Energy prices have been falling over the last few weeks on weaker global demand and the rising value of the dollar, which also prompted the price of natural gas to slide. E-mini natural gas futures with expiry in October (QGV2020), in particular, have been tumbling since late-August. Nevertheless, the longer-term market sentiment remains ostensibly bullish, which means that the price may yet rebound after the [...]
The recent downtrend on the EURUSD pair appears to have already bottomed out, as the greenback's rally is temporarily put on a halt. Given this waning bearish sentiment, the underlying setup looks suitable for the implementation of contrarian trading strategies at the new dip.
Several crucial factors contribute to the depreciation of the greenback in the short term, the most significant one being the [...]
Investors' fears concerning the new coronavirus variant spur a selloff on higher-risk assets, including Bitcoin and Ethereum. The bearish reversal on ETHUSD is further bolstered by mounting geopolitical tensions and rising inflation concerns. Therefore, the current setup is suitable for the implementation of contrarian trading strategies by bears. [...]
The price of Bitcoin has been consolidating around the psychologically significant threshold of 60000.00 over the last several days, as bearish pressure keeps increasing. Our analysis examines all of the reasons why bears would likely retain control in the near term, and the price would continue to depreciate.
Bitcoin's latest rally was mostly owing to heightened investors' optimism. The demand for the [...]
The price action of the Nasdaq composite index is currently testing the psychologically significant resistance level at 16000.00, which is also the all-time highest resistance level, for a second time over the last several days. Due to the significance of this threshold as a major turning point, there is a very high probability that a second dropdown would emerge from it in the very near future. [...]
The price action of the EURUSD continues establishing a major bearish trend, which looks poised to reach new dips in the medium term. However, a bullish pullback would eventually take place, which means that both bulls and bears might have a chance to take advantage of the underlying setup in the foreseeable future.
Why is there such a massive discrepancy between the bullish bias driving the rally of the [...]
The price action of crude oil appears to be in the early stages of establishing a new bearish trend, as it attempts to break down below the lower boundary of a major consolidation range. This range serves as a Distribution of a broader Wyckoff Cycle, which means that the trend reversal if it is indeed to take place, would likely be marked by predictable behaviour of the price action. [...]
Significant bearish pressure has begun to accumulate on the GBPUSD, as the pair started developing a new sizable downtrend over the last few days. The downtrend is the product of diverging outlooks on the dollar and the pound.
On the one hand, the economic situation in the U.S. is looking increasingly better. Even though consumer and producer prices have topped multi-year highs last month, which has caused [...]
The price of gold has been advancing for seven consecutive days, which increases exponentially the likelihood for a correction whit each next passing day. This means that the current setup is suitable for the implementation of contrarian trading strategies by bears looking to trade on an expected dropdown, whereas bulls can then use trend continuation trading strategies to buy the resulting dip. [...]
The price action of the EURUSD has registered an upsurge in adverse volatility over the last several days, leading to massive seesaws. This was caused by diverging economic data in the Eurozone and the U.S. And given the currently unfolding COP26 conference, overall uncertainty is likely to grow even more.
The newly adopted hawkishness of the European Central Bank emboldened euro bulls who now see the [...]
The long-anticipated reversal on the price of crude oil may finally be on the horizon, given the latest developments on the price action of the commodity. However, right off the gate, it should be stated that the ongoing energy crisis continues to be the biggest determinant of the heightened demand for gas, which has a spillover effect over crude oil as well.
That is why bears should be especially cautious [...]
The price action of the GBPUSD has been establishing a major bullish pullback over the last couple of weeks on the unusual dollar weakness that was observed over the same period. It was triggered by a mixture of various contributing factors, including the stagnating pace of global recovery and a resurgence of demand for higher-yield assets. This trend can now be challenged by shifting market sentiments. [...]
The price of gold is currently probing the psychologically significant resistance level at 1800.00, which might prove to be an impregnable obstacle, at least for the time being. There is a confluence of mounting bearish indications, all pointing to a likely upcoming reversal from this threshold, which means bears can try to implement contrarian trading strategies. [...]
The Nasdaq composite index completed a major 1-5 impulse wave pattern recently, as postulated by the Elliott Wave Theory. It was then followed by a corrective ABC structure, which implies the completion of a major cycle. Since the price action very possibly finds itself in the early stages of a new major cycle, this could present traders with the opportunity to enter early into the development of a new trend. [...]
The price action of the GBPJPY pair generated a remarkable, bullish trend over the last couple of weeks, as the pound gained ground against most of the other major currencies. As has already been stated on multiple occasions, part of the reason for the nearly vertical rally is the global energy crisis, which has prompted heightened investors' demand for lower-risk securities. [...]
The greenback has been on the retreat since last week as the global economy got embroiled in a new energy crisis. It began with the petrol shortages in Britain before growing into an international geopolitical crisis. These developments stymied the rally of the dollar from beforehand, which was inspired by robust industrial numbers.
Nevertheless, weaker-than-expected employment data for September contributed [..]
The price of crude oil has rallied considerably over the last several months as global energy demand increased materially. Part of the reason is the slightly more hawkish rhetoric implemented by some of the most prominent central banks, which alludes to the progress that has been achieved so far in overcoming the economic crunch from last year.
There have also been other more recent contributing factors [...]
The price action of gold appears to be consolidating within the boundaries of a narrow range in the short term, even though bearish pressure continues to be increasing slowly but steadily. This could create a favourable setup for implementing trend continuation strategies by bears looking to sell the peak; however, such a scenario would be subject to several key developments.
The most significant [...]
The GBPUSD is developing a new bearish trend, which will likely continue evolving over the next weeks and months. Selling pressure started accumulating over the last few weeks, and following the completion of a minor bullish pullback, the price action looks ready to resume heading lower.
One of the most substantial reasons as to why this is the case is that, as it is about to be seen, the new downtrend [...]
The price action of the GBPBJPY is currently probing a major support level that has been prevalent over the last few months. It serves as the lower limit of a broad Distribution range, as postulated by the Wyckoff Cycle theory. Hence, if the price action manages to penetrate below it decisively, this would likely mark the beginning of a new downtrend that is likely to develop over the next several months. [...]
Despite the solid global recovery, demand for crude oil is likely to wane by the end of the year. In turn, this transformative change in the commodity's underlying supply and demand dynamic is likely to drive its price below $50 per barrel over the same period.
Part of the reason for the current rally is owing to the persisting conformity of OPEC members under the organisation's Declaration of Cooperation [...]