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Technical Analysis of ETH/USD for May 29, 2020
Crypto Industry News:
The Chinese People’s Bank (PBoC) explained that there is still no “schedule” for the official launch of the digital yuan. In an interview published on the central bank’s website, the president of PBoC, Yi Gang, was asked about the official date of the introduction of the central bank’s digital currency, to which he replied:
“These tests are routine digital research and development (R&D) work. No official release schedule has been disclosed.”
The pilot test referred to by Gang was carried out in the cities of Shenzhen, Suzhou, the new Xiongan area, Chengdu and the future site of the Winter Olympic Games.
Shortly after the publication of the interview, a local state-controlled media center published an article suggesting that China could accelerate the implementation of its CBDC to counter the potential financial threat from the United States and manage the financing of aid after the COVID-19 crisis.
According to Cao, the digital currency controlled by the central bank would allow the government to track aid money and make sure it reaches companies in need. As part of COVID-19 economic damage control, China is reportedly intending to raise its deficit to GDP ratio to more than 3.6% and propose a tax reduction of 2.5 trillion yuan ($ 353 billion) for businesses this year.
Technical Market Outlook:
The ETH/USD pair keep rallying towards the level of $225.84 which is the swing high. The momentum is strong and positive, so odds for the breakout are high. The target for bears is seen at the level of $235.42. On the other hand, any violation of the blue trend line will likely result in another wave down towards the levels of $193.78 and $188.86, so please keep an eye on current price developments around this levels .
Weekly Pivot Points:
WR3 – $234.40
WR2 – $228.76
WR1 – $216.85
Weekly Pivot – $204.00
WS1 – $192.21
WS2 – $178.64
WS3 – $166.85
Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.
The material has been provided by InstaForex Company – www.instaforex.com
