BTC analysis for May 18,.2021 - Sellers in control and potential for drop towards $30.000
Tue, 18 May 2021 13:52:59 +0000

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Technical analysis:

BTC has been trading at the important pivot support at $42.300 and no big reaction from buyers is sign that sellers are still in control.

Trading recommendation:

Watch for potential selling opportunities on the rallies with the downside target at the price fo $30.370.

Stochastic is showing oversold condition but with no bull cross, which is another sign that sellers are in big control.

The material has been provided by InstaForex Company - www.instaforex.com
Bitcoin reversal possibilities from $40k
Tue, 18 May 2021 13:49:25 +0000

Bitcoin has been moving lower as expected by our analysis and has already reached the upper target area of our target $43,000-$40,000. The RSI in the 4 hour chart is showing bullish divergence signs. This is just a warning and not a reversal signal.

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Red lines- bullish divergence

If Bitcoin makes a new lower low and the RSI provides a new bullish divergence, then we should expect a bounce towards $47,000-$50,000 to follow. Major resistance remains key at $58,000 area. So far price is making lower lows and lower highs. In the short-term the chances of a bounce are high as long as the RSI is diverging. Nevertheless we should not forget that the trend is bearish and sell offs and crashes start from oversold conditions in the markets. Traders need to be very cautious.

The material has been provided by InstaForex Company - www.instaforex.com
USDJPY double top at 109.70
Tue, 18 May 2021 13:42:23 +0000

USDJPY is trading around 108.92. Price is pulling back after making a double top around 109.70 where we find also the 61.8% Fibonacci retracement of the decline from 110.90 to 107.50. Price so far continues to respect a key trend line support and as long as we trade above it, bulls have hopes of recapturing 110.

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Red line - support

Blue lines -Fibonacci retracements

Support by the red trend line is at 108.55 area. Resistance from the double top is at 109.70. If price holds support and turns higher we will have a sign of strength. Breaking above 109.70 will be a bullish confirmation as the price resistance at 109.70 is already confirmed resistance. If support at 108.55 area fails to hold and price moves below it and stays below it, then we should not rule out a deeper correction towards 106. The red trend line support has proven strong so far as it has been tested several times before. Breaking it will be an important sign of weakness.

The material has been provided by InstaForex Company - www.instaforex.com
EUR/USD analysis for May 18 2021 - Bearish divergence and potential for downside movement towards 1.2170
Tue, 18 May 2021 13:36:48 +0000

Technical analysis:

EUR/USD has been upwards but I found extreme overbought condition and potential for the downside rotation.

Trading recommendation:

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Watch for potential selling opportunities with the downside targets at the price of 1.2180 and 1.2170. .

Stochastic is showing overbought condition, bear divergence and fresh bear cross, which is another sign and confirmation for the downside rotation.

Additionally, there is the selling tail from the top....

Key resistance is set at 1.2235

The material has been provided by InstaForex Company - www.instaforex.com
Trading Signal for EUR/USD for May 18 - 19, 2021: Sell Below 1.2230
Tue, 18 May 2021 13:16:48 +0000

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In the American pre-market, the EUR / USD pair is trading above the strong resistance of 8/8 of murray and above the SMA of 21, with a strong uptrend in 4-hours charts.

The 1.2207 level is the key. Given that the price is now above this level, the euro is likely to reach the +1/8 murray zone located at 1.2268.

The Dollar index, USDX, is trading below its psychological level of 90.00. Currently, the index is trading at near 89.67 with support at 89.42. It is likely to give the Euro bullish strength until EUR/USD reaches the 1.2268 area.

If the recent level of 1.2263 is surpassed, this should open the door to a probable visit to this year's peaks around 1.2350, although there should be a technical correction first.

EUR / USD uptrend is expected to remain intact as long as the pair trades above the 200-day exponential moving average, today at 1.2025.

However, the eagle technical indicator shows that it is approaching the overbought level, which could be indicative of a bearish divergence and thus a prelude to a corrective move in the near term.

The market sentiment index shows that there are 68.3% of operators are selling the pair. This is a sign of a strong upward trend for the Euro. So, every time there is a downward correction towards the support zone, we could continue buying. If this figure is maintained in the next few days, EUR / USD could challenge the 1.23 area.

Our recommendation is to wait for the resistance of 1.2230 to be able to sell. Given that the pair is overbought, a downward correction is imminent in the next few hours.

Support and Resistance Levels for May 18 - 19, 2021

Resistance (3) 1.2262

Resistance (2) 1.2255

Resistance (1) 1.2230

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Support (1) 1.2207

Support (2) 1.2170

Support (3) 1.2147

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Trading tip for EUR/USD for May 18 - 19, 2021

Sell below 1.2230 (strong resistance), with take profit at 1.2170 and 1.2125 (SMA 21), stop loss above 1.2265.

The material has been provided by InstaForex Company - www.instaforex.com
XRP challenges major resistance
Tue, 18 May 2021 13:03:33 +0000

XRP/USD today briefly moved above key resistance levels of $1.60-$1.66 and reached as high as $1.70. However price has moved back towards $1.60 so we can not say yet that resistance is broken. So far price is supported and there seems to be a differentiation from the rest of the crypto market and specifically from Bitcoin.

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Red line - resistance

Red rectangle- resistance area

Blue lines - support

Green line- major support area

XRP/USD best scenario for bulls is to see price break above the red resistance trend line and the horizontal resistance area. This would signal that a move above $2 is coming over the next couple of weeks. However traders should also take into consideration more bearish scenarios. In case price gets rejected at $1.60, we could see a pull back towards the blue support trend lines. First pull back target could be at $1.32. Next target would be at $1.15-$1.25. My primary scenario sees price break out soon and break above $2 targeting first $2.08 and next $2.65.

The material has been provided by InstaForex Company - www.instaforex.com
EUR/USD Hot Forecast for 18 May, 2021
Tue, 18 May 2021 13:02:11 +0000
  • EUR/USD finally breaks above the 1.2200 mark.
  • The continuation of the upside now targets 1.2243.

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EUR/USD extends the rebound from last week's lows in the 1.2050 region to the area above 1.2200. EUR/USD has extended its gains and has topped 1.22, the highest since February. The safe-haven dollar is weakening amid the risk-on mood and as the Fed sticks to its dovish policy. Eurozone GDP was confirmed at -0.6% in Q1.

The ongoing context allows for the continuation of the uptrend, at least in the very near-term, with the next hurdle at the February's high at 1.2243. A surpass of the latter should open the door to a probable visit to the YTD peaks in the mid-1.2300s (January 6).The constructive stance on EUR/USD is forecast to remain intact as long as it trades above the critical resistance turn support today at 1.2180.

However, notably, that the daily MACD has not confirmed the recent highs yet, which could be indicative of a bearish divergence and therefore a prelude to a corrective move in the short term. Support awaits at 1.2150, which was the high point in April. It is followed by 1.2105, 1.2075 and 1.2050.

The material has been provided by InstaForex Company - www.instaforex.com
Bitcoin forecast for 18 May, 2021
Tue, 18 May 2021 12:59:28 +0000
  • BTC retests support at $43,000 overnight.
  • Resistance at $45,000 still holds.
  • Next resistance at $47,000.

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Today's Bitcoin price is bullish as the market continues respecting support at around $43,000. Therefore, unless further downside is set, we expect BTC/USD to move higher over the next 24 hours.

The overall market still retraces after setting a new all-time high of around $65,000 in the middle of April. Since then, two strong bearish waves were seen, with the first one resulting in a loss of over 25 percent. From there, BTC/USD moved towards the $59,000 resistance and set a major lower low. Over the past days, another push to the downside was seen and resulted in another 30 push lower.

However, for now, the market price action is still bearish. Support around $43,000 has been retested, indicating that bears are unable to push the market any lower. This should lead towards a move higher over the next 24 hours, with the closest resistance target at $47,000.

From there the market will likely set a higher low, from which bulls will build momentum to push towards new all-time highs.Alternatively, if the $43,000 support does not hold, we should see further downside to the $41,000 mark. If this level is reached, the overall, several-week Bitcoin price action structure would look increasingly bearish.

The material has been provided by InstaForex Company - www.instaforex.com
Ichimoku cloud indicator analysis of EURUSD for May 18, 2021
Tue, 18 May 2021 12:57:17 +0000

EURUSD is making new higher highs above 1.22 and has surpassed the 78.6% Fibonacci retracement of the entire decline. This is a promising sign for bulls. Usually if trend were to reverse, price would not retrace this far of the previous move.

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Despite the new higher high in price, the RSI is not making new highs providing a bearish divergence. Support is at 1.2050 and as long as we hold above it, trend remains bullish. Below we use the Ichimoku cloud indicator in order to identify key support and trend change levels.

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EURUSD is above both the tenkan-sen (red line) and kijun-sen (yellow line) indicators. Price is of course above the Kumo (cloud) and with the Chikou span (black line indicator) above the cloud and above the candlestick pattern. The Ichimoku cloud indicator confirms trend is bullish and there is no sign of trend change or weakness. Support is at 1.2110 and if this level is broken, we should then test the important 1.2050 support where we also find the kijun-sen. If price breaks below the tenkan-sen and the kijun-sen then we should also expect a test of the cloud. Breaking above the Daily cloud was an important win for bulls and the following back test a confirmation of the up trend. A pull back from current levels is justified but still considered as a buying opportunity.The material has been provided by InstaForex Company - www.instaforex.com
Gold reaches major target and resistance area.
Tue, 18 May 2021 12:50:27 +0000

Gold price remains in a bullish trend inside the short-term bullish channel created after the low of $1,677. Gold price has finally reached our target of the upper boundary of the longer-term bearish channel. Price is trading above $1,870 and there is still no sign of a reversal. However I believe the upside potential is now limited taking into consideration the bearish RSI divergence in the 4 hour chart and the major channel resistance around $1,880.

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Blue lines - bullish channel

Green lines - bearish channel

Gold price is making new higher highs but the RSI is not following to new highs. This is a warning for bulls but no reversal sign yet. Bulls need to be cautious at current levels because price has also reached the bearish channel boundary.

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Green lines- bearish channel

Blue lines- bullish channel

Since the double bottom of $1,677 and the break above $1,700-$1,740 resistance area I had as a key scenario the move higher targeting the upper channel boundary. Today we have reached this goal and traders need to be cautious. So far price has pulled back every time it reached the blue channel upper boundary. I expect the same to happen again. Pull back target and support is around $1,820.

The material has been provided by InstaForex Company - www.instaforex.com
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