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Technical Analysis – Charts of The Week

Trade Insights – XBT/USD – Bitcoin had a strong rally and appears to be overbought at this stage. Viable Short positions below the Resistance Zone at $66200 to $67320, targeting the Pivot at $58500 and then the Key Support level at $52810. Alternatively, possible long positions if prices retrace back to the Pivot on the chart at $58500 to first retest the current Resistance zone at $66200 and then next level of Fib Extension of $138.2% at $77000 mark and higher towards 161.8% at $83402.

Technical Analysis – Charts of The Week

XBT/USD

  • Resistance Zone: $66200 to $67320
  • Next Resistance: $77191
  • Major Pivot Point: $58500
  • Key Support Level: $52810
  • Support Zone: $48900 to $47900
  • Last Analysis Date: Blue Vertical Lines
  • 200 Day EMA – Green Line
  • 50 Day EMA – Red Line

Trade Insights – XBT/USD – Bitcoin had a strong rally and appears to be overbought at this stage. Viable Short positions below the Resistance Zone at $66200 to $67320, targeting the Pivot at $58500 and then the Key Support level at $52810.

Alternatively, possible long positions if prices retrace back to the Pivot on the chart at $58500 to first retest the current Resistance zone at $66200 and then next level of Fib Extension of $138.2% at $77000 mark and higher towards 161.8% at $83402.

XBT/USD Daily Chart

Chart Analysis:

Directional bias: 2 Weeks XBT/USD

The charts show that the pair is trading in unknown territory for the investors. The lack of reference for ceiling brings uncertainty and it is showing up in the chart already. The prices have retraced back from the peak of $67136 to just under $66000 now. Fibonacci extensions level of resistance for the Bulls after this is $138.2% that is $77000 price and the next level higher is at 161.8% at $83402.

The pair is trading significantly above the 50-Day EMA and the 200-day EMA lines indicating a full-blown Bullish control over the pair. Time will tell how long the Bulls will remain in charge, However, there could be some sort of retracement now as the prices are hovering just around 78.5% RSI i.e., well above the 70% overbought limit. If the prices start to drop from this point on then the Bears could first test the support at the Pivot of $58500 and then push towards the Key support level at $52810.

Fundamental Overview: The first-ever Bitcoin ETF – BITO (ProShares Bitcoin Strategy ETF) is now launched on the New York Stock Exchange on Monday this week. Retail investors showed immense interest and took the trading volume over $1 billion on its first day of trading. Since our last analysis on XBT/USD pair, the prices have been climbing up starting from $29388 to now at $67136. This is an over a 128% increase in the prices of Bitcoin.

AUD/CAD

  • Resistance Zone: 94.20 to 94.47
  • Major Pivot Point: 93.50
  • Key Support: 92.62
  • Support Zone: 91.90
  • Last Analysis Date: Blue Vertical Lines
  • 200 Day EMA – Green Line
  • 50 Day EMA – Red Line

Trade Insights – The AUD/CAD Chart shows Viable Long Positions above the Pivot of 92.62. First targeting Key resistance level at 93.50 and then next Resistance Zone at 94.20 to 94.47

Alternatively, possible Short Positions if the prices fail to push higher above the Pivot with the first target of Key Support at 91.90 and then with further weakness the test of Support Zone at 91.10 to 90.90.

 AUD/CAD Daily Chart

Chart Analysis: 

Directional bias: 2 Week AUD/CAD

Since our last analysis, the AUD/CAD pair has completed a full cycle of dropping back to Support Zone at 91.10 to 90.90 and has come back up to the Pivot at 92.62 now. Seems the support zone has served as an inflexion point again for the prices to consolidate and make a possible higher move towards the Resistance zone.

The Pivot at 92.62 is crucial and prices should remain above this level so that the uptrend that is brewing up can continue. However, it seems the pair is now trading in a horizontal parallel channel. Range bound between the Support and Resistance zone on the charts.

The prices have moved above the 50 Day EMA and now apparently heading toward the Key Resistance zone at 93.50 which also coincides with the 200 Day EMA level. Also, the prices have moved above the Down trend line drawn connecting the peaks of February and October. At 99.94 and 93.74 levels respectively. This indicates we might see a test of other the Resistance levels on the chart in the coming few weeks.

If this move higher is short-lived and the pair resumes its longer-term Downtrend, then the first level of support is at 91.90 and then at 91.10 to 90.90.

Fundamental Overview: AUD and CAD are both known as commodity currency and the role of Australia and Canada in Global commodity supplies like crude oil, natural gas and iron ore.  The movement in the Canadian and Australian economic events determine the exchange rates. Top of the line economic events include GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Australian Dollar or the Canadian Dollar, causing fluctuations in the AUD/CAD exchange rate.

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Disclaimer

The information provided is of a general nature and is not intended to be personalised financial advice. The information provided is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.

Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products may be considered as high risk. Please ensure that you understand the risks involved. A Product Disclosure Statement can be obtained here and should be considered before trading with us.

Vishal R

October 21, 2021

  • Reading time: 4 mins
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