ETH, in terms of technical analysis, is also a potential bear flag. Bear flags extend/continue a downward trend. The bear flag pattern has a powerful downward move followed by an upward consolidation channel. Furthermore, even if we do not have a bear channel, ETHUSD seems to be in a channel, after creating the recent touch point at its upper band. This supports that previously profitable Longs may take partial or full profit, and new bears will open new short positions.
The Ethereum technical analysis video shows the 14 day RSI (relative strength indicator) along with its simple moving average and we look for an upcoming crossover that seems to be imminent despite not confirmed yet. The RSI presents historical market strength and weakness. And is used by many traders as a popular technical indicator on charts to identify price momentum changes
A trade idea is provided for your consideration, for shorting ETH with a healthy stop above $1800, and 2 profit taking targets with a reward vs risk of 1.5, and a second that is much higher. See the Ethereum technical analysis video below for more.
On a weekly timeframe, ETHUSD may also be showing a pattern of Head and Shoulders pattern. On a technical analysis chart, the Head and Shoulders formation happens when a market trend is about to change, either from a bullish to a bearish trend. If that Head and Shoulders pattern plays out, many times, traders look for the price to reach a low that completes a measured move from the top of the head, with the middle of the measured move being the neckline. That would take ETH to apx $600, as shown in the chart below.
ETHUSD weekly chart with head and shoulders formationHowever, if ETHUSD goes above $1816, the bull case is over, the head and shoulders pattern has failed or was mistakenly formed in the first place. In any case, it would be time for realizing that the bulls have regained control. A trade idea must always include a stop.
If and when the technical analysis with Ethereum plays out, one could also decide to play a parallel trade idea with Bitcoin or most other cryptocurrencies, especially the ones perceived as being relatively weaker according to your own research. Trade ETHUSD or any other crypto at your own risk only.
Visit ForexLive for additional technical analysis ideas and perspectives.
This article was written by ForexLive at www.forexlive.com.
Manufacturing 49.0, its lowest in 3 months and back into contraction
- expected 50.3 and prior 50.2
- China’s NBS attributes the result, according to statements reported in State media (Xinhua), to traditional production off-peak period, insufficient market demand, and the weakened performances of energy-intensive industries.
- expected 53.9, prior 54.7
The ‚Composite‘ of the two hit 52.5, down from June’s54.1.
This is not the first time recently we’ve heard of „insufficient demand“ as a reason for the poor performance of the country’s economic indicators. Ongoing outbreaks and associated restrictions have played, and continue to play, a role in this.
On a brighter note the non-manufacturing PMI indicator (this shows the performance of services and construction sectors), while down from June, recorded a solid expansion.
At the margin these numbers are a negative input to China-proxy trades such as AUD.
China’s zero COVID policy is making it difficult for the country to exit 2020! Low inflation rates in the country do allow fiscal and monetary authorities to pump in economic stimulus though.
This article was written by Eamonn Sheridan at www.forexlive.com.
There was a time when the President getting covid was market-moving news but those days are long gone.
This article was written by Adam Button at www.forexlive.com.