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Forex Update: Euro Looking Strong Against Other Currencies

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2017 was a year to remember for the Euro. It surged against major currencies including the British Pound, Japanese Yen, and Canadian Dollar. The “Fiber” was up by as much as 9.14% against the Cable, 11.62% against the Yen, and 6.7% against the Loonie. One of the reasons is because in 2017, the European Union grew at its fastest pace in a decade.

While the Euro is off to a slow start in 2018, we expect its dominance against the above mentioned currencies to continue. In this article, we reveal how the Euro is looking strong against other currencies.

Euro/British Pound Analysis

From a short-term perspective, it may seem that the British Pound is in a freefall against the Euro due to a potential no deal Brexit scenario. The lack of clarity and possible deadline extension from October this year to March 2019 has caused many GBP investors to be jittery.

However, a look at the monthly chart of the Euro/British Pound (EUR/GBP) pair and you will see that the rise of the Euro and the fall of the Pound is just beginning.

 

Monthly chart of EUR/GBP

The market is on the verge of breaching resistance of 0.90 and triggering the large inverse head and shoulders pattern on the monthly chart. What’s more exciting is that the EUR/GBP pair has the potential to go parabolic just like it did between September 2007 and December 2008.

We can see that the monthly RSI respects support of 56. This tells us that the market is extremely bullish. A breakout from the inverse head and shoulders pattern should attract a lot more bullish momentum and potentially spark a parabolic run.

Euro/Japanese Yen Analysis

The Euro/Japanese Yen (EUR/JPY) pair is off to a rocky 2018. The market is down by 3.26% year-to-date. This is happening in spite of the Japanese government’s policy to pursue a weaker Yen.

The monthly chart of the EUR/JPY might shed more light on this issue.

Monthly chart of EUR/JPY

As you can see, the market is consolidating inside a large symmetrical triangle on the monthly chart. Currently, it is in the midst of the E-wave which is often the last drop before the pattern breakout. This means that the Euro might show more weakness in the near future before it can resume its uptrend. Nevertheless, the Euro’s short-term woes against the Yen is nothing but a hiccup if you look at the bigger picture.

Euro/Canadian Dollar Analysis

The Euro/Canadian Dollar (EUR/CAD) pair has been in an uptrend since June 2013 when it breached resistance of 1.35. This triggered the inverse head and shoulders pattern on the weekly chart. For over two and half years, the Euro enjoyed significant growth against the Canadian Dollar. However, the pair hit a massive resistance at 1.60 in January 2016. That resistance is still a major hurdle more than two years later.

Monthly chart of EUR/CAD

Bears have defended the resistance of 1.60 from two consecutive bullish rallies. However, long-term investors don’t need to worry because it is very likely that the third time’s the charm.

Currently, EUR/CAD is at the tail end of the ascending triangle on the monthly chart. Should the market print another higher low as projected, bulls are very likely to overrun bears at 1.60. That should signal the start of what can be a long and strong bull run.  

Bottom Line

The Euro is off to a slow 2018 but long-term investors need not worry. It appears the this currency is gearing up for massive breakouts. It seems as if it is preparing to resume the uptrend against the British Pound, Japanese Yen, and Canadian Dollar.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.7 stars on average, based on 253 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Altcoins

XRP Price Analysis: Reports Indicate National Bank of Kuwait (NBK) is Set to Go Live With xCurrent

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  • Sources suggest National Bank of Kuwait (NBK) are moving closer to going live within Ripple’s xCurrent solution.
  • Despite current XRP/USD selling pressure, a bullish technical set up is still seen as a potential.

National Bank of Kuwait Ready to Use xCurrent

One of the largest banks in the Middle East, National Bank of Kuwait (NBK), is readying to move forward with xCurrent. It is reported this could be in place within the next few weeks. xCurrent is Ripple’s enterprise software solution that facilitates banks to instantly settle cross-border payments, providing end-to-end tracking.

The latest suggested is that the NBK are currently awaiting to receive the green light from the Central Bank of Kuwait. Sources close to the matter, are said to note that NBK are currently preparing for its first transaction with the xCurrent solution. In terms of time frame, the suggestions are for the back end of October, or by early November. These sources are being cited by the newswire, Crypto Briefing.

Earlier this year, in May, the National Bank of Kuwait mentioned Ripple via their official Twitter account. They tweeted, “NBK leads the way in Kuwait in a partnership with RippleNet to offer instant cross-border payments to customers Ripple.” Nothing further on this, from either the NBK or Ripple was noted.

It is important to note that the xCurrent solution does not use XRP tokens, unlike xRapid, which enables banks to send payments using XRP. It can then be transacted back into the appropriate fiat currency by the receiver. On the basis of the above noted, it is likely to have a direct influence on the value of XRP.

Technical Review – 4-hour Chart

XRP/USD 4-hour chart

Despite the consistent downside pressure observed with XRP/USD, a potential bullish technical set up can still be eyed. As seen on the 4-hour time frame, price action has been moving within a bullish flag pattern. The lower support has recently been penetrated by the market bears.

Near-term support eyed immediately at $0.4660-40 area, the below trend line. Further south, a demand zone is seen running from $0.4535 down to $0.4350. This was an area that caught the price during some hard selling at the back end of September. Bulls managed to kick started a recovery at this low area on 25th September. Should this technical set up fail to play out, eyes will then be on $0.4000 for support. Last traded down here on 15th October. Lastly, looking at resistance, this is seen just ahead at $0.4650, upper trend line of the flag. Ahead, there is heavy supply heading into and within the $0.5000 territory.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Crypto Update: Altcoin Season Is On The Horizon

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Altcoin season is a term used in social media and other online communities to describe the part of the market cycle where altcoins, such as Ethereum or Ripple, experience a meteoric rise in value against Bitcoin and the US Dollar. During this period, many altcoins enter a parabolic state that enables them to grow anywhere from 200% to 3000%. This was the case in the last alt season, which was from December 2017 to January 2018.

While this highly anticipated season can bring a lot of profits, it can also end in disaster to those who fail to correctly time the market. During the last season, many were slaughtered as they entered only after news of market explosions. Little did they know that they were already buying the top. Therefore, it is crucial to enter positions just before the season starts. The price movements in the last two months have given us reasons to believe that altcoins are preparing for a bull run.

In this article, we reveal why we believe that the altcoin season is on the horizon.

Altcoin Market Cap Appears to be Bottoming Out

The altcoin market cap is the market capitalization of all cryptocurrencies minus Bitcoin’s market capitalization. We use this measure to track the amount of capital going in and out of all altcoins. The largest altcoin market cap ever recorded was at $554.916 billion in January 2018. Since then, the numbers have nosedived and even touched $78 billion in September. That’s an 85% devaluation.

The good news is $78 billion may have been the bottom as the entire altcoin market is working hard to generate a bullish higher low setup.

Altcoin market cap daily chart

A quick look at the daily chart reveals that the altcoin market chart is creating an inverse head and shoulders pattern. This structure is one of the most reliable patterns to indicate that the bottom is in. The higher low (right shoulder) tells us that participants are willing to buy at a higher price.

Bitcoin Dominance Looks Toppish

The Bitcoin dominance chart monitors the percentage of the cryptocurrency capital that can be attributed to Bitcoin. Bitcoin dominance has been on the up and up ever since it bottomed out at 32% on January 12, 2018. It climbed as high as 58% on September 9, but it has been sputtering since. This is a very good sign for altcoins.

A look at the chart reveals that Bitcoin dominance is toppish. It is moving near the apex of a rising wedge. More importantly, it appears to have created a bearish lower high setup. As we always say, the lower high kills bullish momentum.

What does it mean for altcoins and the alt season?

First, this chart doesn’t necessarily show that Bitcoin’s capital is decreasing. On the contrary, Bitcoin’s market cap is in the process of creating a higher low, which means money is flowing into the market. So if Bitcoin’s capitalization is not decreasing, then it would mean that new capital is being injected into altcoins. To be more accurate, altcoins appear to be growing at a faster pace than Bitcoin at the moment.

This would explain the bullish higher low setup of the altcoin market cap. Significantly more money is coming than leaving. Investments are flooding in that it threatens to send Bitcoin dominance into a downtrend.

Bottom Closely Resembles 2014 Bear Market

Technical analysis is the study of historical price movement. This is one of the reasons why we keep going back to the 2014 bear market. We study it to see if participants are behaving the way they did back then. What we discovered was surprising.

2014 altcoin bear market

During the 2014 bear market, altcoin market capitalization suffered a 86% devaluation in 38 weeks before it established a bottom. In today’s bear market, the altcoin market cap plummeted 85% in 36 weeks. From the looks of it, the bottom was already established on the 36th weekly bar on September 10, 2018.

2018 altcoin bear market

These are astonishing resemblances in terms of percentage loss and bear market length. If the resemblance continues, as clues suggest, then the altcoin season may be around the corner.

Bottom Line

The altcoin season can be profitable to people who enter the markets right before the explosion. In our analysis, we showed the stabilizing altcoin market capitalization, weakening of Bitcoin dominance, and mirroring to the 2014 bear market. All these clues tell us that alt season is on the horizon.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.7 stars on average, based on 253 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Altcoins

Bitcoin Cash Price Analysis: BCH/USD Bulls Have the Potential to Capitalize, Following a Bullish Technical Set Up

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  • BCH/USD broke out and retested a long-running descending trend line, but has failed to capitalize on this further.
  • George Hotz, also known as Geohot, says “Bitcoin Cash is the real Bitcoin.”
  • CoinText.io expands its Bitcoin Cash payment SMS service to Brazil and further European countries. 

“Bitcoin Cash is the Real Bitcoin”

George Hotz, also known as Geohot, an American entrepreneur and hacker, was recently commenting on Bitcoin Cash. Following the BCH Devcon in San Francisco he attended, Geohot demonstrated how to generate a BCH private key from scratch using python coding.

During his python video, George spoke highly of Bitcoin Cash. He said, “I’m using Bitcoin Cash because it’s the real bitcoin.” His reasoning for the preference of BCH over BTC was due to it having significantly lower transaction fees. Stating, “Transaction fees are super low on bitcoin cash.”

Bitcoin Cash Being Used in Brazil with CoinText.io

SMS cryptocurrency payment service, CoinText, has launched their services in Brazil and three other European countries – Poland, Romania and Croatia. CoinText doesn’t require apps, logins or Internet, and users can send Bitcoin Cash via SMS. A new wallet is automatically created when people have received Bitcoin Cash via SMS.

Specifically commenting on the Brazilian expansion, CoinText founder and CTO said, “Brazilians have been suffering from corruption and bad monetary policy,” says CoinText founder and CTO Vin Armani. “Cryptocurrency offers a way for them to peacefully opt out of a corrupt system.”

A move in which is further helping the adoption of Bitcoin Cash, via the CoinText service, he further noted, “Adding Poland, Croatia and Romania brings us closer to connecting the entire continent of Europe,” Armani added. “CoinText’s end-of-year goal is to enable all 740 million European residents to text money to each other’s phones for pennies.”

Technical Review – Daily Chart

BCH/USD daily chart

BCH/USD price action of late has been very much mundane following a promising breakout from a long-running descending trend line. It had been contained below and rejected on several occasions, from the back end of July. Bulls managed to pull off a decent breakout to the upside, which took place between 26-27th September.

After observing the break above, then pullback for a retest of the breached trend line, it looked very promising. This as such played out to the textbook, however bulls failed to capitalize and drive further north. Instead, the price remained within a consolidation nature, a lack of commitment in either direction. Perhaps the bulls are sitting on the launchpad, ready to send this into orbit, time will tell here.

Looking at technical areas of interest, to the upside, resistance has capped upside well into $500 territory. Tracking from $455-80, which has been evident the past few sessions. A firm push higher, will allow $550 region to come back into play. In terms of buyers, they can be found from the current price, all the way down to $400 the round figure.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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