Price of Gold Fundamental Daily Forecast – May Be Poised to Breakout Over $1788.50 if Yields Drop Further

Gold futures are trading at their highest level since February 25 and threatening to break out over a major retracement level at $1788.50 shortly before the New York opening on Monday. After seeing early selling pressure at the start of the week, the precious metal stabilized then surged to the upside in an attempt to reestablish the fresh uptrend.

At 10:43 GMT, June Comex Gold is trading $1787.20, up $7.00 or +0.39%.

Today’s rally is being fueled by a dip in U.S. Treasury yields and a plunge in the U.S. Dollar against a basket of major currencies. Additionally, now that the technical double-bottom has been confirmed, we’re starting to see more speculative interest from trend and momentum traders. The overall bullish theme, however, is being driven by investors buying into the idea that the Fed will maintain an accommodative monetary policy for a long time and that any spike in economic growth, especially inflation, will be “transitory”.

In other news, speculators cut their bullish positions in COMEX gold and raised them in silver contracts in the week to April 13, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Treasury Yields Start the Week Lower as Retreat Continues

U.S. Treasury yields ebbed lower on Monday morning, continuing to fall from recent highs. The yield on the benchmark 10-year Treasury note fell to 1.564% at 08:15 GMT. The yield on the 30-year Treasury bond dipped to 2.253%, CNBC reported.

The drop in Treasury yields drove the U.S. Dollar Index into its lowest level since March 3 as the heavy selling pressure threatened to trigger an acceleration to the downside. A weaker U.S. Dollar tends to drive up foreign demand for dollar-denominated gold.

Daily Forecast

With Treasury yields and the U.S. Dollar seemingly positioned to accelerate to the downside, gold sits in a similar position, but poised to breakout above the $1788.50 resistance level with the next target price $1817.60.

The direction of prices the rest of the session on Monday should be determined by trader reaction to $1788.50.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD, GBP/USD Analysis & Setups 19 – 20 Apr 2021

The EUR/USD made a wave 4 pullback and price action is now testing the 50% Fibonacci level and target zone at 1.2025. The GBP/USD bullish bounce at the channel bottom is looking very impulsive as well.

If you think our videos, analysis, and education can help you become a better trader, then you can ask your own questions via our form and we will answer them in the weekly live webinar every Tuesday.

EUR/USD & GBP/USD Overview

The EUR/USD could move up once more, despite the resistance zone. The bullish momentum is looking strong and a mild pullback to the shallow Fibs at 1.20 could confirm a bounce up towards the next target zone at 1.21.

The GBP/USD bullish momentum needs a 1 hour bull flag pattern followed by a breakout for more upside towards 1.3950 and 1.40.

Check out the video below for the full analysis and trade plans on 19 – 20 April 2021:

EUR/USD, GBP/USD technical analysis: patterns, trends, key S&R levels

  • Explanation of potential trade ideas both up and down
  • Beginner friendly, explaining concepts in more detail

EUR/USD & GBP/USD Video

For a look at all of today’s economic events, check out our economic calendar.

Good trading,

Chris Svorcik
CTA

 

Bitcoin’s Weekend Decline Finds Support at Shallow Fibonacci Levels

The Bitcoin (BTC/USD) made a strong decline during the weekend. The price drop occurred after breaking the 60k resistance last week and reaching the first $65k target.

Although the bearish correction was impulsive, this article will analyse why the uptrend still has better odds than a reversal. Let’s start.

Price Charts and Technical Analysis

Bitcoin 19.04.2021 daily chart

The BTC/USD completed the wave 4 (orange) as mentioned last time. We considered the next push up as a wave 5 (orange):

  1. This wave 5 did not move up that far and high, but it is quite normal for the uptrend to lose some momentum in a wave 5 (purple line in the AO). There was a small rising wedge pattern that probably supported the slow move up.
  2. The wave 5 (orange) of wave 5 (grey) probably completed a larger wave 3 (pink). The wave 3 is showing overall a lot of momentum (strong AO bars).
  3. The bearish correction, even though price dropped a lot during the weekend, does not change the overall uptrend because price action is respecting the shallow 23.6 and 38.2% Fibonacci retracement levels (blue boxes).
  4. The bounce at the Fibs is typical for a wave 4 (pink). Another correction could take place via an ABC (grey) pattern.
  5. The first breakout above the 21 ema zone is therefore risky because price could make a higher low first. But a 2nd breakout above the 21 ema zone and the 60-62.5k resistance zone followed by the top at 65k should create another strong push up later in April, May or June.
  6. The next targets are located at the round levels of $70k, $75k, and even $100k.
  7. A break below the support at 50k would certainly place the uptrend on hold and perhaps even indicate an early end.

On the 4 hour chart, we can see the bearish correction took price action from the top of the channel back down to the bottom of the channel and the long-term moving averages:

  1. A bullish bounce could indicate that the bearish decline is just a correction.
  2. The uptrend, however, might take a small pauze as price action creates a potential wave 4 (pink).
  3. A retest of the previous top and bearish bounce could indicate a wave B (grey). An ABC (orange) correction could emerge within wave B (grey).
  4. If there is a 5 wave pattern moving up, then the uptrend might be immediately taking place.
  5. A retest of the support trend line could take place within wave B (orange) and after wave C (grey).This could indicate the end of the correction.

Bitcoin 19.04.2021 4 hour chart

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Daily Forecast – U.S. Dollar Is Under Pressure At The Start Of The Week

AUD/USD Video 19.04.21.

Australian Dollar Gains Ground Against U.S. Dollar

AUD/USD continues its attempts to settle above the resistance at 0.7750 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the support at 91.50 and is trying to settle below the next support level at 91.30. If the U.S. Dollar Index settles below this level, it will head towards the next support at the 91 level which will be bullish for AUD/USD.

Today, Australia reported that New Home Sales increased by 90.3% month-over-month in March after growing by 22.9% in February. Analysts expected that New Home Sales would grow by 20%. Low interest rates continue to provide material support to the Australian housing market which is growing fast.

Foreign exchange market traders will also keep an eye on the developments in commodity markets which have been moving higher in recent trading sessions. In case commodity markets continue to gain ground, commodity-related currencies like Australian dollar will get more support.

Technical Analysis

aud usd april 19 2021

AUD/USD settled above the resistance at 0.7720 and managed to get above the next resistance level which is located at 0.7750. Currently, AUD/USD is moving towards the resistance at 0.7775. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AUD/USD settles above 0.7775, it will head towards the next resistance level at 0.7800. A move above the resistance at 0.7800 will open the way to the test of the resistance at 0.7820.

On the support side, a move below 0.7750 will push AUD/USD towards the next support at 0.7720. If AUD/USD manages to settle below the support at 0.7720, it will move towards the next support at 0.7700. A successful test of the support at 0.7700 will open the way to the test of the support at the 50 EMA at 0.7690. The 20 EMA is located in the nearby, so AUD/USD will likely get material support in the 0.7685 – 0.7700 area.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD is in Retracement Mode as Sellers are Waiting in the Zone

The GBP/USD has formed a double top pattern exactly at the W H5 confluence zone. We can see that the pair is retracing and a new drop is possible.

Multi tops, including the double top should be preventing buyers changing the intra-week trend. Remember, 4h timeframe is an intraday, intra-week trading timeframe, so I expect sellers to show up within 1.3930-63. We should see a drop towards 1.3886 followed by 1.3791. Only below 1.3791, 1.3743 and 1.3662 is possible.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,

Nenad

 

EUR/USD Daily Forecast – Support At 1.1965 Stays Strong

EUR/USD Video 19.04.21.

Euro Is Mostly Flat Against U.S. Dollar At The Beginning Of The Week

EUR/USD has recently made an attempt to settle below the support at 1.1965 but failed to develop sufficient downside momentum while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level which is located at 91.50. In case the U.S. Dollar Index settles below this level, it will move towards the next support at 91.30 which will be bullish for EUR/USD.

On Friday, EU reported that Euro Area Inflation Rate increased by 1.3% year-over-year while Euro Area Core Inflation Rate grew by 0.9%. Both reports were in line with the analyst consensus. There are no signs of pricing pressure in the Euro Area as the European economy remains under pressure from the third wave of the virus.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Construction Output report for February. Analysts forecast that  Construction Output declined by 3.6% year-over-year.

Technical Analysis

eur usd april 19 2021

EUR/USD failed to settle below the nearest support level at 1.1965 and is moving towards the resistance at 1.1990. This resistance level has already been tested several times in recent trading sessions and proved its strength.

In case EUR/USD manages to get above the resistance at 1.1990, it will gain additional upside momentum and head towards the resistance at 1.2025. A succcessful test of the resistance at 1.2025 will open the way to the test of the next resistance level at 1.2040. If EUR/USD settles above this level, it will head towards the resistance at 1.2060.

On the support side, a move below the support at 1.1965 will push EUR/USD towards the support at the 50 EMA at 1.1935. In case EUR/USD declines below the support at the 50 EMA, it will move towards the 20 EMA which is located at 1.1915. A successful test of the support at the 20 EMA will push EUR/USD towards the next support at 1.1900.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Is Strong At The Start Of The Week

GBP/USD Video 19.04.21.

U.S. Dollar Is Under Pressure Against British Pound

GBP/USD is currently trying to settle above the resistance at 1.3865 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest resistance level at the 50 EMA at 91.80 but failed to develop sufficient upside momentum and pulled back closer to the support at 91.50. A successful test of this support level will push the U.S. Dollar Index towards the next support at 91.30 which will be bullish for GBP/USD.

There are no important economic reports scheduled to be released in the U.S. and UK today so foreign exchange market traders will focus on general market sentiment and dynamics of U.S. government bond markets.

U.S. Treasury yields are moving lower at the start of the week which is bearish for the American currency. If the yield of 10-year Treasuries manages to settle below the recent lows at 1.53%, it will head towards the 50 EMA at 1.51% which will put more pressure on the U.S. dollar.

Technical Analysis

gbp usd april 19 2021

GBP/USD managed to get above the resistance at 1.3835 and is trying to settle above the next resistance level which is located at 1.3865. In case this attempt is successful, GBP/USD will move towards the resistance at 1.3900.

A move above the resistance at 1.3900 will open the way to the test of the resistance near April highs at 1.3920. If GBP/USD gets above this level, it will head towards the resistance which is located at 1.3950.

On the support side, the previous resistance level at 1.3835 will likely serve as the first support level for GBP/USD. If GBP/USD declines below this level, it will head towards the next support at the 50 EMA at 1.3805. The 20 EMA is located in the nearby, so GBP/USD will likely get material support near 1.3800.

If GBP/USD manages to settle below the 50 EMA and the 20 EMA, it will get to the test of the next support at 1.3780. A successful test of this level will push GBP/USD towards the support at 1.3745.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Forex Technical Analysis – Sustained Move Over .7728 Could Trigger Surge into .7770 – .7826

The Australian Dollar is trading nearly flat on Monday after clawing back earlier losses. The weakness after the opening was fueled by follow-through selling after Friday’s weak close. The price action the last two sessions is basically mirroring the movement in U.S. Treasury yields and the U.S. Dollar as both try to stabilize following steep drops the past two weeks.

At 06:06 GMT, the AUD/USD is trading .7734, unchanged.

The Aussie surged and the trend changed to up last week when the country reported strong labor market results.

Data from the Australian Bureau of Statistics (ABS) showed 70,700 net new jobs were created in March, double forecasts of a 35,000 gain. Unemployment dropped to 5.6%, from 5.8% in February, marking a remarkable recovery from the top of 7.5% hit last July when coronavirus lockdowns tipped the economy into recession.

Daily AUD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through .7761 will signal a resumption of the uptrend. A trade through .7586 will change the main trend to down.

The main range is .8007 to .7532. Its retracement zone at .7770 to .7826 is resistance. This area is also controlling the near-term direction of the AUD/USD.

The short-term range is .7849 to .7532. The AUD/USD is currently testing its retracement zone at .7690 to .7728 with buyers trying to establish a new higher support base.

The minor range is .7532 to .7761. Its 50% level or pivot at .7646 is potential support.

Daily Swing Chart Technical Forecast

The direction of the AUD/USD on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at .7728.

Bullish Scenario

A sustained move over .7728 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into .7761 to .7770. The latter is a potential trigger point for an acceleration into the main Fibonacci level at .7826.

Bearish Scenario

A sustained move under .7728 will signal the presence of sellers. The first downside target is a 50% level at .7690. Since the main trend is up, buyers are likely to come in on a test of this level.

If .7690 fails as support then look for the selling to possibly extend into the minor 50% level at .7646.

For a look at all of today’s economic events, check out our economic calendar.

NZD/USD Forex Technical Analysis – Strengthens Over .7145, Weakens Under .7106

The New Zealand Dollar is inching lower early Monday, following through to the downside after Friday’s weak close. A stagnant U.S. Treasury market, the lack of fresh economic data and profit-taking are likely behind today selling pressure. Some traders also feel that last week’s surge to the upside was a little overextended given that the U.S. economy is in a position to outperform the New Zealand economy at least over the near-term.

At 05:33 GMT, the NZD/USD is trading .7143, down 0.0003 or -0.04%.

Daily NZD/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up last week when the NZD/USD blasted through .7070. A trade through .7180 will signal a resumption of the uptrend, while a move through .6997 will change the main trend to down.

The main range is .7465 to .6943. Its retracement zone at .7204 to .7266 is the primary upside target and potential resistance. This area is also controlling the near-term direction of the NZD/USD.

The short-term range is .7270 to .6943. The NZD/USD is currently trading inside its retracement zone at .7106 to .7145.

The minor range is .6943 to .7180. Its 50% level at .7061 is a potential downside target and support price.

The major support zone comes in at .7027 to .6924.

Daily Swing Chart Technical Forecast

The direction of the NZD/USD on Monday is likely to be determined by trader reaction to .7145.

Bearish Scenario

A sustained move under .7145 will indicate the presence of sellers. This could trigger a break into .7106. Since the main trend is up, buyers could come in on a test of this level. If it fails to hold then look for the selling to possibly extend into the next 50% level at .7061.

Bullish Scenario

A sustained move over .7145 will signal the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into the main top at .7180.

Taking out .7180 will reaffirm the uptrend with .7204 to .7266 the next likely target zone.

For a look at all of today’s economic events, check out our economic calendar.

USD/JPY Forex Technical Analysis – Trade Through 108.407 Changes Main Trend to Down with 108.230 Next Target

The Dollar/Yen is trading lower early Monday after failing to confirm the previous session’s closing price reversal bottom. The move has put the Forex pair within striking distance of a change in trend.

Lower Treasury yields and the lack of fresh economic news is behind today’s early weakness. The price action also suggests that investors believe the Fed’s assessment of the economy in that any surge in inflation is likely to be “transitory” and therefore, rates are going to remain at historically low levels.

At 05:01 GMT, the USD/JPY is trading 108.662, down 0.131 or -0.12%.

Daily USD/JPY

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 108.407 will change the main trend to down.

A move through 110.966 will signal a resumption of the uptrend. This is highly unlikely, but since the Forex pair is down 13 sessions from this main top, traders should start watching for a closing price reversal bottom. We saw one on Friday, but the move wasn’t convincing enough to attract any buyers.

The minor trend is down. This is controlling the momentum. A trade through 109.961 will change the minor trend to up.

The main range is 111.715 to 102.593. The USD/JPY is hovering just above its retracement zone at 108.230 to 107.154. Since this is a potential support area, watch for buyers to show up on a test of this zone.

The short-term range is 108.407 to 110.966. Its retracement zone at 109.385 to 109.687 is a potential upside target and resistance area.

Daily Swing Chart Technical Forecast

The direction of the USD/JPY on Monday is likely to be determined by trader reaction to 108.966.

Bearish Scenario

A sustained move under 108.966 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the main bottom at 108.407.

Taking out the main bottom will change the main trend to down, setting up a possible extension of the selling into the main Fibonacci level at 108.230. Look for buyers on the first test. If this level fails as support then look for the start of a break toward the main 50% level at 107.154.

Bullish Scenario

A sustained move over 108.966 will signal the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the short-term retracement zone at 109.385 to 109.687.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Forex Technical Analysis – Could Be Setting Up for Pullback into 1.1888 or Lower

The Euro is edging lower early Monday as investors prepare for Thursday’s European Central Bank interest rate and monetary policy announcements and Friday’s important Euro Zone PMI reports. Later today, investors will get the opportunity to react to the latest Euro Zone Current Account and German Buba Monthly reports.

At 04:35 GMT, the EUR/USD is trading 1.1958, down 0.0024 or -0.20%.

According to the Financial Times, “When ECB policymakers meet on Thursday, they will be painfully aware that the Eurozone economy is still being held back by lockdowns to tackle rising coronavirus infections while the U.S., China and the U.K. are reopening and rebounding faster.”

Christine Lagarde, ECB president, last week compared the Eurozone with a patient walking out of intensive care with the support of two crutches.

Daily EUR/USD

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up last week when buyers took out a pair of swing tops at 1.1989 and 1.1990, however, there wasn’t much of a follow-through on the move with the common currency stopping at 1.1995. A trade through this level will signal a resumption of the uptrend. Meanwhile, the main trend will change to down on a move through the nearest main bottom at 1.1704.

The short-term range is 1.2243 to 1.1704. Its retracement zone at 1.1974 to 1.2037 is resistance. This zone stopped the rally last week at 1.1995.

The main range is 1.1603 to 1.2349. The EUR/USD is currently trading inside its retracement zone at 1.1976 to 1.1888. This area is controlling the near-term direction of the Forex pair.

The minor range is 1.1704 to 1.1995. Its retracement zone at 1.1849 to 1.1815 is another potential downside target area.

Daily Swing Chart Technical Forecast

The direction of the EUR/USD on Monday is likely to be determined by trader reaction to the 50% level at 1.1976.

Bearish Scenario

A sustained move under 1.1976 will indicate the presence of sellers. If this move is able to generate enough downside momentum then look for the selling to possibly extend into the Fibonacci level at 1.1888, followed by the retracement zone at 1.1849 to 1.1815. Since the main trend is up, buyers are likely to come in on a test of this area.

Bullish Scenario

A sustained move over 1.1976 will signal the presence of buyers. Taking out 1.1995 will reaffirm the uptrend. This could trigger a surge into 1.2037. This level is a potential trigger point for an acceleration to the upside.

For a look at all of today’s economic events, check out our economic calendar.

U.S. Dollar Index (DX) Futures Technical Analysis – Weakens Under 91.555, Strengthens Over 91.870

The U.S. Dollar is trading slightly better against a basket of major currencies early Monday. However, the greenback is still holding very close to a one-month low hit last week. Furthermore, Treasury yields, the main driver of the dollar, are hovering just above their lowest levels in five weeks.

Continuing to keep a lid on yields and the greenback is the dovish Federal Reserve monetary policy. Even with U.S. Consumer Inflation and Retail Sales coming in well-above expectations, and weekly initial claims hitting a level not seen since last year, Federal Reserve officials reiterated last week its view that any spike in inflation was likely to be temporary.

At 04:12 GMT, June U.S. Dollar Index futures are trading 91.660, up 0.116 or +0.13%.

Last week’s steep sell-off marked the second straight weekly loss for the dollar index and indicated that investors have accepted the Fed’s conclusion that the expected surge in inflation is likely to be transitory.

Daily June U.S. Dollar Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on March 31.

A trade through 91.290 will change the main trend to down, while a move through 93.470 will signal a resumption of the uptrend. Due to the prolonged move down in price and time, the market is susceptible to a closing price reversal bottom. If confirmed, this could trigger a 2 to 3 day counter-momentum rally.

The minor trend is also down. A trade through 91.810 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is 89.655 to 93.470. The index is currently testing its retracement zone at 91.555 to 91.100.

The main range is 94.590 to 89.155. Its retracement zone at 91.870 to 92.510 is potential resistance. This zone is also controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

The direction of the June U.S. Dollar Index on Monday is likely to be determined by trader reaction to the short-term 50% level at 91.555.

Bullish Scenario

A sustained move over 91.555 will indicate the presence of buyers. The first upside target is 91.810, followed closely by 91.870. Sellers could come in on the first test of this level, but taking it out could trigger an acceleration into 92.365 to 92.510.

Bearish Scenario

A sustained move under 91.555 will signal the presence of sellers. Taking out 91.470 could trigger a break into the main bottom at 91.290, followed closely by the Fibonacci level at 91.100. This is a potential trigger point for an acceleration to the downside with 90.620 the next target.

For a look at all of today’s economic events, check out our economic calendar.

EOS, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – April 19th, 2021

EOS

EOS fell 6.35% on Sunday. Following on from an 8.49% slide on Saturday, EOS ended the week up by 8.58% to $7.2996.

A bullish start to the day saw EOS rise to an early morning intraday high $7.9496 before hitting reverse.

Falling short of the first major resistance level at $8.5691 slid to an early morning intraday low $5.7984.

The sell-off saw EOS fall through the first major support level at $7.3032 and the second major support level at $6.8203.

EOS also fell through the 23.6% FIB of $6.52 before finding support.

Steering clear of the third major support level at $5.5544, EOS bounced back to end the day at $7.2 levels.

The partial recovery saw EOS break back through the 23.6% FIB and the second major support level.

At the time of writing, EOS was down by 0.42% to $7.2877. A mixed start to the day saw EOS fall to an early morning low $7.0454 before rising to a high $7.5766.

EOS left the major support and resistance levels untested early on.

EOSUSD 190421 Hourly Chart

For the day ahead

EOS would need to avoid the $7.0159 pivot level to support a run at the first major resistance level at $8.2333.

Support from the broader market would be needed, however, for EOS to break back through to $8.00 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, EOS could test resistance at $9.00 before any pullback. The second major resistance level sits at $9.1671.

A fall through the $7.0159 pivot would bring the 23.6% FIB of $6.52 and the first major support level at $6.0821 into play.

Barring another extended sell-off, however, EOS should steer clear of sub-$5.50 levels. The second major support level sits at $4.8647.

Looking at the Technical Indicators

First Major Support Level: $6.0821

First Major resistance Level: $8.2333

23.6% FIB Retracement Level: $6.52

38% FIB Retracement Level: $9.68

62% FIB Retracement Level: $14.77

Stellar’s Lumen

Stellar’s Lumen slid by 7.83% on Sunday. Following on from a 3.03% loss on Saturday, Stellar’s Lumen ended the week down by 6.52% to $0.5460.

A bullish start to the day saw Stellar’s Lumen rise to an early morning intraday high $0.6014 before hitting reverse.

Falling short of the first major resistance level at $0.6275, Stellar’s Lumen slid to an early morning intraday low $0.4590.

Stellar’s Lumen fell through the day’s major support levels and through the 23.6% FIB of $0.5342.

Finding support in the afternoon, Stellar’s Lumen bounced back to end the day at $0.54 levels.

The partial recovery saw Stellar’s Lumen break back through the third major support level at $0.5017 and the 23.6% FIB of $0.5342.

At the time of writing, Stellar’s Lumen was up by 0.79% to $0.5503. A mixed start to the day saw Stellar’s Lumen fall to an early morning low $0.5362 before rising to a high $0.5623.

Stellar’s Lumen left the major support and resistance levels untested early on.

XLMUSD 190421 Hourly Chart

For the day ahead

Stellar’s Lumen would need to avoid the pivot level at $0.5355 and the 23.6% FIB to bring the first major resistance level at $0.6119 into play.

Support from the broader market would be needed, however, for Stellar’s Lumen break back through to $0.60 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, Stellar’s Lumen could test resistance at $0.65. The second major resistance level sits at $0.6778.

A fall through the $0.5355 pivot and the 23.6% FIB of $0.5342 would bring the first major support level at $0.4695 into play.

Barring another extended sell-off on the day, Stellar’s Lumen should steer clear of sub-$0.40 levels. the second major support level sits at $0.3931.

Looking at the Technical Indicators

First Major Support Level: $0.4695

First Major Resistance Level: $0.6119

23.6% FIB Retracement Level: $0.5342

38% FIB Retracement Level: $0.4373

62% FIB Retracement Level: $0.2808

Tron’s TRX

Tron’s TRX slid by 7.72% on Sunday. Following on from a 3.42% decline from Saturday, Tron’s TRX ended the week up by 17.91% to $0.1435.

A bullish start to the day saw Tron’s TRX rise to an early morning intraday high $0.1577 before hitting reverse.

Falling short of the first major resistance level at $0.1739, Tron’s TRX slid to an early morning intraday low $0.1206.

Tron’s TRX fell through the first major support level at $0.1446 and the second major support level at $0.1338.

The sell-off also saw Tron’s TRX slide through the 23.6% FIB of $0.1426 before finding support.

Through the afternoon, Tron’s TRX broke back through the major support levels and the 23.6% FIB to visit $0.145 levels.

A bearish end to the day, however, saw Tron’s TRX fall back through the first major support level at $0.1446 to end the day at sub-$0.144 levels.

At the time of writing, Tron’s TRX was up by 1.29% to $0.1454. A mixed start to the day saw Tron’s TRX fall to an early morning low $0.1379 before rising to a high $0.1497.

While leaving the major support and resistance levels untested early on, Tron’s TRX briefly fell through the 23.6% FIB.

TRXUSD 190421 Hourly Chart

For the Day Ahead

Tron’s TRX would need to avoid a fall back through the 23.6% FIB and the $0.1406 pivot to bring the first major resistance level at $0.1606 into play.

Support from the broader market would be needed, however, for Tron’s TRX to break back through to $0.15 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally Tron’s TRX could test resistance at $0.17 before any pullback. The second major resistance level sits at $0.1777.

A fall back through the 23.6% FIB of $0.1426 and the $0.1406 pivot would bring the first major support level at $0.1235 into play.

Barring an extended sell-off, Tron’s TRX should steer clear of the second major support level at $0.1035. The 38.2% FIB of $0.1167 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $0.1235

First Major Resistance Level: $0.1606

23.6% FIB Retracement Level: $0.1426

38.2% FIB Retracement Level: $0.1167

62% FIB Retracement Level: $0.0748

Please let us know what you think in the comments below

Thanks, Bob

A Light Economic Calendar Leaves COVID-19 and Geopolitics in Focus

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen was in action this morning. Later this morning, finalized industrial production figures from Japan are also due out. Barring a marked revision from prelim figures, however, the numbers should have a muted impact on the Yen and the broader market.

For the Japanese Yen

Trade data was in focus this morning.

In March, the trade surplus widened from ¥215.9bn to ¥663.7bn. Economists had forecast a widening to ¥490.0bn.

According to figures released by the Ministry of Finance,

  • Exports surged by 16.1% to reverse a 4.5% decline from February. Economists had forecast an 11.6% increase.
    • Exports to China jumped by 37.2%, with exports to Western Europe rising by 8.5%.
    • To the U.S, exports rose by a more modest 4.9%.
  • Imports rose by 5.7%, year-on-year, following an 11.8% jump in February. Economists had forecast a 4.7% increase.
    • Imports from China rose by 10.0%, with imports from Western Europe rising by 19.4%.
    • From the U.S, imports rose by 6.5%.

The Japanese Yen moved from ¥108.702 to ¥108.690 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.14% to ¥108.65 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.18% to $0.7720, with the Kiwi Dollar down by 0.11% to $0.7134.

The Day Ahead:

For the EUR

It’s a particularly quiet day ahead on the economic calendar. There are no major stats from the Eurozone to provide the EUR with direction.

The lack of stats will leave the EUR in the hands of COVID-19, vaccination rates, and any plans to ease containment measures.

At the time of writing, the EUR was down by 0.32% to $1.1945.

For the Pound

It’s also a particularly quiet day ahead on the economic calendar.

There are no material stats due out of the UK to provide the Pound with direction.

A lack of stats would leave the Pound in the hands of market risk sentiment on the day.

At the time of writing, the Pound was down by 0.11% to $1.3817.

Across the Pond

It’s a quiet day ahead on the economic calendar. There are no material stats to provide the Greenback and the broader markets with direction.

The lack of stats will leave chatter from Capitol Hill and U.S foreign policy in focus. A rise in geopolitical tension between the U.S and China and the U.S and Russia needs monitoring.

From the weekend, news of new COVID-19 cases rising by a record number last week delivered Dollar support early on. The latest surge in new COVID-19 cases comes amidst the ongoing vaccination programs that had delivered market optimism in recent weeks.

At the time of writing, the Dollar Spot Index was up by 0.20% to 91.735.

For the Loonie

It’s another quiet day ahead on the economic calendar. Housing start figures are due out later today.

Barring particularly dire numbers, however, we don’t expect too much influence from the stats.

Expect market risk sentiment and COVID-19 vaccine news to remain the key areas of focus.

At the time of writing, the Loonie was down by 0.10% to C$1.2521 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

Look Out: Inflation Impact on Earnings, Peloton Treadmills, Cryptocurrency Bubble Concerns to Drive Volatility

Corporate earnings will be the major focus in the week ahead, with investors especially zeroed-in on the impact of rising costs on margins. Investors will be looking for evidence that inflationary pressures are already having a negative influence on corporate profit margins.

CNBC is reporting that from Coca-Cola and IBM to Johnson & Johnson and Netflix, investors will hear from a broad swatch of corporate America. So far, with one week in, companies are beating earnings estimates by a wide margin of more than 84%, according to Refinitiv.

This three-month period is the first to be compared to year earlier profits that were affected by the pandemic. Profit growth for the S&P 500 is a stunning 30.2% for the quarter so far, based on actual reports and estimates. That makes it the best three-month period since the third quarter of 2010, according to FactSet.

In other news, the U.S. Consumer Product Safety Commission (CPSC) on Saturday warned consumers about the dangers of Peloton’s treadmill Tread+ after reports of multiple incidents of small children and a pet being injured beneath the machines.

The price of bitcoin tumbled over the weekend and was down as much as 19.5% from record highs posted by the popular cryptocurrency in the past week. The move comes after new concerns of a bubble in the cryptocurrency market.

US Regulators Warn Consumers on Dangers of Peloton’s Treadmill

Peloton shares could take a major hit on Monday after a warning from a key government safety agency.

“CPSC staff believes the Peloton Tread+ poses serious risks to children for abrasions, fractures, and death,” the safety regulator said in a statement, adding that consumers with children should stop using the product immediately.

Peloton in a response to the regulator’s statement said it was “troubled by the CPSC’s unilateral press release about the Peloton Tread+ because it is inaccurate and misleading.”

The company said there was no reason to stop using the Tread+, but children under 16 should not use the treadmill.

The regulator said it was aware of 39 incidents including one death and was investigating all known incidents related to the Peloton Tread+.

Bitcoin Tumbles from Recent High as Cryptocurrencies Take Weekend Hit

The price of Bitcoin dropped as low as $52,148.98 on Sunday morning, days after reaching an all-time high above $64,800. Ether and Dogecoin also saw their prices drop, following a week in which investors worried that the cryptocurrency market was in a bubble.

An unverified report on Twitter claimed that the U.S. Treasury Department could be looking to crack down on financial institutions for money laundering using cryptocurrency.

Coinbase shares could drop on the news since it could mean the cryptocurrency market could face tougher U.S. regulation. Last week, it became the largest cryptocurrency company to go public.

For a look at all of today’s economic events, check out our economic calendar.

Gold Price Futures (GC) Technical Analysis – Sellers Defending $1788.50 Long-Term 50% Level

Gold futures are edging lower on Monday after an early session attempt to take out Friday’s high was met with selling pressure. Treasury yields are dipping lower early in the session, but the U.S. Dollar is trading higher against a basket of currencies, suggesting we could be seeing early signs of a risk off trading session.

At 01:30 GMT, June Comex gold futures are trading $1776.60, down $3.60 or -0.20%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1784.70 will signal a resumption of the uptrend. The main trend will change to down on a move through $1723.20.

On the upside, the major resistance is the long-term 50% level at $1788.50.

On the downside, the support is a series of 50% levels at $1767.60, $1754.00, $1746.90 and $1731.00. The major support is the long-term 61.8% level at $1711.90.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract on Monday is likely to be determined by trader reaction to the long-term 50% level at $1788.50.

Bearish Scenario

A sustained move under $1788.50 will indicate the presence of sellers. The first downside target is the 50% level at $1767.60. Since the main trend is up, buyers are likely to come in on the first test of $1767.50. If it fails then look for the selling to possibly extend into a minor 50% level at $1754.00. Once again, buyers could step in to stop the price slide.

Bullish Scenario

A sustained move over $1788.50 will signal the presence of buyers. This move could trigger an acceleration to the upside with $1817.60 the next likely upside target price.

Side Notes

For bigger picture traders, the retracement zone at $1788.50 to $1711.90 represents 50% to 61.8%, respectively, of last year’s trading range. So overtaking $1788.50 could become a big deal if the buying volume increases on the move. Fundamentally, it’s going to need help from lower yields and a weaker U.S. Dollar. I don’t think gold will be able to sustain a rally over $1788.50 without help from those two factors.

For a look at all of today’s economic events, check out our economic calendar.

Crude Oil Price Update – Strengthens Over $63.47, Weakens Under $62.29

U.S. West Texas Intermediate crude oil futures are inching lower early Monday, following a 6% gain last week. The market is being supported by friendly demand outlooks from IEA and OPEC and a rapidly improving global economy. However, lingering concerns over rising COVID-19 cases may be keeping a lid on prices, suggesting the weakness is being fueled by profit-taking.

At 01:04 GMT, June WTI crude oil futures are trading $62.83, down $0.36 or -0.57%.

Daily June WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $66.15 will change the main trend to up. A move through $57.29 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. The minor trend will change to down on a trade through $57.68. A new minor top has formed at $63.94. A trade through this price will reaffirm the minor trend.

The short-term range is $67.29 to $57.29. The market is currently testing its retracement zone at $62.29 to $63.47. Sellers are trying to form a potentially bearish secondary lower top. Buyers are trying to drive the market higher.

The minor range is $57.29 to $63.94. Its 50% level at $60.61 is a potential support price.

The main range is $67.29 to $51.04. Its retracement zone at $59.17 to $57.25 is potential support. It’s also controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the June WTI crude oil market on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at $63.47.

Bearish Scenario

A sustained move under $63.47 will indicate the presence of sellers. The first potential downside target is the short-term 50% level at $62.29.

Buyers could come in on the first test of $62.29, but if it fails then look for the selling to possibly extend into the minor 50% level at $60.61.

Bullish Scenario

A sustained move over $63.47 will signal the presence of buyers. The first upside target is the minor top at $63.94. Overtaking this level could trigger the start of a drive into $66.15, followed by $67.20.

For a look at all of today’s economic events, check out our economic calendar.

European Equities: A Quiet Day Ahead Leaves Geopolitics and COVID-19 in Focus

Economic Calendar:

Tuesday, 20th April

German PPI (MoM) (Mar)

Thursday, 22nd April

Deposit Facility Rate (Apr)

ECB Interest Rate Decision (Apr)

Eurozone Consumer Confidence Flash

Friday, 23rd April

French Manufacturing PMI (Apr) Prelim

French Services PMI (Apr) Prelim

German Manufacturing PMI (Apr) Prelim

German Services PMI (Apr) Prelim

Eurozone Manufacturing PMI (Apr) Prelim

Eurozone Markit Composite PMI (Apr) Prelim

Eurozone Services PMI (Apr) Prelim

ECB President Lagarde Speaks

The Majors

It was a bullish end to the week for the European majors on Friday.

Following on from a relatively bullish day on Thursday, the DAX30 rallied by 1.34%, to lead the way. The CAC40 and the EuroStoxx600 saw more modest gains of 0.85% and 0.90% respectively.

Positive stats from China and the U.S provided support for the European majors at the end of the week.

Corporate earnings delivered further upside for German autos and the DAX30. At the end of the week, Daimler released prelim Q12021 results. Favorable sales momentum at Mercedes driven by strong demand, from China in particular, delivered better than expected results.

The Stats

It was a relatively quiet day on the economic calendar on Friday.

Finalized inflation figures and trade data for the Eurozone were in focus.

Eurozone Inflation

In March, the annual rate of inflation accelerated from 0.9% to 1.3%. The annual rate of inflation had stood at 0.7% in March 2020.

According to Eurostat,

  • The lowest annual rates of inflation were registered in Greece (-2.0%), Portugal, Malta, Ireland, and Slovenia (all 0.1%).
  • Luxembourg registered the highest annual rate of inflation at 2.5%.
  • The highest contribution to the annual rate of inflation came from services (+0.57 percentage points).
  • There were also contributions from energy (+0.43 pp), food, alcohol, & tobacco (+0.24 pp), and non-energy industrial goods (+0.09 pp).

Trade

In February, the Eurozone’s trade surplus widened from €11.0bn to €17.7bn.

According to Eurostat,

  • Exports of goods to the rest of the world fell by 5.5% to €178.6bn when compared with Feb-2020.
  • Imports from the rest of the world declined by 2.7% to €161.0bn when compared with Feb-2020.
  • Intra-euro area trade rose by 1.7% to €164.8bn when compared with Feb-2020.

From the U.S

It was another busy day, with key stats including consumer sentiment figures. Housing sector data was also in focus but had a muted impact on the majors.

According to April prelim figures, the Michigan Consumer Sentiment Index rose from 84.9 to 86.5.

While up by just 1.9% month-on-month, the index was up 20.5% year-on-year.

Supporting the increase was a 4.5% rise in the Current Economic Conditions Index from 93.0 to 97.2. Year-on-year, the index was up 30.8%.

Holding steady in April, was the Index of Consumer Expectations that remained unchanged at 79.7. Year-on-year, the index was up 13.7%.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Friday. Daimler and Volkswagen rallied 2.79% and by 2.65% respectively, with Continental gaining 2.33%. BMW saw a more modest 0.12% gain on the day.

It was also a bullish day for the banks. Deutsche Bank rose by 1.83%, with Commerzbank ending the day up by 1.23%.

From the CAC, it was a bullish day for the banks. BNP Paribas rallied by 2.20%, with Soc Gen gaining 1.27%. Credit Agricole saw a more modest 0.11% rise on the day.

It was also a bullish day for the French auto sector. Stellantis NV rose by 1.46%, with Renault rallying by 2.29%.

Air France-KLM found much-needed support, rising by 2.24%, with Airbus SE gaining 0.82%.

On the VIX Index

It was a 2nd consecutive week in the red the VIX on Friday, marking a 6th daily fall in 8-sessions.

Following on from a 2.47% fall on Thursday, the VIX fell by 1.93% to end the day at 16.25.

The Dow and the S&P500 rose by 0.48% and by 0.36% respectively, with the NASDAQ gaining 0.10%.

VIX 190421 Daily Chart

The Day Ahead

It’s a particularly quiet day ahead on the European economic calendar. There are no material stats due out of the Eurozone to provide the European majors with direction.

There are also no stats from the U.S to influence later in the day.

The lack of stats will leave the majors in the hands of geopolitics and COVID-19 vaccine updates from the weekend. Bullish sentiment towards the earnings season should provide some support going into the week, however.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 104 points, while the DAX was up by 23.

For a look at all of today’s economic events, check out our economic calendar.

The Crypto Daily – Movers and Shakers – April 19th, 2021

Bitcoin, BTC to USD, slid by 6.29% on Sunday. Following on from a 2.27% decline on Saturday, Bitcoin ended the week down by 6.43% to $56,172.0.

A bullish start to the day saw Bitcoin rise to an early morning intraday high $60,279.0 before hitting reverse.

Falling short of the first major resistance level at $61,197, Bitcoin tumbled to an early morning intraday low $50,500.0.

The extended sell-off saw Bitcoin fall through the major support levels

Finding support at the 23.6% FIB of $50,473, Bitcoin broke back through the third major resistance level at $55,104 to end the day at $56,100 levels.

The near-term bullish trend remained intact in spite of the slide back to $50,500 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bearish day on Sunday.

Crypto.com Coin tumbled by 15.14% to lead the way down, with Bitcoin Cash SV sliding by 12.39%.

Litecoin (-8.92%) and Ripple’s XRP (-8.28%) also saw heavy losses.

Binance Coin (-6.24%), Cardano’s ADA (-6.50%), Chainlink (-2.17%), Ethereum (-3.35%), and Polkadot (-5.14%) saw relatively modest losses on the day.

It was also a mixed week for the majors in the week ending 18th April.

Binance Coin slid by 8.23%, with Crypto.com Coin falling by 5.08% to join Bitcoin in the red.

It was a bullish week for the rest of the majors, however.

Bitcoin Cash SV jumped by 25.25% to lead the way, with Polkadot rallying by 15.72%.

Cardano’s ADA (+1.32%), Ethereum (+4.23%), Litecoin (+8.68%), and Ripple’s XRP (+4.67%) also ended the week in positive territory.

In the week, the crypto total market rose to a Friday high $2,305bn before sliding to a Sunday low $1,755bn. At the time of writing, the total market cap stood at $2,019bn.

Bitcoin’s dominance rose to a Monday high 56.61% before falling to a Saturday low 51.37%. At the time of writing, Bitcoin’s dominance stood at 52.52%.

This Morning

At the time of writing, Bitcoin was up by 0.81% to $56,625.1. A mixed start to the day saw Bitcoin fall to an early morning low $55,709.0 before rising to a high $56,666.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Polkadot (-0.77%) and Ripple’s XRP (-0.55%) saw red to buck the trend early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Chainlink was up by 3.69% to lead the way.

BTCUSD 190421 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $55,650 to bring the first major resistance level at $60,801 into play.

Support from the broader market would be needed for Bitcoin to break back through to $60,000 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $60,279.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at Wednesday’s swing hi $64,829.0 before any pullback. The second major resistance level sits at $65,429.

Failure to avoid a fall through the $55,650 pivot would bring the first major support level at $51,022 and the 23.6% FIB of $50,473 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$50,000 levels. The second major support level sits at $45,871.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – April 19th, 2021

Ethereum

Ethereum fell by 3.35% on Sunday. Following on from a 4.45% decline on Saturday, Ethereum ended the week up by 4.23% to $2,241.45.

A mixed start to the day saw Ethereum rise to an early morning intraday high $2,341.00 before hitting reverse.

Falling short of the first major resistance level at $2,439, Ethereum slid to an early morning intraday low $2,000.00.

The extended sell-off saw Ethereum fall through the first major support level at $2,258 and the second major support level at $2,197.

Finding support at the third major support level at $2,016, Ethereum bounced back to end the day at $2,200 levels.

The partial recovery saw Ethereum break back through the second major support level at $2,197.

At the time of writing, Ethereum was down by 0.60% to $2,228.01. A mixed start to the day saw Ethereum rise to an early morning high $2,254.00 before falling to a low $2,205.01.

Ethereum left the major support and resistance levels untested early on.

ETHUSD 190421 Hourly Chart

For the day ahead

Ethereum would need to avoid a fall through the pivot level at $2,194 to support a run at the first major resistance level at $2,388.

Support from the broader market would be needed, however, for Ethereum to break back through to $2,300 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $2,341.00 would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $2,500 before any pullback. The second major resistance level sits at $2,535.

Failure to avoid a fall through the $2,194 pivot would bring the first major support level at $2,047 into play.

Barring another extended sell-off, however, Ethereum should steer clear of the second major support level at $1,853. The 23.6% FIB of $1,966 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $2,047

Pivot Level: $2,194

First Major Resistance Level: $2,388

23.6% FIB Retracement Level: $1,976

38.2% FIB Retracement Level: $1,606

62% FIB Retracement Level: $1,023

Litecoin

Litecoin slid by 8.92% on Sunday.  Following on from a 2.51% fall from Saturday, Litecoin ended the week up by 8.68% to $274.20.

A mixed start to the day saw Litecoin rise to an early morning high $305.33 before hitting reverse.

Falling short of the first major resistance level at $325, Litecoin slid to an early morning intraday low $241.09.

The sell-off saw Litecoin fall through the first major support level at $287 and the second major support level at $273.

More significantly, Litecoin also tumbled through the 23.6% FIB of $262.

Finding late morning support, Litecoin moved back through the 23.6% FIB and the second major support level to end the day at $274 levels.

At the time of writing, Litecoin was down by 1.12% to $271.13. A mixed start to the day saw Litecoin rise to an early morning high $275.62 before falling to a low $267.69.

Litecoin left the major support and resistance levels untested early on.

LTCUSD 190421 Hourly Chart

For the day ahead

Litecoin would need to move back the $274 pivot level to support a run at the first major resistance level at $306.

Support from the broader market would be needed, however, for Litecoin to break back through to $300 levels.

Barring an extended crypto rally, the first major resistance level and Sunday’s high $305.33 would likely cap any upside.

In the event of a bounce back, Litecoin could test resistance at $320 before any pullback. The second major resistance level sits at $338.

Failure to move back through the $274 pivot level would bring the 23.6% FIB of $262 and the first major support level at $242 into play.

Barring an extended sell-off, Litecoin should steer clear of the the second major support level at $209. The 38.2% FIB of $217 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $242

Pivot Level: $274

First Major Resistance Level: $306

23.6% FIB Retracement Level: $250

38.2% FIB Retracement Level: $207

62% FIB Retracement Level: $138

Ripple’s XRP

Ripple’s XRP slid by 8.28% on Sunday. Following a 0.62% decline from Saturday, Ripple’s XRP ended the week up by 4.67% to $1.41371.

A mixed start to the day saw Ripple’s XRP rise to an early morning intraday high $1.56714 before hitting reverse.

Falling short of the first major resistance level at $1.6802, Ripple’s XRP slid to an early morning intraday low $1.15000.

Ripple’s XRP slid through the day’s major support levels before finding support.

More significantly, Ripple’s XRP also fell through the 23.6% FIB of $1.5426 and the 38.2% FIB of $1.2807.

Steering clear of sub-$1.00 levels, Ripple’s XRP bounced back to end the day at $1.41 levels.

The partial recovery had seen Ripple’s XRP break back through the third major support level at $1.1848 and the second major support level at $1.3960.

Ripple’s XRP also broke back through the 38.2% FIB of $1.2807.

At the time of writing, Ripple’s XRP was down by 2.29% to $1.38138. A mixed start to the day saw Ripple’s XRP rise to an early morning high $1.43776 before falling to a low $1.36000.

Ripple’s XRP left the major support and resistance levels untested early on.

XRPUSD 190421 Hourly Chart

For the day ahead

Ripple’s XRP will need to avoid a fall back through the $1.3770 pivot level to bring the first major resistance level at $1.6039 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through the 23.6% FIB of $1.5426.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $1.80 levels before any pullback. The second major resistance level sits at $1.7941.

Failure to avoid a fall back through the $1.3770 pivot would bring the 38.2% FIB of $1.2807 and the first major support level at $1.1868 into play.

Barring another extended sell-off, however, Ripple’s XRP should steer clear of sub-$1.00 levels. The second major support level sits at $0.9598.

Looking at the Technical Indicators

First Major Support Level: $1.1868

Pivot Level: $1.3770

First Major resistance Level: $1.6039

23.6% FIB Retracement Level: $1.5426

38.2% FIB Retracement Level: $1.2807

62% FIB Retracement Level: $0.8573

Please let us know what you think in the comments below.

Thanks, Bob