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Technical analysis of ETH/USD for Sept 16, 2019
Crypto Industry News:
The head of the non-profit organization behind the digital currency Libra said the company is committed to launching it and removing regulatory obstacles.
Bertrand Perez, CEO of the Libra Association said the token should appear in the second half of 2020.
Comments appeared on the day when the French minister of economy and finance said that the country would refuse Libra to operate within its borders. Concerns about financial stability fueled dislike, and Bruno Le Maire suggested that he wanted the European Union to adopt a hostile position on Libra.
According to Perez, Facebook does not want to create new money resources using a token. He used the comparison to BlackRock, the largest asset management company in the world, saying that the social media giant does not want to compete in this market.
“We don’t want to become a new BlackRock. Therefore, concerns about the destabilizing effect of our reserve currency on the central bank fiduciary currencies – which are in our basket – seem unfounded,” said Perez.
Perez also confirmed that Libra will be associated with selected major international currencies, but not with Chinese yuan.
Technical Market Overview:
The ETH/USD pair keeps rallying higher and the last local high was made at the level of $194.72. The next target for bulls is seen at the level of $196.76, which is a swing high. The momentum is increasing as well, so the rally might continue even higher, just as Elliott Wave theory scenario proposed last week. The low for the wave Z of the wave 2 of the higher degree is in place at the level of $162.78 already, so now the market might continue with the impulsive wave 3 to the upside. The nearest technical support is seen at the level of $186.70.
Weekly Pivot Points:
WR3 – $212.96
WR2 – $200.24
WR1 – $196.12
Weekly Pivot – $184.92
WS1 – $179.10
WS2 – $168.22
WS3 – $163.07
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 being treated as a correction inside of the uptrend. The current cycle is wave 2 of the lower wave 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 $202.59 and $238.68 to confirm the resumption of the uptrend.
The material has been provided by InstaForex Company – www.instaforex.com
