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Technical analysis of ETH/USD for Oct 16, 2019
Crypto Industry News:
The United Arab Emirates Securities and Commodity Office (SCA) has published draft regulations on cryptographic assets.
According to an official statement, SCA will collect public feedback on draft regulations by October 29 before submitting the final draft regulation on the industry.
The Authority noted that all parties involved in the cryptographic industry, including investors, brokers, financial analysts, researchers, the media and others, are invited to provide feedback on the document, adding that the proposals will be considered in the final regulation.
As noted in the statement, the project consists of 28 parts covering all aspects of the cryptographic asset industry in the United Arab Emirates, including token issuer requirements, security and trust policies, investor protection and anti-financial crime measures, information security controls, and management standards technology.
According to the authority, once regulations have been implemented, market participants will be able to ask SCA for guidance on specific parts of the industry and regulatory requirements through the electronic services system.
SCA had already announced plans to introduce ICO regulations in this country by the end of the first quarter of 2019. The office’s general director, Obad Al Zaabi, then noticed a significant need for ICO registration and licenses, and local media reported that SCA would work with the stock exchange securities in Abu Dhabi and the Dubai financial market to develop a platform for trading ICO tokens.
Technical Market Overview:
The ETH/USD pair has broken the lower boundary line of the parallel ascending channel and now is testing the level of $176.08. The downside momentum is slightly accelerating which is a not signal for bulls. The key technical resistance is still located at the level of $196.61 and only a clear and dynamic breakout higher will open the road towards the next target at $202.70 and $215.73. If there is no move up back to the channel, then the next target for bears is seen at the level of $163.98.
Weekly Pivot Points:
WR3 – $223.04
WR2 – $209.75
WR1 – $194.13
Weekly Pivot – $180.64
WS1 – $164.92
WS2 – $151.12
WS3 – $135.26
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
