Technical analysis of ETH/USD for 09/09/2019

Crypto Industry News:

A top official from the Chinese central bank has confirmed that the upcoming national digital currency will be similar to the Libra token.

Mu Changchun - deputy director of the Payments Department of the Chinese People's Bank (PBoC) - said that China's digital currency will be supported on major electronic payment platforms such as WeChat Tencata and supported by Alibaba Alipay.

Tokens will be guaranteed by the central bank, and thus as secure as banknotes issued by PBoC, in addition, they can be used without an Internet connection to ensure the continuation of the transaction even in the event of communication network failure.

Speaking about the country's motivations for the introduction of digital currency, Mu argued that the coin would help protect the sovereignty of China's foreign currencies, even if the numerous commercial uses of digital currencies gain popularity:

"Why does the central bank continue to use such digital currency, since today's electronic payment methods are so developed? This is to protect our monetary sovereignty and the legal status of the currency. We must plan ahead for a rainy day," he said.

As noticed by Mu, the upcoming national digital currency will seek to provide anonymous payments while preventing money laundering. He explained that although the payment-focused currency will have a similarity to Libra, it will not be a direct copy.

Technical Market Overview:

The ETH/USD pair has broken through the descending trendline around the level of $177.07 and made a new local high at the level of $183.43. Currently, the market is testing the trendline from above, hovering around the technical support located at the level of $175.00. In order to regain control of the market, the bulls will have to make a new local high again and head towards the level of $193.52 in an impulsive fashion, otherwise, the bears might push the prices lower towards the support at $172 and $164.81 again.

Weekly Pivot Points:

WR3 - $207.64

WR2 - $195.13

WR1 - $188.15

Weekly Pivot - $176.09

WS1 - $169.04

WS2 - $156.97

WS3 - $149.69

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the lower wave degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $202.59 and $238.68 to confirm the resumption of the uptrend.

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