News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
Bitcoin & Ethereum Charts May Have Just Posted Ominous Lower-highs

Bitcoin & Ethereum Charts May Have Just Posted Ominous Lower-highs

Paul Robinson, Strategist

Crypto-mania appears set to unwind once again. The other day we were noting that if Ethereum soon turns swiftly lower it could mark the 3rd peak of a topping pattern with potential of more than halving its price. While the price sequence isn’t as decisive for Bitcoin, sellers were found in an area we were looking to as a potentially big turning point.

To see how traders are positioned in Cryptocurrencies and other markets, check out the IG Client Sentiment page.

Ethereum looks to have posted 3rd peak of an ominous topping pattern

The other day when we were last discussing Ethereum it was pushing towards a trend-line we had penciled in as resistance. It didn’t quite make it that line, instead stalling from around lows created a month-ago. In any event, the turn lower was swift and may have cemented a top.

The price sequence of two lower-highs (3 peaks) and a lower-low is a sign of a market growing increasingly tired. With sellers now showing up in earnest, as long as ETH/USD doesn’t trade back above 974 the best days may be behind it.

Looking lower, the first line of support comes in by way of a trend-line extending higher from November, residing in the 600s. Below there, the monthly low at 565 is the next targeted level of support. The eventual target still remains a full reversal of the rally out of the 2nd half 2017 wedge (targeting ~400).

Want to learn more about cryptocurrencies? Check out this guide, Introduction to Bitcoin Trading

ETH/USD Daily Chart

Ethereum daily log chart with topping pattern

The 3 peaks at subsequently lower prices points to a major top. It’s an unusually volatile pattern given the instrument, but nevertheless points to even more damage than we’ve already seen.

Bitcoin turns down from around apex of triangle, another lower-high may be set

On Tuesday, Bitcoin posted a small bearish candle around the apex of the triangle which led to the last swoon. The turn lower so far hasn’t been as aggressive as what we are seeing in Ethereum, but Bitcoin’s fate is likely to be the same – significantly lower prices.

It could still make one more push higher towards 13k and hold the same bearish outcome, but for now we’ll work with the Tuesday high at 11780 as the top-side threshold to watch. Looking lower, the 200-day MA is rising up through the mid-8400s. Beneath there, is a trend-line running higher from March of last year to keep an eye on.

The big lower-low doesn’t arrive until all the way down at 5920, but if the mania is moving in reverse – which is believed to be the case – then it should just be a function of time before Bitcoin goes well below this month’s lows.

*As developments unfold we’ll update with shorter-term charts…

BTC/USD Daily Chart

Bitcoin daily log chart with big lower high potential

In blue, is the triangle and ‘apex resistance’, from which Bitcoin turned lower yesterday. It could trade up into the red-zone/trend-line and still maintain a broadly bearish outlook.

Trader Resources

Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES