, the pair is facing resistance near the 0.9925 level and the 50 hourly simple moving average.

The next major resistance is near the 0.9940 level. A clear move above the 0.9940 resistance might send the price towards 0.9980. If the bulls remain in action, the pair could revisit the 1.0050 resistance zone in the near term.

On the downside, the pair might find support near the 0.9865 level. The next major support sits near the 0.9820 level. If there is a downside break below the 0.9820 support, the pair might accelerate lower in the coming sessions.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

Stark reality of China’s lockdowns: Oil and FTSE 100 down

Perhaps somewhat surprisingly, trade figures released this week by the Chinese government have been enough of a disappointment to affect the price of raw commodities.

China is by far the most productive country on earth. Its massive population coupled to its might as the world’s manufacturing center has propelled it into a league of its own to the extent that new cities which were only built between ten and fifteen years ago across the country are now home to between fifteen and twenty million people per city and it is not uncommon to see Rolls Royce cars and huge corporate headquarters dominating the streets and skylines as if these metropoli had hundreds of years of prosperity behind them.

China’s massive output which feeds its own enormous domestic market as well as provides pretty much everything to the entire world is unsurprisingly the reason why it is the highest importer and consumer of crude oil in the world by a very long way.

Therefore, when figures in China are down, this is enough to affect the price of crude oil as a global commodity.

Rather unbelievably, the Chinese government, which operates a single-party, communist state in which the entire economy is centralized and has massive government involvement, is engaging in draconian lockdowns, something that has been going on for over two years now, with its obedient population complying to the letter.

Due to these lockdowns which are still taking place in several major cities, the year-on-year figures showing exports growth of 7.1% and imports up by just 0.3% in August were both below expectations.

The export growth is an important metric here, because importing anything other than raw materials into China (an activity which is supervised by the government), is against the law as it contravenes the communist ethos of the government.

Exporting products made for external markets is China’s strength, and a slow growth of such a massive mainstay of the economy is an indictor that a bit less oil would be required if productivity is down.

The price of Brent crude was below $92 a barrel at the start of London trading this morning, which has had an effect on mining and exploration company stocks which are listed on the London Stock Exchange.

China’s worse-than-expected trade figures led specifically toward energy and mining stocks opening lower, leaving the FTSE 100 index down 78.76 points at 7221.68.

It’s still above the 7220 mark, which is not a catastrophe by any means, but the lowering value of oil globally and energy company stocks on London’s markets is an indicator toward how much of an influencer Chinese productivity is on global markets.

To put some actual figures on this, Rio Tinto lost 2.5% and Anglo American fell by just under 2%, while BP retreated 1.5% or 6.5p to 446.15p.

China therefore remains the world’s most influential market and this serves as a reminder of its might, whether things are going well or not so well!

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

ETHUSD Technical Analysis – 08th SEP, 2022

ETHUSD: Hammer Pattern Above $1490

Ethereum was unable to sustain its bearish momentum and after touching a low of 1492 on 07th Sep started to correct upwards against the US dollar, crossing the $1600 handle in the European trading session today.

We can see a continued buying pressure since yesterday and the formation of a bullish trendline from $1490 towards $1685 level.

We can clearly see a hammer pattern above the $1490 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 1613 and moving into a strong bullish channel. The price of ETHUSD is now testing its classic resistance level of 1630 and Fibonacci resistance level of 1647 after which the path towards 1700 will get cleared.

The relative strength index is at 58 indicating a STRONGER demand for Ether and the continuation of the uptrend in the markets.

We can see the aroon indicator giving a bullish trend in the weekly time frame.

We have also detected a moving average crossover pattern between the MA50 & MA100 in the 30-minute time frame.

The STOCHRSI is indicating an OVERSOLD market, which means that the prices are expected to correct upwards in the short-term range.

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

Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1700 to $1800 in the short-term range.

ETH is now trading Above both the 100 & 200 hourly simple and exponential moving averages.

  • Ether: bullish reversal seen above the $1490 mark
  • The short-term range appears to be strongly BULLISH
  • ETH continues to remain above the $1600 levels
  • The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $1490

ETHUSD is moving into a strong bullish channel with the prices trading above the $1600 handle in the European trading session today.

ETH touched an intraday high of 1656 in the Asian trading session and an intraday low of 1597 in the European trading session today.

A three white soldiers pattern is visible in the 30-minutes time frame indicating the underlying bullish nature of the markets.

We can see the formation of a bullish harami cross pattern in the 15-minute time frame which indicates that now we are heading towards the $1800 mark.

The daily RSI is printing at 50 indicating a neutral demand in the long-term range.

Ethereum continues to move into a rising trend channel which is expected to continue in the short-term range.

The key support levels to watch are $1515 and $1581, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has increased by 6.68% with a price change of 101$ in the past 24hrs and has a trading volume of 18.368 billion USD.

We can see a decrease of 12.89% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

On the upside the next visible targets are 1655 which is a 38.2% retracement from 4-week low, and 1726 which is a 50% retracement from 4-week high/low.

The price of Ethereum is now testing its immediate resistance zone located at $1700 and we are likely to witness a rally in the price once it touches these levels.

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

The prices of ETHUSD will need to remain above the important support level of $1500 this week.

The weekly outlook is projected at $1800 with a consolidation zone of $1700.

Technical Indicators:

The relative strength index (14): is at 58.32 indicating a BUY

The moving averages convergence divergence (12,26): is at 10.23 indicating a BUY

The rate of price change: is at 3.32 indicating a BUY

The ultimate Oscillator: is at 58.98 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

AUD/USD and NZD/USD Start Recovery, Key Hurdles Intact

AUD/USD is gaining pace above the 0.6800 resistance. NZD/USD is rising, but it might face resistance near the 0.6130 and 0.6140 levels.

Important Takeaways for AUD/USD and NZD/USD

· The Aussie Dollar started a fresh recovery wave above the 0.6750 resistance zone against the US Dollar.

· There was a break above a key bearish trend line with resistance near 0.6788 on the hourly chart of AUD/USD.

· NZD/USD started an upside correction from the 0.5965 support zone.

· There is a connecting bearish trend line forming with resistance near 0.6105 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar formed a base above the 0.6695 and 0.6700 levels against the US Dollar. The AUD/USD pair started a steady recovery wave after it cleared the 0.6750 resistance zone.

There was a clear move above the 0.6780 resistance and the 50 hourly simple moving average. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 0.6832 swing high to 0.6699 swing low (formed on FXOpen).

AUD/USD Hourly Chart

Besides, there was a break above a key bearish trend line with resistance near 0.6788 on the hourly chart of AUD/USD. The pair is now trading above the 76.4% Fib retracement level of the downward move from the 0.6832 swing high to 0.6699 swing low.

It is also well above the 0.6800 level and the 50 hourly simple moving average. On the upside, the AUD/USD pair is facing resistance near the 0.6830 level.

The next major resistance is near the 0.6865 level. A close above the 0.6865 level could start a steady increase in the near term. The next major resistance could be 0.6950.

On the downside, an initial support is near the 0.6800 level. The next support could be the 0.6780 level. If there is a downside break below the 0.6780 support, the pair could extend its decline towards the 0.6750 level.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

Watch FXOpen’s September 5 - 9 Weekly Digest Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

  • British Pound at 20 year low as new Prime Minister takes office
  • New extreme for the yen
  • Has Apple’s presentation affected the stock price?
  • Stark reality of China’s lockdowns: Oil and FTSE 100 down

Watch our short and informative video, and stay updated with FXOpen.

FXOpen YouTube

GBP/USD Recovers, EUR/GBP Eyes More Upsides

GBP/USD started a fresh increase above the 1.1550 zone. EUR/GBP is rising and might climb further higher above the 0.8700 resistance.

Important Takeaways for GBP/USD and EUR/GBP

· The British Pound started a fresh recovery wave above the 1.1550 resistance zone against the US Dollar.

· There is a key bullish trend line forming with support near 1.1585 on the hourly chart of GBP/USD.

· EUR/GBP climbed higher above the 0.8620 and 0.8650 resistance levels.

· There is a major bullish trend line forming with support near 0.8665 on the hourly chart.

GBP/USD Technical Analysis

The British Pound found support near the 1.1420 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to clear the 1.1500 resistance zone.

There was a decent increase above the 1.1550 level and the 50 hourly simple moving average. The pair even climbed above the 1.1600 level. A high was formed near 1.1641 on FXOpen and the pair is now correcting gains.

GBP/USD Hourly Chart

There was a move below the 1.1620 level. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.1550 swing low to 1.1641 high.

On the downside, an initial support is near the 1.1600 level. It is near the 50% Fib retracement level of the upward move from the 1.1550 swing low to 1.1641 high. There is also a key bullish trend line forming with support near 1.1585 on the hourly chart of GBP/USD.

The next major support is near the 1.1550 level. Any more losses could lead the pair towards the 1.1500 support zone or even 1.1420.

On the upside, an initial resistance is near the 1.1640 level. The next main resistance is near the 1.1650 zone. A clear upside break above the 1.1640 and 1.1650 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.1715 level.

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BTCUSD and XRPUSD Technical Analysis – 13th SEP 2022

BTCUSD: Inverted Hammer Pattern Above $19025

Bitcoin was unable to sustain its bearish momentum and after touching a low of 18567 on 07th Sep, it started to correct upwards crossing the $22000 handle today in the European trading session.

The price of Bitcoin continues to correct upwards due to the increased buying pressure and more upsides are expected towards the $25000 levels.

We can see a bullish price crossover with the adaptive moving average AMA50 in the 15-minute time frame.

We have also seen a bullish opening gap underpinning the markets this week.

We can clearly see an inverted hammer pattern above the $19025 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday low of 22067 in the Asian trading session and an intraday high of 22553 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term a decline in the prices is expected.

The relative strength index is at 71 indicating a very strong demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and below its 200 hourly exponential 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 24000 and 25000.

The average true range is indicating LESS market volatility with a strong bullish momentum.

  • Bitcoin: bullish reversal seen above $19025.
  • STOCHRSI is indicating an oversold level.
  • The price is now trading just above its pivot level of $22332.
  • All of the moving averages are giving a STRONG BUY market signal.

Bitcoin: Bullish reversal seen above $19025

The price of bitcoin is forming an ascending channel, with the current price action indicating a move towards the consolidation phase above the $22000 handle.

We can see the formation of a bullish harami pattern in the 2-hourly time-frame indicating the underlying bullish nature of the markets.

We have also detected the formation of a bullish engulfing line in the 1-hourly time frame indicating the bullish scenario.

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

Bitcoin’s support zone is located at $21000 and the price continues to remain above these levels for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its classic resistance level of 22502 and Fibonacci resistance level of 22731 after which the path towards 23000 will get cleared.

In the last 24hrs BTCUSD has increased by 0.95% by 211$ and has a 24hr trading volume of USD 43.846 billion. We can see a decrease of 2.98% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The price of bitcoin is moving in a consolidation zone above the $22000 levels. At present the price is moving into a narrow range between the 22000 and 22500 levels.

We can see that the price of bitcoin is super bullish and we are heading towards the $30000 handle in the medium term range.

The daily RSI is printing at 61 which indicates a very strong demand from the long-term investors.

The price of BTCUSD will need to remain above the important support levels of $21000 this week.

The weekly outlook is projected at $25000 with a consolidation zone of $24500.

Technical Indicators:

The moving averages convergence divergence (12, 26): is at 564.30 indicating a BUY.

The ultimate oscillator: is at 57.64 indicating a BUY.

The rate of price change: is at 5.34 indicating a BUY.

The commodity channel index (14): is at 105.75 indicating a BUY.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

EUR/USD Trims Gains, USD/JPY Aims New High

EUR/USD started another decline from the 1.0200 resistance. USD/JPY is rising and might soon clear the key 145.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a fresh decline and even traded below the 1.0020 support.

· There was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD.

· USD/JPY started a fresh increase after it remained well bid above the 141.50 support.

· There is a key bullish trend line forming with support near 142.30 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro was able to recover above the 1.0100 level against the US Dollar. The EUR/USD pair even broke the 1.0150 level, but the bears were active near the 1.0200 zone.

A high was formed near 1.0197 on FXOpen and the pair started a fresh decline. There was a clear move below the 1.0150 and 1.0120 support levels. The pair declined below the 50% Fib retracement level of the upward move from the 0.9864 swing low to 1.0197 high.

EUR/USD Hourly Chart

Besides, there was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD. The pair is now trading below the 1.0050 level and the 50 hourly simple moving average.

An immediate resistance on the upside is near the 1.0000 level. The next major resistance is near the 1.0030 level. An upside break above 1.0030 could set the pace for a steady increase. In the stated case, the pair might revisit 1.0080.

Any more gains might send the pair towards 1.0120. If not, the pair might drop and test the 0.9950 support. The next major support is near 0.9920, below which the pair could drop to 0.9860 in the near term.

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What’s going on with the stock markets? It’s all sudden panic!

Yesterday, it became clear that some of the world’s most seasoned analysts and investment managers had begun to look at the US stock markets with trepidation.

Indeed, one particular long-established investment manager, Jeremy Grantham of GMO fame, stated on Monday that he envisages the S&P500 index to collapse by 26% by the end of the year, citing junk bonds and unstable NASDAQ tech stocks as possible reasons.

Well, today the nervousness is all out in the open and other very well recognized commentators are following suit.

Morgan Stanley stated during the late hours of the European evening yesterday that they expect the S&P500 to plunge by a further 17 to 17% in the next four months.

This is a sudden depiction of low confidence in company stocks listed on American exchanges, and it has sent waves through the entire global financial markets to the extent that everyone from bank executives to cryptocurrency HODLers are talking about a potential stock market crash.

Even in Australia, the ASX exchange, based in Sydney, experienced a total wipeout of over $72 billion in the value of its listed stocks yesterday, as commentator Scott Pape stated that the country is ‘well overdue’ for a major stock crash.

The last time a stock market collapse occurred at the same time as poor credit conditions was during the global banking crisis in 2008, and whilst there certainly are poor indicators this time, the 2008 financial crisis was purely bank related. The rest of the economy of the West was fully operational and could work to pull things back.

Now, however, Australia has been subjected to two years of draconian lockdowns, almost making it an isolated island. This impacted important trade with its key partners in the Asia Pacific region, all of which continued their business unhindered and became ever stronger.

The United States economy has been somewhat overlooked recently, largely because the US Dollar has been holding itself up well against other Western majors, all of which have been tanking, especially the British Pound, and although inflation is high in the United States, it is lower than it is in Europe and the United Kingdom.

Therefore, the weaknesses in corporate stock have been perhaps overlooked and now the doom-mongers are moving in.

the Australian Securities Exchange plunged by 2.75 per cent in the opening minutes this morning, wiping out $66billion, after another high inflation reading in the US sparked fears of a giant interest rate rise in the world’s biggest economy.

As the winter draws closer, and the potential cost of domestic energy is on the minds of the American and European public, conservatism and looking to cover existing expenses rather than invest in new ones is a priority for many.

A bear market it certainly is.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

ETHUSD and LTCUSD Technical Analysis – 15th SEP, 2022

ETHUSD: Hammer Pattern Above $1551

Ethereum was unable to sustain its bullish momentum and after touching a high of 1788 on 11th Sep the price started to decline against the US dollar. This decline was mainly attributed to the strength of the US dollar in the global markets and the subsequent increase in the market liquidity.

We can see a continued buying pressure since yesterday and the formation of a bullish price crossover pattern with moving averages MA20, MA50 and MA100 in the 15-minute time frame.

We can clearly see a hammer pattern above the $1551 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 1599 and moving in a strong bullish channel. The price of ETHUSD is now testing its classic resistance level of 1625 and Fibonacci resistance level of 1651 after which the path towards 1700 will get cleared.

The relative strength index is at 56 indicating a STRONGER demand for Ether and the continuation of the uptrend in the markets.

We can see that the super trend indicator is giving a bullish reversal signal in the 15-minute time frame.

We have also detected a bullish harami cross pattern in the 1 -hour time frame.

The STOCHRSI is indicating an OVERBOUGHT market, which means that the prices are expected to decline in the short-term range.

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

Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1750 to $1900 in the short-term range.

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

  • Ether: bullish reversal seen above the $1551 mark
  • Short-term range appears to be strongly BULLISH
  • ETH continues to remain above the $1600 level
  • The average true range is indicating HIGH market volatility

Ether: Bullish Reversal Seen Above $1551

ETHUSD is now moving into a strongly bullish channel with the prices trading above the $1600 handle in the European trading session today.

ETH touched an intraday low of 1571 and an intraday high of 1651 in the European trading session today.

We have seen a bullish opening of the markets today indicating the underlying bullish nature of the markets.

We can see that MACD has crossed UP its moving average in the 4-hour time frame indicating the bullish tone, and now we are looking at the levels of 1800 to 2000 in the medium-term range.

The daily RSI is printing at 48 indicating a neutral demand in the long-term range.

The key support levels to watch are $1566 and $1501 and the prices of ETHUSD need to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has increased by 1.40% with a price change of 22.33$ in the past 24hrs and has a trading volume of 24.474 billion USD.

We can see an increase of 5.50% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

On the upside, the next visible targets are 1752 which is a 38.2% retracement from 4 week low, and 1690 which is a 50% retracement from 4 week high/low.

The prices of Ethereum are now testing its immediate resistance zone located at $1700 and we are likely to witness a rally in the prices once it touches these levels.

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

The price of ETHUSD will need to remain above the important support level of $1500 this week.

The weekly outlook is projected at $1900 with a consolidation zone of $1700.

Technical Indicators:

The average directional change (14): is at 24.06 indicating a BUY

The moving averages convergence divergence (12,26): is at 0.48 indicating a BUY

The rate of price change: is at 2.61 indicating a BUY

The ultimate oscillator: is at 62.47 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

Gold Price and Crude Oil Price At Risk of More Losses

Gold price started a fresh decline below the $1,685 support zone. Crude oil price is also struggling and remains at a risk of more losses.

Important Takeaways for Gold and Oil

· Gold price started a fresh decline after it failed to stay above $1,700 against the US Dollar.

· There is a key bearish trend line forming with resistance near $1,675 on the hourly chart of gold.

· Crude oil price also started a steady decline from the $90.00 zone.

· There was a break below a major bullish trend line with support near $87.50 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price attempted to gain pace above the $1,735 level against the US Dollar. However, the price failed to stay above $1,720 and started a fresh decline.

There was a clear move below the $1,700 support zone and the 50 hourly simple moving average. The price declined below the $1,675 level to move into a bearish zone. The decline gained pace below the $1,670 level.

Gold Price Hourly Chart

The price traded as low as $1,660 and is currently consolidating losses. On the upside, the price is facing resistance near the $1,670 level.

The first major resistance is near the $1,675 level. There is also a key bearish trend line forming with resistance near $1,675 on the hourly chart of gold. The trend line is near the 23.6% Fib retracement level of the recent decline from the $1,735 swing high to $1,660 low.

The main resistance is now forming near the $1,688 level and the 50 hourly simple moving average, above which it could even test the 50% Fib retracement level of the recent decline from the $1,735 swing high to $1,660 low.

A clear upside break above the $1,700 resistance could send the price towards $1,735. An immediate support on the downside is near the $1,660 level. The next major support is near the $1,650 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,620 support zone.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

GBP/USD Turns Red While USD/CAD Aims Higher

GBP/USD is trading in a bearish zone below the 1.1480 and 1.1440 support levels. USD/CAD is surging and could continue to rise above the 1.3300 resistance zone.

Important Takeaways for GBP/USD and USD/CAD

· The British Pound started a major decline below the 1.1550 support zone.

· There is a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD.

· USD/CAD started a fresh increase above the 1.3200 resistance zone.

· There is a connecting bullish trend line forming with support near 1.3220 on the hourly chart.

GBP/USD Technical Analysis

After a strong rejection near 1.1740, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.1550 support zone.

There was a move below the 1.1500 support zone and the 50 hourly simple moving average. The pair even traded below the 1.1480 support zone and formed a low near 1.1350 on FXOpen. It is now consolidating losses above the 1.1350 level.

GBP/USD Hourly Chart

An immediate resistance is near the 1.1415 level. There is also a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD. The next resistance is near the 1.1440 level or the 38.2% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.

The main resistance is near the 1.1480 level. It is near the 50% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.

If there is an upside break above the 1.1480 zone, the pair could rise towards 1.1550. The next key resistance could be 1.1580, above which the pair could gain strength.

On the downside, an initial support is near the 1.1380 area. The first major support is near the 1.1350 level. If there is a break below 1.1350, the pair could extend its decline. The next key support is near the 1.1300 level. Any more losses might call for a test of the 1.1240 support.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

British Pound hits 37-year low against US Dollar

Just as we all thought a 20-year low point for the British Pound was a staggering end to a continual downward spiral for the world’s most valuable currency, another leap toward the bottom took place.

The British Pound finished the trading week on Friday at an astonishing 37-year low.

That is a trip back to the dark days of the fierce industrial action by rampant workers unions of the early 1980s and the nationalization of many large companies such as British Leyland, the closures of the coal mines and inflation at over 18%.

As a result of some very drastic action by the government at the time, the economy was brought back into good order but it was a very difficult job for the working public, for businesses and for the government itself.

Today, the causes and circumstances are different, but the effect is the same. A catastrophically declining national economy and a volatile Pound which would have been unheard of for two decades until this year.

Retail sales figures in Britain which were released early in the Friday trading session on the London market underscored a high street in trouble. Retail sales volumes fell by 1.6% in August, continuing a downward trend since summer 2021 according to the Office for National Statistics, demonstrating that the public are cash-strapped and are perhaps prioritizing their main household bills rather than shopping for new consumer products.

With news channels full of anticipation of expensive winter energy bills and a potential 18% inflation figure by January, a conservative approach is being taken by a large portion of the population.

The Bank of England, which is the Central Bank of the United Kingdom, last week made an announcement relating to its decision relating to potential interest rate rises one day before an emergency mini-budget was delivered by newly appointed Chancellor of the Exchequer Kwasi Kwarteng.

UK inflation stands at 9.9% currently, and has been predicted to rise to 18% by Citi by January during a prediction last month in which the same analysts at Citi suggested that the interest rate may rise from the 1.75% it stands at currently to a sudden 7% by January.

Some pundits have stated that inflation in the United Kingdom may go over 20%, and this analysis was not coming from sensationalists, rather from the analytical think tanks within some investment bank.

It is now being suggested by commentators that inflation may begin to drop if the British government lives up to its promise of capping consumer energy costs for the next two years, although energy costs continue to spiral whereas in France, they have been capped some months ago.

The BoE may rein in any thoughts of a 75 basis point rate hike if they believe/know that the chancellor will effectively cool price pressures the next day. This may leave GBP/USD vulnerable to a further sell-off, especially if the US Federal Reserve hikes by a minimum of 75 basis points on Wednesday last week.

What a bleak outlook for the Pound, and the wider British economy!

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

US Stock market complacency on the bankers’ radar

At the end of last week, we all witnessed a spectacular collapse in the value of some of the most prestigious indices on New York’s exchanges, much to the surprise of those who had been looking at the relative strength of the United States economy compared to the flagging counterparts on the European side of the Atlantic.

Just as minds were concentrating on the strength of the US Dollar against the plummeting British Pound, a false sense of security had become evident, and the US was being held up as a shining example; the West’s only productive economy in today’s climate of rampant inflation, low productivity and massive national debt.

As stock markets crashed last week, analysts at investment banks made grave predictions that the S&P500 could fall another 22% this year.

During the later part of the US trading session yesterday, the Chief Investment Officer at investment bank Morgan Stanley stated that complacency is abound among stock market investors at a time at which interest rates are on the increase.

Morgan Stanley’s Lisa Shallett told MarketWatch yesterday evening “The real 10-year Treasury yield, at 1%, approaches a four-year high. Consider that back in June, when the real rate was at this level, the S&P 500 Index was at 3,667, 5.3% lower than it is now.”

Equally, Morgan Stanley has been the bearer of another grave statistic: there has been a considerable downturn in technology company IPOs due to the gloomy market conditions.

Tomorrow will mark 238 days without a technology company IPO worth more than $50 million on the American markets, surpassing the previous records set in the aftermath of the 2008 financial crisis and the early 2000s dotcom crash.

Some proposed fintech IPOs have been withdrawn, with one insider having said “Who would go public in this market?”.

The tech-dominated Nasdaq Composite has fallen nearly 28% this year compared with a drop of just over 19% in the S&P 500 and the aforementioned predictions that a further even larger amount could fall from the value of the S&P500 before the year is out.

There are genuine fears of a looming recession across all Western markets. The pound is at a 37 year low against the US Dollar and Britain’s economy is flagging, whereas despite a strong US Dollar and productive American economy, the inflation and interest rate rises have been a key catalyst in collapsing the value of company equities listed on top New York exchanges.

The volatility is there, but has to be navigated carefully!

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

BTCUSD and XRPUSD Technical Analysis – 20th SEP 2022

BTCUSD: Bullish Engulfing Pattern Above $18293

Bitcoin was unable to sustain its bearish momentum and after touching a low of 18322 on 19th Sep, it has entered into a consolidation channel above the $19000 handle today in the European trading session.

The price of bitcoin continues to move in a tight range between 19200 and 19700 levels today suggesting that we have hit the bottom of the downtrend.

We can see the formation of an ascending channel pattern on the hourly chart of the BTCUSD.

The price of bitcoin is nearing the horizontal support level in the daily time frame indicating the bullish tone in the markets.

We can clearly see a bullish engulfing pattern above the $18293 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday high of 19679 in the Asian trading session and an intraday low of 19195 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term a decline in the prices is expected.

The relative strength index is at 53 indicating a NEUTRAL demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets.

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

Some of the major technical indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of 20000 and 21500.

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

  • Bitcoin: bullish reversal seen above $18293
  • The commodity channel index is indicating a neutral level
  • The price is now trading just above its pivot level of $19399
  • Some of the moving averages are giving a BUY market signal

Bitcoin: Bullish Reversal Seen Above $18293

The price of bitcoin has crashed below the important support level of $19000 due to the strength of the US dollar and the increase in the global market liquidity pattern.

The adaptive moving average AMA50 and moving average MA20 is giving a bullish trend reversal signal in the 15-minutes time frame.

We can see that the momentum indicator is giving a bullish trend signal in the weekly time frame.

We have also detected a bullish opening of the markets indicating the underlying bullish sentiment.

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

Bitcoin’s support zone is located at $18000 and the prices continue to remain above these levels for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its сlassic resistance level of 19544 and Fibonacci resistance level of 19722 after which the path towards 20000 will get cleared.

In the last 24hrs BTCUSD has increased by 4.77% by 881$ and has a 24hr trading volume of USD 36.188 billion. We can see an increase of 6.47% in the trading volume compared to yesterday, which appears to be normal.

The Week Ahead

The price of bitcoin is moving in a consolidation zone above the $19000 level. At present the price of bitcoin is gaining a bullish traction against the US dollar in the medium-term range.

We can see the buildup of positive momentum in the markets with the prices moving close to the psychological support level of $20000.

The daily RSI is printing at 40 which indicates a weak demand from the long-term investors.

The price of BTCUSD will need to remain above the important support level of $18500 this week.

The weekly outlook is projected at $21000 with a consolidation zone of $20000.

Technical Indicators:

The moving averages convergence divergence (12,26): is at 5.20 indicating a BUY

The ultimate oscillator: is at 51.34 indicating a BUY

The rate of price change: is at 0.70 indicating a BUY

The average directional change (14): is at 28.61 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

EUR/USD Remains At Risk, USD/CHF Could Increase Further

EUR/USD is struggling to stay above the 0.9950 support zone. USD/CHF is rising and might climb higher towards the 0.9750 resistance zone.

Important Takeaways for EUR/USD and USD/CHF

· The Euro is struggling to recover and trading below the parity level against the US Dollar.

· There was a break below a key bullish trend line with support at 0.9990 on the hourly chart of EUR/USD.

· USD/CHF started a fresh increase after it cleared the 0.9600 resistance zone.

· There is a major bullish trend line forming with support near 0.9640 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro saw a major decline below the 1.0040 support against the US Dollar. The EUR/USD pair declined below the 1.0000 support level to move further into a bearish zone.

The pair formed a base above the 0.9950 level and recently started an upside correction. There was a move above the 0.9980 and 1.0000 resistance levels. The pair climbed above the 1.0020 level and the 50 hourly simple moving average.

EUR/USD Hourly Chart

However, the bears were active near the 1.0050 level. As a result, there was a fresh decline below the 1.0000 support. There was a break below a key bullish trend line with support at 0.9990 on the hourly chart of EUR/USD.

The pair traded as low as 0.9955 and is currently consolidating losses. An immediate resistance is near the 0.9980 level. It is near the 23.6% Fib retracement level of the downward move from the 1.0050 swing high to 0.9955 low.

The next major resistance is near the 1.0030 level. It is near the 50% Fib retracement level of the downward move from the 1.0050 swing high to 0.9955 low.

A clear move above the 1.0030 resistance zone could set the pace for a larger increase towards 1.0080. The next major resistance is near the 1.0120 zone.

On the downside, an immediate support is near the 0.9955 level. The next major support is near the 0.9920 level. A downside break below the 0.9920 support could start another decline.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

After a long period of hardship, the Japanese Yen is back on track

Japan’s beleaguered economy has been kept relatively quiet on the global news scene over the past two years, but domestically, it has been at the forefront of everyone’s minds for a long time now.

Japan’s business-focused, ultra-conservative modus operandi was applauded by many during 2020 and 2021, as the country did not lock its population down and remained well and truly open for business at a time when many other nations did lock their population down.

Given that the country continues to demonstrate high quality industrial prowess in many manufacturing sectors, and that it has had a continuity of business at a time when other nations had theirs disrupted by their own governments, it would be an easy conclusion to draw that Japan is doing well.

Things are never quite that simple.

Japan has kept itself firmly out of the global political trends, and has focused on its own issues, another policy that would perhaps be very laudable under normal circumstances, however unfortunately the country’s economy has been in dire straits for some time

During the course of this year until last week, the nation’s currency, the Japanese Yen, had plunged in value by a remarkable 24% and competition from neighboring South East Asian nations in the field of electronics and precision engineering have been impacting the position of Japan as a top tier economy.

This week, however, there was a slight change in fortunes for the Japanese sovereign currency.

At the end of the US trading session yesterday, the Yen hit 144 against the US Dollar, which is a six-day high.

It also spiked against the British Pound, before relapsing to a low at the end of the British session.

Reuters conducted a poll which sought the opinion of 23 economists, 12 of which stated yesterday that their opinion is that the Japanese government would not buy up the yen in order to stop the currency from weakening further. However, 5 respondents did note that if USD/JPY were to hit 150, then it would prompt intervention by Japanese officials.

Perhaps the speculation that interest rates will likely not be increased gave the Yen a quick boost in confidence, given that increasing rates has been a major policy in the United States and Great Britain throughout 2022, with some pundits thinking that interest rates may rise to 7% by January in the United Kingdom from their current 1.75% rate.

The reality is that banks are looking to increase interest rates to around 5% for mortgages, which is still a jump from the existing rates available in the United Kingdom, and the Pound has taken a bashing over serious concerns that the economy is in big trouble.

It’s a volatile period for the Yen, and this blip is a case in point.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

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ETHUSD and LTCUSD Technical Analysis – 22nd SEP, 2022

ETHUSD: Hammer Pattern Above $1220

Ethereum was unable to sustain its bullish momentum and after touching a high of 1393 on 21st Sep the prices started to decline against the US dollar. The prices of Ethereum touched a low of 1220 on 22nd Sep after which we can see a bounce upwards.

We can see a continued buying pressure today and we can see the formation of a bullish harami cross pattern in the 15-minutes time frame.

We can clearly see a hammer pattern above the $1220 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 1288 and is moving into a strong bullish channel. The price of ETHUSD is now testing its classic resistance level of 1298 and Fibonacci resistance level of 1308 after which the path towards 1400 will get cleared.

The relative strength index is at 47 indicating a NEUTRAL demand for Ether and a shift towards a consolidation phase in the markets.

We can see that the adaptive moving average AMA50 and MA50 both are giving a bullish trend reversal signal in the markets.

The STOCHRSI is indicating an OVERBOUGHT market, which means that the prices are expected to decline in the short-term range.

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

Some of the moving averages are giving a BUY signal and we are now looking at the levels of $1400 to $1500 in the short-term range.

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

  • Ether: bullish reversal seen above the $1220 mark
  • Short-term range appears to be mildly BULLISH
  • ETH continues to remain above the $1200 level
  • The average true range is indicating LESS market volatility

Ether: Bullish Reversal Seen Above $1220

ETHUSD is now moving into a mildly bullish channel with the prices trading above the $1250 handle in the European trading session today.

ETH touched an intraday low of 1220 in the Asian trading session and an intraday high of 1297 in the European trading session today.

We have seen that the prices are near support of the channel indicating a bullish scenario.

The moving average MA100 is also indicating the bullish tone in the daily timeframe and now we are looking at the levels of 1500 to 1600 in the medium-term range.

The daily RSI is printing at 35 indicating a neutral demand in the long-term range.

The key support levels to watch are $1200 and $1258, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has decreased by 3.54% with a price change of 47.38$ in the past 24hrs and has a trading volume of 22.404 billion USD.

We can see an increase of 61.35% in the total trading volume in the last 24 hrs which is due to the heavy buying seen at lower levels by the medium-term investors.

The Week Ahead

The prices have been ranging into an oversold zone from last week and an upwards correction is expected. We are now looking for a sharp rally into the markets towards the $1600 levels.

The recent fall in the levels of Ethereum is attributed to the Federal Reserve which hiked the key interest rates for the third time this year.

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

The prices of ETHUSD will need to remain above the important support level of $1200 this week.

The weekly outlook is projected at $1500 with a consolidation zone of $1400.

Technical Indicators:

The average directional change (14): is at 16.88 indicating a NEUTRAL level

The Williams percent range: is at -36.05 indicating a BUY

The bull/bear power (13): is at 12.62 indicating a BUY

The ultimate oscillator: is at 52.57 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

AUD/USD and NZD/USD Face Key Hurdles, Downtrend Intact

AUD/USD is facing a strong resistance near the 0.6660 zone. NZD/USD is also struggling to clear the 0.5900 resistance zone.

Important Takeaways for AUD/USD and NZD/USD

· The Aussie Dollar started a fresh decline from well above the 0.6700 zone against the US Dollar.

· There is a key bearish trend line forming with resistance near 0.6650 on the hourly chart of AUD/USD.

· NZD/USD started an upside correction from the 0.5800 support zone.

· There is a connecting bearish trend line forming with resistance near 0.5850 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar failed to stay above the 0.6700 level and started a fresh decline against the US Dollar. The AUD/USD pair traded below the 0.6650 support zone to move into a bearish zone.

There was a clear move below the 0.6620 level and the 50 hourly simple moving average. The pair traded as low as 0.6575 on FXOpen and recently started an upside correction. There was a move above the 0.6620 level.

AUD/USD Hourly Chart

The bulls pushed the pair above the 38.2% Fib retracement level of the downward move from the 0.6747 swing high to 0.6575 swing low.

However, the bears remained active near the 0.6660 zone and the 50 hourly simple moving average. The pair failed to clear the 50% Fib retracement level of the downward move from the 0.6747 swing high to 0.6575 swing low.

There is also a key bearish trend line forming with resistance near 0.6650 on the hourly chart of AUD/USD. On the upside, the AUD/USD pair is facing resistance near the 0.6650 level.

The next major resistance is near the 0.6660 level. A close above the 0.6660 level could start a steady increase in the near term. The next major resistance could be 0.6720.

On the downside, an initial support is near the 0.6600 level. The next support could be the 0.6560 level. If there is a downside break below the 0.6560 support, the pair could extend its decline towards the 0.6500 level.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

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