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Stablecoin Studio Shines as Bitcoin Weathers the FTX Storm: A Crypto Market Analysis

A U.S. Bankruptcy Court judge in Delaware ruled that crypto exchange FTX can use its crypto assets to repay creditors. Bitcoin (BTCUSD) rebounded from $25,000, targeting the $24,129 pivot. Bulls need a close above the pivot for $28,000 resistance.

EURUSD Forecast

Upon examining the daily chart for the EURUSD currency pair, it is evident that the bears have exerted significant downward pressure on the price. This has resulted in a substantial decline, pushing the price all the way down to a crucial support zone. This zone, which extends from 1.0664 to 1.0636, is of paramount importance in the current market dynamics.

This particular level is noteworthy as it offers a substantial bid for buyers, making it an attractive point for potential market entry. However, it’s important to bear in mind the inherent risk of being stopped out should the price fall below this support level. Therefore, careful consideration and risk management strategies are essential when trading at this juncture.

If this support level proves to be robust and withstands further bearish pressure, we could potentially see a reversal in the EURUSD price trend. This could usher in a period of correction, during which the price may retrace some of its recent losses. In such a scenario, it’s plausible that the EURUSD price might aim to test the previously broken support level around 1.072 on the daily chart. This level could serve as a key target for this potential corrective phase.

In conclusion, monitoring these key levels on the EURUSD daily chart can provide valuable insights for traders and investors alike. It’s also worth noting that these observations are based on current market conditions and are subject to change as new market data becomes available.

GBPUSD Technical Analysis

The GBPUSD currency pair is currently trending downwards, with the RSI indicator moving away from the oversold zone of 30. The pivot and resistance point is around the 1.245 zone, which is a key area for bearish traders to sell the currency pair. Therefore, it’s important to monitor this pivot area and look for price action or candlestick patterns before making a trade decision. This information could be beneficial for those interested in forex trading, particularly with the GBPUSD pair.

Bitcoin at the 27.315 Resistance: What RSI and Candlestick Patterns Tell Us**

Bitcoin has successfully reached the resistance level of 27.315 and is currently undergoing testing at this level. The BTCUSD 4-hour chart reveals that the Relative Strength Index (RSI) indicator is in the overbought zone, suggesting a potential pause in Bitcoin’s upward trend.

Given the RSI signal, it’s recommended to wait for the candle to close within the 4-hour timeframe. The shape of the candlestick can offer valuable insights into market activity.

Specifically, we’re on the lookout for a long wick candlestick, a doji, or an inverted hammer. These candlestick patterns could potentially indicate a trend reversal scenario, adding another layer to our market analysis.

EURUSD Technical Analysis

The EURUSD currency pair is currently hovering around a crucial pivot point, situated at 1.069. This pivot area is of significant interest to traders as it often acts as a reliable supply zone for bearish market participants. As such, it’s not surprising to see the market trading in a relatively narrow range around this level.

However, the market’s direction is not solely determined by technical factors. Fundamental events, such as policy announcements from influential institutions like the Federal Reserve, can cause significant shifts in market sentiment and price action. In this case, the market is eagerly awaiting the Federal Reserve’s policy announcements scheduled for this Wednesday.

Given the potential impact of these announcements, many traders are choosing to adopt a cautious approach, refraining from placing substantial bets until they have a clearer picture of the Fed’s stance. Consequently, we can expect the EURUSD pair to continue trading within its current range until the market receives further updates from the Federal Reserve. This careful, anticipatory behavior underscores the importance of balancing technical analysis with an understanding of key economic events in successful forex trading.

Analyzing Bitcoin’s Potential Rise to $28,500

Bitcoin is currently in the process of testing the pivot point at $27,129 for the second consecutive day. Given the bullish momentum that’s building up, it’s highly probable that BTCUSD will close above this pivot point in the upcoming trading session. This bullish sentiment is further confirmed by the Relative Strength Index (RSI) indicator, which has recently flipped above the level of 50, indicating a strong upward price movement driven by the bulls. If this scenario holds true, Bitcoin could potentially set its sights on the $28,500 mark as its next target.

Gold Technical Analysis

The XAUUSD pair, which represents the trading relationship between gold and the US dollar, is currently positioned below a descending channel. This indicates that the market sentiment is leaning towards the bearish side as long as the price of gold remains beneath the trendline. Investors and traders are closely monitoring the $1940 price level, which has proven to be a significant barrier for the bulls. If the bullish market participants are unable to push the price above this level, it could signal a lack of buying pressure in the market. This could potentially lead to a shift in market sentiment, causing the price of gold to retreat.

In such a scenario, the next key level to watch would be the $1,894 support level. This price point could serve as a safety net for the gold price, providing a platform from which it could potentially bounce back. However, if the price breaks below this level, it could trigger further selling pressure, leading to a deeper correction in the gold price.

US Federal Reserve Holds

On Wednesday, the US Federal Reserve, also known as the Fed, decided to keep the policy rate, or federal funds rate, steady at 5.25%-5.5%. This decision was expected by the market and occurred after their September policy meeting.

The Fed’s policy statement highlighted that the economy is still growing steadily. Although job growth has slowed down, it remains robust. The Fed also emphasized that inflation is still high and they are closely monitoring the risks associated with it. According to the updated Summary of Economic Projections, also known as the dot plot, the policymakers are predicting one more rate hike of 25 basis points before the year ends.

The US Dollar is showing resilience against its competitors following the Fed’s rate decision and the updated dot plot. As of now, the US Dollar Index remains steady for the day at 105.15. Market trends indicate that the Fed’s decision to keep the policy rate unchanged is already factored in. However, investors are still considering a nearly 40% chance of an additional 25 basis points interest rate hike by the end of the year, according to the CME Group FedWatch Tool.

Analysts at Wells Fargo anticipate a more positive outlook in the dot plot: “The FOMC is likely to maintain the federal funds rate target range at 5.25%-5.50% at its meeting on September 20.”

“We predict that the September SEP will present a more positive forecast for the US economy compared to the last SEP in June. Specifically, we expect the FOMC to increase its forecast for real GDP growth this year while slightly lowering its inflation outlook. We don’t anticipate significant changes in the median dots for 2024 and 2025, although some of the higher dots may be slightly adjusted.”

AUDUSD Technical Analysis

Thursday sees the AUDUSD pair continue its downward trend for the second day in a row, moving away from a nearly three-week high just above the 0.6500 mark. The pair has now hit a low of around 0.6400, a level not seen in over a week. This drop is largely due to the strong performance of the US Dollar (USD).

The USD Index (DXY), which measures the USD against other major currencies, is nearing a six-month high from last week. This is thanks to the Federal Reserve’s (Fed) positive outlook. As expected, the Fed kept interest rates at a 22-year high of between 5.25%-5.5% after a two-day policy meeting. The Fed also hinted at another possible rate hike in 2023 due to ongoing inflation concerns.

According to the ‘dot-plot’, rates are expected to peak between 5.5%-5.75% by the end of this year, with the benchmark rate predicted to be 5.1% next year. This suggests only two rate cuts in 2024, compared to the four previously projected. This positive outlook has led to increased selling in the US fixed-income market, pushing the yield on the two-year government bond to its highest level since July 2006. The 10-year US Treasury yield has also hit a 16-year high, further boosting the USD.

Higher rates in the US have reignited worries about economic challenges due to rising borrowing costs, reducing the appeal of riskier assets. This is reflected in the weaker performance of equity markets, which is benefiting the safe-haven USD. Additionally, China’s cautious approach to introducing more stimulus measures and speculation that the Reserve Bank of Australia (RBA) may have ended its rate-hiking cycle are driving investors away from the risk-sensitive Australian Dollar (AUD).

Investors are now awaiting the release of the Weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Existing Home Sales data from the US. These releases, along with the performance of US bond yields and overall risk sentiment, will likely influence the USD and the AUDUSD pair. However, given the current situation, it seems more likely that the AUD/USD pair will continue to fall."

GBPUSD Technical Analaysis

The GBPUSD currency pair has experienced a significant event: it has broken through the key support level of 1.2318 and is currently testing this level. The bearish trend is expected to continue, with the target set at the 0.786 Fibonacci retracement level, which is around 1.2087.

GBPUSD Technical Analysis

The GBPUSD currency pair, a significant barometer in the foreign exchange market, is currently navigating a downward trajectory. It’s trading beneath the previously breached support level at 1.277 and is presently testing the lower boundary of the declining channel. This trend is further substantiated by the Relative Strength Index (RSI), which is lingering in the oversold territory as shown in the GBPUSD 4-hour timeframe.

Despite the prevailing bearish sentiment, the oversold market conditions suggest a potential for the pair to undergo a correction. This could lead to a rise towards the middle band of the declining channel or a retest of the previous support area. In this context, the levels of 1.227 and 1.232 present attractive entry points for initiating short trades on the GBPUSD. These levels offer a balance of risk and reward for traders looking to capitalize on the ongoing bearish momentum.

However, if the lower band of the declining channel fails to sustain the price, a drop to the 1.215 support level becomes a likely scenario. This potential downturn underscores the importance of risk management in trading, particularly in volatile market conditions.

In conclusion, while the GBPUSD market is currently bearish, there are signs of a potential correction. Traders should remain vigilant and look for further confirmation before making any decisions. This analysis serves as a guide for understanding the current market dynamics and potential future scenarios.

Oil Technical Analysis: Ascending Triangle

In the world of Forex trading, the ascending triangle is a powerful tool used by traders to predict future price movements. This bullish continuation pattern is characterized by a rising lower trendline and a flat upper trendline that acts as resistance. The pattern indicates that buyers are more aggressive than sellers as the price continues to make higher lows.

Now, let’s apply this knowledge to the current situation with oil trading. In the 1-hour chart, oil is forming an ascending triangle. This pattern is significant because it suggests that the bulls in the market are gaining strength and could potentially push the price higher. At present, oil is trading above the pivot line at $90 per barrel. The pivot line is a technical indicator used by traders to determine the overall trend of the market. If the price is above the pivot line, it’s a bullish signal, indicating that it’s a good time to buy.

Furthermore, the Relative Strength Index (RSI), another key technical indicator, is trading above the level of 50. The RSI is a momentum oscillator that measures the speed and change of price movements. When the RSI is above 50, it indicates that the market is in a bullish phase, suggesting that the price is likely to go up.

Given these factors, it’s likely that the bulls will break through the triangle and test the $91 barrier. This is based on the principle of the ascending triangle pattern, which predicts that the price will continue in the trend direction it was moving before the pattern appeared. However, as with all forms of trading, it’s important to remember that while patterns and indicators can give us a good idea of what might happen, nothing is ever certain in the markets. Therefore, always trade responsibly and ensure you’re managing your risk effectively.

Litecoin’s Bearish Outlook

Litecoin is trading in a range area between $70 and $58. The RSI indicator is hovering below the level of 50 and currently LTCUSD is trading below the $64 pivot. The LTCUSD outlook is bearish and the pair might decline to lower support levels starting with $61.52 and followed by $58.

USDCAD Technical Analysis

The USDCAD currency pair has rebounded from the 1.34 support level, which also aligns with the lower boundary of the ascending channel. Currently trading above the pivot line, and with the RSI indicator nearing a shift above the 50 level, the bullish scenario appears more likely than a bearish one. If the pair maintains its position above the 1.34 mark, it has the potential to reach the previous high of around 1.37.

AUDUSD Technical Analysis

The AUDUSD currency pair is currently trading beneath the pivot line, inching towards the 0.638 support level. Given that the RSI indicator is lingering below the 50 mark, the market sentiment leans towards bearish. This suggests that the downward trend is expected to persist, with the 0.638 support level as the immediate target, followed by the 0.636 area.

EURUSD Technical Analysis

The EURUSD has decisively breached the 1.059 support level, indicating a robust bearish market. With the RSI indicator nearing the oversold territory, we recommend a cautious approach. It would be prudent to wait for the EURUSD pair to rectify the recent sharp declines near the 1.067 weekly pivot. This level presents a substantial demand zone, providing an opportune moment for bears to initiate short trades with less risk than entering the market immediately.

For those already holding short positions in EURUSD, it is advisable to maintain their trades open. The currency pair is likely to aim for the lower band of the declining channel.

USDJPY Technical Analysis

The bullish momentum in USDJPY appears to be unyielding. Since last week, the pair has been on an upward trajectory and is now nearing a key demand zone. The RSI indicator has been lingering in the overbought territory for several weeks, underscoring the strength of the uptrend. The bullish sentiment in the USDJPY market is robust, making it highly probable that the pair will reach the 151 - 152 demand zones.

USDCHF Technical Analysis

The USDCHF currency pair is currently challenging the resistance level at 0.917. The RSI indicator is in the overbought zone, which typically suggests a correction might be on the horizon. Given that the USDCHF pair is overbought, it would be prudent to wait for a price correction before making any moves. The 0.912 level, or the previously broken channel, could potentially offer a substantial supply for bullish traders. This scenario presents an opportunity to observe and strategize for optimal entry points.

NZDUSD Technical Analysis

The NZDUSD currency pair is currently trading beneath the pivotal 0.595 mark, with the RSI indicator lingering below the 50 level, indicating a bearish market strength. The pair is navigating within an ascending channel, which is typically viewed as a corrective phase following the pair’s recent downturn.

The lower boundary of this declining channel plays a crucial role in resuming the bearish outlook. As NZDUSD is trading below the pivot point and with the price remaining under this level, there’s a likelihood of a further decline towards the 0.591 support level. This scenario underscores the importance of monitoring these key levels and market indicators in your trading strategy.

AUDUSD Technical Analysis

The AUDUSD currency pair recently tested the 0.638 resistance level, following a rebound from the 0.636 support level. However, bearish forces managed to push the closing price below the crucial support level of 0.636. Given that the Relative Strength Index (RSI) was in the oversold territory, a market correction was anticipated.

As long as the price remains below the 0.638 resistance level, the market trend is expected to stay bearish. On the other hand, if bullish forces can push the closing price above 0.638, the recent low could be interpreted as a new lower low, setting the stage for bulls to aim for the 0.645 pivot point.