Forex analysis review
Forex analysis review |
- Forecast and trading signals for GBP/USD on June 3. Analysis of the previous review and the pair's trajectory on Thursday
- Forecast and trading signals for EUR/USD on June 3. Analysis of the previous review and the pair's trajectory on Thursday
- Overview of the GBP/USD pair. June 3. The Fed will wait for more significant progress before tightening monetary policy.
- Overview of the EUR/USD pair. June 3. There is no reason to panic about inflation.
- Analytics and trading signals for beginners. How to trade EUR/USD on June 2. Analysis of Wednesday. Getting ready for Thursday
- ETH 2.0 needs more time, XRP and LTC are treading water, and DOGE skyrockets after listing on Coinbase Pro
- EUR/USD. May Nonfarm release pressures the market
- Analysis of EUR/USD on June 2. Euro is ready to rise again. Will Christine Lagarde lead it to the wrong path?
- Bitcoin: Suspicious lull and bearish outlook from JPMorgan
- Wave analysis for GBP/USD on June 2
- June 2, 2021 : EUR/USD daily technical review and trade recommendations.
- Trading Signal for Nasdaq 100 (#NDX) for June 02 - 03, 2021: Buy above 13,666
- USD/CHF Triangle Trading
- Will gold dive in and come up?
- June 2, 2021 : EUR/USD Intraday technical analysis and trade recommendations.
- June 2, 2021 : GBP/USD Intraday technical analysis and trade recommendations.
- Triangle pattern formed by AUDUSD
- Ripple Looks To Trade North!
- Technical analysis on EURUSD for June 2, 2021
- Trading Signal for ETH/USD (Ethereum) for June 02 - 03, 2021: Buy above $2,500
- BTC analysis for June 02,.2021 - Watch for the breakout of the upside channel to confirm further downside movement
- Gold price remains supported
- Analysis of Gold for June 02,.2021 - Potential for the downside swing and test of $1.855
- Bitcoin price trapped in a triangle pattern
- EUR/USD analysis for June 02 2021 - Breakout of the consolidation and potential for another drop towards 1.2135
| Posted: 02 Jun 2021 08:05 PM PDT GBP/USD 5M
The GBP/USD pair traded in approximately the same way as the EUR/USD pair. Thus, there were only two main movements during the day. It should be noted that it is very good when the pair does not change direction of movement every few hours. It's movements like yesterday that are easiest to work with. The main thing is that at the same time important lines and levels are worked out. For example, for the euro / dollar pair, this was not the case on Wednesday. But it was pound/dollar. The price steadily decreased to the Senkou Span B line and the support level of 1.4112 throughout the European trading session, after which it rebounded from them and formed the first signal of the day - to buy. Naturally, long positions should have been opened here with the target of the Kijun-sen line. After a couple of hours, the price worked out the critical line and bounced off it, so long positions should have been closed in a profit of about 35 points. On the signal of a rebound from the Kijun-sen line, one should immediately open short positions, but this signal already turned out to be false, therefore it did not bring profit and ended up with a loss of 14 points. After that, the movement stopped altogether and the quotes began to move mainly sideways, regularly breaking the critical line. Around this time, the line itself increased slightly, so the signals have already started to form a little higher. In any case, the situation changed from favorable to unfavorable and confusing, so it was no longer necessary to trade further from the critical line. Moreover, one false signal had already been generated by that time. No important macroeconomic statistics were released on Wednesday in either the UK or the US. However, even if it did exist, it is far from the fact that the markets would work it out. Overview of the EUR/USD pair. June 3. Calm, only calm. There is no reason to panic about inflation. Overview of the GBP/USD pair. June 3. The Fed will wait for more significant progress before tightening monetary policy. GBP/USD 1H
The British pound has reached the support level of 1.4112 on the hourly timeframe, which is the approximate lower border of the sideways channel 1.4100 - 1.4220. Thus, the quotes remained within this channel and today may tend to its upper border, that is, to the levels of 1.4219 and 1.4240. The price also bounced off the Kijun-sen line, therefore, for further upward movement, it now needs to overcome it. We also remind you that quotes in flat conditions can move absolutely randomly. In general, the pound sterling continues to gravitate towards growth, but for this the bulls need to overcome the area of 1.4219 - 1.4240. At this time, we continue to draw the attention of traders to the most important levels and trade from them: 1.4080, 1.4101, 1.4219 and 1.4240. Senkou Span B (1.4154) and Kijun-sen (1.4177) lines can also be signal sources, but they are very weak in a flat. It is recommended to set the Stop Loss level at breakeven when the price passes 20 points in the right direction. The Ichimoku indicator lines can move during the day, which should be taken into account when looking for trading signals. On Thursday, the UK is scheduled to publish an index of business activity in the services sector, which will definitely "pass by" the markets, as well as a speech by Andrew Bailey, which will "pass" the markets with a 90% probability. Nevertheless, we recommend paying attention to the speech of the Bank of England Chairman. The United States should carefully consider the ADP Private Sector Worker Change Report and the ISM Services PMI. We also recommend that you familiarize yourself with the forecast and trading signals for the EUR/USD pair. COT report
The GBP/USD pair increased by 10 points during the last reporting week (May 18-24). However, in general, the pound continues to rise in price, which is clearly visible on any long-term timeframe. Major market players continue to generally increase long positions, which provides an additional incentive to the British currency. The group of "non-commercial" traders (the most important group) opened only 936 Buy contracts (longs), but at the same time closed 4,700 Sell contracts (shorts) in the reporting week. And so the net position increased again, by more than 5,000 contracts, which means much more for the pound than for the euro. The mood of professional traders has again become a little more bullish, but in the medium term, it is absolutely impossible to say that large players are constantly increasing longs or closing shorts. The second indicator in the chart above, which shows the change in the net position for a group of "non-commercial" traders, shows that big players started to actively built up longs around February, but by mid-March their number began to decline, and has been approximately at the same level since the beginning of April. Thus, the pound continues to rise in price completely out of proportion to the bullish mood of non-commercial traders. Therefore, we continue to believe that the pair is much more influenced by the fact that hundreds of billions and trillions of dollars are infused into the US economy than the actions of major market players. However, most likely, the effect of these two factors is multiplied by each other, which leads to an even stronger result. In our case, the pound continues to grow when it should have fallen to the 30 figure, if the fundamental background from the UK was even slightly taken into account. Explanations for the chart: Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one. Support and resistance areas are areas from which the price has repeatedly rebounded off. Yellow lines are trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the "non-commercial" group. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 08:00 PM PDT EUR/USD 5M
The EUR/USD pair continued to trade in the horizontal channel of 1.2160-1.2243 on Thursday. Despite the fact that the quotes went outside this range twice, they still spend most of their time within it. The movement of the last two weeks cannot be called a classic flat. Nevertheless, there are many of its signs. Macroeconomic data have practically no effect on the pair's movement. However, we have already spoken about this many times. On Tuesday, there were a lot of macroeconomic statistics, and on Wednesday - few, but the movements practically did not differ from each other. Thus, we only have to figure out which signals should be processed and how much could be earned in yesterday's trading. Signals on Wednesday began to form from the very beginning of the European session. The price immediately overcame the level of 1.2213, which is a sell signal. However, there was no need to rush to open short positions, since two strong lines of the Ichimoku indicator lay 13 points lower at once: Senkou Span B and Kijun-sen. Of course, in a flat they are not as strong as in a trend, but the probability of a rebound from them was still high. However, the price crossed these lines without any problems, which allowed traders to open sell orders with a target of the extremum level of 1.2160. Unfortunately, the price did not reach this value by only 4 points. Thus, the trade did not close at about 30 pips in profit, as we expected. Of course, traders could manually close it in profit, but it was really difficult to predict a reversal at the very end of the European session in the absence of important events and publications. Thus, in the end, the deal was closed at breakeven by Stop Loss. This was followed by a new buy signal in the form of overcoming the Senkou Span B and Kijun-sen lines. But in this case, one should not rush to open longs, since the extremum level 1.2213 lies just above. At the moment of overcoming this level, the time was already approaching the evening and the volatility began to decline. Thus, in the end, only one trade was opened during the day and that did not bring any profit. Overview of the EUR/USD pair. June 3. Calm, only calm. There is no reason to panic about inflation. Overview of the GBP/USD pair. June 3. The Fed will wait for more significant progress before tightening monetary policy. EUR/USD 1H
Nothing changed on the hourly timeframe again on Thursday. The pair continues to remain in a very limited range, but at the same time on the hourly timeframe it is still visible that the current movement is not a classic flat. Last week, quotes broke the upward trend line, but this does not play any role now. We have warned that despite breaking the trend line, the upward trend will still persist. Traders still cannot get the pair out of the 1.2160 - 1.2243 range, so the price can trade from the top to the bottom for some time and vice versa. On Thursday, we still recommend trading from important levels and lines that are indicated on the hourly timeframe. The nearest important levels at this time are 1.2160, 1.2213, 1.2243 and 1.2267, as well as the Senkou Span B (1.2197) and Kijun-sen (1.2198) lines. The Ichimoku indicator lines can move during the day, which should be taken into account when looking for trading signals. Signals can be rebounds or breakthroughs of these levels and lines. Do not forget about placing a Stop Loss order at breakeven if the price moves 15-20 points in the right direction. This will protect you against possible losses if the signal turns out to be false. On Thursday, the European Union is only scheduled to publish the index of business activity in the service sector for May, which is unlikely to provoke at least some market reaction, and a whole package of various statistics will be published in the United States. The most important are the ADP report and the ISM service sector PMI. This is the kind of data that markets can react to. We also recommend that you familiarize yourself with the forecast and trading signals for the GBP/USD pair. COT report
The EUR/USD pair rose by 60 points during the last reporting week (May 18-24). The new Commitment of Traders (COT) reports, which was released yesterday, showed that professional traders continue to increase their buying positions in the European currency. This time, they opened 3,800 new Buy contracts (longs) and closed 1,400 Sell contracts (shorts). Thus, the net position for this group of traders increased by 5,200. Not much, but also not a little. And so, the bullish mood of market participants becomes stronger again, which increases the euro's prospects for succeeding growth in 2021. The green and red lines (net positions of commercial and non-commercial traders) of the first indicator continue to move away from each other, which indicates the strengthening of the current trend (in our case, the upward trend). Therefore, at this time, the COT report clearly signals a more preferable continuation of the euro's growth. In general, professional traders have opened 240 thousand contracts for buying and 133 thousand for selling. And so there is almost twice a difference. But we continue to believe that the main factor is not the actions of professional players, but the actions of the Federal Reserve and the US Congress. The chart above clearly shows that at a certain point, the first indicator began to signal the end of the upward trend, that is, large players began to reduce longs and move to shorts. However, this did not lead to a reversal of the global trend downwards, which indicates other, more significant factors affecting the exchange rate of the European currency. Explanations for the chart: Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one. Support and resistance areas are areas from which the price has repeatedly rebounded off. Yellow lines are trend lines, trend channels and any other technical patterns. Indicator 1 on the COT charts is the size of the net position of each category of traders. Indicator 2 on the COT charts is the size of the net position for the non-commercial group. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 07:32 PM PDT 4-hour timeframe
Technical details: Higher linear regression channel: direction - upward. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - sideways. CCI: -9.3750 The British pound sterling paired with the US dollar continues the "swing" on which it has been riding for more than two weeks. In principle, both major pairs are only engaged in trading without a certain direction of movement. And this is already beginning to be alarming. First, this movement makes it very difficult to work on higher timeframes. Secondly, any movement ends sooner or later, and this flat is already something very long. Although, on the other hand, we remember periods when the flat lasted for a month. Thus, the main thing now is to understand that the market is flat. The most interesting thing is that the pound/dollar pair updated its 3-year highs during this flat. How often have you seen this? However, this is the case. The pair retains excellent chances to continue moving north even without a correction, of which there have been few in recent months. All the factors that drove the pound to its 3-year highs persist. So, what else can you expect from a pair that shows a perfectly fantastic move up in terms of the fundamental background in the UK and the US? In principle, it is now impossible to explain the growth of the British currency in fundamental terms. Many analysts believe that the current growth of the British currency is due to the high rate of vaccination of the British population or the lifting of almost all quarantine restrictions in the Foggy Albion. However, we remind you that in the United States, vaccination is also proceeding at a high rate, and most of the quarantine rules have also been lifted. However, the US economy has been recovering for several consecutive quarters while showing record numbers, and the British economy is just beginning to recover in the second quarter. Thus, from our point of view, the pound continues to grow solely on the "speculative" factor, as well as on the factor of pouring trillions of dollars into the American economy. Meanwhile, Lael Brainard, a Federal Reserve's monetary committee member, said on Tuesday that the US economy continues to move towards its labor and inflation targets. She noted that the Fed would maintain an ultra-soft monetary policy for as long as it takes for the economy to recover and employment levels to peak entirely. "While we are still far from achieving our goals, we see welcome progress, and I expect further growth," Brainard said. Thus, the markets received another proof that the Fed will not wind down its stimulus program in the near future. Not to mention a rate hike. Even if the monetary committee members say that "we are still far from the goals," this means that the economy can be stimulated for another year. Brainard also said that the current number of jobs in the United States is 8-10 million lower than before the pandemic. On inflation, the Fed member said it is important to achieve a steady increase in prices and not a one-time jump. Brainard also noted that some of the factors that currently contribute to the economy's acceleration would disappear over time. For example, budget spending and the desire of households to take full advantage of the opening up of the economy. "And this is another reason why the Fed should not scale back its stimulus program," Lael said. "Implementing our recovery plan during a spike in inflation after the economy has opened up will help provide the necessary economic momentum," said a member of the Fed's monetary committee. Another member of the monetary committee, Randal Quarles, also made a speech. He said that over the past few months, his opinion on inflation has not changed. Quarles believes that the current acceleration in inflation is a temporary phenomenon. Thus, as we said in the euro/dollar report, none of the functionaries are panicking because of inflation, which in May in the United States may approach the value of 5.0% y/y. Everyone is waiting for the data at the end of the year to understand whether inflation remains at high levels and something needs to be done about it or whether the price jump is temporary. In any case, the Fed will achieve stable inflation above 2% and achieve maximum employment in the labor market. This Friday, a new report on NonFarm Payrolls will be published, showing how many new jobs were created in the reporting period outside the agricultural sector. The answer to this question will help in understanding how quickly the labor market is recovering. If Lael Brainard talks about 8-10 million jobs that should still be caught up compared to the pre-crisis period, this may take a year and a half or two years. Therefore, we return to the Fed's original forecast that the rate will be raised no earlier than 2023. It is reasonable to assume that the incentive program will work for a very long time. Well, for the pound/dollar pair, all this information is nothing more than just interesting. The day before yesterday, the quotes were declining. Yesterday, they were already growing, and it is impossible to say that the macroeconomic background or the "foundation" has at least some influence on the markets' mood now. The pair stands in one place and does not want to move in any direction. And this is although all global factors speak in favor of continuing the growth of quotes. In general, the upward trend was interrupted not by a correction but by a flat so that buyers could at least have a little rest. Well, the chances of further growth of the British currency have increased even more.
The average volatility of the GBP/USD pair is currently 82 points per day. For the pound/dollar pair, this value is "average." On Thursday, June 3, we expect movement within the channel, limited by the levels of 1.4083 and 1.4247. The reversal of the Heiken Ashi indicator back to the top will signal a new round of upward movement within the "swing." Nearest support levels: S1 – 1.4160 S2 – 1.4130 S3 – 1.4099 Nearest resistance levels: R1 – 1.4191 R2 – 1.4221 R3 – 1.4252 Trading recommendations: The GBP/USD pair has started a new round of upward movement on the 4-hour timeframe. Thus, today it is recommended to stay in buy orders with targets of 1.4221 and 1.4252 until the Heiken Ashi indicator turns down. Sell orders should be opened in the event of a reversal of the Heiken Ashi indicator downwards with targets of 1.4130 and 1.4099. The pound is now also moving flat. The material has been provided by InstaForex Company - www.instaforex.com |
| Overview of the EUR/USD pair. June 3. There is no reason to panic about inflation. Posted: 02 Jun 2021 07:32 PM PDT 4-hour timeframe
Technical details: Higher linear regression channel: direction - upward. Lower linear regression channel: direction - upward. Moving average (20; smoothed) - sideways. CCI: 14.5388 On Wednesday, June 2, the EUR/USD currency pair again traded lower, as it once again failed to overcome its local highs in the range of 1.2243-1.2267. The bulls again retreated from this level, so the pair's quotes fell to the lower part of the side channel of 1.2160-1.2243, in which they spent most of their time in the last two weeks. And if so, then we can expect a rebound from the level of 1.2160 and the resumption of the upward movement. In principle, even on a 4-hour timeframe, the naked eye can see the movement sideways. At the same time, in general, the upward trend persists, and the price can not even begin a downward correction. It suggests that the bulls' position is still strong, and the Fed is still pouring hundreds of billions of dollars into its economy. Recall that we give a key role in the depreciation of the US currency to the Fed, which directly or through the US Congress saturates the economy with trillions of dollars, which leads to the devaluation of the national currency. The fact that the euro currency has now stopped growing (in the last two weeks) may indicate that the major players are actively selling the pair, which is why they oppose the actions of the Fed and the US authorities. We see a sideways movement on the charts as the Fed prints dollars and traders sell off the euro. It turns out that one factor levels the other, and the quotes eventually stand in one place. But we still believe that nothing is changing in technical terms. First, you need to wait at least for the pair to leave the side channel indicated above. Only after that will it be possible to conclude whether the upward trend will continue or a downward correction will begin. Meanwhile, market participants have been doing their favorite thing in the last few days - panicking out of the blue. If you remember, a couple of months ago, there was a very fashionable topic of growth in the yield of 10-year treasuries in the United States, which was associated with any movement of the US dollar in the foreign exchange market. Now no one remembers about these treasuries. This factor immediately "ceased to act" on the foreign exchange market. In the past few weeks, it has also been fashionable to discuss why the Fed is inactive, and Jerome Powell is not announcing a reduction in the quantitative stimulus program. Market participants did not understand why, if the US economy is recovering rapidly, and inflation is growing before our eyes, the Fed does not announce its readiness to tighten monetary policy and curtail stimulus? Especially when you consider that we hear such hints even from the Bank of England representatives, where the economy is just beginning to recover from the crisis. The positive value of GDP will be only in the second quarter of 2021. Now a new fashionable topic is an inflation. Inflation in the US, inflation in the European Union, inflation in the UK. Although all this time (the last 2-2. 5 months), the movement of the euro/dollar is frankly the same. The European currency is growing most of the time, and the US dollar is hardly even adjusted. But at the same time, they discussed the treasury, then the Fed's inaction, and now inflation. And nothing changes in the market. As the US dollar fell at low inflation, it continues to do so at high inflation. And in the UK, inflation is even lower than in the European Union. The most interesting thing is that representatives of the ECB, the Fed, and the BA have repeatedly expressed their immediate plans for accelerating inflation. The European Union and the UK said that inflation growth would not take long, and the indicator itself will not go much higher than the target value. The ECB has no plans to wind down its stimulus program before the previously announced March 2022 deadline. In the UK, they hinted that a rate hike would be possible next year, and even then, if several conditions are met. Inflation in the Foggy Albion is not expected at all above 2.5%, and it will begin to decline by itself. Even the influence of the regulator will not be required. The United States also warned that inflation will not rise forever and will also start to slow down in a few months. In general, none of the central banks we are interested in is panicking or sounding the alarm about accelerating inflation. However, this is the number one topic in the market right now. Moreover, now it is not even possible to say that the last value of inflation in the European Union (for example) is final. In April and May 2020, with current prices being compared, inflation was almost zero. In economic terms, the latest inflation reports in the EU have a very low base (base value). Moreover, given the amount of money the ECB is pouring into the economy (much less than the Fed and quite a lot), it is not surprising that inflation in Europe is beginning to accelerate. Recall that only under the PEPP program, the EU economy should receive 1.85 trillion euros. Naturally, this money is also "taken out of thin air." Accordingly, they cannot cause price increases. In general, from our point of view, if inflation is now at least 2.5% every month and this value will hold for at least six months, and ideally a year, then you can panic and wait for decisive action from the central banks. In the meantime, especially in the European Union and the UK, the consumer price index has barely reached the target values. In general, the current level of inflation is the level that all central banks have sought in recent years, making any panic about rising prices even more absurd.
The volatility of the euro/dollar currency pair as of June 3 is 54 points and is characterized as "average." Thus, we expect the pair to move today between the levels of 1.2158 and 1.2267. A reversal of the Heiken Ashi indicator back to the top will signal a possible new round of upward movement within the side channel. Nearest support levels: S1 – 1.2207 S2 – 1.2146 S3 – 1.2085 Nearest resistance levels: R1 – 1.2268 R2 – 1.2329 Trading recommendations: The EUR/USD pair is trying to start a new round of upward movement. Thus, today it is recommended to open new long positions from 1.2268 after the reversal of the Heiken Ashi indicator to the top. It is recommended to consider sell orders if the Heiken Ashi indicator turns down with targets of 1.2158 and 1.2146. We also remind you that the pair is now moving into a flat. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 02:36 PM PDT Analysis of previous deals: 30M chart of the EUR/USD pair
The EUR/USD pair was not trading very actively again and continued to remain inside the 1.1260-1.2243 horizontal channel (approximately) during the entire third trading day of the week. There were no signs of an intraday flat for the day, but the pair remains in a horizontal channel in the longer term. In any case, it is now unclear what trend it is for the euro/dollar pair. And so, it is unclear which signals from the MACD indicator to consider. Therefore, we recommend that traders still wait for a new trend and only after that should you monitor new signals from MACD. In general, we are inclined to think that the upward trend will continue for the pair, but the upward trend line was broken a few days ago, which can still be seen in the chart. It is impossible to form a new trend line or channel now. 5M chart of the EUR/USD pair
The picture on the 5-minute timeframe turned out to be quite interesting on Wednesday. In total, five signals were generated during the day and not a single macroeconomic report was published. European Central Bank Chairman Christine Lagarde started speaking late in the evening, however, and as we can see, traders did not react to this event. This means that Lagarde did not tell the markets anything interesting. Let's start analyzing trading signals. The first was formed at the very beginning of the European session - surpassing the level of 1.2215. Novice traders could open short positions on it with the nearest level as the target (1.2181). This level was perfectly reached and enabled us to earn 30 points of profit. The deal could be closed upon reaching the 1.2181 level or by Take Profit. The next signal was created in the form of a price rebound from the level of 1.2181 and turned out to be blatantly false, since the upward movement did not continue. As a result, a loss of 14 points was received on this trade. But the third signal - a sell signal - should not be worked out by beginners, since the candlestick on which it formed was very strong. Despite the fact that the downward movement also did not continue, such candles may indicate the emergence of some important information, to which the markets respond with a strong reaction. Therefore, it was best to miss this signal. The next, fourth signal was formed in the form of a reverse overcoming of the level 1.2181 from the bottom up and also brought newcomers about 30 points of profit, since later the nearest level 1.2215 was worked out. It also managed to earn about 30 points of profit. Thus, it was possible to earn 40-45 points in just a day. Trading tips for Thursday: The upward trend is still formally maintained on the 30-minute timeframe, so we continue to recommend considering long positions. However, the movement remains as close as possible to a flat, so the MACD indicator can generate false signals and it is not clear in which direction to trade. So, tomorrow we recommend that novice traders continue to ignore any signals from the MACD indicator until a clear trend is formed. It is recommended to trade from the levels 1.2159, 1.2181, 1.2215 and 1.2254 on the 5-minute timeframe. Take Profit, as before, is set at a distance of 30-40 points. Stop Loss - to breakeven when the price passes in the right direction by 15-20 points. At the 5M TF, the target can be the nearest level if it is not too close or too far away. If located - then you should act according to the situation. On Thursday, both the European Union and the United States will publish several macroeconomic reports, but there will be only two important ones among them. We recommend that you pay attention to the ADP report on changes in the number of employees in the US private sector and the index of business activity in the ISM services sector. It is not at all certain that the market will react to these publications, but the probability of seeing a reaction to the rest is even less likely. On the chart: Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels. Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now. Up/down arrows show where you should sell or buy after reaching or breaking through particular levels. The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines). Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal. Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 10:26 AM PDT Despite the general decline of the market, altcoins have historically maintained a positive attitude and are striving for growth. This is evidenced by the rise of the total market capitalization to the level of $1.78 trillion. Individual altcoins are trying to go beyond the fluctuation ranges, but the entire market is paying the price for over-dependence on the first cryptocurrency. Ethereum was the only major coin to see significant gains in value. During the day, the asset went up by 7% and came close to the threshold of $2,800. The cryptocurrency has overcome the corridor of $2,580-$2,700 without any problems and continues to grow in price. This is evidenced by the local dynamics of changes in quotes (+ 1.5%). Ethereum indicators managed to break through the threshold of $2,720, where ETH dropped sharply in price on June 1. Judging by the charts, the next difficult level of the cryptocurrency will be around the $2,830 mark. The main reasons for optimism were recent reports from mining companies, according to which income from mining ETH in May became $1 billion more profitable than from mining bitcoin. Also, don't forget about the London update coming up. At the same time, Ethereum co-founder Vitalik Buterin said that the transition to ETH 2. 0 will take much longer than planned. In the short run, this will give additional bursts of activity and an increase in cryptocurrency quotes. However, in the long term, the coin runs the risk of missing the moment for absolute technical dominance over opponents.
The Ripple token, having emerged victorious from another round of confrontation with the SEC, failed to consolidate its success. In the past few hours, the cryptocurrency has fluctuated, which indicates a significant decrease in interest and complete wagering of news from the courtroom. The same is indicated by the daily trading volumes, which fell to $4 billion. Despite this, XRP manages to maintain the $1 mark, however, at this stage, the token's problem is similar to the bitcoin's. Due to the sell-off, the coin cannot accumulate critical mass, which prevented the crypto asset from taking advantage of the positive momentum.
A similar situation is observed with Litecoin, which managed to reach the $190 mark, but then sank to $178. At the same time, the asset managed to rise in price by 5% over the past day, but it shows instability, which is clearly visible on the horizontal charts. Given the low daily trading volumes and market pressure, the coin will not be able to gain a foothold below the $200 mark in the near future without a strong news impulse.
Such an impulse was received by Elon Musk's favorite asset Dogecoin, which soared 32% over the course of the day and reached $0.416. At the same time, the volumes of daily trading and the local dynamics of changes in quotes indicate the extinction of interest in the altcoin. First of all, such a demand for a meme cryptocurrency arose thanks to a successful listing on the Coinbase Pro platform, where the asset will be available from June 3. Musk also added fuel to the fire, thanks to which the Doge pump lasted until the evening of June 2.
The sentiment in the altcoin market is characterized by great upside potential, which is no longer constrained by the negative news background. For example, it became known that Daymak electric cars will be able to mine coins while they are in the parking lot. Also, the reports of mining companies added positive, as a result of which ETH has many times surpassed the profit of bitcoin. The Indian authorities have renounced the recent ban on the use of cryptocurrency in the country, and the British bank Standard Chartered is going to launch a crypto exchange for large companies, which will significantly increase the institutionalization of the market. Considering all this, we can expect a revival of the situation on the cryptocurrency market and the beginning of a protracted growth. The only problem holding back the growth of coin quotes is bitcoin. The first cryptocurrency is close to the formation of the "death cross", which, sorry for the tautology, will put an end to the positive end of the"altcoin season".
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| EUR/USD. May Nonfarm release pressures the market Posted: 02 Jun 2021 09:32 AM PDT Over the past two weeks, the euro-dollar pair has been trading within the wide price range of 1.2150-1.2270, occasionally leaving its borders on the wave of impulse shots. Starting from May 18, the pair managed to update the 5-month high (1.2266), and visit the area of local lows, being marked at 1.2130. But each time, the price would return to the area of the 100-point price range, which indicates the indecision of both buyers and sellers of EUR/USD. All price movements are caused by certain fundamental factors. Both sides of the confrontation lack a powerful informational occasion to determine the vector of their further movement. The conflicting fundamental picture allows traders to trade within the above-mentioned price echelon, starting from its borders.
On the one hand, the current situation has its advantages: at the lower border of the price range, you can confidently open longs, and in the area of the upper threshold, accordingly, you can enter sales. At least over the past two weeks, the pair practically did not leave the range, and if it did, it was literally for several hours. And yet, sooner or later, the pair will get out of the "flat swamp". The only question is, in which direction it will then go - up or down? This issue is relevant especially ahead of the May Nonfarm, which will be published this Friday. Actually, the upcoming Friday release is connected (partly) with the activity of dollar bulls. The preliminary forecasts are positive, and this fact suggests that the representatives of the Fed will further tighten the tone of their rhetoric, allowing the early tapering of QE. It is worth noting that recently some members of the Federal Reserve have indeed sounded "hawkish". In particular, Federal Reserve Bank of San Francisco President Mary Daly announced at the end of May that "the Fed is in the early stages of discussing how and when to start phasing out large-scale incentives." In turn, a member of the Board of Governors Lael Brainard yesterday also voiced a rather hawkish rhetoric, announcing the Fed's readiness to "act ahead of the curve." Even the consistent representative of the "doves" Neel Kashkari recently surprised the market with his words that the regulator "has the appropriate arsenal" to fight inflation. In the wake of such statements, the dollar index "revived" and returned to the area of the 90th figure. The euro-dollar pair, in turn, actually reached the lower border of the above range, dropping to 1.2160. And yet, the sellers of the pair failed to break out of the "flat swamp". What is the reason for the fatal "bad luck" of the EUR/USD bears? In my opinion, traders' hawkish expectations are illusory. The market reacts to loud headlines, phrases taken out of context, and other indirect factors that allegedly justify a possible tightening of monetary policy parameters. After all, each of the above "hawks" in their speeches actually pointed out the need for a comprehensive analysis of the situation - first of all, taking into account the dynamics of the main indicators of the labor market. For example, Federal Reserve Bank of Cleveland President Loretta Mester, previously stated that strong inflation should go exclusively with strong employment indicators. Over the past two weeks, many other members of the American regulator have also voiced their position - Clarida, Bostic, Rosengren, Kaplan, Evans, Barkin. All of them reported that "it is too early to talk about phasing out QE." This message, in one interpretation or another, was voiced by all of the above representatives of the American regulator. And there is no doubt that Jerome Powell shares the position of his colleagues. But the market sometimes prefers to hear only what it wants to hear, ignoring other signals. The record growth of the consumer price index, as well as the record growth of the PCE index, allowed the dollar bulls to remind themselves again. However, in my opinion, trusting the strengthening of the greenback is quite risky - and especially when paired with the European currency. Traders are clearly counting on "rainbow Nonfarm", which will only strengthen the position of dollar bulls. It should be recalled here that on the eve of the previous Nonfarms, experts were also confident that the labor market would become an ally of the strong dollar. But the release came out in the "red zone", significantly falling short of the forecast levels. Thus, according to preliminary forecasts, the unemployment rate in the United States should have dropped to 5.8%. But in reality, unemployment did not decrease, but increased to 6.1%. The employment growth rate was also disappointing. With a growth forecast of 990,000, it grew by only 266,000. In the private sector of the economy, the number of employed was to increase by 893,000, in reality, the indicator grew by 218,000. In the manufacturing sector of the economy, the indicator went into negative territory altogether (for the first time since January): with the growth forecast of 55,000, it came out at around 18,000.
Also, do not forget that "hawkish notes" are also voiced by some representatives of the European Central Bank. And this week they have additional arguments in favor of their position. The latest data on the growth of inflation in Germany and the entire Eurozone came out in the "green zone", reflecting the recovery processes. Given this fact, the June meeting of the ECB (which will be held on the 10th) may pass under the sign of a "split", which will be interpreted in favor of the single currency. Thus, in my opinion, in the medium term, the EUR/USD pair retains its growth potential, at least to the upper border of the above price range. Technical analysis suggests that the EUR/USD pair is between the middle and upper lines of the Bollinger Bands indicator, as well as on the Tenkan-sen line on the daily chart. If the pair consolidates above this line (that is, above 1.2210), then the Ichimoku indicator will again form a bullish "Parade of Lines" signal, in which all the indicator lines are above the price. In this case, from a technical point of view, the path to the main resistance level - 1.2280 (upper line of the Bollinger Bands) will be opened. Therefore, from current positions, you can open longs to the above price barrier. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 09:08 AM PDT
On the four-hour chart, the wave pattern of the EUR/USD pair has slightly become confused lately and is becoming vaguer. The greatest questions are raised by the internal wave structure of the proposed wave 3. Nevertheless, there is reason to assume that the construction of this wave and the next one (wave 4) has already been completed. If this is true, then the quotes' growth will continue from the current positions within the assumed wave 5 of the upward trend section. I am still waiting for the instrument to reach the peak of the entire previous upward trend, which is around the level of 1.2350. It should also be considered that the entire section of the trend, which started on March 31, may take a more extended form than it seems now. But at the moment, an alternative version of the wave pattern is not required, as the current one is quite clear. The news background for this instrument was extremely weak on Wednesday. In general, there was not a single important report published during the day either in the EU or in the US. The quotes declined by 60 basis points and then increased by 40 b.p. It should be noted that reversals occur when no important data was released. Thus, we can assume that Wednesday's news background had no influence on the movement of the EUR/USD pair. Nevertheless, EU producer prices in April rose by 7.6% y/y. This indicator is also quite important along with the usual inflation and shows the acceleration of the price growth process. However, this price increase is not yet reflected in the inflation indicator itself, especially in its basic version. In turn, the consumer price index increased by 2.0% y/y only, and the core inflation did not even reach 1.0% y/y. Now, several Fed members are expected to make a speech, but it is unlikely that they will give information that will influence the market. Patrick Harker, Raphael Bostic, and Charles Evans are likely to simply share their views on US inflation and the US economic recovery, as Lael Brainard and Randal Quarles did on Tuesday. What's more interesting is the speech of the ECB President Christine Lagarde, which will only start in a few hours. This can have a fairly tangible impact on the market sentiment. Ms. Lagarde is expected to make "dovish" statements so that the current wave pattern will continue to be executed. Based on the analysis, the quotes of the instrument are still expected to rise, although the current wave pattern is quite uncertain. In any case, it is still recommended to buy the instrument with targets located around the levels of 1.2300 and 1.2340, for each MACD upward signal, but now, a further decline in quotes (which will not prevent trading on the increase, since the MACD will be directed down) can lead to the need to make adjustments to the current wave pattern.
The wave pattern of the upward trend section is still quite complete. The section of the trend, which started to form immediately after it, took on a corrective and also fully completed form. If the current wave pattern is correct, then the construction of a new section of the upward trend continues and its first two waves have completed. The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin: Suspicious lull and bearish outlook from JPMorgan Posted: 02 Jun 2021 08:41 AM PDT The bitcoin chart does not give us any new information based on which the outlook for the main cryptocurrency and the market as a whole would become clearer. But the previous forecasts do not lose their relevance, BTC/USD is consolidating in a triangle, which means that its breakdown and momentum are just around the corner. But even here, there is no clarity in the direction, it remains to wait since the equilateral triangle is still a servant of two masters. Meanwhile, forecasts and opinions of reputable analysts are also mixed. For example, JPMorgan bitcoin expert Nikolaos Panigirtzoglou said on Tuesday that the main cryptocurrency may well sink in the area of $26,000 per coin. He notes that due to the recent increase in volatility, a significant percentage of new entrants who only slightly plunged into the current situation and were almost confused are now leaving the market en masse. The news background does not add optimism either: the bans of the regulatory authorities in China, the laws on crypto-taxes in the United States, and the epic with Elon Musk, although temporary, are bearish factors. Against this background, the JPMorgan bitcoin expert believes that before bitcoin has any hope for a long-term reversal, its correction may deepen to $26,000. One of Panigirtzoglou's arguments is the decline in institutional interest in May. Many experts have called the last month a breakout period, as many corporations rushed to buy bitcoin amid its growth. And the recent collapse cooled this ardor. JPMorgan's pessimistic forecasts also support previously released data from the network, indicating that many new investors were selling their BTC coins during the correction. It seems that bitcoin is rapidly evolving into a long-term asset class and rewards those who choose to hold it for long despite periods of correction. Meanwhile, the technical picture on the BTC/USD chart has not changed since yesterday. The triangle on the 4-hour time frame has not lost its relevance, the price is growing inside the pattern. It remains to wait for the breakdown. As for the decline to $26,000, as predicted by JPMorgan, it is too early to talk about it, but the target of 28,392.99 is quite realistic.
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| Wave analysis for GBP/USD on June 2 Posted: 02 Jun 2021 08:33 AM PDT
For the pound/dollar pair, the wave marking has not changed at all in recent weeks. The British dollar has been in a sideways corridor strictly below the 0.0% Fibonacci level for more than two weeks. Thus, after the proposed wave e completed its construction, the correction wave structures began, which are very difficult to determine for any particular wave of the higher scale. An unsuccessful attempt to break through the 0.0% Fibonacci level indirectly indicates the end of the entire upward trend. On the other hand, the wave marking does not allow us to make such an unambiguous conclusion. It is too complicated, and a new successful attempt to break through the 0.0% Fibonacci level will lead to a more complex upward set of waves. Thus, I can't even make an unambiguous conclusion at this time about whether the current upward set of waves is complete. The pound/dollar pair started a new increase in quotes during the current day and added about 70 basis points in the second half. However, this does not clarify the current wave markup. There is positive news for the Briton. However, it is unlikely to have anything to do with the latest movements of the instrument, given that it is standing still. Vaccination in the UK continues, and as early as June, three-quarters of Britons can be fully vaccinated. On June 21, the country plans to cancel all quarantine restrictions completely. Thus, the country that was most affected by the coronavirus in Europe in 2020 can get rid of it faster than anyone else. There have also been recent rumors that the Bank of England may raise the interest rate as early as next year. Gertjan Vliege first announced it. Moreover, it was also announced yesterday by Andrew Bailey's deputy manager Dave Ramsden. He said that the rate could be raised if inflationary pressures persist. However, at the same time, the Governor of the Bank of England, Andrew Bailey, has repeatedly stated that the growth of inflation is unlikely to be prolonged, and it will reach its maximum by the end of the year when it can reach 2.5%. Thus, I believe that raising the rate is still too early to be considered resolved. I want to remind you that the US economy is recovering faster than the British economy. From my perspective, the rate will be raised first where the economy will grow faster and stronger. It is in the United States. The Fed's regional economic review, the Beige Book, will be published this evening. However, I don't think it will contain important information. At this time, the wave pattern continues to be twofold. The pound moves almost horizontally, which makes it difficult to work with it. At this time, it is still unclear whether the proposed wave e has completed its construction. Its internal wave structure looks ambiguous. You can try to sell the instrument with a protective order above the level of 1.4240, which corresponds to 0.0% of the Fibonacci. And if the level of 1.4240 breaks, buy it.
The upward section of the trend, which began its construction a couple of months ago, takes a rather ambiguous form. As I said above, several variants of wave marking are possible at once. Unfortunately, different options offer different further developments. Therefore, it may be necessary to wait for the current wave markup to clear up a little. The material has been provided by InstaForex Company - www.instaforex.com |
| June 2, 2021 : EUR/USD daily technical review and trade recommendations. Posted: 02 Jun 2021 08:18 AM PDT
During April, the ongoing downside movement ( on the left side of the chart ) came to an end. The price levels around 1.1700 provided Significant BUYING Pressure. This initiated the recent uptrend towards 1.2150. Another downside movement was expressed towards 1.1990. Breakdown below it was needed to allow one more downside visit towards 1.1840. However, an upside movement was demonstrated towards 1.2175 (backside of the broken trendline) which provided sufficient bearish pressure resulting in a quick downside movement towards 1.2070. Earlier this week, another upside movement was demonstrated towards 1.2175 which failed to offer sufficient bearish pressure. Breakout above 1.2175 enhanced further bullish advancement towards 1.2250 as an initial target. Further upside movement was expected to pursue towards the backside of the broken trend line. However, the pair has failed to do so. On the other hand, re-closure below 1.2175 is needed to turn the short-term outlook into bearish again. Persistence below the price level of 1.2175 indicates further downside movement towards 1.2110 and 1.2070. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for Nasdaq 100 (#NDX) for June 02 - 03, 2021: Buy above 13,666 Posted: 02 Jun 2021 08:14 AM PDT
In the early American session, the Nasdaq 100, #NDX, is trading above the SMA of 21 located at 13,437 according to a daily chart. There is also the 3/8 of murray, thus combining and forming strong support higher at 13,750. Traders have not been able to break strong resistance in several attempts every day. As the Nasdaq sits above the 21 SMA on daily charts, this is a sign of a medium-term bullish bias that could give it bullish momentum to the 14,062 area, a very clear and easy target to achieve for the Nasdaq. Technology investment funds have suffered their worst money outflow streak in 3 years. In fact, the week ended May 23 saw an outflow of $ 1.1 billion. The ten-year public spending plan that Biden wants to implement and that aims to be financed through tax increases on technology companies, could weaken the strength of the Nasdaq index in initiating a long-term downward cycle. Also, investors and traders are keeping an eye on the issue of inflation, given its importance and concern. Some think that it is something purely transitory, while others argue that it is something more structural. According to technical analysis, as long as the Nasdaq 100 remains above the key level of 13,437, it is expected to continue its upward trend in the medium term. Despite market fears, the #NDX remains bullish, and has as target in the 14,000-point zone. Our recommendation is to buy at current price levels. In addition, a break of 4/8 of murray will give us a new buying opportunity. On the contrary, a technical rebound in the area of 13,437 will be a good opportunity to sell. Support and Resistance Levels for June 02 – 03, 2021 Resistance (3) 13,926 Resistance (2) 13,849 Resistance (1) 13,746 ---------------------------- Support (1) 13,567 Support (2) 13,488 Support (3) 13,387 The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 08:11 AM PDT
USD/CHF is moving sideways in the short term after jumping above the downtrend line. Escaping from this triangle could bring a great trading opportunity. An upside breakout followed by an increase above 0.9041 high could signal a potential upside reversal. On the other hand, a downside breakout from this pattern and dropping under 0.8934 lower low could really indicate that the pair may resume its downside movement. Trading Conclusion!Right now we don't have a trading opportunity as long as the price stays within this pattern, formation. An upside breakout could bring a buying opportunity while a downside breakout could signal a larger decline. The material has been provided by InstaForex Company - www.instaforex.com |
| Will gold dive in and come up? Posted: 02 Jun 2021 07:57 AM PDT Will central banks risk rate hikes to combat inflation if they can simultaneously pierce asset-market bubbles they have created? The fate of gold depends on the answer to this question. The precious metal showed its best performance in May in the last 10 months, sincerely believing that the Fed will not take this kind of risk. Jerome Powell and his colleagues continue to convince investors of the temporary nature of the acceleration of inflation, knowing full well that if they tighten monetary policy, the story of the 2013 "taper tantrum" will repeat itself. Extremely negative real rates, high inflation, and low nominal US Treasury yields are a favorable environment for the precious metal, which, after a bad start in 2021, managed to lick all its wounds as the year approaches the equator. ETF stocks, after several months of outflows, rose in May, and hedge funds, as in the good old days, are actively increasing their longs. Dynamics of speculative positions in gold and ETF stocks
The collapse of bitcoin played an important role in the rapid growth of XAU/USD quotes, which fell from the levels of historical highs by about 40% due to the speeches of Elon Musk and the restrictions of the cryptocurrency market from China. Many were quick to describe the sector leader as a new hedging tool against inflation, but recent events have proven their views are wrong. Bitcoin and gold dynamics
If we add to this the growth of Chinese net imports through Hong Kong in April to 52.8 tons, which is the highest level since June 2018, then there should be no questions as to why gold is growing. Another thing is that in the short term, it can go for a correction. Failure of the bulls to catch on to the $1,900 per ounce mark will increase the likelihood of a pullback. The reasons should be sought in the expectations of strong statistics on the US labor market for May. Bloomberg experts predict an increase in employment outside the agricultural sector by 650,000, which will potentially lead to higher bond yields and the strengthening of the US dollar on fears that the Fed will begin to normalize monetary policy earlier than market participants currently expect. In fact, this approach is the old-fashioned approach. When inflation rises and the economy warms up, the central bank removes the punch bowl in the midst of a feast. Now, the central bank will not do this, which allows it to use strong statistics on the US labor market to buy XAU/USD on pullbacks. In fact, the fate of the US quantitative easing program is a foregone conclusion. In June, the FOMC will begin discussions on tapering QE, and at the end of the summer, at the conference of the heads of central banks in Jackson Hole, Jerome Powell will announce the start of this process. Another thing is that the Fed will in any case remain present in the US debt market, which will limit the growth of bond yields and continue to support the precious metal. Technically, signals for buying gold with the target of $2,020 per ounce according to the Wolfe Wave pattern will be a breakout of resistance at $1,910 or a rebound from moving averages. Gold, Daily chart
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| June 2, 2021 : EUR/USD Intraday technical analysis and trade recommendations. Posted: 02 Jun 2021 07:51 AM PDT
Recently, finding significant demand around 1.2000, has allowed another bullish movement to pursue towards higher price levels ( 1.2100 - 1.2130 ) where bearish rejection was previously anticipated. Although transient bullish breakout above this zone was temporarily expressed, the pair has failed to maintain bullish movement above 1.2130. Bearish persistence below the price zone of 1.2050-1.2000 was needed to establish a short-term downtrend. However, the price zone around 1.1970 has provided significant bullish demand so far leading to the current bullish breakout above 1.2050 up to 1.2250. Recently, Bullish trades were quite risky. That's why, we were waiting for signs of bearish rejection like what happened earlier last week. On the other hand, the price zone of 1.2110-1.2130 remains an intraday demand zone to offer bullish support unless it gets broken to the downside ( highly expected scenario ). Bearish re-closure below 1.2100 then 1.2050 is needed for more bearish domination. If so, Next bearish targets would be located around 1.2020 then 1.1990. The material has been provided by InstaForex Company - www.instaforex.com |
| June 2, 2021 : GBP/USD Intraday technical analysis and trade recommendations. Posted: 02 Jun 2021 07:49 AM PDT
In April, Bearish Persistence below 1.3800 favoured bearish decline towards the 1.3600 levels. Bearish breakout below 1.3600 was needed to enhance further bearish decline. However, the GBPUSD pair was contained above the demand level of (1.3660) a few times before the backside of the depicted broken channel could be retested around 1.4150 which applied significant bearish pressure on the pair. This turned out to be a bullish trap until another bullish breakout occurred shortly afterwards. Moreover, Failure to maintain bearish pressure below 1.3800 (76% Fibonacci Level) has enhanced another bullish movement for retesting of the price level of 1.4225 where 100% Fibonacci Level is currently located. Please note that around the price levels of 1.4200-1.4225, Conservative traders should be considering bearish rejection and possible SELL Entries. If so, the current bearish decline should be anticipated towards 1.4050 then 1.3950 as initial targets. The material has been provided by InstaForex Company - www.instaforex.com |
| Triangle pattern formed by AUDUSD Posted: 02 Jun 2021 07:38 AM PDT AUDUSD has mostly been moving sideways for the last few weeks as price has made a base around 0.77. This support level has been respected and there is no clear break down below it for some time now. After the recent upward spike around 0.7850 price seems to have formed a triangle pattern.
The upper triangle boundary is found at 0.7760 while the lower boundary as we said above is around 0.77. Price is running out of space and soon we will see a break out. Traders need to be cautious and patient. A break of 0.77 could signal a decline towards 0.76 or even lower. If resistance is broken at 0.7760, we could see price move towards 0.7915, equal to the height of the base of the triangle. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 07:38 AM PDT Ripple changed little in the last hours after passing above a dynamic resistance. It remains to see how the rate will react as it is still located below some strong upside obstacles. XRP/USD moves somehow sideways in the short term after ending its sell-off. Technically, the price of Ripple could confirm a larger growth soon. Still, we cannot exclude a minor decline to retest the immediate support levels before jumping higher. Bitcoin's potential growth could help the XRP/USD to increase as well. XRP/USD Breakout!
Ripple is traded at 1.0116 level and it stands above the 150% Fibonacci line which represented a dynamic resistance. Stabilizing above it and making a new higher high, to close above 1.1 psychological level confirms a strong swing higher. In the short term, the price could still test and retest the broken 150% line before jumping higher. XRP/USD found temporary resistance at the 50% Fibonacci retracement level and at the weekly R1 1.0671. Ripple Forecast!Ripple could extend its growth if it jumps, closes, and stabilizes above 1.1000 psychological level. Failing to stabilize under the 61.8% retracement level signaled that the corrective phase could be over. The material has been provided by InstaForex Company - www.instaforex.com |
| Technical analysis on EURUSD for June 2, 2021 Posted: 02 Jun 2021 07:34 AM PDT EURUSD as expected has made a reversal today and has so far pulled back towards 1.2160. Short-term support is found around 1.2160 and price is now bouncing. Our view remains bearish as price is turning lower from 1.22-1.2250 area.
EURUSD is in the process of changing trend from bullish to bearish. We talked about the warning signals by the RSI and the bearish divergence. If price breaks below the red support trend line we will have another bearish signal, stronger this time. Resistance is at recent highs of 1.2253. Bulls need to break above this level in order to hope for a move towards 1.23. Given the bearish divergence signals, I believe it is very unlikely to continue higher. I expect soon price to break to new short-term lows. My short-term target is 1.2050. The material has been provided by InstaForex Company - www.instaforex.com |
| Trading Signal for ETH/USD (Ethereum) for June 02 - 03, 2021: Buy above $2,500 Posted: 02 Jun 2021 07:33 AM PDT
In the early American session, ETH/USD, (Ethereum) is trading above 4/8 murray with a slightly bullish bias, consolidating above the SAM of 21, although the price is trapped within a rising wedge on a 4-hour chart. At a fundamental level, according to the CoinShares weekly report, significant institutional investments of $ 74 million was recorded last week as investors tried to take advantage of the crypto market crash in which many crypto assets lost more than 50% of their value. However, the recent push from ETH has led to further speculation as to whether Ethereum is gearing up to overtake Bitcoin. Currently, Ethereum outperforms the flagship cryptocurrency in terms of transaction count, volume and fees, and trading volume. According to CoinGecko, ETH / USD is currently the second most traded crypto asset - it has a daily volume of $ 38.8 billion, just behind Tether's $ 103 billion. In view of the fact that the market is betting that Ethereum in the short term will reach levels of $ 4,000, this could be the consolidation and accumulation phase for a new bullish wave. So, the price could surpass its new registered maximum. In the chart, you can see that ETH / USD is moving inside an uptrend channel, supported by the eagle indicator that is showing a bullish signal. The break of 2,700 could open the door for the cryptocurrency to the 200 EMA zone of about $ 3,125. If ETH makes a technical bounce in the 2,500 zone or the uptrend channel, we recommend buying with targets at 2,800 and 3,125. As long as it remains above 4/8 of a murray, the outlook will remain bullish in the short term. Support and Resistance Levels for June 02 – 03, 2021 Resistance (3) 2,903 Resistance (2) 2,819 Resistance (1) 2,694 ---------------------------- Support (1) 2,607 Support (2) 2,482 Support (3) 2,395 The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 07:28 AM PDT Technical analysis:
BTC has been upwards. The price tested the elvel of $37.630 but I see potential for the downside swing due to overbought condition. Trading recommendation: Watch for potential selling opportunities and potential downside rotation towards $35.675. Downside target is set at the price of $1.854 Stochastic is showing overbought condition, which is sign that buying looks risky. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 07:27 AM PDT Gold price pulled back today as expected. Price reached as low as $1,893 but is now bouncing again above $1,900. Price has the potential to push lower towards $1,870-50 but price respects the support trend line coming at $1,890.
Black lines - bearish divergence Red line - support trend line Gold price is trading still inside the bullish channel and above the short-term support trend line. As long as price is above $1,890 we expect a new higher high towards $1,920. If the red support trend line is broken we expect price to continue lower towards the lower channel boundary. The bearish divergence is a warning signal and not a reversal signal. At current price levels I prefer to be neutral if not bearish. The upside potential is limited. The material has been provided by InstaForex Company - www.instaforex.com |
| Analysis of Gold for June 02,.2021 - Potential for the downside swing and test of $1.855 Posted: 02 Jun 2021 07:24 AM PDT Technical analysis:
Gold has been trading sideways at the price of $1.903 but I see potential for the drop in the next period. Trading recommendation: Watch for potential selling opportunities in case of the downside breakout of upside channel at $1.892. Downside target is set at the price of $1.854 Stochastic is showing bull cross but the Bollinger bands is contracting (low trading range condition). Watch for the breakout to the downside.... Key resistance is set at $1.916 The material has been provided by InstaForex Company - www.instaforex.com |
| Bitcoin price trapped in a triangle pattern Posted: 02 Jun 2021 07:23 AM PDT Bitcoin remains below key short-term resistance of $40,000 but also above the major low around $30,000. Price has made no real progress over the last few sessions as price mostly moves sideways. Price has formed a triangle pattern and traders need to be cautious when price breaks out of the pattern.
The upper triangle boundary is at $38,600. A break above it would be a bullish signal. The lower triangle boundary is at $34,500. Breaking below it would be a bearish signal. Price is moving sideways but recent trend was bearish. Triangle patterns are usually found near the end of trends. So for now I believe that the most probable outcome would be a break to the downside but with limited potential. Nevertheless traders should focus on the triangle boundaries in order to get a clearer message about trend direction. The material has been provided by InstaForex Company - www.instaforex.com |
| Posted: 02 Jun 2021 07:20 AM PDT Technical analysis:
EUR/USD has been trading downwards as I expected. I still see potential for the downside continuation and potential test of 1.2135. Trading recommendation: Watch for potential selling opportunities on the rallies using the intraday time-frames 15/30 minutes. Downside target is set at the price of 1.2135. Stochastic is showing bear condiiton with no evidence of the bullish cross, which is sign for the further downside continuation. Projected parallel line is another indication that drop can continue.Resistance is set at 1.2250 The material has been provided by InstaForex Company - www.instaforex.com |
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