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Technical analysis of ETH/USD for Aug 27, 2019
Crypto Industry News:
The Swiss Financial Market Surveillance Authority (FINMA) has issued guidelines on regulatory requirements for Blockchain payments under FINMA supervision.
The new guidelines for virtual asset service providers, published on August 26, apply to Blockchain service providers, including exchanges, portfolio providers and trading platforms.
In the preface to the FINMA guidelines, it observes compliance with the digital assets regulatory framework issued in June by the Intergovernmental Task Force on Financial Activities (FATF).
FINMA emphasizes that Blockchain sector companies cannot be exempted from the country’s regulatory standards such as the Anti-Money Laundering Act (AML). This is all the more important considering what the regulator perceives as increased risk, such as money laundering and terrorist financing, when it comes to pseudonymous Blockchain mechanisms.
Blockchain service providers are therefore required to carry out Know Your Customer (KYC) checks, apply a risk-based approach to monitor their business relationships, and notify the Swiss Money Laundering Office if they detect suspicious activities on their platforms.
The regulatory body emphasizes that its provisions should be interpreted in a technologically neutral way: therefore, the requirements for providing information on customers and beneficiaries along with payment orders apply to Blockchain payments in the same way as for bank transfers. However, such information does not have to be sent in the Blockchain but can be provided using other communication channels
Technical Market Overview:
The ETH/USD pair keep trading in a consolidation zone and might be developing a Triangle pattern. Currently, the market is trading between the technical support located at the level of $178.81 and technical resistance located at the level of $196.76. Despite the fact, that the whole WXYXZ corrective cycle might have been completed at the level of $172.82 on 15th of August, there is still no bullish momentum present on the market. The global investors should then await the breakout in either direction.
Weekly Pivot Points:
WR3 – $218.26
WR2 – $210.07
WR1 – $196.01
Weekly Pivot Pont – $185.93
WS1 – $171.02
WS2 – $161.63
WS3 – $146.97
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 and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.
The material has been provided by InstaForex Company – www.instaforex.com
