Cryptocurrencies and Forex Analysis February 13th: Appreciation in Gold
EURUSD, Daily timeframe
Bias: Currently retracing (within a Bull trend)
The euro is trading around the immediate 1.2300 resistance area. This level could be broken. Question is whether we could do business from that level? Remember that any positions undertaken should be in direction of the established uptrend.
The 1.2300 area if probed and price closes above it on the daily timeframe, we could go long. Targets above are 1.2530 and 1.2600. Of the two targets, 1.2530 could also serve as a potential level of resistance.
If price proceeds to close below 1.2300 by forming a 4-hour bearish rejection candle of the level, this could mean a deeper retracement reaching out toward 1.2065 and even 1.1900.
The above mentioned levels 1.2065 and 1.1900 could serve as a springing board for long trades. A long setup would be valid if we see a rejection bullish daily candle pushing away from those levels. If there is no rejection, then stay put.
Monday was a bullish day for the precious metal. We saw the commodity rise in price by about 90 pips and trading at 1324.00. It’s early to decide if this is a trigger candle or not. We also have to consider how the dollar compares to other markets as well. If we see that the greenback starts to lose ground against the basket of major pairs, then this could be seen as a bullish sign for the precious metal as well.
If price action closes today beyond the resistance at 1328.00 – and it should be considerably beyond that point, we could go long. The immediate target is located at 1360.00. Pay attention to that level- it’s been respected more than once on the daily timeframe and it could serve as a resistance.
There is a probability that price drops and covers the bullish candle we say formed on Monday. This means that if price drops to 1306.00 then we shouldn’t attempt any longs. Further bearishness could continue going into 1300.00.
Price closing below 1300.00 could trigger a lot more weakness. And, there is plenty of space for the market to continue falling. Just take a look at next support level- 1260.00. By seeing price reacting from specific levels, we could position ourselves properly and make the best of the situation.
Bias: Downtrending, 4-Hour timeframe
The digital currency continues to consolidate and has so far undertaken no clear direction. We’d have to wait for a breakout to either side. Unit then the following scenarios are being monitored:
A breakout to the downside would be considered price moving below 5,500. If that activity takes place, only short positions are to be initiated. Targets are: 5,000, then 4,500, and $4,000.
A short-term breakout to the upside with a slight indication of a retracement would be a movement above 9,400. This scenario is a no-man’s land. It simply shows that price could test previous retracement levels.
Only a recovery in price action beyond the $13,000 mark would show that bulls are overtaking the scene and traders could position themselves for long trades.
Bias: Downtrending, 4-Hour timeframe
Ether continues to linger around the $860 resistance level. We would need a lot more clarity in the form of a breakout to either side. Prior to that all that can traders do is wait. The scenarios observed are:
If price closes on the daily timeframe with a bullish formation around 900, that could mean Ether potentially tries to recover and tests resistance levels above. The immediate level of resistance is 1,000.
A recovery above 1,180 could mean a stronger indication of a recovery in the uptrending of the market. A test of the peak at 1,380 could take place. Make sure you’re aware that this target is also a level of resistance and price could push back from it.
A daily (even weekly) closure below the support at 600 would be a clear sign that bias is short. From that point on, only short trades with a long-term bearish perspective are to be attempted.
Wishing you Happy and Successful Trading!
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