Cryptocurrencies and Forex Analysis March 12th: Cryptos actively moving
EURUSD, Daily timeframe
The euro dollar was moving in a range bound motion last week. The immediate levels are the support at 1.2200 and the resistance at 1.2530. The established trend is a bull one but in the current situation we need to see specific levels reached and reacted to before acting.
For a clear-cut picture, traders would have to wait for either the resistance to be breached (and the day to close above it) or the support to be crushed (and again the day has to close below it. The space in between is not a favorable trading pattern.
If price recovers to close above 1.2530, the movement would be in support of the established uptrend. The level would then become a short-term support we could potentially go long from Targets above are: 1.2600, 1.2650 and 1.2700.
A deeper retracement could also take place by breaking and closing beneath 1.2200. That movement could extend towards the following support levels: 1.2065 and 1.1900. These two if price reacts from them with a bullish daily rejection could offer entry points on the long side. The trigger candle is a must. If it doesn’t appear, them stay flat.
Gold, Daily timeframe
The precious metal has touched the support at 1300.00 on multiple occasions now. This clearly sets up a (hopefully short-term) range where motion is restricted between that support and the resistance at 1350.00. Note that gold has formed quite a similar pattern to the euro against the dollar. The correlation could be taken benefit of. When one of the two moves, we could potentially expect the movement in the other market as well and take advantage of it.
On Friday, Gold formed a pin bar reacting by pushing back from the support at 1300.00. Conservative traders could await one more bullish daily candle to confirm price action before a potential long. Target is the resistance level at 1350.00.
There could be yet another retest of the support level- that is one reason why traders have to be careful about how wide a reasonable stop loss could be. You could also regulate your risk from the volumes placed in the parameters of your position. Stop losses are placed based on the daily timeframe beneath candle tails.
A closure below 1300.00 could invoke more weakness from the market. Mind you that the candle has got to be of at least 90-100 pips down. Target level would be 1240.00. The 1300.00 level could turn into a resistance.
Bias: Neutral, 4-Hour timeframe
Bitcoin is sending some warning signs. Weakness has now become more dominant. The levels getting breached could open the doors for more bearish sentiment. Which levels and scenarios are we monitoring?
On Friday, price moved under the $9,500 support level. This now turns the area into a short –term resistance. Next immediate area on the way down is $5,800. As you can see there is potential for profit on both sides.
It is important how traders time their entries. Why? Because you could be right in the long-term but you could be trying to get ahead of the market which still hasn’t reacted. We need to be patient but also be able to make quick decisions when the times comes to act. Recovery above $13,000 could signal that bulls are back in the game. Target levels are: $17,000 and $19,400.
If Bitcoin closes below $5,800, there could be a massive sell off following. As you know there is plenty of potential on the downside as well. This trade could have a long-term impact.
Bias: in consolidation, 4-Hour timeframe
Good news is that cryptocurrencies are moving- this is what we need. Action, so we could potentially capitalize on it. Last week, bearishness extended its reach well under $700 trying to test the farthest retracement level at $600. Currently, price action is bullish- but make no mistake, this is just the beginning of the week and price action also has it times for corrections.
Should Ether close below $600, then brace yourself! It could be a time to go short. This level is by no means a bottom. The bottom is 0. No longs underneath that area.
This could be a double-bottom (from the 4-hour timeframe perspective) (see chart). Price could go for a retest of the Resistance at $1000.
If price action closes the week above $1,180, this could send us bullish signals that the market is trying to return to its previous glory. Make sure, this substantial price action takes place before positioning yourself with a bullish view on the market. Target is located at the peak $1380 and new record highs- you could ride with the trend for as long as it lasts.
Wishing you Happy and Successful Trading!
Risk Warning: The information above constitutes Marketing Communication and does not constitute Investment Advice or Investment Research. The content of the analysis represents the view of our experts on a generic basis, and do not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the analysis above has not been prepared in accordance with legal requirements designed to promote the independence of Investment Research. Readers using the above information should consider the possibility of encountering substantial losses. Therefore, UR Trade Fix Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the above analysis.” Further to the above ,Forex Trading involves a substantial Risk of Loss and may not be suitable for all Investors. Please see our Website for details regarding UR Trade Fix Limited’s Trading Terms, Policies and Offerings.Read more.