Daily analytical report (10/10/18)

Alpari Market Review
Alpari Market Review


Tuesday might have been a crucial day for the EURUSD pair. Yesterday the price broke the lower line of the descending triangle, but this breakout was false and the price quickly came back above the support. In addition to that, we broke the upper line of this triangle. The only resistance left is the horizontal one on 1.151. If the price makes it there, it would additionally create an inverse head and shoulders pattern.

Next up is USDCAD, where we have two shooting stars in a row on the daily chart. Normally that should be a strong sell signal, but the thing is that we are not on a horizontal resistance, which makes the sell signal weaker. Moreover, we are on the long-term downwards trend line and inside of a bullish flag formation…

And lastly is bitcoin. The entire crypto market started Wednesday on the back foot, but it may get even worse soon. Bitcoin is on the lower line of the flag formation. A breakout is probable and could lead the price towards the lows at 5900 USD.

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