Daily Market Reports | Amana Capital
- Ripple erodes earlier losses, attempting to turn positive for the day
- XRP/USD pair pushing against top-side of a bearish descending triangle pattern
Ripple has staged a recovery during the European trading session, with the third largest crypto by market capitalization finding strong support from the $0.3123 level. The XRP/USD pair is now pressing against the topside of a bearish descending triangle pattern, around the $0.3375 region.
A descending triangle pattern is seen as bearish by technical traders, with market technicians watching for a sustained move below the lower support trendline, as it generally points to downward momentum building.
If we see the XRP/USD pair move higher from current trading levels and break the triangle-top, further intraday resistance is found at the former swing-highs, at $0.3430 and $0.3527. A strong move above the $0.3766 level is ideally needed to break the former weekly trading high, and to further reignite last Thursday and Friday’s bullish momentum.
Key support is currently found at the $0.3240 and $0.3120 levels, while the danger levels for XRP/USD bulls are found at the $0.3000 and $0.2940 levels.
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The U.S. Dollar Index has settled back into a narrow trading range, after U.S. Dollar sellers failed to crack the 95.44 on three consecutive occasions this morning. The 95.44 level now remains the key support level that bears need to crack as we move into the U.S. trading session.
Price has now edged away from the current daily trading-low, and the recent rebound in the U.S. Dollar Index has so far fallen just short of the 95.65 level, which is the former key breakout area from earlier this month.
With a lack of meaningful macroeconomic data coming from the United States economy today, traders will likely turn their attention to the FOMC meeting minutes on Wednesday and the 95.44 to 95.66 range on the U.S. Dollar.
It is also worth noting that EUR/USD buyers have so far successfully defended the 1.1507 support level this morning with the 1.1507 area, marking the former yearly-low the pair and a key technical breakout spot earlier this month for the most widely traded currency pair.
Key support is found at the 95.32 and 94.99 level, while key resistance is found at the 95.90 and 96.10 levels.
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Over the past couple of weeks, the BCH/USD pair declined heavily and broke multiple key levels along the way and printed a low of $472 against the US Dollar on August 14. After that dip in Bitcoin Cash (BCH) prices, it started to slowly trade higher up to $665 on August 18 but it quickly pulled back. Now, the BCH price started to regain its bearish momentum and it is currently exchanging-hands between $510 and $550.
Overall, the trend remains on the bear hands as the price continues to create lower lows, which is necessary for a healthy downtrend. At the same time, the 200-day moving average is still pointing downwards suggesting a bearish direction.
To get a better risk-reward ratio on short positions, I would prefer to use the Fibonacci retracement tool to measure the retracement levels. Measuring the July 18 high of $889 down to the August 14 low of $472, we can get the $631 to $729 range (38.2% to 61.8% Fibonacci levels). I suspect that bearish traders might view this range as an opportunity to short BCH/USD aiming for the August 14 low followed by the October 31 low of $425.
My bearish bias remains intact as long as the price trades below the July 18 high.
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The AUD/NZD pair started to gain positive momentum since the beginning of April. The price printed a high of 1.1176 on August 10 but it started to decline afterwards.
Technically, the trend remains a healthy bearish as the price continues to create higher and higher lows. At the same time, the price is still trading above the 200-day moving average and it is still pointing higher. If we draw a Fibonacci retracement levels from the July 30 low of 1.0831 up to the August 10 high of 1.1176, we can get the 1.0961 to 1.1040 range (38.2% to 61.8% Fibonacci levels). I suspect that bullish traders might view this range as an opportunity to long AUD/NZD aiming for the August 10 high followed by the October 24 high of 1.1289.
My bearish bias remains intact as long as the price trades above the July 30 low. Additionally, a successful breach of this low might invalidate the bullish outlook and the price could target the next support level located at the June 19 low of 1.0658.
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- ETH/USD rejected from just below $296.00, finds support from $260.00 level
- Ethereum briefly deviates from $299.00 to $267.00 price range
Ethereum is starting to recover higher after the popular digital currency briefly dipped below its five-day trading range during early Tuesday trading. The second largest crypto is now starting to consolidate earlier trading losses, with the ETH/USD pair creeping back above the resistance level $270.00, after finding strong support from the $260.00 level.
The ETH/USD pair is attempting to settle back into range-bound trading mode, after sellers failed to hold price below the $267.00 level. If we see a continuation of price stability above the $267.00 level, we should expect ETH/USD bulls will once again test towards the $300.00 level.
The broader cryptocurrency market is also starting to recover earlier steep losses, which is further encouraging dip-buying in the ETH/USD pair. Key resistance above the $300.00 level is currently found at the $311.00 and $351.00 level, with the $351.00 level by far the most important resistance area bulls need to tackle in order to stabilize the ETH/USD pair, as it marks the former yearly-low.
Key support below the $260.00 level for the ETH/USD pair is found at the bullish August 15th swing, at $252.00, and the current yearly-low, at $240.00.
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- GBP/USD pair moves to its best level in over one-week, hits 1.2845
- Further upside expected while bulls hold above former weekly high
The British pound is trading at its best level in over one-week against the U.S. Dollar, as the greenback comes under selling pressure following U.S. Dolalr bearish comments from U.S. President Donald Trump on Monday.
The GBP/USD pair has so far advanced towards the 1.2845 level, with price now retracing lower to test the former weekly trading-high, around the 1.2826 region. Further bullishness should be expected in the GBP/USD pair while price trades above the key former weekly-high.
Traders are currently choosing to look-past clear and present Brexit risks, with British PM Theresa May set for another showdown with European Union negotiators this week. Furthermore, PM May is fighting discontent from within the ruling Conservative party, as hard-line Brexiteers look to veto her so-called Chequers Brexit plan.
Key support on any moves below the 1.2826 level is found at the former key swing-low, at 1.2800, and former crucial mid-2017 swing-low, at 1.2775. Key resistance on any moves above the current daily-high, at 1.2845, is currently found at the 1.2868 and 1.2910 levels.
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