Technical Analysis January 11th, Forex and Cryptocurrencies: Ether tests immediate support
EURUSD, Daily timeframe
Bias: Pair in Uptrend
The euro dollar has reached a near-term support at 1.1900. Yesterday, the pair hesitated around that level and closed the day only 14 pips up from opening price. We’re in a place where the pair is in an Uptrend but currently retracing. The scenarios observed are:
Price could probe 1.1900 to the downside and then recover above the level by closing with a bullish candle. If this takes places that would be a rejection of the support. The rejection candle must be a daily one. Targets above are 1.2065, 1.2100, and 1.2150.
If price movement falls and closes below 1.1900 next immediate support is located at 1.1700. If price action closes below it, too then we should look toward next support level in turn which could be reach at 1.1500. These could offer opportunities for longs, only if price bounces from them with strength and bullishness on the daily time horizon.
This is our bearish scenario where if price closes below 1.1500 we could see more consistent weakness coming into the market. No longs to be attempted. Levels below are 1.1400 and 1.1300.
The precious metal has been retracing the past couple of days after 4 weeks of consistent bullishness. We have three scenarios that could play out on our watchlist:
Price continues to retrace to test the immediate support level at 1300.00 This level could offer a spot for an entry point on the long side. Prior to that we need to see a rejection of at least 80-90 pips in positive direction. Target above is 1350.00
If gold closes below that support level, chances are that there could be more upcoming weakness. Immediate support levels are: 1240.00 and 1200.00. As you can see there could be significant potential.
Price could move in consolidation mode for a while. This is an unfavorable pattern. We’re interested in trending moves only due to the profit potential they have.
Bias: ranging, 4-Hour timeframe
The digital currency has been dropping in price. On Wednesday, Bitcoin reached the support at $ 13, 000. Part of the reason for the ranging motion is the fact that other crypto currencies have also been gaining much attention as well.
Price could push back from the support at 13, 000. We need to see a daily candle closing above that level. If this takes place, we could go long. Targets above are 15, 500 (this could also be a short-term resistance). Next level is the record high that was scored last month at 19, 400.
Bitcoin could either test or break the support at 11, 300. Traders have to be cautious here. If price starts to trade below 11,300 no long trades are to be either held or initiated. The magnitude of bearishness coming in could be substantial.
If price respects the support at 11,300 that should be in the form of a daily bullish rejection. A potential strong rejection could offer an opportunity for recovery on the upside.
Bias: Bullish, 4-Hour timeframe
Ether is retracing toward 1, 181 level which could offer a short-term support provided price rejects it with a bullish formation on the 4-hour timeframe. The crypto currency is Uptrending, so we’d be looking for suitable potential entry points on the long side. The potential developments that could take place are:
There are immediate levels of support that could be tested if Ether starts to retrace. Each of those is a potential level to do business at on the long side. An obligatory ingredient is a strong bullish rejection candle. Supports are located at: 995, 860,740, 600 and finally the farthest support at 500.
If price recovers from the immediate support at 1181 and continues to trend up, targets above ate 1200, 1300 and 1400.
In the event where negative news comes in and price plunges below 500 support, this could signal a lot more bearishness. No longs in this scenario.
Wishing you happy and successful trading!
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