Daily Market Analysis By FXOpen

BTCUSD and XRPUSD Technical Analysis – 31st JAN 2023
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BTCUSD: Double Bottom Pattern Above $22396

Bitcoin continues its bullish momentum from last week and after touching a low of $22396 on 25th Jan, the prices started to correct upwards against the US dollar and are now ranging above the $22500 handle in the European trading session today.

We have seen a bullish opening of the markets this week.

We can clearly see a double bottom pattern above the $22396 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday low of 22543 in the Asian trading session and an intraday high of 22992 in the European trading session today.

The price of bitcoin is ranging near a new record high of 1 month.

We can see the formation of a bullish harami and bullish harami cross pattern in the daily time frame.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

We have also detected a bullish doji star pattern in the 30-minute time frame indicating bullish trends.

The relative strength index is at 56.23 indicating a strong demand for bitcoin, and the continuation of the buying pressure in the markets.

Bitcoin is now moving below its 100 hourly simple moving average and above its 100 hourly exponential moving averages.

Most of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 23000 and 24500.

The average true range is indicating high market volatility with a mildly bullish momentum.

• Bitcoin: bullish continuation seen above $22396
  
• The commodity channel index is indicating a neutral level
  
• The price is now trading just below its pivot level of $22884
  
• The short-term range is mildly bullish
  

Bitcoin: Bullish Continuation Seen Above $22396
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The price of bitcoin witnessed a downwards correction after touching $23926 as the target of $24K was rejected by the bulls. Now the markets are ranging into a consolidation channel above the $22500 handle.

After the consolidation phase is over, we are expecting upside moves in the range of $23500 to $24000 levels.

The resistance of the channel is broken in the 15-minute time frame.

We can see the formation of a bullish trend reversal pattern with the moving average MA20 in the 15-minute time frame.

The immediate short-term outlook for bitcoin is mildly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $20780 at which the price crosses 9-day moving average stalls, and at $21091 which is a 38.2% retracement from a 4-week high.

The price of BTCUSD is now facing its classic resistance level of 22928 and Fibonacci resistance level of 22950 after which the path towards 23000 will get cleared.

In the last 24hrs BTCUSD has decreased by 1.85% by 432.62$ and has a 24hr trading volume of USD 25.925 billion. We can see a decrease of 5.10% in the trading volume compared to yesterday, which appears to be normal.

The Week Ahead

Bitcoin has reached its highest level this month at $23956 which is a positive sign after the harsh crypto winter season seen last year.

The daily RSI is printing at 69.281 which indicates a very strong demand for bitcoin and the continuation of the bullish phase present in the markets in the short-term range.

We can see the formation of a bullish trend line from $22396 towards the $23983 level.

The price of BTCUSD is now facing its resistance zone located at $23098 which is a pivot point, and at $23527 which is a 3-10 day MACD oscillator stalls.

The weekly outlook is projected at $24000 with a consolidation zone of $23500.

Technical Indicators:

The moving averages convergence divergence (12,26): is at 1256.90 indicating a BUY

The ultimate oscillator: is at 52.29 indicating a BUY

The rate of price change : is at 8.37 indicating a BUY

Bull/bear power (13): is at 856.36 indicating a BUY

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Brent Crude Oil price takes a bashing overnight
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During the past two years, oil, along with many other raw material commodities which are used to produce energy products, has been very volatile.

Perhaps given the nature of its supply, which is largely in the hands of the OPEC+ countries whose national economies depend on the export of oil around the world, the 'oil cartel' has a lot of bargaining power over its consumers, hence in times of economic strife or geopolitical instability, oil prices have always been ones to watch.

First of all there was supply chain and logistical curtailment due to lockdowns across many Western countries, which led to the increase in the price of oil during 2020 and 2021, and then the sanctioning of the settlement accounts of Russian oil companies by European governments which led to any oil bought having to be settled in Rubles in bank accounts in Moscow, leading to rapidly accelerating ruble prices and oil supply constraints for European customers.

Therefore, oil prices have been high for 2 years, however this morning during the Asian trading session, Brent Crude Oil (WTI) took a dive in value and by 8.45am UK time, it was languishing at $76.92 per barrel, a steep drop over yesterday's values and a very noticeable drop compared to this time last week when the value was $82.27 per barrel on January 23, its highest value this month.

During the past 30 days, Brent Crude Oil has been very volatile in its values, having begun the month at a low point of $73.08 on January 4, before accelerating past the $80 mark by mid January, then retracting again before heading back to the high of over $82 last week, and now it is back down to the mid-$70s again.

Despite the overall rollercoaster ride of volatility this month, Brent Crude Oil is down overall by 4.3% during the past 30 days.

This has been an interesting period for commodities traders, and whilst in many Western markets, gasoline prices are now far lower than they were six months ago, the price of crude oil continues to fluctuate considerably.

In some cases, vehicle fuel prices at the pumps on the retail market have decreased by over 50p (British) or 50c (Euro) per liter in six months. For example, in July 2022, motorists in the United Kingdom were paying approximately £1.99 per liter, now unleaded fuel is readily available at around £1.50 per liter, and in France, in July 2022 unleaded fuel was retailing at an extremely high 2.20 Euros per liter, whereas during January 2023 it has been selling at anywhere between 1.70 and 1.87 Euros per liter.

Volatility is the the lifeblood of trading, so says the old adage, and the oil price this month has certainly been on point in this respect.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Markets focus on Bitcoin as volatility takes it to 5-month high
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The much publicized 'crypto winter' has been a long, drawn out period of relatively low values among major cryptocurrencies, lasting now for several months.

Along with the depressed values compared to the incredible volatility of 2021 which showed Bitcoin race to over $60,000 and below $20,000 and back again, there has been a stagnant market for long enough for those who were on the edge of their seat a just a year and a half ago to fall asleep during the winter of 2022.

This weekend, however, has caused some market participants to wake from the months-long slumber and begin to take note as Bitcoin values suddenly climbed to $23,900 by Sunday evening (UK market time).

That is almost $1000 higher than the value at which Bitcoin began the very same day, its value having been at $23,003 at 00.30 in the first half hour of the morning UK time.

Over the 24 hours until 12.00pm today UK time, Bitcoin had risen by 2% which is significant considering the millpond-like doldrums it has been in over the past few weeks.

This sudden rally was short lived, however, and by 13.00 UK time, Bitcoin values had descended to $23,100 which is a similar value to the pre-rally price on Sunday morning.

Whilst the return to the low $23,000 range may appear a damp squib to those who had become excited by the sudden upward direction which took place yesterday, the movement does at least demonstrate that some market volatility was present after a long period of stagnation, hence why this has been a talking point among many analysts and reporters over the past 24 hours.

What is of perhaps greater interest is that the high point reached yesterday evening put Bitcoin value at its highest point since August 12, 2022, when it traded at $24,412 and despite tailing off a bit during the course of today, Bitcoin is still at its second highest point in the last six months.

Therefore, whilst perhaps a small blip in the market value of the world's most popularly traded cryptocurrency may appear short lived, this is the highest value in the past five months, which is definitely something to write about.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

GBP/USD and GBP/JPY Could Resume Increase
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GBP/USD is consolidating gains pace above the 1.2350 zone. GBP/JPY is also rising and might gain pace if it clears the 161.80 resistance zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound is showing positive signs above 1.2350 against the US Dollar.
  
• There is a key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD.
  
• GBP/JPY started a fresh increase above the 160.00 resistance zone.
  
• There is a major bullish trend line forming with support near 160.90 on the hourly chart.
  

GBP/USD Technical Analysis


This past week, the British Pound found support near the 1.2280 zone against the US Dollar. The GBP/USD pair formed a base and started a steady increase above the 1.23200 level.

There was a clear move above the 1.2350 resistance and the 50 hourly simple moving average. The pair even cleared the 1.2400 resistance. A high is formed near 1.2418 on FXOpen and the pair corrected lower.

GBP/USD Hourly Chart
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There was a move below the 1.2380 level, but the bulls were active near the 1.2345. The pair is now rising and trading above the 50% Fib retracement level of the recent decline from the 1.2418 swing high to 1.2345 low.

An immediate resistance on the upside is near the 1.2400 level. There is also a key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD.

The triangle resistance is near the 76.4% key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD. The next major resistance is near the 1.2420 level, above which the pair could start a steady increase towards 1.2450.

An upside break above 1.2450 might start a fresh increase towards 1.2550. Any more gains might call for a move towards 1.2600 or even 1.2640.

An immediate support is near the 1.2380. The next major support is near the 1.2350 level. If there is a break below the 1.2350 support, the pair could test the 1.2280 support. Any more losses might send GBP/USD towards 1.2220.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Gold Price Could Dip While Crude Oil Price Trades In Range
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Gold price is struggling to stay above the $1,925 support. Crude oil price is facing a strong resistance near the $82 zone.

Important Takeaways for Gold and Oil

• Gold price started a strong increase and tested $1,950 against the US Dollar.
  
• There is a key bullish trend line forming with support near $1,925 on the hourly chart of gold.
  
• Crude oil price started a fresh increase from the $79.50 support zone.
  
• There is a major bullish trend line forming with support near $80.40 on the hourly chart of XTI/USD.
  

Gold Price Technical Analysis
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Gold price formed a base above the $1,900 level against the US Dollar. The price started a strong increase above the $1,915 and $1,920 resistance levels to move into a positive zone.

The bulls even pumped the price above the $1,940 and the 50 hourly simple moving average. The price even tested the $1,950 zone. A high is formed near $1,949 on FXOpen and the price is now correcting gains.

Gold Price Hourly Chart

There was a move below the $1,940 level and the 50 hourly simple moving average. The price even dipped below the $1,920 level before the bulls appeared.

Recently, there was a recovery wave above the 23.6% Fib retracement level of the downward move from the $1,949 swing high to $1,918 low. However, the bears are active below the $1,935 level and the 50 hourly simple moving average.

The price failed to clear the 50% Fib retracement level of the downward move from the $1,949 swing high to $1,918 low. It is now moving lower below $1,930.

An immediate support on the downside is near the $1,925 level. There is also a key bullish trend line forming with support near $1,925 on the hourly chart of gold. The next major support is near the $1,915 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,900 support zone.

On the upside, the first major resistance is near the $1,930 level. The next key hurdle is near the $1,935 level, above which it could even test $1,950. A clear upside break above the $1,950 resistance could send the price towards $1,965.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

ETHUSD and LTCUSD Technical Analysis – 26th JAN, 2023
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ETHUSD: Three Inside Up Pattern Above $1518

Ethereum was unable to sustain its bearish momentum and after touching a low of 1518 on 25th Jan, the price started to correct upwards against the US dollar crossing the $1600 handle today in the European trading session.

We have seen a bullish opening of the markets this week.

We can clearly see a three inside up pattern above the $1518 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just below its pivot level of 1607 and moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1610 and Fibonacci resistance level of 1613 after which the path towards 1700 will get cleared.

The relative strength index is at 56.75 indicating a STRONG demand for Ether and the continuation of the bullish phase in the markets.

The price of Ethereum is ranging near the horizontal support in the 1-hour time frame indicating bullish trends.

Both the STOCH and CCI are indicating a neutral market, which means that the prices are expected to remain in a consolidation phase.

Most of the technical indicators are giving a BUY market signal.

Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1650 to $1700 in the short-term range.

ETH is now trading above both the 100 & 200 hourly simple and exponential moving averages.

• Ether: bullish reversal seen above the $1518 mark
  
• The short-term range appears to be mildly bullish
  
• ETH continues to remain above the $1600 level
  
• The average true range is indicating LESS market volatility
  

Ether: Bullish Reversal Seen Above $1518
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ETHUSD is now moving into a mildly bullish channel with the price trading above the $1600 handle in the European trading session today.

ETH touched an intraday high of 1625 in the Asian trading session and an intraday low of 1600 in the European trading session today.

We can see the formation of a bullish price crossover pattern with adaptive moving average AMA20 in the 30-minute time frame.

The Aroon indicator is giving a bullish trend in the 4-hour time frame.

We have also detected the formation of moving average bullish crossovers: MA50 & MA100 in the daily time frame.

Ethereum’s price is rising sharply against the US dollar and nitcoin and is now eyeing to cross the $1700 level soon.

The daily RSI is printing at 65.97 indicating a STRONG demand for Ether in the medium-term range.

The key support levels to watch are $1489 which is a 38.2% Retracement from a 4-week high, and $1536 which is a 3-10-16 day MACD moving average stalls.

ETH has increased by 3.98% with a price change of 61.50$ in the past 24hrs and has a trading volume of 10.232 billion USD.

We can see an increase of 10.64% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

ETH price continues to remain in a bullish zone against the US dollar and bitcoin. ETHUSD is expected to move higher towards the $11650 and $1700 levels this week.

On the upside we are now looking at the immediate targets of 1677 which is a 13-week high, and $1685 which is a pivot point 2nd level resistance.

The immediate short-term outlook for Ether has turned strongly bullish, the medium-term outlook has turned bullish, and the long-term outlook for Ether is neutral in present market conditions.

The price of ETHUSD will need to remain above the important support level of $1588 which is a pivot point.

The weekly outlook is projected at $1700 with a consolidation zone of $1650.

Technical Indicators:

The average directional index, ADX (14): is at 45.27 indicating a BUY

The rate of price change: is at 2.735 indicating a BUY

Bull/bear power (13): is at 7.52 indicating a BUY

The Williams percent range : is at -44.41 indicating a BUY

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

EUR/USD Resumes Increase While USD/CHF Could Breakdown
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EUR/USD gained pace above the 1.0850 resistance zone. USD/CHF is declining and remains at a risk of more losses below the 0.9220 support.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a fresh increase above the 1.0850 resistance against the US Dollar.
  
• There is a key bullish trend line forming with support near 1.0845 on the hourly chart of EUR/USD.
  
• USD/CHF started a fresh decline below the 0.9260 and 0.9250 support levels.
  
• There is a major bullish trend line forming with support near 0.9220 on the hourly chart.
  

EUR/USD Technical Analysis

In the past few days, the Euro started a steady increase from the 1.0780 zone against the US Dollar. The EUR/USD pair gained pace above the 1.0820 level to move into a bullish zone.

The pair even climbed above the 1.0850 resistance and settled above the 50 hourly simple moving average. It traded as high as 1.0927 on FXOpen and recently started a downside correction. There was a move below the 1.0880 level.

EUR/USD Hourly Chart
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The pair traded as low as 1.0835 and is currently rising. There was a clear move above the 50% Fib retracement level of the recent decline from the 1.0927 swing high to 1.0835 low.

An immediate resistance is near the 1.0900 level. It is near the 76.4% Fib retracement level of the recent decline from the 1.0927 swing high to 1.0835 low. The next major resistance is near the 1.0920 level.

A clear move above the 1.0920 resistance zone could set the pace for a larger increase towards 1.0965. The next major resistance is near the 1.1000 zone. On the downside, an immediate support is near the 1.0880 level.

The next major support is near the 1.0850 level. There is also a key bullish trend line forming with support near 1.0845 on the hourly chart of EUR/USD. A downside break below the 1.0850 support could start another decline.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

BTCUSD and XRPUSD Technical Analysis – 24th JAN 2023
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BTCUSD: Inverted Hammer Pattern Above $20671

Bitcoin continues its bullish momentum from last week and after touching a low of $20671on 19th Jan we can see a bull run which managed to push the prices of BTCUSD above the $23000 handle today in the early Asian trading session.

After touching a high of $23159 we can see that the prices are declining due to profit taking by the medium term investors.

The price of bitcoin is ranging near a new record high of 1 month.

We can clearly see an inverted hammer pattern above the $20671 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday high of 23159 in the Asian trading session and an intraday low of 22858 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 63.63 indicating a strong demand for bitcoin, and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly exponential moving average and above its 200 hourly exponential moving average.

Most of the major technical indicators are giving a strong buy signal, which means that in the immediate short term, we are expecting targets of 23000 and 24500.

The average true range is indicating less market volatility with a strongly bullish momentum.

• Bitcoin: bullish continuation seen above $20671
  
• The STOCHRSI range is indicating oversold levels
  
• The price is now trading below its pivot level of $23066
  
• All of the moving averages are giving a STRONG BUY market signal
  

Bitcoin: Bullish Continuation Seen Above $20671
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We can now see that the price of Bitcoin is moving in a correction phase after which the market consolidation will start above the $22500 handle.

The Aroon indicator is giving a bullish trend in the 1-hour time frame.

The momentum indicator is back over zero in the 30-minute time frame.

We can see the formation of the bullish harami cross pattern in the 15-minute time frame indicating bullish trends.

We have also detected a bullish price crossover pattern with the adaptive moving average AMA100 in the 15-minute time frame.

The immediate short-term outlook for bitcoin is strongly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zones are located at $21017 at which the price crosses 9-day moving average, and at $21976 which is a 14-3 day raw stochastic at 80%.

The price of BTCUSD is now facing its classic resistance level of 23200 and Fibonacci resistance level of 23288 after which the path towards 24000 will get cleared.

In the last 24hrs BTCUSD has increased by 0.47% by 107$ and has a 24hr trading volume of USD 27.839 billion. We can see an increase of 15.92% in the trading volume compared to yesterday, which is due to the heavy buying pressure seen in the global markets.

The Week Ahead

The price of bitcoin has already entered into a super bullish zone above the $22000 and further upsides are located at $24000 and $25000 in the medium-term.

Bitcoin’s resistance zone is located at $23309 which is a 13-week high and at $24778 which is a 3-10 day MACD oscillator stalls.

There is an ascending channel forming with the current support located at $19977 which is a 14-3 day raw stochastic at 50%.

The weekly outlook is projected at $24500 with a consolidation zone of $24000.

Technical Indicators:

The moving averages convergence divergence, MACD (12, 26): is at 359.30 indicating a BUY

The commodity channel index, CCI (14): is at 56.65 indicating a BUY

The relative strength index, RSI (14): is at 63.63 indicating a BUY

Bull/bear power (13): is at 594.12 indicating a BUY

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Big Tech woes lead to layoffs, resulting in stock surge
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Over recent months, Silicon Valley has been struggling to keep its position as an endlessly burgeoning region of massive profits and possibilities.

Technology stocks listed on NASDAQ have been decreasing in value, making the chart pattern for the NASDAQ Composite Index quite sobering reading.

Indeed, so severely have the tables turned on Silicon Valley's 'big tech' giants that European stock markets, with their legacy companies which have been in establishment for in some cases hundreds of years, have been outperforming the giants of the electronic revolution for many months.

Something had to give, and yesterday some of the most popularly traded companies in North America's big tech sector began to announce significant redundancies of staff.

Following last week's well publicized redundancies at Alphabet, Google's holding company, there have been more wounded tech firms following suit.

The layoffs at Google actually had a positive effect on stock values, and now other firms in a similar position are announcing their intention to go down a similar path.

Swedish music streaming service Spotify witnessed its shares rally yesteda as it announced its plan to cut hundreds of jobs to help rein in costs.

Shares of Alphabet rocketed at the end of last week, jumping 5% and adding more than $50 billion in market value, following the tech giant’s decision to lay off 12,000 workers on Friday, demonstrating that it had overspent and grown its business to rapidly since the 'e-commerce revolution' which took place in 2020 when many Western governments locked their populations down.

This appears to be a proven strategy, as those with a keen eye who have been monitoring the performance of Meta (previously known as Facebook) will have noticed that its shares have skyrocketed about 50% since the firm announced in November it would cut more than 11,000 jobs.

Silicon Valley was notoriously bloated, and many highly paid staff were allegedly sitting in vacation homes and refusing to come to the office during 2021. The tables are now turning, and the need to keep shareholders happy appears to be paramount at last.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

Monday morning blues as EY forecast worse UK recession than expected
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For almost two years, there have been constant looming thoughts that the United Kingdom's economy may face a long, drawn out recession.

During 2021, a time when the interest rates were rising at levels not seen in the past five decades across Europe and North America, there were reports casting a dark shadow over the future of the economy in many Western countries, often stating that it the circumstances at the time may lead to the worst recession in hundreds of years.

Lockdowns which caused low productivity among large companies whilst causing many smaller businesses to go out of business, a global supply chain disruption, and energy price increases which in some cases rocketed by several hundred percent due to geopolitical instability ae some of the reasons which have cast doubt in the minds of many, as costs for individuals and businesses soar whilst double-digit inflation causes earnings to depreciate.

The much-discussed forthcoming recession has not yet arrived, however. Yes, there is a severe cost of living crisis, and belts across Europe and the United Kingdom are very much tightened until their last buckle-hole, but still there is not an actual recession.

This has caused many analysts to consider the possibility that when it comes, it will be severe. Now, global consultancy Ernst & Young (EY) has begun to show its grave concern that a major recession which is worse than predicted, is on the horizon.

Reduced government support, higher taxes and an overall worsening outlook have all led the firm’s analysts to conclude that the next three years could be worse than they anticipated three months ago.

EY's prediction includes a forecast that the United Kingdom's gross domestic product could drop by 0.7% this year, but may increase again in the following years.

A year is a long time, however, and given the market volatility which has taken place over the past two years, looking at a very extensive recession which could last a whole year before any improvement is experienced is a big consideration.

It may be only one report, but EY is a large enough consultancy for the markets to take notice of. This morning the British Pound declined against the Euro and by 8.00am in the London trading session, it was trading in the low 1.14 range, a slight downturn after it rose to almost 1.15 late last week.

By contrast, the Pound remains stable against the US Dollar, therefore showing robustness despite the gloomy outlook.

It is worth noting that the FTSE 100 index is booming and has been doing so for a few weeks now, giving rise to the notion that despite the gloomy economic outlook, British blue chip stocks are extremely popular and the traditional companies making up the FTSE 100 index are performing strongly overall, compared to the tech stock carnage that has taken place on the NASDAQ exchange in the United States over the past few weeks.

It appears that whilst the US economy is doing overall better than the British economy, the big money is still sitting in the British low-tech and old school stocks whilst investors turn their back on volatile and depreciating US tech stocks.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.

GBP/USD Rallies Above 1.2400, USD/CAD Could Extend Losses
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GBP/USD started a major increase and traded above 1.2400. USD/CAD is declining and might even trade below the 1.3350 support.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound was able to move above the 1.2300 and 1.2350 resistance levels.
  
• There was a break above a key contracting triangle with resistance near 1.2380 on the hourly chart of GBP/USD.
  
• USD/CAD declined below the 1.3450 and 1.3400 support levels.
  
• It traded below a major bullish trend line with support near 1.3382 on the hourly chart.
  

GBP/USD Technical Analysis

After forming a base above the 1.2100, the British Pound started a steady increase against the US Dollar. GBP/USD gained pace for a move above the 1.2250 and 1.2300 resistance levels.

There was a move above the 1.2350 resistance and the 50 hourly simple moving average. The pair even moved above the 1.2400 level and traded as high as 1.2447 on FXOpen. During the increase, there was a break above a key contracting triangle with resistance near 1.2380 on the hourly chart of GBP/USD.

GBP/USD Hourly Chart
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It is now correcting gains and trading near the 1.2440 level. However, it is trading well above 1.2350 and the 50 hourly simple moving average.

On the downside, an initial support is near the 1.2240 area. It is near the 23.6% Fib retracement level of the upward move from the 1.2335 swing low to 1.2447 high.

The next major support is near the 1.2400 level or the 50% Fib retracement level of the upward move from the 1.2335 swing low to 1.2447 high. If there is a break below 1.2390, the pair could extend its decline.

The next key support is near the 1.2320 level. Any more losses might call for a test of the 1.2250 support. An immediate resistance is near the 1.2450 level.

The next resistance is near the 1.2500 level. If there is an upside break above the 1.2500 zone, the pair could rise towards 1.2620. The next key resistance could be 1.2750.

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AUD/USD and NZD/USD At Risk of Additional Losses
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AUD/USD declined below the 0.7000 and 0.6950 support levels. NZD/USD also declined towards 0.6365 and is currently attempting a recovery wave.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar started a fresh decline from well above the 0.7000 level against the US Dollar.
  
• There was a break below a key bullish trend line with support near 0.6960 on the hourly chart of AUD/USD.
  
• NZD/USD declined heavily below the 0.6450 support zone and tested 0.6365.
  
• There was a break below a major bullish trend line with support near 0.6405 on the hourly chart of NZD/USD.
  

AUD/USD Technical Analysis

The Aussie Dollar started a fresh decline from the 0.7065 zone against the US Dollar. The AUD/USD pair remained in a bearish zone below the 0.7000 level.

There was a clear move below the 0.6950 support and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near 0.6960 on the hourly chart of AUD/USD.

AUD/USD Hourly Chart
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The pair traded as low as 0.6871 FXOpen and is currently correcting higher. It surpassed the 23.6% Fib retracement level of the downward move from the 0.7063 swing high to 0.6871 low.

On the upside, the AUD/USD pair is facing resistance near the 0.6940 level and the 50 hourly simple moving average. The next major resistance is near the 0.6970 level. It is near the 50% Fib retracement level of the downward move from the 0.7063 swing high to 0.6871 low.

A close above the 0.6970 level could start another steady increase in the near term. The next major resistance could be 0.7040.

On the downside, an initial support is near the 0.6890 level. The next support could be the 0.6870 level. If there is a downside break below the 0.6870 support, the pair could extend its decline towards the 0.6820 level.  Any more losses might send the pair towards the 0.6750 support.

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ETHUSD and LTCUSD Technical Analysis – 19th JAN, 2023
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ETHUSD: Double Bottom Pattern Above $1321

Ethereum was unable to sustain its bearish momentum and after touching a low of 1321 on 11th Jan, the price started to correct upwards against the US dollar crossing the $1600 handle on 18th Jan.

The prices are ranging near horizontal support in the daily time frame indicating bullish trends.

We can clearly see a double bottom pattern above the $1321 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just below its pivot level of 1540 and moving in a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1575 and Fibonacci resistance level of 1639 after which the path towards 1700 will get cleared.

We have also seen the formation of a bullish harami pattern in the 15-minute time frame.

The relative strength index is at 72.46 indicating a STRONG demand for Ether and the continuation of the buying pressure in the markets.

Both the STOCH and average directional index are indicating an overbought market, which means that the prices are expected to decline in the short-term range.

Most of the technical indicators are giving a STRONG BUY market signal.

Most of the moving averages are giving a STRONG BUY signal at the current market levels of $1528.

ETH is now trading above both the 100 hourly simple and 100 hourly exponential moving averages.

• Ether: bullish reversal seen above the $1321 mark
  
• The short-term range appears to be mildly bullish
  
• ETH continues to remain above the $1500 level
  
• The average true range is indicating HIGH market volatility
  

Ether: Bullish Reversal Seen Above $1321
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ETHUSD continues to trade higher against the US dollar and bitcoin. The price of Ethereum remains supported above the $1500 level and now we are testing the break of the $1600 handle.

We can see the formation of a bullish price crossover pattern with the adaptive moving average AMA20 in the daily time frame.

We have also detected a bullish Doji star pattern in the 1-hour time frame.

ETHUSD touched an intraday low of 1507 in the Asian Trading session and an intraday high of 1531 in the European trading session today.

The STOCHRSI is indicating a NEUTRAL level.

The key support levels to watch are $1432 which is a 38.2% Retracement from a 4-week high, and $1446 at which the price crosses 9-Day Moving Average.

ETH has decreased by 3.18% with a price change of 50.14$ in the past 24hrs and has a trading volume of 10.105 billion USD.

We can see an Increase 33.87% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

ETH has already made a successful attempt at crossing the $1600 level and the next targets are located at $1700 and $1800 in the medium-term.

At present, the price is moving in a consolidation channel above the $1500 level.

We can see the formation of a bullish ascending channel from $1321 towards the $1542 level.

The immediate short-term outlook for Ether has turned mildly bullish, the medium-term outlook has turned bullish, and the long-term outlook for Ether is neutral under present market conditions.

The resistance zone is located at $1588 which is a pivot point 1st resistance point and at $1618 which is a 3-10 day MACD oscillator stalls.

The weekly outlook is projected at $1700 with a consolidation zone of $1650.

Technical Indicators:

The relative strength index, RSI (14): is at 72.46 indicating a BUY

The moving average convergence divergence, MACD (12,26): is at 79.85 indicating a BUY

The ultimate oscillator: is at 60.41 indicating a BUY

The rate of price change, ROC: is at 22.11 indicating a BUY

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The Davos dampener: Markets stagnant on WEF discussions
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The annual World Economic Forum conference is well under way this week, and as can perhaps be expected, the debates taking place at the event, which is being held in its usual location of Davos, Switzerland, are having an effect on the global markets.

The World Economic Forum, often referred to by its acronym WEF, is well known to polarize opinions.

There are some who view it as a meeting of the global elite, who convene to discuss the planned agendas which in some cases are viewed as anti-business or anti-free market by dissenters, and there are those who consider it an important platform to address global matters on how the business world interacts with overall society and nature.

For this reason, the discussions taking place at the annual WEF conference are being reported widely by global media and having an effect on the markets.

It is common for high profile celebrities who attend the WEF annual conference to voice their opinions on fashionable issues such as the environment, or distribution of wealth, and on that subject, it was reported yesterday that approximately 200 members of the super-rich global elite, one of which was Disney heiress Abigail Disney, explained that they are calling on governments around the world to “tax us, the ultra rich, now” in order to help billions of people struggling with cost of living crisis.

This self-inflicted attempt to remove wealth from the coffers of some of the highest generators of income in the world is a way of clearly reinforcing a widely held opinion that the WEF conference is attended by many very wealthy individuals whose viewpoint favors removing their own and other peoples' wealth and distributing it, giving rise to a perception that it has socialist overtones.

On the agenda for discussion was the slow economic growth in western markets, and the ongoing geopolitical discourse between the Western nations and Russia and China.

On the subject of China's economy, it has grown just 3% in the past year, marking 2022 as the slowest growth for the Chinese economy in many years. Citi Group's chief executive Jane Fraser told a panel at the WEF annual meeting today that it is a positive step that China's economy is reopening.

The draconian lockdowns have paralized China's economy in the eyes of the outside world, however real economic data from inside China is very hard to obtain.

One interesting discussion, as reported today by the Financial Times, is that Gita Gopinath, deputy managing director of the IMF, signalled that the fund would upgrade its economic forecasts. Instead of predicting a “tougher” 2023, she now expected an “improvement” in the second half of the year and into 2024.

US business leaders hailed the Joe Biden administration’s Inflation Reduction Act — a $369bn bid to stimulate green investments in America’s economy.

Overall, whilst there has been a backdrop of harsh economic circumstances across many markets over the last year, the annual discussions at Davos often put the dampener on the markets until the conference is over. Let's hope it is business as usual after that.

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EUR/USD Could Correct Lower While USD/JPY Starts Fresh Increase
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EUR/USD is correcting lower and trading below 1.0820. USD/JPY could gain bullish momentum if there is a clear move above the 130.80 resistance.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started a downside correction from the 1.0870 resistance zone.
  
• There was a break below a key bullish trend line with support near 1.0800 on the hourly chart of EUR/USD.
  
• USD/JPY is attempting a fresh increase above the 130.00 support zone.
  
• There was a break above a major bearish trend line with resistance near 129.20 on the hourly chart.
  

EUR/USD Technical Analysis

This past week, the Euro found support near the 1.0700 zone against the US Dollar. The EUR/USD pair started a steady upward move above the 1.0750 and 1.0800 resistance levels.

There was a clear increase above the 1.0820 resistance zone and the 50 hourly simple moving average. The pair even climbed towards the 1.0850 resistance zone. A high was formed near 1.0874 on FXOpen and the pair is now correcting gains.

EUR/USD Hourly Chart
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There was a move below the 1.0820 support zone. The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.0730 swing low to 1.0874 high.

Besides, there was a break below a key bullish trend line with support near 1.0800 on the hourly chart of EUR/USD. The pair is now showing bearish signs near 1.0785.

It is consolidating near the 61.8% Fib retracement level of the upward move from the 1.0730 swing low to 1.0874 high. An initial support on the downside is near the 1.0775 level. The first major support is near the 1.0750 level.

The main support sits near the 1.0720 zone, below which the pair could start a major decline. In the stated case, the pair might dive towards the 1.0650 support zone.

On the upside, an immediate resistance is near the 1.0820 level. The next major resistance is near the 1.0850 level. An upside break above 1.0850 could set the pace for another increase. In the stated case, the pair might visit 1.0920.  Any more gains might send the pair towards 1.0980.

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BTCUSD and XRPUSD Technical Analysis – 17th JAN 2023
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BTCUSD: Three Inside Up Pattern Above $17323

Bitcoin continues its bullish momentum from last week and after touching a low of $17323 on 11th Jan, the price started to correct upwards against the US Dollar and is now ranging above the $21000 handle in the European trading session today.

We can see an upwards rally in the BTCUSD which managed to touch the level of $21390 on 16th Jan.

We can clearly see a three inside up pattern above the $17323 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday high of 21288 and an intraday low of 20952 in the Asian trading session today.

The price of bitcoin is ranging near a new record high of 1 month.

The ichimoku is indicating a bullish crossover with tenkan and kijun in the 30-minute time frame.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The resistance of the channel is broken in the 15-minute time frame indicating bullish trends.

The relative strength index is at 72.09 indicating a very strong demand for bitcoin, and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and above its 100 hourly exponential moving averages.

Most of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 22000 and 23500.

The average true range is indicating less market volatility with a strong bullish momentum.

• Bitcoin: bullish continuation seen above $17323
  
• The STOCHRSI is indicating an OVERSOLD level
  
• The price is now trading just below its pivot level of $21167
  
• The short term range is strongly bullish
  

Bitcoin: Bullish Continuation Seen Above $17323
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The price of Bitcoin witnessed a rally after crossing the $18000 levels, and now we can see some market consolidation above the $21000 levels.

After the consolidation phase is over, we are expecting upside moves in the range of $22000 to $24000 levels.

There is an ascending channel forming with the current support at $17379 which is a 14-3 day raw stochastic at 20%.

We can see the formation of a bullish trend reversal pattern with the adaptive moving average AMA20 in the 15-minute time frame.

The immediate short-term outlook for bitcoin is strongly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $18865 which is a 50% retracement from a 4-week high/low and at $19892 which is a 14-3 day raw stochastic at 70%.

The price of BTCUSD is now facing its classic resistance level of 21263 and Fibonacci resistance level of 21320 after which the path towards 22000 will get cleared.

In the last 24hrs BTCUSD has increased by 1.28% by 266.18$ and has a 24hr trading volume of USD 22.330 billion. We can see a decrease of 4.90% in the trading volume compared to yesterday, which appears to be normal.

The Week Ahead

Bitcoin’s price rocketed higher recently and moved to a 2-month high crossing the $21000 levels. We are now looking for the next upwards move towards the $22000 and $24000 levels.

The daily RSI is printing at 86.91 which indicates a very STRONG demand for bitcoin and the continuation of the bullish phase present in the markets in the short-term range.

We can see the formation of a bullish trend line from $17323 towards the $21324 level.

The price of BTCUSD is now facing its resistance zone located at $21466 which is a 13-week high and $22981 which is a 3-10 day MACD oscillator stalls.

The weekly outlook is projected at $23000 with a consolidation zone of $22000.

Technical Indicators:

The MACD (12,26): is at 689.90 indicating a BUY

The commodity channel index, CCI (14): is at 86.32 indicating a BUY

The rate of price change, ROC: is at 1.60 indicating a BUY

Bull/bear power (13): is at 593.30 indicating a BUY

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FTSE 100 still at highest levels in 5 years despite this morning's drop
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The performance of the 100 most prestigious companies listed on the London Stock Exchange has made for exciting viewing over recent days, with the FTSE 100 index that tracks them having rocketed in value.

Last week, the FTSE 100 index raced to its highest point in over three years, with some analysts across the City of London having begun to wonder whether it may reach 8,000 points.

Yesterday, the rally continued, and the FTSE 100 reached its highest position in five years, which is a remarkable milestone, as the trading day ended at a very high 7,856.

This morning, the trading bonanza came to an abrupt end, as a sudden drop took place at 9.00am during the London trading session, signaling a break in the FTSE 100 index's almost unstoppable rally.

However, even after such a drop, the FTSE 100 was still standing at 7,845 points which is still its highest point in five years apart from yesterday's peak.

The sudden drop was quickly reversed, and by 9.30am there was a slight movement upwards once again, which by 9.45am resulted in a climb back to 7,849 points.

Now it is hard to tell whether this upward movement will continue and cancel out this morning's drop entirely, or whether this is the end of the massive rally experienced by the FTSE 100 index over recent weeks.

Interestingly, in this age of high technology in which internet giants such as Amazon and Google dominate the world's corporate stage, NASDAQ has been hit badly with weakening overall stock values as the US tech stocks and electric vehicle manufacturers' poor performance has had an impact.

Meanwhile the FTSE 100 which tracks traditional firms such as airlines, mining companies, banks, pharmaceuticals, retail giants, supermarkets and healthcare firms among others, is booming.

All this with a backdrop of a weak economy in the United Kingdom and high inflation compared to greater production output and lower inflation in the United States.

For the moment, it certainly appears that there is life in 'low tech' and that London's trading floor is a hive of activity.

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Crypto winter giving way to Crypto spring? Bitcoin suddenly wakes up
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The long, drawn-out period which has lasted several months in which Bitcoin, previously as volatile as a piece of magnesium ribbon over a naked flame, has been utterly stagnant.

The days of $60,000 values and cliffhanger tweets by influencers suddenly crashing and inflating the value of the world's most valuable cryptocurrency seem a distant memory.

If 2021 was the year of the Bitcoin-related rollercoaster ride, 2022 has been a year of absolute hibernation, representing a contrast so great that it is hard to imagine that it is the same investment vehicle.

The doldrums which have existed for a few months now have been dubbed 'crypto winter' by analysts and journalists, a term used to depict the low values and lack of market movement which has overshadowed the previous enthuaiasm for Bitcoin trading.

Today, however, during the Asian session, Bitcoin suddenly rose in value by a substantial amount, to $21,382 by 2.25am UK time.

On Thursday last week, Bitcoin was languishing at $18,880 therefore the rise over just 3 working days has been over $2,000.

As the price of Bitcoin headed toward the $20,000 mark at the beginning of this week, the total cryptocurrency market capitalization figure began to approach £1 trillion.

This is the first time that Bitcoin has passed the $20,000 mark since before the collapse of cryptocurrency exchange FTX in November.

Last week, cryptocurrencies began to rise in value, with Ethereum, the world's second most popular cryptocurrency, having also increased its capitalization leading to a speculation among some analysts that the crypto winter may be over and some degree of resurgence is beginning.

Of course, these small increases are a far cry from the huge surges in value experienced in 2021, but they are significant when considering the totally flat values that have been in place for a few months.

Crypto-denominated stocks are also on the up, largely due to the sudden bullish approach to cryptocurrencies that has come about, and some pundits are considering that the lingering issue of continued inflation among centrally issued currencies and centralized economies dogged by recessions and rising costs are waking up the prices of cryptocurrencies as people look toward another year of high costs and depreciating fiat currencies and search for alternatives.

These opinions all amount to guesswork, however, but what is for sure is that there is a definitive sudden interest in cryptocurrencies once again and that is clearly demonstrated by looking at the chart patterns this morning.

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GBP/USD Gains Pace While EUR/GBP Corrects Lower
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GBP/USD started a fresh increase above the 1.2200 resistance zone. EUR/GBP is slowly moving lower below the 0.8880 support zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh increase above the 1.2200 resistance against the US Dollar.
  
• There is a key bullish trend line forming with support near 1.2220 on the hourly chart of GBP/USD.
  
• EUR/GBP started a downside correction below the 0.8880 support zone.
  
• There was a break below a connecting bullish trend line with support near 0.8860 on the hourly chart.
  

GBP/USD Technical Analysis

The British Pound remained well bid above the 1.2120 level against the US Dollar. The GBP/USD pair gained pace above the 1.2200 level to move into a positive zone.

There was a clear move above the 1.2220 level and the 50 hourly simple moving average. The bulls seem to be in control and a high is formed near 1.2287 on FXOpen. It is now consolidating gains and showing positive signs above the 1.2250 level.

GBP/USD Hourly Chart
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On the upside, an initial resistance is near the 1.2300 level. The first major resistance is near the 1.2320 level. A clear move above the 1.2320 level could spark a decent increase.

The next major resistance sits near the 1.2200 level. Any more gains might send the pair towards the 1.2400 resistance zone. On the downside, an initial support is near the 1.2250 level or the 23.6% Fib retracement level of the upward move from the 1.2150 swing low to 1.2287 high.

The next major support is near the 1.2220 level. There is also a key bullish tend line forming with support near 1.2220 on the hourly chart of GBP/USD.

The trend line is near the 50% Fib retracement level of the upward move from the 1.2150 swing low to 1.2287 high. Any more losses could lead the pair towards the 1.2150 support zone.

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Gold Price and Crude Oil Price Extend Gains
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Gold price is gaining pace above the $1,870 level. Crude oil price is also rising and might clear the $80 resistance zone in the near term.

Important Takeaways for Gold and Oil

• Gold price started a strong increase and tested $1,900 against the US Dollar.
  
• There is a key bullish trend line forming with support near $1,885 on the hourly chart of gold.
  
• Crude oil price started a fresh increase from the $74.00 support zone.
  
• There is a major bullish trend line forming with support near $75.40 on the hourly chart of XTI/USD.
  

Gold Price Technical Analysis

Gold price formed a base above the $1,820 level against the US Dollar. The price started a strong increase above the $1,840 and $1,850 resistance levels to move into a positive zone.

The bulls even pumped the price above the $1,880 and the 50 hourly simple moving average. The price even tested the $1,900 level. A high is formed near $1,901 on FXOpen and the price is now consolidating gains.

Gold Price Hourly Chart
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An immediate support on the downside is near the $1,894 level. It is close the 23.6% Fib retracement level of the upward move from the $1,871 swing low to $1,901 high.

The next major support is near the $1,885 level. There is also a key bullish trend line forming with support near $1,885 on the hourly chart of gold. The trend line is near the 50% Fib retracement level of the upward move from the $1,871 swing low to $1,901 high.

The next major support is near $1,882, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,865 support zone.

On the upside, the first major resistance is near the $1,900 level. The next key hurdle is near the $1,912 level, above which it could even test $1,925. A clear upside break above the $1,925 resistance could send the price towards $1,950.

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ETHUSD and LTCUSD Technical Analysis – 12th JAN, 2023
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ETHUSD: Bullish Harami Pattern Above $1237

Ethereum was unable to sustain its bearish momentum and after touching a low of 1237 on 06th Jan, the price started to correct upwards against the US dollar crossing the $1400 handle today in the European trading session.

The prices are ranging near a new record high of 1 month.

We have seen a bullish opening in the markets this week.

We can clearly see a bullish harami pattern above the $1237 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 1398 and moving in a strongly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1401 and Fibonacci resistance level of 1403 after which the path towards 1500 will get cleared.

We have also seen the formation of an upside gap in the 15-minute time frame indicating the bullish nature of the markets.

The relative strength index is at 70.66 indicating a strong demand for Ether and the continuation of the buying pressure in the markets.

The Williams percent range is indicating an overbought market, which means that the price is expected to decline in the short-term range.

Most of the technical indicators are giving a STRONG BUY market signal.

Most of the moving averages are giving a STRONG BUY signal at the current market levels of $1399.

ETH is now trading Above both the 100 hourly simple and 200 hourly exponential moving averages.

• Ether: bullish reversal seen above the $1237 mark
  
• The short-term range appears to be strongly bullish
  
• ETH continues to remain above the $1350 level
  
• The average true range is indicating HIGH market volatility
  

Ether: Bullish Reversal Seen Above $1237
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ETHUSD continues to trade higher against the US dollar and bitcoin. The price of Ethereum remains supported above the $1300 level and now we are testing the break of the $1500 handle.

The momentum Indicator is back over zero in the weekly time frame.

We can see the formation of a bullish price crossover pattern with moving average MA20 in the weekly time frame.

The resistance of the channel is broken in the daily time frame indicating bullish trends.

ETHUSD touched an intraday low of 1341 in the Asian trading session and an intraday high of 1417 in the European trading session today.

The daily RSI is printing at 75.77 indicating a STRONG demand for Ether in the long-term range.

The key support levels to watch are $1275 at which the price crosses 9-day moving average and at $1313 which is a 38.2% retracement from a 4-week high.

ETH has increased by 4.62% with a price change of 61.65$ in the past 24hrs and has a trading volume of 9.607 billion USD.

We can see an increase of 74.76% in the total trading volume in the last 24 hrs which is due to the heavy buying pressure seen in the global markets.

The Week Ahead

ETH has already made a successful attempt at crossing the $1400 level and the next targets are located at $1500 and $1600 levels in the medium-term.

We can see the formation of an ascending channel from $1237 towards $1421.

The immediate short-term outlook for Ether has turned strongly bullish, the medium-term outlook has turned bullish, and the long-term outlook for Ether is neutral under present market conditions.

The resistance zone is located at $1413 which is a 1-month high, and at $1442 which is a 38.2% retracement from a 13-week high.

The weekly outlook is projected at $1550 with a consolidation zone of $1500.

Technical Indicators:

The STOCH (9,6): is at 57.42 indicating a BUY

The MACD (12,26): is at 16.00 indicating a BUY

The ultimate oscillator: is at 51.75 indicating a BUY

The rate of price change: is at 4.24 indicating a BUY

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FTSE 100 rockets to 1 year high! Will it reach 8,000?
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Today, London's stock market is experiencing a bonanza, as the FTSE 100, which is the index that includes the 100 most prestigious and well capitalized blue-chip companies which are listed on the London Stock Exchange, has rocketed to an astronomic 7,741 points.

This represents the highest level that it has reached in over one year, by quite some margin.

In fact, today's lofty value demonstrates a level that the FTSE 100 index did not even come close to during the entirety of 2022.

It was only a year and a half ago that the news channels were awash with sensationalism as the FTSE 100 index broke past the 7,000 mark, and now, at over 7,740, it is heading for the 8,000 mark!

There has been tremendous volatility within corporate stocks over the past two years, especially within the indices because these contain a range of different companies in different sectors, and whilst in 2020 and 2021 the big pharmaceuticals boomed, the travel and hospitality industries paid a large price for draconian lockdowns.

Equally, traditional goods manufacturers had their fortunes hampered by logistical problems which meant getting materials and goods from suppliers was difficult enough to cause them to be unable to deliver enough goods to meet orders. House builders did well because of the short-term break in stamp duty resulting in investors buying up smaller value properties, however the reintroduction of that plus rising interest rates curtailed that boom swiftly.

In 2022, it was all about energy companies and 'big oil', which boomed as the supply could not meet the demand, whereas some tech stocks and airline stocks languished.

Some analysts are saying that today's FTSE 100 high value, which comes after a continued upward direction since the beginning of this year, has been helped by seasonal retail buying as JD Sports and Sainsbury's made bumper profits.

JD Sports, one of Britain's largest national chains of sportswear, reported revenues growth for the 22 weeks to 31 December of more than 10%, which compared with growth of 5% over the first half of its financial year.

Sainsbury’s, one of the UK's largest supermarket chains stated that trading in general merchandise had been stronger than expected, with overall like-for-like sales growth of 5.9% in the 16 weeks to 7 January reflecting inflation and “relatively resilient” volume trends.

There is certainly a lot of volatility in the blue-chip stocks, which is a relatively new dynamic as such large firms which go to make up indices such as the FTSE 100 are traditionally very slow movers in terms of stock value, largely due to their conservative positions and need to please long-term shareholders.

Making this a little more interesting is FX Open's recent decision to remove commission from all index CFDs, therefore trading the FTSE 100 is now commission-free, adding to the excitement of this week's volatile markets.

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EUR/USD and EUR/JPY Could Climb Further Higher
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EUR/USD is eyeing an upside break above the 1.0750 resistance zone. EUR/JPY is rising and might climb further higher above the 142.50 resistance.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro started a fresh increase above the 1.0650 resistance zone.
  
• There is a key contracting triangle forming with resistance near 1.0745 on the hourly chart.
  
• EUR/JPY started a strong increase and settled above the 142.00 support zone.
  
• There is a major bullish trend line forming with support at 141.20 on the hourly chart.
  

EUR/USD Technical Analysis

The Euro formed a base above the 1.0500 zone and started a decent increase against the US Dollar. The EUR/USD pair was able to clear the 1.0550 and 1.0580 resistance levels.

There was a clear move above the 1.0650 level and the 50 hourly simple moving average. The pair even climbed above 1.0700 and traded as high as 1.0760 on FXOpen. Recently, there was a downside correction below the 1.0750 support zone.

EUR/USD Hourly Chart
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On the downside, the pair might find support near the 1.0720 level. The next major support sits near the 1.0695 level. The 23.6% Fib retracement level of the upward move from the 1.0482 swing low to 1.0760 high is also near 1.0695, below which the pair could even test the 1.0650 support zone.

If there is a downside break below the 1.0650 support, the pair might accelerate lower in the coming sessions.  In the stated case, it could even test 1.0620 or the 50% Fib retracement level of the upward move from the 1.0482 swing low to 1.0760 high.

On the upside, an immediate resistance is near the 1.0750 level. There is also a key contracting triangle forming with resistance near 1.0745 on the hourly chart.

The next major resistance is near the 1.0780 level. A clear move above the 1.0780 resistance might send the price towards 1.0850. If the bulls remain in action, the pair could visit the 1.0950 resistance zone in the near term.

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Elon Musk makes Guinness World Record for biggest loss of personal wealth in history
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Disruption was the rising trend of the 2010s and as a result, today's big cap publicly listed companies on the world's most prominent stock exchanges are relatively recently established internet and technology firms, whereas back in the 1980s and 1990s before the dot com boom, they were large motor manufacturers, construction companies, big pharmaceuticals and Japanese real estate investment companies.

The bricks-and-mortar gave way to the ether at the turn of this Millennium, and here we are, almost a quarter of a century in, and the world is a very different place to where it was when there was a 19 at the beginning of the year.

This shift away from physical products made by traditional industries toward internet-based tertiary services has created a massive opportunity for disruption, and shortened development cycles by a huge amount.

One of the world's most famous disruptors is Elon Musk, who, himself a dot com boomer having founded PayPal in 1999, has been so influential over the past decade that he has changed the entire structure of some of the oldest and most established industries that exist, and in doing so, changed the behavior of people worldwide.

Not surprisingly, someone with this much influence and disrupting capability became the richest man in the world according to official statistics.

However, unlike old-school stalwarts like Warren Buffett who has to tread a careful path because he is responsible for people's investments, Elon Musk does things his way and his way only. He even took Tesla into cryptocurrency investment, making it the first publicly listed company to become a cryptocurrency 'whale', without even so much as a peep from usually conservative shareholders.

Indeed Tesla, despite being a small, relatively new company, had 10 times the market capitalization of 120-year established global giant Ford Motor Company by 2021!

Unlike Ford Motor Company, however, Tesla is volatile and during 2022 its value dropped like a falling girder from a cliff.

Now, official data has been released to show that Elon Musk himself has lost the most personally held money ever recorded to the extent that the Guinness World Records official adjudicators have listed him this week as the person to have lost the most of a personal fortune in history.

Elon Musk has personally lost over $100 billion during 2022 due to the plummeting share price of Tesla.

According to an estimate by Forbes, Elon Musk's personal fortune is still approximately $144 billion, but he is no longer the richest man in the world having sustained such a massive drop.

As per his usual 'gung ho' personality, Elon Musk appears unperturbed by this, and perhaps sees it as an opportunity.

After all he thrives on volatility and does not like stagnation!

Therefore this is a big stock worth watching.

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BTCUSD and XRPUSD Technical Analysis – 10th JAN 2023
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BTCUSD: Three Inside UP Pattern Above $16608

Bitcoin was unable to sustain its bearish momentum and after touching a low of $16608 on 03rd Jan, the price started to correct upwards against the US dollar and is ranging above the $17200 handle in the European trading session today.

We have seen a bullish opening of the markets this week.

We can clearly see a three inside up pattern above the $16608 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday low of 17133 in the Asian trading session and an intraday high of 17277 in the European trading session today.

The price of bitcoin is back over the pivot point in the daily time frame.

The ichimoku is indicating a bullish crossover with tenkan and kijun in the daily time frame.

Both the STOCH and STOCHRSI are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 55.92 indicating a STRONG demand for bitcoin, and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and above its 100 hourly exponential moving averages.

Most of the major technical indicators are giving a BUY signal, which means that in the immediate short term, we are expecting targets of 17500 and 18500.

The average true range is indicating LESS market volatility with a strong bullish momentum.

• Bitcoin: bullish reversal seen above $16608
  
• The average directional index is indicating a NEUTRAL level
  
• The price is now trading just below its pivot level of $17261
  
• The short-term range is strongly bullish
  

Bitcoin: Bullish Reversal Seen Above $16608
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The price of bitcoin continues to rise above the $17000 handle and after some consolidation we are expecting the immediate targets of $18000 and $19000.

There is an ascending channel forming with the current support at $16521 at which the price crosses 9-day moving average stalls.

The Williams percent indicator is back over -50 indicating a bullish tone present in the markets.

We can see the formation of a bullish trend reversal pattern with the adaptive moving average AMA20 in the 1-hour time frame.

The immediate short-term outlook for bitcoin is strongly bullish, the medium-term outlook has turned bullish, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $16802 at which the price crosses 18-day moving average, and $16926 which is a 1st Support point of the pivot point.

The price of BTCUSD is now facing its classic resistance level of 17271 and Fibonacci resistance level of 17289 after which the path towards 18000 will get cleared.

In the last 24hrs, BTCUSD has decreased by 0.08% by 14.08$ and has a 24hr trading volume of USD 15.993 billion. We can see an increase of 10.97% in the trading volume compared to yesterday, which appears to be normal.

The Week Ahead

Bitcoin’s price is expected to enter a super bullish zone after crossing the $18000 level with the next upwards targets located at $19000 and $20000.

The daily RSI is printing at 60.20 which indicates a STRONG demand for bitcoin and the continuation of the bullish phase present in the markets in the short-term range.

The price of BTCUSD is now facing its resistance zone located at $17429 which is a 3-10 day MACD oscillator stalls, and $17789 which is a 38.2% retracement from a 13-week low.

The weekly outlook is projected at $18500 with a consolidation zone of $18000.

Technical Indicators:

The MACD (12,26): is at 25.00 indicating a BUY

The commodity channel index, CCI (14): is at 135.50 indicating a BUY

The rate of price change, ROC: is at 0.232 indicating a BUY

Bull/Bear power (13): is at 24.49 indicating a BUY

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Electric Vehicle stocks get a flat battery
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Let's take a quick trip back to 2021, a year in which tech stocks were flying high, and the new phenomenon of Special Purchase Acquisition Company (SPAC) listings on NASDAQ were de rigeur.

SPAC listings were the talk of the town during 2021, because they represented a new and ingenious way for privately held companies to circumvent the usual due diligence associated with listing on a prestigious public stock exchange by creating a 'blank check' company which acquires the firm that wishes to list, and then meets the criteria very quickly via the new entity.

For this reason, many companies which were almost startups managed to become publicly listed, and the most interesting of all of them were little-known electric vehicle manufacturers who had hardly sold any vehicles at all but were being valued at stratospheric levels, sometimes into the billions of dollars.

2022 was a very different year. Tech stocks were crashing in value, and the sobering reality of declining economies across North America and Europe was evident, punctuated by cost of living crises and high levels of inflation. Suddenly, 2021, the year of the speculative meme stocks and pie-in-the-sky multi-billion dollar valuations for unknown firms doing SPAC IPOs on NASDAQ seemed a distant memory.

The value of electric vehicle stocks in general absolutely reflects this dynamic.

The most established pure electric vehicle manufacturer of all, Tesla, which is the firm that swooped in and disrupted the traditional automotive industry in 2014 with its Model S luxury sedan has had a rotten 2022 and its values are still a shadow of what they were this time last year as 2023 is well underway.

In fact, all of the publicly listed electric vehicle companies have recorded a disastrous 2022, and the low values of their stock is continuing into the second week of 2023.

Rivian, which launched on NASDAQ on November 10, 2021 at $78.00 a share, raising nearly $12 billion, is a case in point. Its R1T electric pickup truck is a work of automotive art and it was surrounded by huge hype at its IPO considering that it is a relatively new company founded in 2009 and suddenly was raising billions from public investors.

Today, however, looking at the chart over a one year period makes for sobering reading. The line is a constant decline all year, and today Rivian stock sits at a lowly $16. A far cry from its post-IPO $78!

Traditional automotive giants such as Ford Motor Company sat quietly and watched these newcomers go through 'boom and bust' style stock listing exercises.

Even Tesla is on the backfoot, and this week sits at its lowest point by far in well over a year.

The hype is over. Electric and plug-in hybrid vehicles are the norm, and perhaps buyers would rather pay what amounts to a substantial outlay for a car made by Porsche, Volvo, and Jaguar Land Rover at the high end, or Ford, GM, Kia and Hyundai at the run of the mill end, because these are automotive firms with prominence.

There was one particular company which listed on NASDAQ via a SPAC listing in 2021 and valued itself at over $50 billion but had not delivered a single vehicle.

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GBP/USD and GBP/JPY Aims Higher
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GBP/USD is gaining pace above the 1.2100 zone. GBP/JPY is also rising and might gain pace if it clears the 160.20 resistance zone.

Important Takeaways for GBP/USD and GBP/JPY

• The British Pound is showing positive signs above 1.2000 against the US Dollar.
  
• There was a break above a major bearish trend line with resistance near 1.2065 on the hourly chart of GBP/USD.
  
• GBP/JPY started a fresh increase above the 158.50 resistance zone.
  
• There is a key contracting triangle is forming with resistance near 160.00 on the hourly chart.
  

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.1840 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.2000 level.

There was a clear move above the 1.2050 resistance and the 50 hourly simple moving average. During the increase, there was a break above a major bearish trend line with resistance near 1.2065 on the hourly chart of GBP/USD.

GBP/USD Hourly Chart
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The pair even cleared the 1.2100 resistance. A high is formed near 1.2136 on FXOpen and the pair started a consolidation phase.

An immediate resistance on the upside is near the 1.2140 level. The next major resistance is near the 1.2200 level, above which the pair could start a steady increase towards 1.2250. An upside break above 1.2250 might start a fresh increase towards 1.2320. Any more gains might call for a move towards 1.2400 or even 1.2500.

An immediate support is near the 1.2080. The next major support is near the 1.2065 level. It is near the 23.6% Fib retracement level of the upward move from the 1.1841 swing low to 1.2136 high.

If there is a break below the 1.2065 support, the pair could test the 1.2050 support. It is near the 50% Fib retracement level of the upward move from the 1.1841 swing low to 1.2136 high. Any more losses might send GBP/USD towards 1.1820.

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AUD/USD and NZD/USD 2023 Chart Outlook
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AUD/USD started a decent increase in Oct 2022 and climbed above 0.6500. Similarly, NZD/USD was able to clear the 0.6000 resistance zone.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar gained pace above the 0.6400 and 0.6500 levels against the US Dollar.
  
• There is a crucial bearish trend line forming with resistance near 0.6840 on the daily chart of AUD/USD.
  
• NZD/USD also started a steady increase above the 0.6000 and 0.6200 levels.
  
• There was a clear move above a key bearish trend line with resistance near 0.6270 on the daily chart.
  

AUD/USD Technical Analysis

In Oct 2022, the Aussie Dollar found support near 0.6200 zone against the US Dollar. The AUD/USD pair remained well bid and started a fresh increase above the 0.6400 resistance zone.

The pair climbed higher steadily above the 0.6500 level, but it remained below the 50-day simple moving average. There was a clear move above the 50% Fibonacci retracement level of the last major decline from the 0.7145 high to 0.6170 swing low.

AUD/USD Daily Chart
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However, there are many resistances forming on the upside near the 0.6830 and 0.6850 levels. More importantly, the 50-day simple moving average is positioned near the 0.6850 level.

There is also a crucial bearish trend line forming with resistance near 0.6840 on the daily chart of AUD/USD. Only a successful daily close above 0.6850 might start a strong recovery towards the 0.7150 level.

The 76.4% Fibonacci retracement level of the last major decline from the 0.7145 high to 0.6170 swing low is also near the 0.7150 level. Any more gains might send the pair towards the 0.7200 level.

On the downside, the key supports are 0.6720 and 0.6680, below which the pair may perhaps decline extend its decline towards the 0.6600 and 0.6550 levels. Any more losses might call for a move towards the 0.6400 level.

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ETHUSD and LTCUSD Technical Analysis – 05th JAN, 2023


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ETHUSD: Bullish Engulfing Pattern Above $1181

Ethereum was unable to sustain its bearish momentum and after touching a low of 1181 on 30th Dec, the price started to correct upwards against the US dollar moving into a consolidation channel above the $1200 handle today in the European trading session.

We can see the formation of bullish engulfing lines in the weekly time frame.

We can clearly see a bullish engulfing pattern above the $1181 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just below its pivot level of 1251 and moving into a consolidation channel. The price of ETHUSD is now testing its classic resistance level of 1254 and Fibonacci resistance level of 1257 after which the path towards 1300 will get cleared.

The relative strength index is at 69.10 indicating a STRONG demand for Ether and the continuation of the buying pressure in the markets.

The average directional index is indicating a NEUTRAL level, which means that the price is expected to remain under consolidation in the short-term range.

Most of the technical indicators are giving a BUY market signal.

Most of the moving averages are giving a BUY signal at the current market levels of $1250.

ETH is now trading Above its 100 hourly simple and 200 hourly exponential moving averages.

• Ether: bullish reversal seen above the $1181 mark
  
• The short-term range appears to be mildly bullish
  
• ETH continues to remain above the $1250 levels
  
• The average true range is indicating HIGH market volatility
  

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Oil price on the backfoot in early 2023 despite high demand
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If the year 2022 can be remembered for any recurring feature in terms of demand for commonly traded commodities, it can be remembered as a year of high energy prices across many Western countries, with oil being one of the most prized consumable commodities of the year.

In the summer of 2022, Fuel stations across Europe and the United Kingdom were charging in excess of 2 euros / 2 pounds for a liter of unleaded fuel for vehicles, and energy costs for domestic heating, reliant on gas or oil, were soaring, especially in the United Kingdom where approximately 30 energy companies became insolvent and left the market in late 2021, resulting in far less competition at a time during which the raw material itself was in huge demand for geopolitical reasons.

Demand remains very high for crude oil, and as many European nations continue to enforce draconian sanctions on one of the world's largest suppliers of oil - the Russian Federation - prices have been volatile throughout the last 12 months.

Interestingly, however, Brent Crude Oil (WTI) started the year 2023 in a stagnant position.

Indeed, Brent Crude Oil futures for February 2023 settlement are 1.86% down compared to the end of December and currently valued at approximately $78.1 per barrel.

Stocks in 'big oil' companies are still quite strong, however, as publicly listed North American oil giantr ExxonMobil is reportedly set to report $56 billion in profit for 2022, marking the highest number ever achieved by a non-state-owned company and almost triple its 2021 result.

Whether these companies are riding on their bonanza year which 2022 turned out to be is yet to be seen, as it is possible that investors may view these massive profits with caution if 2023's initial few weeks does not demonstrate the same level of high prices as 2022 did.

If the natural gas market is any indicator of the performance of other commodities which are equally affected by the same geopolitical constraints, it is worth noting that natural gas prices are now back down to the level they were at this time a year ago, before the war started and before any sanctions on Russian gas companies were imposed which made it impossible for customers in Europe to pay Russian suppliers for gas, resulting in curtailing of supply.

It appears that those which owe money are now being chased, and just recently a Russian court approved an order that the assets of German industrial gas firm Linde worth $500 million be frozen at the request of a Gazprom-led joint venture, citing unfulfilled commitments.

There is a 'new normal' now that the markets are beginning to adjust to.

This morning, during the Asian trading session, Brent Crude oil crept back up slightly to the $79 per barrel mark, but, apart from a dip to $76 per barrel in mid-December, today's value is the lowest it has been since December 2021, before all of the sanctions began.

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