Daily Market Reports | Amana Capital
In just a few days, EOS, the digital currency gained about 44% as the price soared from $8 to $11.55. EOS has in so doing once again overtaken Litecoin (LTC) and has now a market capitalization of 9.4 billion USD vs. Litecoin’s 8.5 billion.
One of the main reason behind EOS rise is positioning ahead of the launch of EOS’s “main net,” where the EOS token would serve a purpose to secure block production. Bitfinex also announced that they would manage all technical requirements for the users to ensure a smooth token registration process for those holding EOS on Bitfinex which helped the digital asset to gain.
Currently, because the price has risen strongly, I suspect that traders might be looking for a short pullback around $10.175 area before going long aiming for the January 24 high of $15.091 followed by the January 13 high of $18.679.
The trend will remain bullish as long as the price trades above the April 16 low of $7.848.
Since the beginning of 2018, the German DAX 30 index declined immensely and printed a high of 13,592 created on January 23, and a low of 11,692 on March 26. However, last week was a different story when the price breached the trend-defining resistance level at 12,472 and thereby allowing the price to drift higher towards the February 1 high of 13293, and potentially the January 23 high of 13,592.
Presently, the bullish momentum remains strong as we are trading slightly above the breakout level of 12,472. Drawing Fibonacci retracement levels from the March 26 low of 11,692 up to the April 18 high of 12,650, we can derive the 12,056 to 12,275 range (38.2% to 61.8% Fibonacci levels). And I suspect that bullish traders will be interested in entering long positions in this Fibonacci range, aiming for the February 1 high, followed by the January 23 high.
If the price breaks the 11,692 support level, the trend may turn bearish, and it might continue to slide towards last year’s February 8 low of 11,480 followed by December 15, 2016, low of 11,222.84.
The USD/CAD pair extends last week's bullish momentum on the heels of the softer than expected Canadian consumer price index (CPI), and Retail sales ex-auto.
In the short-term, USD/CAD might continue to trade higher, and the price looks to be heading towards the April 9 resistance at 1.2818. Breaching this trend-defining resistance will invalidate the existing bearish trend, and it might cause the USDCAD continue its climb and reach the next resistance level and likewise April 3 high of 1.2943, followed by the March 9 high of 1.3125.
However, if the April 9 resistance level managed to cap the price, then the trend will remain bearish, and the price might continue to slide towards the April 17 low of 1.2530, followed by February 16 low of 1.2447.
Watch today’s trading strategy video for our technical analysis outlook on EUR/USD, Bitcoin (BTC/USD), Crude oil (WTI), Gold prices (XAU/USD), and DAX 30.
In today's video:
- The EURUSD is under pressure, and the price is challenging the important March 3 low of 1.2155 on broad-based Dollar strength.
- Bitcoin prices have stalled near the March 21 high of $9209.
- Crude oil prices look to continue their corrective phase, but as long as the price trades above the March 17 low of $65.49 the trend will remain bullish.
- Gold prices are under pressure, and the price is might reach the important 1302-1321 range in the next few days.
- The DAX 30 is capped by the April 18 high of $12652.
Watch the video for all the details.
The Dollar index has risen sharply over the last few hours, but more work is needed to be able to call off the stalemate between bulls and bears.
Over the last two and half months, the DXY has been trading sideways between the February low of 88.26 and the February 28 high of 90.97. The price started to eventually create higher and higher lows, causing the range to narrow. Thus the market is now focusing on the March 17 low of 89.21, and the February 28 high of 90.97.
On a break to the March 17 low, it would be fair to assume that the overall bearish trend in the dollar index has resumed, and it would not surprise me if traders target the December 16, 2014 low of 87.65, followed by the 86.78 level. On the other hand, a break to the February 28 high would probably mark the end of the bearish trend in the Dollar and trigger the start of a bullish trend. On this happening, the Dollar index might rise to the January 9 high of 92.66.
Stellar Lumens (XLM), placed as the 8th largest cryptocurrency in the market, has been performing extremely good over the past few days alongside other digital currencies. The recent bullish movement of Stellar Lumens and other cryptos are not exclusively due to market sentiment as some factors including major partnership announcements, finishing roadmaps, technology enhancements, and with Stellar Lumens; getting listed in two more exchanges (Coindirect and popular Asian exchange Buybit) is supporting their prices.
With the recent move in Stellar’s price, it looks like it is going to break the trend-defining resistance level at $0.400 created on March 5. Breaching this resistance level might turn the trend bullish, and I suspect that traders might view this as an opportunity to long Stellar Lumens aiming for the February 17 high of $0.483 followed by the January 26 high of $0.653.
In case the $0.400 resistance holds, the trend will remain bearish, and I suspect that the price might roll over, and traders will aim towards the April 9 low of $0.190.