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Technical analysis of ETH/USD for 05/07/2019
Crypto Industry News:
Kuba is the newest country that is considering the use of cryptocurrency to circumvent US sanctions, the financial media reported quoting a government source.
In a public speech in the local television, the country’s president, Miguel Diaz-Canel, said the plan would raise capital for around a quarter of the population, helping pay for reforms. Kuba felt a strong domino effect caused by the crisis in Venezuela, which was previously the main source of help:
“We are investigating the potential use of cryptocurrency in our domestic and international commercial transactions and we are working on this together with scientists,” said Economy Minister Alejandro Gil Fernandez.
It is not clear whether Cuba will create its own cryptocurrency or want to use an existing public token, such as Bitcoin.
Venezuela developed its own state cryptocurrency last year, Petro. It was also designed to avoid sanctions, and its use to date has been limited due to the lack of international interest.
Technical Overview:
The ETH/USD pair broke through the local short-term trendline resistance around the level of $293 and made a new local high at the level of $302.50. This means the bounce momentum is getting stronger and soon the price might test the nearest technical resistance located at the level of $304.22. For now, the pair is locked in a narrow consolidation zone, but if this level is clearly violated, then the next target for bulls is the technical resistance at $324.09.
Weekly Pivot Points:
WR3 – $16,315
WR2 – $14,938
WR1 – $12,895
Weekly Pivot – $11,624
WS1 – $9,683
WS2 – $8,320
WS1 – $6,345
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree, which is a corrective wave and after is completed, the uptrend should resume.
The material has been provided by InstaForex Company – www.instaforex.com
