Cryptocurrencies and Forex Analysis March 13th: Cryptos are down
EURUSD, Daily timeframe
The change in price action on Monday was minimal. We could have a lot more potential for action today when the ZEW event hits the wires. What should we expect in terms of price action?
Price could drop and test the support at 1.2200. This should not come as a surprise as highly volatile events are often marked by spiking price action. If the day closes way above (80-90 pips) that support, this could offer a short-term chance to go long. Target is the upper band of the range at 1.2530.
A breakout above 1.2530 and the day closing above that level would make it an immediate support. Targets above are 1.2600 and 1.2650.
If price reacts to a surprisingly bad news result from ZEW, it could break and close below 1.2200. Next levels that could be breached are: 1.2065 and 1.1900.
Gold, Daily timeframe
Gold tried to pick up in value in the late afternoon hours on Tuesday. If price pushes back it might take a couple of days and a an extra push from volatility for the commodity to gain in price. The scenarios we’re currently monitoring as potential plays are the following:
First off, it’s good to be aware that price action is currently anything but clear. This poses more of a difficulty as there is too much chop in the market. A bullish confirmation could be worth waiting for. Target above is located at 1350.00.
The above –mentioned 1350.00 level is also a resistance that has been respected more than once. If price pulls back from it, the chop would clearly continue in the form of a ranging motion. Target below is 1300.00 (where price came from).
Closure for the day below 1300.00 could signal more bearishness for the safe haven commodity. Next target level would be the support area at 1260.00. No longs in this scenario.
Bias: Neutral, 4-Hour timeframe
Price managed to drop below $9,500- this means that the level has been respected and it automatically becomes a resistance to be considered. Action is bearish, and so is our stance. What levels should we look out for?
Bears continue to press prices down. We could see another attempt for a retest of the farther support level at $5,800. Price was at that level in February- not so long ago really.
A break below $5,800 should be taken very seriously. It could mean that investors have lost their confidence in the currency and are now betting against it. Bias would be short and so should our positioning. Targets could go very far down south. Hold onto trades if price drops below the designated level.
Only a recovery above $13,000 would be a meaningful sign of recovery. Before that price would just be wiggling in between levels. Targets above are $15,500 and $17,000. Serious levels with seven more serious potential.
Bias: in consolidation, 4-Hour timeframe
Ether has now dropped below the support at $740 which has now turned the level into a short-term resistance. If you take a look at Bitcoin and compare the two charts, you’ll see how similar price action is (for the time being). Both markets are in positive correlation- let’s see how long that continues to be the case.
Price falls to test the immediate support level at $600. A test could be made in the form of a pin bar or a spike that probes the level but then closes the day above it. Target would be the immediate $740, then $860.
A fall below $600 should be seen as a signal from the market that big players either want out of the market or are actively trading it short. Sentiment would be negative, so should our positioning.
An attempt at recovery would be price action above $1,000. Bulls could be propped up by a serious fundamental reason. Keep your eyes open for major headlines. Target would be the peak at $1,300.
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.