official Daily Market Analysis By FXOpen

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FTSE 100 still at highest levels in 5 years despite this morning's drop

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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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.

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BTCUSD and XRPUSD Technical Analysis – 17th JAN 2023

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

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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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.

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EUR/USD Could Correct Lower While USD/JPY Starts Fresh Increase

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

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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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.

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The Davos dampener: Markets stagnant on WEF discussions

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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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.

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ETHUSD and LTCUSD Technical Analysis – 19th JAN, 2023

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

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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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.

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AUD/USD and NZD/USD At Risk of Additional Losses

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

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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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.

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Watch FXOpen's January 16 - 20 Weekly Market Wrap Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

• The Davos dampener: Markets stagnant on WEF discussions
• China stock market outlook
• The probability of a reversal of the dollar index is growing
• Crypto winter giving way to Crypto spring? Bitcoin suddenly wakes up

Watch our short and informative video, and stay updated with FXOpen.

FXOpen YouTube

 

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.