Daily Technical Analysis by XtreamForex

[xtreamforex.com]

BITCOIN’S RALLY STALLED BELOW $8000, CRYPTOS ARE BACK IN RED

In the middle of the previous week the rally got stuck near $8300 level and since then the Bitcoin’s price has slowly decreased.
Last week it became obvious that the Bitcoin had big difficulties with further growth above $8000. During the weekend, it held above $8,200 mark, but yesterday it suddenly fell below $7900. Most likely, it was “a belated reaction” on SEC refusal to launch the Bitcoin ETF. Nevertheless, shortly after this rollback new buyers entered the market. As a result, trading volumes increased by 22% and the price went back to the latest levels. Market participants evaluated this movement as a large investors’ attempt to prevent the market from the deeper correction.

After a recovery in the past week, the crypto market is back in the red with Ethereum, Bitcoin, Bitcoin Cash, Ripple and Dash fall more than 5%.

At the moment technical analysis is not on a bull side. In the middle of the previous week the rally got stuck near $8300 level and since then the Bitcoin’s price has slowly decreased. RSI indicates sell signals due to its coming back again to the levels below 70 after its peaks a week earlier. This is a bear signal, which could be reinforced in case if the price drops below $7850, recent lows. Then, it might be a sell-off signal not only for the technical analysis fans but also for ordinary investors.
Read more:http://www.xtreamacademy.com/cryptocurrency-news

 

[xtreamforex.com]

EUR/USD FOREX TECHNICAL ANALYSIS – RANGEBOUND WHILE STRADDLING PIVOT AT 1.1680

Based on Tuesday’s close and the early trade on Wednesday, the direction of the EUR/USD today is likely to be determined by trader reaction to the major 50% level at 1.1680. Basically, we’re going to be rangebound until buyers can take out 1.1751 or sellers can break through 1.1621.
The EUR/USD posted a two-sided trade on Tuesday under relatively thin trading conditions. The Euro tried to breakout to the upside early but didn’t have enough buying volume to succeed. It seemed traders weren’t too committed to either direction due to Wednesday’s U.S. Federal Reserve announcement.
In other news, data showed U.S. consumer spending increased solidly in June, while inflation rose moderately. Other data showed employers boosting benefits for workers in the second quarter, but wage growth slowed.Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is down. It’s been sideways to lower since the closing price reversal top at 1.1751 on July 23. A trade through this top will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a move through 1.1621.
The EUR/USD has been having trouble with the retracement zone at 1.1680 to 1.1720. Although there have been several breakouts through the top end of the zone, buyers have been unable to hold the Forex pair above it. Furthermore, the market hasn’t strayed too far under the lower or 50% level at 1.1680.
The short-term range is 1.1575 to 1.1751. Its retracement zone at 1.1663 to 1.1642 is acting like support.
Read more:http://www.xtreamacademy.com/forex-forecast

 

[xtreamforex.com]

DOLLAR HIGHER AFTER TRUMP ADMINISTRATION REOPENS TALKS WITH CHINA

The US dollar rose on Tuesday after American inflation data was in line with expectations and consumer confidence came out higher than forecasted. The U.S. Federal Reserve wraps up its two day Federal Open Market Committee (FOMC) meeting on Wednesday at 2:00 pm EDT. The market is not anticipating a major change from the language on the rate statement or the interest rate itself. The September Fed meeting has been priced in for another rate hike as the Fed continues its path toward monetary policy normalization. The private payrolls report from the ADP is expected to show a gain of more than 180,000 jobs and serve as the preamble to the biggest indicator release in the market the U.S. non farm payrolls (NFP) due on Friday.
Dollar Rebounds Ahead of FOMC
The EUR/USD fell on Tuesday. The single currency is trading at 1.1689 after breaking above the 1.17 price level on positive European indicator releases during the European session. The USD started gaining traction with the release of inflation data and higher consumer confidence numbers but it was the reports that the US and China are trying to meet to discuss trade that boosted the currency. Private conversation are said to be ongoing with a goal of having ministerial meetings that have been on hold since the trade war rhetoric escalated.
Read more:http://www.xtreamacademy.com/forex-news

 

[xtreamforex.com]

GOLD PRICE PREDICTION – GOLD SLIPS LOWER AS FED REMAINS ON HOLD

Gold prices moved lower on Wednesday but was unable to pierce through the July lows. Gold faces continued headwinds as the Fed remained on hold during the monetary policy meeting but signaled in their commentary that rates would likely rise in September. Fed funds are now pricing in nearly a 90% chance that the Fed will raise interest rates when they meet in December.
Technical Picture
Gold prices continued to grind lower, but were unable to pierce through the July lows. The weekly trend line which was broken, continues to point to lower prices for the yellow metal. Support is seen near the July lows at 1,211, while resistance is seen near the 10-day moving average at 1,224. A break of the 1,211 level would lead to a test of the July 2017 lows at 1,204. Momentum is mixed, and nuetral as prices cannot seem to break down or rise. The continued tariff treat by President Donald Trump has been offset by higher interest rates. The 10-year treasury yield pushed through the 3% level, which buoyed the U.S. dollar and generated headwinds for gold prices. Since gold is priced in U.S. dollars a stronger greenback makes gold more expensive in other currencies.The Fed Remains on Hold, But for How Long
The Federal Reserve kept interest rates unchanged on Wednesday, but signaled to the market that they believe the economy is strong and they will likely raise rates when they meet in September. Wednesday’s move was widely expected, and the commentary from the Fed was hawkish. Higher rates, which are now in the cards will continue to generate headwinds for gold prices. The yields differential between the U.S. Treasury and the German bunds benefited the greenback. The positive for gold is that the global growth story is beginning to fall apart making gold more attractive in nearly every currency but U.S. dollars.
Read more:https://www.xtreamacademy.com/forex-forecast

 

[xtreamforex.com]

BITCOIN – THE BEARS ARE COMING TO TOWN

Bitcoin’s hit on Tuesday raises the possibility of a resumption to the bearish trend that saw Bitcoin down at $5,000 levels. Regulatory risk is the key.
Bitcoin tumbled by 5.35% on Tuesday, following a 0.63% fall on Monday, to end the day at $7,741.1.
Playing catch up, following two days of minor losses relative to the broader market, Bitcoin slid from a start of the day intraday high $8,178.9 through the first major support level at $7,919.37 to an early afternoon intraday low $7,664.9, calling on support at the day’s second major support level at $7,670.03 before recovering to $7,700 levels by the day’s end.
While the near-term bullish trend remained intact, with Bitcoin managing to steer clear of the 38.2% FIB Retracement Level of $7,456, the pullback through the 23.6% FIB Retracement Level of $7,857 and failure to break back through to $8,000 levels has raised the prospects of a resumption to the bearish trend formed back at 5th May’s swing hi $9,999.
An anticipated roll out of rules and regulations across key jurisdictions continue to drive volatility across Bitcoin and the broader market, with the latest news being of the South Korean government clear intent to pass law as quickly as possible to beef up anti-money laundering policies and to introduce minimum standards on the security side that exchanges would need to meet in order to minimise the risk of theft.A delay to the G20 unified rules and regs to October will likely have led to the South Korean government’s sense of urgency, which raises the question on whether other jurisdictions will follow.
While it may be considered a positive for crypto exchanges to be forced to improve security levels and to also improve on KYC and anti-money laundering processes, the ability of the exchanges to meet the demands of governments and regulators continues to be a key issue, with increased scrutiny at the verification process another issue that the broader market continues to balk at.
Read more:https://www.xtreamacademy.com/cryptocurrency-news

 

[xtreamforex.com]

BITCOIN TURNING BEARISH, WITH THE BEARS EYEING SUB-$7,000

It’s getting bearish for Bitcoin, with the morning slide bringing sub-$7,000 levels into play should sentiment not shift through the early afternoon.
Bitcoin fell by 1.05% on Thursday, following on from Wednesday’s 1.7% decline, to end the day at 7,527, the moves through the day marking a 5th consecutive day in the red.
A choppy start to the day saw Bitcoin move through to an early morning intraday high $7,713 before pulling back to $7,600 levels, the day’s high falling short of the day’s first major resistance level at $7,761.73 and more importantly, the 23.6% FIB Retracement Level of $7,857.
Following a relatively range bound morning, Bitcoin finding support while the broader market saw red, a late morning reversal saw Bitcoin fall to a mid-afternoon intraday low $7,450, calling on support at the 38.2% FIB Retracement Level of $7,456 before recovering to $7,500 levels late in the day, the day’s low steering clear of the first major support level at $7,445.83.Bitcoin’s continued support at the 38.2% FIB Retracement Level of $7,456 kept the near-term bullish trend intact through the week, though pressure has continued to build, with Bitcoin’s downward trend on the intraday highs reflected with a 2nd consecutive day of falling short of $8,000 levels.
Market sentiment towards an expected shift in the regulatory landscape continued to be the key driver on Thursday, with the SEC’s delay in a decision on Bitcoin ETFs to September and the G20’s delay in rolling out unified rule and regulations for the broader cryptomarket doing few favours in the week.
Read more:http://www.xtreamacademy.com/cryptocurrency-news

 

[xtreamforex.com]

S&P 500 PRICE FORECAST – MARKETS REBOUND AFTER INITIAL BEARISHNESS ON THURSDAY

While the S&P 500 didn’t explode to the upside, it certainly showed its wherewithal near the 2790 level, bouncing significantly to break above the 2800 level. By forming a hammer, this shows that the market is “leaning” higher, now all it needs is a good jobs number to lift it to the upside.
The S&P 500 initially fell during trading on Thursday but bounced enough to form a hammer. By doing so, it’s likely that the market is trying to show that it wants to go higher, but the jobs number needs to be out of the way before I think a lot of money jumps into the market. The 2820 level of course is a major level, but if we can clear that I think we could gain another five points rather quickly, and then perhaps another 15 after that.
The alternate scenario of course is that we break down below the lows of the day, but I think that would probably be with some type of horrific mess coming out of the Bureau of Labor Statistics. I don’t think there’s a huge surprise waiting, but if we get it, you need to notice that we could have a bit of “empty space” down to the 2740 handle.
I believe that the market will ultimately try to go higher, but I also recognize that there is a lot of concern around the world, and although there are cracks in the foundation of the rally, I do believe that we are not quite ready to roll over. I believe that the next couple of weeks will probably be somewhat quiet after the jobs number, but you can use that to your advantage if you are patient enough.
Read more:http://www.xtreamacademy.com/forex-forecast

 

[xtreamforex.com]

PRICE OF GOLD FUNDAMENTAL DAILY FORECAST – MOVE OVER $1228.60 SHIFTS MOMENTUM TO UPSIDE

Today’s price action in gold is likely to be determined by direction of the U.S. Dollar. There are no major economic reports so the movement in the dollar is likely to be driven by trade concerns. The fact that big money is net short gold could have a contrarian influence on the price action.
Gold futures are trading slightly higher early Monday as aggressive counter-trend investors try to capitalize on a steady U.S. Dollar and Friday’s potentially bullish closing price reversal bottom chart pattern.
At 0332 GMT, December Comex Gold is trading $1224.50, up $1.20 or +0.10%.
After hitting a 17-month low on Friday, gold rebounded to close higher as investors reacted to mixed U.S. economic data and increased tensions over US-China trade.
On Friday, the U.S. government reported that job growth slowed more than expected in July as employment in the transportation and utilities sectors fell, but a drop in the unemployment rate suggested that labor market conditions continued to tighten.
Additionally, China proposed retaliatory tariffs on $60 billion worth of U.S. goods in response to the Trump administration’s threat of steeper tariffs on the Asian economy.
Also driving the dollar lower on Friday was the announcement that China’s central bank would require banks to keep reserves equivalent to 20 percent of their clients’ foreign exchange forwards positions from Monday, in a move to stabilize the Yuan currency.
In other news, hedge funds and money managers increased their bearish position in COMEX gold contracts to another record in the week to July 31, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
Read more:http://www.xtreamacademy.com/forex-forecast

 

[xtreamforex.com]

USD/CAD SOARS AFTER SAUDI ARABIA FREEZES TRADE WITH CANADA

TALKING POINTS FOR USD/CAD:
Canadian Dollar fell against its US counterpart early into Monday’s trading session
Hawkish BoC and increasing inflation helped the Loonie pare its losses
Housing and employment data releases later in the week may fuel downside momentum
The Canadian Dollar started Monday’s trading session sharply lower against its US counterpart after news of Saudi Arabia expelling the Canadian ambassador crossed wires. The Saudi Press Agency, the nation’s official news outlet, also announced that the country would freeze all new trade and investment deals with Canada. This move comes after Canadian Foreign Minister Chrystia Freeland urged Saudi authorities over Twitter to release human rights activists from prison.
However, the currency pair’s upside momentum reversed throughout the Asia/Pacific trading hours. Negative impacts of the Saudi Arabian investment and trade embargo may be overshadowed by Canada’s higher inflation and better than expected economic growth. The BoC, which recently raised rates to 1.5% at their July meeting, has been increasingly hawkish and alluded to more increases this year.
Read more:http://www.xtreamacademy.com/forex-news

 

[xtreamforex.com]

EUR/USD DAILY PRICE FORECAST – US JOBS DATA HELPED EUR/USD MAKE A BREAKOUT IN FAVOR OF US GREENBACK

US Jobs Data & Q2’18 Eurozone GDP report helped US Greenback make a breakout from July’s price range limitations.
The EUR/USD is on the defensive, having witnessed a pennant breakdown on Thursday and the fears of Italian fiscal crisis may accentuate the negative technical setup. As of writing this article, the pair is trading at 1.1557 wth 0.10% decrease in value and while the downside breakout has helped pair move out of July’s price range limitations, the pair still remains trapped in wider price range that offered great level of support and resistance in month of June. The spread or the difference between the 10-year Italian government bond yield and German bund yield jumped 14 basis points (bps) to 254 bps in the last three days, indicating a rotation of money out of high-risk bonds and into safe-haven bonds. The investors have likely turned risk-averse as Italy’s new populist government seems to have embarked on a budget policy that could set off a more vicious round of Eurozone debt crisis. The common currency could take a beating if the yield differential widens further, highlighting growing fears of the Italian debt crisis. Moreover, the yield spread daily chart shows a bull flag breakout – a bullish continuation pattern – which indicates a resumption of the rally from the April low of 114.5 bps and has opened the doors to a break above the May high of *** bps. This provides additional support for Dollar bulls which gained positive influence from hawkish US Jobs data.
Read more:http://www.xtreamacademy.com/forex-forecast