Bitcoin Undecided as Price Swings Around $350

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Bitcoin is still trading undecided as prices continue to swing around the $350 figure. After opening at $348.10 bitcoin fell to a low of $345.15. From here, BTC rallied to hit $362 per coin. But the move up soon fizzled out and prices came back down near the $350 mark. We are currently trading at $352 on BTC-E, compared to $354 on OKCoin and $357 on BitStamp.

The chart above shows bitcoin indecisiveness during the past 48 hours. The stalling of the down move at the $345-$350 area was expected, although the initial spike lower briefly took prices to $339 per coin . In several of our previous articles we mentioned that this area is previous support, turned into resistance and now back into support. Let’s take a look at the daily chart.

For the past few months, the medium-term trend has been down. The momentum has also shifted to the downside after prices dived below the $400 mark few days ago. In addition, we have two daily Pin bars with long bearish wicks on November 13th and November 17th.

nov22-2

While there is some weak support at $339, the first important level on the downside is $319. A break lower would lead to a resumption of the short-term trend lower. Below $319 we find two weak support levels at $300 and $285. These are followed by the previous bubble high at $266. While prices are still above this high, we are now trading not far off at $352. A clean break below $266 could lead to a long-term downtrend in BTC prices. On the upside, there is a weak resistance level at $365-$370. A break higher may lead to some follow-through toward the $400-$408 …read more

Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

Just as the global capital markets were preparing for the seasonal downshift into Thanksgiving week, multiple central banks sent a shockwave of volatility through the markets. Be wary of FX volatility this week.

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Bitcoin Barely Changed, Two Price Catalysts Next Week

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Bitcoin is trading barely changed after a brief excursion earlier in the day pushed prices below the $350 mark. The move encountered little resistance by buyers and soon BTC/USD was quoted at $339.66. Bitcoin rebounded from the lows and we are currently trading at $352.22, just $2 dollars below the daily open on BTC-E. As usual, prices are slightly higher on OKCoin at $353 and BitStamp at $357. Here’s a 15 minute chart of today’s V-shaped price action.

While the move below $345 didn’t result in a breakdown, it’s hard to see bitcoin gaining ground from here, barring any external news shocks. Fortunately for traders, next week will have two big news events that may act as price catalysts. First, the deadline for the second bitcoin auction is December 1st. As the date gets closer, we could see rumors about the auction bids and the price per coin offered. During the last auction in June, the reversal in BTC prices started well before the deadline date as news articles and prediction markets pointed to a bullish auction.

The second possible catalyst is on November 28th, Bitcoin Black Friday. The event will likely result in bitcoin sales of several million USD. Because most merchants don’t hold BTC due to the volatility risk, it is expected that they will then turn around and sell the bitcoins. However, last year’s event didn’t result in an immediate sell-off in BTC prices. Instead, bitcoin prices peaked on November 30th and fell during December of 2013. Last year’s Black Friday also occurred in the midst of a major bitcoin rally, so take this hypothesis with a grain of salt.

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EURAUD resistance likely to hold at 200 dSMA

The EURAUD pair has been trading within a range over the past month and a half. On a long term outlook, it looks like we could be within a head and shoulders formation, yet for the time being, it looks like we could get some downside following a move to the upper end of the range.

The daily chart below shows that the pair has briefly engaged with the 200 day SMA earlier today. That moving average has provided both resistance and support in the past and appears to be doing much of the same today. With a ranging market, the stochastic becomes key and given that it is overbought, it gives more confidence to the notion that we are set to move into a more bearish phase.On the hourly chart, the pair has engaged the 23.6 fibonacci retracement as the near term support level and a move below this would be a bearish move which could signal the propensity to shift significantly lower. Should that occur, I would be looking at support levels of 1.447, 1.442 and 1.437. Meanwhile, a break higher would mean Im looking at key resistance levels of 1.459, 1.462 and 1.47. 211114b

About Joshua Mahony

josh mahonyJoshua Mahony is Research Analyst at Alpari UK. Having joined in 2012, Josh’s previous experience in the industry includes time spent on the trading floor at Barclays Capital and working for Deutsche Bank in New York for a year. Originally coming from an economics background, Josh then traded equities in the wake of the 2007/2008 financial crisis. He is now turning that experience towards the forex markets. Josh writes market commentary that has featured on websites and publications including the Financial Times, Reuters, the Guardian, ABC News, CityAM, …read more

Bitcoin: BTC/USD Technical Analysis – 20th November 2014

Bitcoin (BTC/USD) has turned sharply lower in the past hour, losing as much 6% to $354 on BTC-e. It is currently trading at $362.

The break below $360 continues the head and shoulders pattern that had been in formation. $360 had been the final point of support before the pattern was confirmed. It was assessedthat the emergence of such a pattern will likely lead to further declines into the low $300′s during the short-intermediate term.

BTC/USD, Nov 20

The sheer momentum of the drop, which has been accompanied by a volume spike of 2600 BTC (~$962,000), indicates that it may take at a few hours before until solid ground is discovered.

The sudden drop has also sent BTC back below its 50-day moving average (MA), which also at $360, underscored the significance of the support level. BTC spent 12 days above the mark after not having traded in the range since late July when prices were in the low $600′s.

As is common for such drops, the price disparity between BTC-e and its peers has reversed, with prices on the former about $7 (1.9%) higher.

About DC Magnates

Created by the team at Forex Magnates, Digital Currency Magnates was founded on the premise that “the future of money is digital”. With this in mind DC Magnates was created to become a source of news and research for the digital currency industry, reporting on breaking news, unique companies and alt-coins bringing innovation to the market, as well as a portal for real time trading information featuring analysis and charts.

The post Bitcoin: BTC/USD Technical Analysis – 20th November 2014 appeared first on ForexNews.com.

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ASIC warns against YoutradeFX

The warning comes 3 months after YouTradeFX sold its Australian customer book to AvaTrade and launched a binary options trading service called Woojoo Trader

ASIC has today cautioned Australian investors against dealing with the company or group YoutradeFX for trading in margin foreign exchange (…
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USDOLLAR Outlook Mired by Downside Inflation Risk- CPI in Focus

The USDOLLAR may continue to hold the monthly opening range should the CPI print highlight a weakened outlook for inflation and drag on interest rate expectations.
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USDCAD tests support level amid uptrend

The USDCAD pair has returned to a major support level, following the engagement of a resistance level two weeks ago. Following this, it will be key to see how the pair resolves the current region of uncertainty to then gauge the direction for the coming weeks.

The weekly chart below shows the pair has found resistance around the ascending red trendline and appears to be selling off. The MACD histogram appears to be falling back, which is a sign of potential downside price action. However, on the daily timeframe, you can see that the 23.6% retracement coincides with the March high of 1.1276 and thus I am using this level as a key indicator of whether the pair is set to sell-off more. That being said, with a uptrend in play, and a descending channel evident, I believe we could see the pair break higher, using the 1.1276 level as support. 191114e

About Joshua Mahony

josh mahonyJoshua Mahony is Research Analyst at Alpari UK. Having joined in 2012, Josh’s previous experience in the industry includes time spent on the trading floor at Barclays Capital and working for Deutsche Bank in New York for a year. Originally coming from an economics background, Josh then traded equities in the wake of the 2007/2008 financial crisis. He is now turning that experience towards the forex markets. Josh writes market commentary that has featured on websites and publications including the Financial Times, Reuters, the Guardian, ABC News, CityAM, the Washington Post and the Miami Herald. You can follow Josh’s analysis on Twitter, and Google+

The post USDCAD tests support level amid uptrend appeared first on ForexNews.com.

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NZDUSD Rally at Risk Sub 7975- Scalps Target Near-term Correction

The kiwi weekly opening range is set just below near-term resistance with a break to validate our scalp bias. Here are the updated targets & invalidation levels.

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GBPJPY hits 50 fib & shows potential for pullback

The GBPJPY pair has been consolidating between the 181 and 184 levels over the past fortnight, following engagement with the 50% retracement of the 2008 highs to 2011 lows. This could be a major level for a retracement and given the respect clearly shown by the last two weeks price action, it would not be a surprise to see the pair move lower in the coming days.

The monthly chart below shows the massive strength of the uptrend in this pair over the past two years, with the largest selloff coming back in January 2014. Now the fundamental picture looks bearish for the Yen given the recent implementation of a greater degree of asset purchases, yet this 50% retracement is clearly a major level right now. On the four hour timeframe, there is a clear respect of the 50 fib, but also the 181 level, which currently appears to be representing the neckline of a topping formation, be it a head and shoulders, double or triple top. Ultimately, the resolution of this current sideways trend will come once price breaks above 184 or below 181. Should we see the break lower, I would be looking for a major support level of 177.4, which is the projected height of the current formation from the breakout. However, from a fundamental and trend following point of view, the pair still looks bullish in the medium to long term. Thus even if we did see a move lower, I believe the pair still has further to go higher. 181114e

About Joshua Mahony

josh mahonyJoshua Mahony is Research Analyst at Alpari UK. Having joined in 2012, Josh’s previous experience in the industry includes time spent on the trading floor at Barclays Capital and …read more