Bitcoin closes trap on bears

In our last analysis on Bitcoin I pointed out the bearish scenario in case price broke below $7,785. However I also pointed out that traders should be careful and keep a close eye on the RSI indicator. For a clear bearish signal we wanted not only the price to break support but the RSI to make a new low.


Red line - major resistance trend line

Black lines - bullish divergence

Green lines - sideways trading range

Bitcoin broke below support and moved as low as $7,250. However the RSI did not follow. This was a clear bullish divergence. We warned that something like this could happen and to be very careful. Price reversed sharply as BTCUSD is now trading near the upper trading range boundary which is important support. Was this fake break down a trap for bears? As long as price is below the red trend line resistance bears remain in control of the longer-term trend.

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USDJPY continues to consolidate, we remain bullish

USDJPY continues to move sideways above the break out level of 108.50. This consolidation is expected to be followed by a new move higher towards 109.50-110 at least over the next week.


Orange rectangle - support

USDJPY is in bullish trend. Price is above the cloud and above both the tenkan- and kijun-sen indicators. Price is also holding above the 108.50 area which was previously resistance and now support. Next support is at 107.70. As long as price is above 107.10 and the cloud we remain bullish expecting a move towards 110.

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EURUSD bulls need to react now or.....

EURUSD has moved below the 1.11 level and is testing important cloud support at 1.1070-1.1080 area as we said it would, if price broke 1.11. Bulls need to react now as the 1.1070-1.1080 area is the line in the sand for the bullish continuation.


Black line - support trend line

Price is trading below both the tenkan- and the kijun-sen. Short-term trend is neutral as price is inside the Kumo (cloud). Price is marginally above the upward sloping trend line support. Bulls need to step in now and push prices higher....Bears on the other hand in order to gain control of the trend they will need to continue pushing prices lower. Bears need to break and stay below 1.1070. Resistance is at 1.1115. Breaking above this level would be a bullish sign. Until then bears seem to have the upper hand, but they are still not in full control of the trend. Trading around 1.1080 has a good risk reward ratio for bulls taking into consideration of the possible upside. I will change my mind for the bullish scenario in case we close a day below 1.1070-1.1060.

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Gold reclaims key $1,500 level but daily candle gets rejected once again at major resistance

Gold price managed to move and stay above the key $1,500 level and exit the short-term bearish channel. However price has formed a Daily bearish reversal candlestick pattern after closing near the day open which was also near the lows.


Yellow rectangle - resistance

Green lines - bullish channel

Black line -RSI resistance trend line

Price has moved above the bullish channel. This is a bullish sign. However price has formed a bearish hammer daily candlestick. This is a bearish reversal signal. Combined with the fact that price got rejected once again at the resistance of $1,515-20 area and the RSI is still below the black downward sloping trend line resistance, makes me feel that another leg down could start from Monday. I remain bearish as long as price is below $1,525-30 area. Support is at $1,500-$1,490. Breaking below this level will confirm bears remain in control of the short-term trend.

The material has been provided by InstaForex Company -