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Daily Market Review 23rd of April, 2018

Main contemporary issue in the background:

The European currency was subjected to a large sale – Today, the OPEC meeting was held, at which it was suggested that the previous production strategy should be followed.

As OPEC chairman stated, OPEC countries and other oil exporters should keep production restrictions until the end of the year, since there is no target level for oil prices. He also noted that all oil exporters want to reach an agreement, the terms of which will always be fulfilled.

After that, US President Donald Trump on his twitter recorded that the price of oil artificially inflated, and this is unacceptable, which affected quotations that quickly went down, but then returned to their positions.

Today’s top impact announcements:

  • 1 – 20:30 (GMT), Canada – BOC Gov Poloz Speaks –  As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

BTC/USD:

Expected trend for today is bullish.

Bitcoin price succeeded to achieve our waited positive targets at 8643.35 followed by 9000.00, noticing that the price builds support base above the first level, to reinforce the chances of continuing the bullish trend in the upcoming sessions, especially that the EMA50 provides the positive support to the price, while stochastic shows clear oversold signals now.

Therefore, we are waiting for more rise on the intraday and short term basis, and the next target is located at 10748.00, while holding above 8643.35 and 8400.00 levels represents key condition to achieve the waited targets.

Expected trading range for today is between 8400.00 support and 9600.00 resistance.

USD/CHF:

Expected trend for today is bullish.

The USDCHF pair shows more bullish bias to reach the thresholds of the first waited target at 0.9790, as the price continues to move inside the bullish channel that appears on the chart, being aware that it is important to monitor the price when reaching the mentioned level, as breaching it will extend the bullish wave to target the previous recorded top at 0.9976 as a next station.

In general, we will continue to suggest the bullish trend in the upcoming sessions, supported by the EMA50, unless breaking 0.9675 level and holding below it.

Expected trading range for today is between 0.9700 support and 0.9830 resistance.

USD/JPY:

Expected trend for today is bullish.

The USDJPY pair continues to rise to reach the thresholds of the waited target at 107.98, getting continuous positive support by the EMA50, carried by the bullish trend that appears on the above chart.

Therefore, these factors encourage us to suggest extending the correctional bullish wave, noting that the next target reaches 109.00, while holding above 106.71 represents key condition to continue the expected rise.

Expected trading range for today is between 107.00 support and 108.80 resistance.

DAX Index:

Expected trend for today is bullish.

The German index rallied enough during the week to reach the 20 SMA, but then pulled back on the weekly chart to form a bit of a shooting star. If you can break down below the bottom of the shooting star, the market probably goes lower, but we think it will be a bit to find support and value more than anything else.

We don’t necessarily want to short this market, I think that pullbacks give me an opportunity to take advantage of value. I believe that the €11,800 level underneath is the bottom of a major support level that extends from the €12,000 level. I think that pulling back from here should find plenty of buyers underneath to look for value. I believe that if we can break above the top of the shooting star for the week, and more importantly the €12,750 level, the market will then go to the €13,500 level.

I like the DAX in general, but I recognize we may have to build a bit of momentum in this area after building a bit of a floor to go higher.

If we were to break down below the €11,800 level, the market could unwind towards the €11,000 level, perhaps even lower than that. However, I believe that the upward proclivity this market should continue, and I think that we will continue to see DAX as a good way to play risk appetite in general. If we can stay at a trouble geopolitically, I think that the DAX will find buyers.

We wish you successful trading!