Gold Price Eyes More Gains, Crude Oil Price Faces Hurdles

Gold price started a fresh increase after it tested the $1,680 support. Crude oil price declined and tested the $62.50 support zone.

Important Takeaways for Gold and Oil

• Gold price started a major increase after a sharp decline to $1,680 against the US Dollar.

• A key bullish flag is forming with resistance near $1,790 on the hourly chart of gold.

• Crude oil price started a fresh decline from well above the $70.00 zone.

• There is a major bearish trend line forming with resistance near $66.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Recently, gold price saw a sharp decline below the $1,750 support against the US Dollar. The price even broke the $1,720 and $1,700 support levels.

However, the bulls were active near the $1,680 zone. A support base was formed above $1,680 and the price started a strong increase. There was a clear break above the $1,720 resistance zone.

The bulls were able to push the price above the $1,750 level and the 50 hourly simple moving average. A high was formed near $1,795 on FXOpen and the price is now consolidating gains. It traded below the $1,780 level.

However, the bulls are protecting the 23.6% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high. There is also a key bullish flag forming with resistance near $1,790 on the hourly chart of gold.

If there is an upside break above the channel resistance, the price could even surpass the $1,800 resistance. The next major resistance could be near the $1,825 level.

Conversely, the price might correct lower further below $1,778. An initial support on the downside is near the $1,765 level. The first major support is near the $1,758 level. It is near the 50% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high.

Read Full on FXOpen Company Blog...

EUR/USD Aims Higher While USD/JPY Faces Hurdles

EUR/USD found support near 1.1665 and started an upside correction. USD/JPY is facing a major resistance near 109.85, followed by 110.00.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started an upside correction above 1.1700 and 1.1720.

• There was a break above a key bearish trend line with resistance near 1.1735 on the hourly chart of EUR/USD.

• USD/JPY started a fresh increase, but it is struggling to clear the 110.00 resistance.

• There is a major bullish trend line forming with support near 109.60 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro saw a major decline below 1.1800 against the US Dollar. The EUR/USD pair broke the 1.1750 support zone to move into a bearish zone.

The pair settled below the 1.1750 level and the 50 hourly simple moving average. It even broke the 1.1700 support level and traded as low as 1.1663 on FXOpen. It is now correcting higher above the 1.1700 resistance level.

There was a break above the 50% Fib retracement level of the key decline from the 1.1804 swing high to 1.1663 low. There was also a break above a key bearish trend line with resistance near 1.1735 on the hourly chart of EUR/USD.

The pair is now consolidating above 1.1730 and the 50 hourly simple moving average. An immediate resistance is near the 1.1760 level. The first key resistance is near the 1.1770 level. It is near the 76.4% Fib retracement level of the key decline from the 1.1804 swing high to 1.1663 low.

The main resistance is near the 1.1800 level. A close above 1.1800 could open the doors for a steady increase towards 1.1850. If there is no break above 1.1760, the pair might continue to move down below 1.1720.

An intermediate support is near the 1.1700 level. The next major support is near the 1.1665 level, below which the pair could drop towards the 1.1600 support in the near term.

Read Full on FXOpen Company Blog...

GBP/USD and EUR/GBP Eye Key Upside Break

GBP/USD started a steady increase above the 1.3700 resistance. EUR/GBP is consolidating gains above the 0.8550 support zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound gained pace above the 1.3680 and 1.3700 resistance levels.

• There was a break above a key bearish trend line with resistance near 1.3720 on the hourly chart of GBP/USD.

• EUR/GBP started a decent increase and it settled above the 0.8550 pivot level.

• There is a major bullish trend line forming with support near 0.8565 on the hourly chart.

GBP/USD Technical Analysis

The British Pound formed a base above the 1.3620 zone against the US Dollar. As a result, the GBP/USD pair started a steady increase above the 1.3680 resistance zone.

The pair even broke the 1.3700 resistance and it settled above the 50 hourly simple moving average. There was also a break above a key bearish trend line with resistance near 1.3720 on the hourly chart of GBP/USD.

The pair is now struggling to clear the 1.3900 resistance barrier. A high is formed near 1.3780 level on FXOpen and the pair is consolidating gains.

There was a dip to the 23.6% Fib retracement level of the upward move from the 1.3679 swing low to 1.3780 high. The first key support is near the 1.3730 level and the 50 hourly simple moving average.

It is close to the 50% Fib retracement level of the upward move from the 1.3679 swing low to 1.3780 high. Any more losses could lead the pair towards the 1.3680 support zone. On the upside, an immediate resistance is near the 1.3780 level.

The main resistance is near the 1.3800 zone. Therefore, a proper break above the 1.3900 resistance could open the doors for a steady increase. The next major resistance for the bulls could be 1.4000. An intermediate resistance is seen near the 1.3950 level.

Read Full on FXOpen Company Blog...

NO SIGNIFICANT RESISTANCE ON BITCOIN’S PATH TO $100,000

Bitcoin will continue the rally that started in August, and after successfully breaking through the psychological resistance level of $50,000, it could further grow to reach $100,000 with minimal resistance, says Bloomberg's analyst and strategist Mike McGlone.

“After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows. What could stop Bitcoin and Ethereum from achieving record highs in 2H may be the more elusive question. Increasing demand and adoption are facing diminishing supply,” McGlone wrote in his report.

Meanwhile, JPMorgan analysts have warned the investors about the “frothy-looking” crypto markets and unstable prices over the long term. They have also noted that the factors boosting the BTC price include continued interest from institutional investors and the general public.

The chart seems to confirm this optimism. An inside bar with low volumes was formed on Saturday, and on Sunday, the price rose paired with increasing volumes. Taking into account the decline in activity typical for a weekend, we see an indication that the market is more interested in rallying than balancing around the 50k level.

FXOpen Telegram Channel

NATURAL GAS SETTING NEW RECORDS IN THE US AND EUROPE

On Monday, September 6, US natural gas futures reached the mark of $4.7 per million Btu. This is the highest index since December 2018.

Such a hike in gas prices was triggered by Hurricane Ida: production in the Gulf of Mexico is not going according to plan. The demand for home air conditioning is likely to remain as strong, since it will be as hot in early September.

In Europe, the gas price has climbed even higher due to shortage fears. The threat of shortage stems from the fact that Russia, the largest gas supplier to Europe, has refused to book large volumes of gas pumped through pipelines in Ukraine ahead of the completion of the Nord Stream 2 pipeline.

From a technical point of view, the chart shows that gas prices have reached the overbought level and the line of the long-term upward channel. This increases the likelihood of a rollback.

Whether you would like to take a risky position against an uptrend, or wait for a pullback (for example, closer to the strong support of 4.200 or 4.500) to enter a long position at the end of it, FXOpen is ready to be your reliable partner.

FXOpen Telegram Channel

AUD/USD and NZD/USD Could Start Fresh Increase

AUD/USD is forming a base above 0.7345 and it could start a fresh increase. NZD/USD might also start a steady increase above the 0.7135 resistance zone.

Important Takeaways for AUD/USD and NZD/USD

• The Aussie Dollar is forming a decent support base near the 0.7350 zone against the US Dollar.

• There was a break above a key bearish trend line with resistance near 0.7375 on the hourly chart of AUD/USD.

• NZD/USD is also forming a base above the 0.7075 pivot level.

• There was a break above a major bearish trend line with resistance near 0.7100 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

After struggling to clear the 0.7470 resistance, the Aussie Dollar started a downside correction against the US Dollar. The AUD/USD pair broke the 0.7400 and 0.7375 support levels to move into a short-term bearish zone.

The pair even broke the 0.7360 support and the 50 hourly simple moving average. A low was formed near 0.7345 on FXOpen before the pair started a recovery wave. There was a break above the 0.7375 zone and the 50 hourly simple moving average.

There was also a break above a key bearish trend line with resistance near 0.7375 on the hourly chart of AUD/USD. The pair cleared the 23.6% Fib retracement level of the recent decline from the 0.7468 swing high to 0.7345 low.

An immediate resistance is near the 0.7390 level. The next major resistance is near the 0.7400 level. It is close to the 50% Fib retracement level of the recent decline from the 0.7468 swing high to 0.7345 low.

A close above the 0.7400 level could start a steady increase in the near term. The next major resistance could be 0.7450. An initial support on the downside is near the 0.7370 level. The next major support is near the 0.7345 level. If there is a downside break below the 0.7345 support, the pair could extend its decline towards the 0.7300 level.

Read Full on FXOpen Company Blog...

Dax Index Adds 10 New Companies Ahead of the German Federal Elections

September 2021 will remain in history as the month when the German Dax index undergoes the biggest reform in its existence. Starting with September 20th, ten new companies will be added to the Dax index, and so the number of its constituents increases from 30 to 40.

One of the reasons cited for the change in the Dax is the need to add new companies that reflect the new economy. Truth be said, the Dax had underperformed its peers for some time now. For example, the S&P 500 index outperformed the German Dax index, and so did other indices in the United States.

The ten companies to be added to the Dax index are “promoted” from the MDAX. MDAX is an index tracking middle-sized businesses in Germany, and by adding the new companies, the number of constituents in the Dax increases, while the one in the MDAX decreases.

Puma, Zalando, or Airbus, are some of the names known by the general public that will be added to the Dax. Some other ones, not so popular, are equally important – Symrise, Sartorius, Qiagen.

Will the changes make the Dax index more attractive to investors? It remains to be seen.

Euro Traders Prepare for the German Federal Elections

The federal elections in the United States are scheduled on September 26th, and the market participants are aware that this is the main event in the Euro area for the rest of the year. The importance of it cannot be understated – Angela Merkel, the German Chancellor, will not be candidate, as she ends a long-lasting political career.

With only two weeks until the elections, the SPD, or the socialists, are rising in polls. Olaf Scholz, their leader, is now viewed as the one with the biggest chances to win the German Chancellor position. If the socialists do win, it will mark a change in the German leadership, and the markets embrace for changes in the fiscal space too.

All in all, an interesting September lies ahead for traders monitoring events in Germany. Because the German economy is the largest in the Eurozone, what happens in Germany will affect the common currency, the euro.

FXOpen Blog

Gold Price Nosedives While Crude Oil Price Extends Rally

Gold price started a major decline and traded below the $1,785 support. Crude oil price is rising and it is broke the $72.00 resistance zone.

Important Takeaways for Gold and Oil

• Gold price started a major decline from the $1,800 resistance zone against the US Dollar.

• There was a break below a short-term bullish trend line with support near $1,793 on the hourly chart of gold.

• Crude oil price started a fresh increase from the $70.00 support zone.

• There is a major bullish trend line forming with support near $72.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price failed to stay above the $1,800 support zone against the US Dollar. As a result, the price started a fresh decline below the $1,800 and $1,790 levels.

The price gained pace after it broke the $1,785 support and the 50 hourly simple moving average. There was also a break below a short-term bullish trend line with support near $1,793 on the hourly chart of gold.

Gold Price Hourly Chart

The price declined below the $1,750 level and traded as low as $1,745 on FXOpen. It is now correcting higher and trading above $1,750.

An immediate resistance is near the $1,760 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,808 high to $1,745 swing low. The first major resistance is near the $1,775 level.

The main resistance is near the $1,785 level and the 50 hourly simple moving average. A close above the $1,785 levels could open the doors for a steady increase towards $1,800. The next major resistance sits near the $1,810 level.

Conversely, the price might resume its decline below the $1,750 level. The first major support is near the $1,745 level. A downside break below the $1,745 support zone may possibly spark a sharp decline. In the stated case, the price could test the $1,720 support.

Read Full on FXOpen Company Blog...

US Dollar Flexing Muscles Ahead Of The Fed’s Decision

The US dollar ended the previous week with a bang, rising to new heights and outpacing its main peers. The new trading week saw a continuation of this march of triumph.

Meanwhile, investors are preparing for what may prove to be the Fed meeting of the year. On Wednesday, the Federal Reserve is expected to announce the tapering of its asset purchases, a move already communicated to markets via its forward guidance model.

Yet, even with this information in mind, it is quite hard to predict the market’s reaction. One of the things that bring uncertainty is the dot plot.

Fed members are required to project the federal funds rate for the years ahead. The sum of their forecast is displayed on a chart in the form of dots. The number of rate hikes and, more importantly, their timing is what affects the way the financial markets move. Should the Fed members reveal an unexpected hawkish outlook, the dollar may grow even stronger.

Risk-Off Sentiment Dominates

Ahead of the Fed’s meeting and outcome announcement, a risk-off sentiment seems to be dominating the markets. Evergrande, a Chinese property developer, is on the verge of collapsing, and the government has no intention to bail the company out. The big question for financial market participants is: Will the collapse of Evergrande have an impact on the international financial system, or will it end up being a local event?

In any case, part of the US dollar’s strength rides on the back of lower equities in the States. Moreover, futures markets are showing renewed weakness at the start of the trading week, so the dollar's growth prospects are good.

All in all, this trading week will be packed with political events (i.e., Canadian and German federal elections) and central banks’ decisions (i.e., Federal Reserve, Bank of Japan, Bank of England, Swiss National Bank, etc.). In other words, volatility is guaranteed to reach new record levels.

FXOpen Blog

EUR/USD Faces Hurdles, USD/CHF Could Extend Decline

EUR/USD started a fresh decline below the 1.1800 support zone. USD/CHF is declining and it might continue lower below the 0.9220 zone.

Important Takeaways for EUR/USD and USD/CHF

• The Euro started a fresh decline below the 1.1800 and 1.1750 support levels against the US Dollar.

• There is a major bearish trend line forming with resistance near 1.1735 on the hourly chart of EUR/USD.

• USD/CHF failed to clear 0.9335 and started a fresh downward move.

• There was a break below a key bullish trend line with support near 0.9290 on the hourly chart.

EUR/USD Technical Analysis

The Euro struggled to continue higher above the 1.1840 resistance zone against the US Dollar. As a result, the EUR/USD pair started a fresh decline below the 1.1800 support zone.

The pair traded below the 1.1750 support level and settled above the 50 hourly simple moving average. There was also a break below the 1.1720 level. A low was formed near 1.1700 on FXOpen before the pair started an upside correction.

The pair recovered above the 1.1720 level, but it failed near 1.1750. A high is formed near 1.1748 and the pair is now moving lower.

There was a break below the 50% Fib retracement level of the upward move from the 1.1701 swing low to 1.1748 high. It is now consolidating near the 1.1720 level and the 50 hourly simple moving average. An immediate support is near the 1.1718 level.

It is near the 61.8% Fib retracement level of the upward move from the 1.1701 swing low to 1.1748 high. The next major support is near the 1.1700 level. A downside break below the 1.1700 support could start another decline.

On the upside, an initial resistance is near the 1.1735 level. There is also a major bearish trend line forming with resistance near 1.1735 on the hourly chart of EUR/USD.

The main resistance is near 1.1750. If there is an upside break above the 1.1750 resistance zone, the price could rise steadily towards the 1.1800 resistance zone.

Read Full on FXOpen Company Blog...

GBP/USD Remains At Risk, EUR/GBP Could Extend Gains

GBP/USD is trading in a bearish zone below the 1.3750 resistance zone. EUR/GBP is rising and it could gain pace if it clears the 0.8600 resistance.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound declined below the 1.3800 and 1.3765 support levels.

• There is a key contracting triangle forming with resistance near 1.3685 on the hourly chart of GBP/USD.

• EUR/GBP started a decent increase and cleared the 0.8550 pivot level.

• There was a break above a major bearish trend line with resistance near 0.8565 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a major decline from well above 1.3800 against the US Dollar. The GBP/USD pair traded below the 1.3720 and 1.3700 support levels to enter a bearish zone.

The pair even broke the 1.3650 support and settled below the 50 hourly simple moving average. It traded as low as 1.3609 and recently started an upside correction. The pair climbed above the 1.3700 resistance, but the bears were active near 1.3750.

A high was formed near 1.3750 before the pair started a downside correction. There was a break below the 1.3700 support level. It traded below the 50% Fib retracement level of the upward move from the 1.3609 swing low to 1.3750 high.

It is now consolidating near the 1.3665 support level. It is close to the 61.8% Fib retracement level of the upward move from the 1.3609 swing low to 1.3750 high. There is also a key contracting triangle forming with resistance near 1.3685 on the hourly chart of GBP/USD.

If there is an upside break above the triangle resistance, the price could surpass 1.3720. The main resistance is near the 1.3750 zone. Therefore, a proper break above the 1.3750 resistance could open the doors for a steady increase. The next major resistance for the bulls could be 1.3800.

If not, the pair could break the 1.3665 and 1.3660 support levels to continue lower. The first key support is near the 1.3620 level. Any more losses could lead the pair towards the 1.3550 support zone.

Read Full on FXOpen Company Blog...

BTCUSD and XRPUSD Technical Analysis – 28th SEPT, 2021

BTCUSD: Grinding above $40K Support

Bitcoin is currently struggling to keep itself above the $40k support and the price is oscillating between the Fibonacci levels of $41472 and 100-day moving average of $42834. It remains in accumulation mode in the London trading session. BTC bullish sentiment was seen at the opening of this week when it touched a high of $44304. Long-term outlook for bitcoin appears bullish and the short-term decline currently reinforces a mild bearish trend formation.

• The relative strength index (14-day) and ultimate oscillator are both indicating a SELL at the current market levels of $41745.

• A short-term correction below $40000 is expected before the continuation of the bullish trend.

• Simple and exponential moving averages indicate a strong SELL.

• Average true range (14-day) indicates high volatility.

Bitcoin Short-Term Bearish Formations

Bitcoin saw a mixed start this week and there is no sign of a bullish momentum. The 100 day moving average is indicating a strong SELL.

The immediate targets would be breaching the classic support levels at $41243 and further moving towards the next major support located at $35819.

Bitcoin is witnessing increased volatility after China banned all crypto transactions during the previous weekly closing on Friday. The support that is holding this week could be broken and bitcoin could start a further decline this week pushing below the psychological support level of $40000.

In the last 24hrs, BTCUSD has dropped by -4.76% (+2087$) and has a 24hr trading volume of USD 31.47 billion.

Bitcoin Sell-Off Continues

Bitcoin is facing selling pressure after the China ban and the trading volumes are high at the Asian exchanges today.

Also, many crypto currency exchanges are closing their Chinese accounts, leading to a withdrawal of funds in the US dollars and putting a selling pressure on BTCUSD.

Technical Indicators:

Relative strength index (14-day):  at 32.442 with a SELL

Ultimate oscillator: at 40.38 with a SELL

Moving averages convergence divergence (12,26): at -370.10 with a SELL

Price of rate change ROC: at -2.31 indicating a SELL