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Technical analysis of ETH/USD for Nov 8, 2019
Crypto Industry News:
The Hong Kong Monetary Authority (HKMA) has revealed that it is researching applications for the digital currency of the Central Bank (CBDC). Ejinsight informed EJinsight about the news announced during Fintech Week in Hong Kong. HKMA is expected to publish a major report on its findings in the first quarter of 2020.
HKMA has just revealed that it has signed Blockchain’s cooperation with its subsidiary Institute of Digital Currency at the People’s Bank of China (PBoC) – an institution that many expect to be the first to launch CBDC in the world.
During the event, Edmond Lau – HKMA’s senior executive director – gave insight into the bank’s ongoing CBDC research, which is rumored to have been conducted under the auspices of the LionRock Project since 2017.
The project is run jointly with Hong Kong Interbank Clearing Ltd. and three more banks, as well as the Blockchain R3 consortium. It includes token-based CBDC concept analysis, Blockchain debt security issue testing, CBDC potential assessment of payment systems, and exploring a possible two-tier issue model that would allow companies to store and use CBDC tokens as sponsored participants of their banks.
HKMA is reportedly focused on the potential use of CBDC in financial institutions, and not for retail clients – with a particular interest in domestic interbank payments, wholesale corporate payments and its potential for delivery versus payments for debt securities settlement. Retail users already have universal access to digital mobile payment services.
In May, HKMA also signed a Memorandum of Understanding with the Bank of Thailand to conduct a joint research project on the use of CBDC for cross-border payments and inter-country Payment versus Payment services between countries.
Technical Overview:
The failed rally towards the technical resistance zone located between the levels of $193.52 – $196.61 on the ETH/USD market resulted in Bearish Engulfing candlestick pattern. The market continues a corrective cycle with a low made at the level of $183.41, but as long as ETH/USD trades above the level of $163.11 there is still a chance for another impulsive wave up. The nearest technical resistance is seen at the level of $193.52 and the nearest technical support is seen at the level of $179.94. The key technical support is located at the level of $172.91.
Weekly Pivot Points:
WR3 – $203.38
WR2 – $197.53
WR1 – $186.87
Weekly Pivot – $181.92
WS1 – $171.26
WS2 – $165.71
WS3 – $155.07
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 still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
