Daily Market Analysis By FXOpen

**FXOpen Trader** · 09-16-2022, 05:49 AM

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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**FXOpen Trader** · 09-19-2022, 05:37 AM

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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**FXOpen Trader** · 09-20-2022, 01:27 PM

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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**FXOpen Trader** · 09-20-2022, 01:56 PM

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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**FXOpen Trader** · 09-20-2022, 02:20 PM

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.

**FXOpen Trader** · 09-21-2022, 05:21 AM

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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**FXOpen Trader** · 09-22-2022, 04:14 AM

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.

**FXOpen Trader** · 09-23-2022, 12:34 AM

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.

**FXOpen Trader** · 09-23-2022, 07:09 AM

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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**FXOpen Trader** · 09-24-2022, 10:16 AM

Watch FXOpen's September 19 - 23 Weekly Digest Video

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