EUR/USD: Breaking through several major supports by Valeria Bednarik | FXStreet
Slowly but steadily, the EUR/USD has broke below several major supports this week, closing a few pips away from the 1.3600 figure and hovering around 200 DMA. The bearish tone was mostly due to weaker European macroeconomic data, that fueled hopes the ECB will act during next meeting, with dollar benefited by rising 10y yields over the last couple days. Nevertheless, the ongoing negative tone seems here to stay, as the daily chart also shows price broke below the 61.8% retracement of this year tally, around 1.3680, and the neckline of a double roof formation around 1.3650, all of them turning the upside quite messy from now on.
It will take a huge trigger to revert the bearish trend right now, and seems there’s not much ahead to trigger so, except maybe US GDP and Durable Goods data; but both numbers will have to disappoint big to gave the EUR a lift in this upcoming last week of the month. In Europe, Germany will gather most of the attention, with unemployment and retail sales readings, and if those disappoint, further downside should be expected.
Technically, the daily chart shows a strong bearish tone, with 20 SMA now capping the upside around 1.3780 also strong static resistance level and probable top in case of unexpected recoveries. Momentum has gathered strength towards the south and maintains it along with RSI that approaches the 30 level, all of which is also supportive of more falls. At this point, immediate support comes around 1.3570, where the daily chart presents several daily highs and lows from past December and January, with a continuation below exposing 1.3440/60 area, also a congestion of daily highs and lows. I would expect this last to be the latest level to reach next week, but if somehow gives up, the run can extend down to 1.3370 area, target of the daily double top.
The first resistance level to watch is the mentioned Fibo at 1.3680, with steady gains above pointing for a test of 1.3735, recent highs, 100 DMA and 50% retracement of the same yearly rally, while as commented above, 1.3780 is next.
D1 price is located inside Ichimoku cloud/kumo for ranging bearish market condition trying to break 0.8536 support level for the bearish to be continuing.H4 price is on bearish ranging between 0.8530 support and 0.8577 resistance levels.W1...
D1 price is on bearish market condition to be located below Ichimoku cloud/kumo and trying to break 1.3635 support level on close bar for the primary bearish to be continuing. H4 price was on bearish as well with 1.3615 as the nearest support level...
It has pushed below the 1.3670 mark which has failed to confirm the Hammer formation on the daily. With the Euro closing below the noteworthy level of support, further declines may be on the cards. Buyers are likely to step in to support the common currency at 1.3560.
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Hedge Fund Says Bitcoin will Soon Overtake PayPal and Rally 50 Percent in Near-Term (based on Forexminute article)
Hedge fund Laureate Trust has acknowledged the phenomenal rise of bitcoin, saying the current plunge in bitcoin price at $522.57 as a good opportunity to buy the virtual currency which it expects to increase 50 percent very soon.
Beverly Hills, California-based Laureate rated bitcoin as a speculative buy in February after it weathered two storms that saw it plummet 70 percent within a few weeks.
CEO Peter Tasca of Laureate Trust stated in a press release, “Whenever you have an instrument that trades over 300 million US dollars a day, it must be recognized. The digital currency works, Bitcoin has greater volume transactions than Western Union and we anticipate it will overtake PayPal later this year.”
“In the next one or two years, Bitcoin can surpass the dollar transaction volumes of other established payment companies including Discover, and even American Express, MasterCard, and Visa,” stated SmartMetric CEO Chaya Hendrick.
Data on Bitcoinwatch.com shows that the average daily transactions involving bitcoins are nearly $300 million, pushing the currency closer to overtaking PayPal for the first time this year on transaction volume basis. EBay, which owns PayPal, recently dubbed bitcoin traders BitPay and Coinbase as its rivals in the electronic funds transfer sector.
Tasca noted that governments had moved in to create a favorable regulatory environment for bitcoin, which makes it safer and lowers the risk of volatility that was experienced in the recent past. Laureate also adds that the bankruptcy of Mt. Gox had spawned new opportunities for firms that secure bitcoins such as Circle.com, and provided financing opportunities for existing bitcoin-related firms.
Circle’s CEO Jeremy Allaire said that his firm is regulated as a money transmitter, and that it has developed and invested in a technology that ensures customer funds are safely stored.