the daily chartist

EUR/USD tests the bottom line of the uptrend

published 1 year ago
EUR/USD Daily

 EUR/USD takes advantage of the weaker dollar today as it recently landed for a test on the bottom line of the long-term uptrend on the daily chart. Succeeding there, stopping at 1.4333 gives a green light to push with some long positions, but we are reaching the 50 DEMA and it is going to be crucial for the Bulls to gain more speed to breach and secure the zone. As the price currently is under the 50 DEMA and 200 DEMA, Bears are in control. RSI turns North as well. 

 First scenario: Price keeps pushing to secure its stay in the uptrend and we can go with it.

 Second scenario: Fundamentals and Sentiment go ham and the Buck attracts money again and the price turns south, testing the line and 1.4333 again. Moves under and confirmed for a new long-term downtrend and selling for EUR/USD. 

USD/JPY goes south on weaker dollar

published 1 year ago
USD/JPY Daily

 USD/JPY has stopped at 114.553 which is the top line of the long-term downtrend and is reversing back inside of the trend. Recently it played out a correction which seems is coming to an end. Even though the panic from yesterday and the stronger USD, the Buck slipped and we saw lower numbers for the inflation data from today. CPI came at 0.1% from 0.2% forecast and previous. 

 First scenario: USD continues to slide and the price touches the lower line in the wedge (currently it is struggling to press the 50 daily moving average) and breaches. Makes a test and succeeds in convincing the Bears that Bulls are retreating for good. With this, we can start selling towards the 200 DEMA (blue curve) and if we to be sure that JPY will stay king, we need a successful breach there as well. 

 Second scenario: Everyone pumps the USD on rate hike fears and worsening of the world economy and the price makes another attack on 114.553 and successfully breaches. With that, we can enter the movement with longs and catch the bigger reversal. 

Vitalik's pet goes under

published 1 year ago
Ethereum Daily

 ETH's situation ain't different from Bitcoin or the other cryptocurrencies. As with BTC, ETH also made a bearish flag, which took ages and the catalyst from yesterday sparked the fire of selling. Pirce is hard under pressure and we are may see a drop towards 174.38. We are observing a long-term downtrend here as well which was tested to the top side and held firm. RSI goes under level 50 as well, indicating that the selling gains strength. 

 First scenario: Price touches 174.38, breaches and closes under to confirm that the selling will continue and we can start doing our own shorts as well.

 Second scenario: Price bounces off from that level and tests the upper line of the downtrend, breaches and closes with a Bullish confirmation. In this event, longs can be placed steadily with the trend as the price rises. 

Bitcoin finally finding a direction

published 1 year ago
Bitcoin Daily

 And so with yesterday's stock massacre cryptocurrency followed as well, wiping overall 10% or $13 bln market value. The price recently reached the top line of the Bearish wedge and with the breakout today, the Bears took control, playing out a bearish flag configuration that was built for a couple of days, which was frustrating for the market participants. The price again is trying to dip through the marked buy zone and again we ask ourselves is it going to hold? Time will tell. RSI falls under level 50, which indicates that a down move is imminent. 

 We are observing a long-term downtrend for the cryptocurrency and currently, we are crawling around the top line of the trend as well. 

First scenario: Price reverses from the buy zone, breaches and tests the line successfully, then tests the 50 (red) and 200 (blue) moving averages successfully and a new uptrend starts where we can start placing buy positions and build them gradually lifting the stop loss. 

Second scenario: Price breaches the buy zone, tests and closes under. This is in regards to the bottom line of the huge triangle, so if this event occurs we will see the start of a new sell-off and a proper continuation of the downtrend. Here we can think of starting to arrange some shorts and go with the trend.

Worsening in fundamentals and sentiment for now keeps the prices of crypto under pressure. 

Cable aiming for the top

published 1 year ago
GBP/USD Daily

 GBP/USD is in a downtrend still, but recently the price managed to pull from the bottom from 15.08 where it reached 1.26613. We are talking about a correction here, but for the past two days, the pair has made two good daily impulses as on Thursday we had a daily Bullish engulfing candle and on Friday the price managed to test 1.30562 and to move up. CCI and Stoch are on their crossovers as well so I think a move up is well backed up. For this to happen though, we need to see dollar losing further steam across the board so that we can see a test on the top line of the downtrend circa 1.31648. We are going to see resistance on the top line for sure, so don't hurry with opening any longs for potential breaches. We need to see more technical and fundamental for confirmation that we are going to see a reversal on the downtrend.