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How to use Bullish and Bearish Counterattack Candlestick Patterns

Reversal indicators are plenty when it comes to technical analysis and candlestick patterns. For example, the counterattack candlestick pattern is a trend reversal indicator that many traders employ to enter a positioning trade.

What are Counterattack Candlestick Patterns?
This trend reversal candlestick pattern, also known as the counterattack lines candlestick pattern, consists of two candlesticks moving in opposite directions. It can occur during an uptrend or a decline and is valuable for identifying trend reversals. The indication is regarded as a bullish counterattack pattern when it appears during a decline. Conversely, the indicator is known as a bearish counterattack pattern during an uptrend.

How to Interpret Counterattack Candlestick Patterns?
When you see the pattern in action, it becomes much easier to comprehend its meaning. For example, the bullish counterattack pattern can be seen here.

Screenshot-1.png


Take a look at this illustration. The bullish candle is colored white, while the bearish candle is colored black. The prices are clearly on the decline in this graph. Bears have a firm grasp on the market and have constantly lower prices. This is demonstrated with the first black-colored candle. The white candle produces a ‘gap down’ in response to the trend’s significant selling pressure and continues to decline until it reaches the session’s lowest point. However, the bears lose pace at this point, and the bulls flood the market, lifting the price dramatically. Thanks to the bulls ‘ robust demand, the session closes positively at about the previous day’s closing point.

Screenshot-2.png


The prices are on an upswing in this candlestick chart. The bulls are a powerful force in the market, continually driving prices higher. The white-colored candle string demonstrates this. Due to the tremendous demand, the first black candle opens with a ‘gap up,’ implying that the price will continue to rise. However, the bulls lose steam at this point, allowing bears to enter.

Screenshot-3.png


The sellers then flood the market, driving the price down dramatically. The session closes unfavorably at about the point of the previous day’s closing due to the bears’ heavy selling push.

How to use Counterattack Candlestick Patterns?
It’s one thing to notice the trend. However, using the detected pattern to enter a trade is different. As a result, before you embark on a trade based on the counterattack lines candlestick pattern, bear the following points in mind.

> To begin, keep an eye out for a strong trend. It could be either a bullish or bearish trend.
> Once you’ve determined the trend, look for a candle that opens with either a ‘gap up’ or a ‘gap down.’ The apertures should follow the current fashion.
> Pay attention to how this candle moves. The movement of the candle should be in the opposite direction of the current trend.
> Once that condition is met, make sure the candle in the middle is moving.

If all of the preceding conditions are met, a pattern can be dubbed a counterattack lines candlestick.

> Once the pattern has been correctly spotted, it is best to wait for a confirmation candle before entering a trade. For example, in the case of a bullish counterattack pattern, you should only consider entering a trade if the candle that emerges after the pattern is also bullish. On the other hand, the bullish reversal is considered to have failed.

Notice how a bearish candle follows the bearish counterattack candlestick pattern? This candle verifies the trend reversal and should be used to enter the market.

Bottom-line
Because the counterattack lines candlestick pattern is so specialized and uncommon, it’s best to pair it with other technical indicators before making a trade choice. This way, the odds of your trade taking an unexpected turn are reduced.

We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.​


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SOLIDECN

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(RSI) Range Shift- A Simple but Effective Trading Strategy​

The Relative Strength Index (RSI) is the most popular technical indicator among traders worldwide. It was created in the 1970s by Wells Wilder. In his 1978 book New Concepts in Technical Trading Systems, Mr Wilder advised that the indicator’s default setting be 14 days (half-moon cycle). The RSI is commonly used to determine overbought and oversold levels. Divergence, Reversal, and Failure Swing are other terms associated with using RSI. However, Andrew Cardwell, commonly known as Dr RSI, discovered the Range Shift idea. Furthermore, he found that the RSI indicator may be applied to trending and non-trending markets.

Screenshot-4.png

What is the RSI Range Shift concept?​

RSI Range Shift is a phenomenon that occurs when the RSI indicator ‘shifts’ from one specified range to another in response to changes in the price movement of an underlying asset. There are five different types of RSI ranges.​
  • Super Bullish Range-60-80​
  • Bullish Range-40-80​
  • Bearish Range-20-60​
  • Super Bearish Range-20-40​
  • Sideways Range-40-60​

Trading Examples​

1. Super Bullish Range
In this situation, the RSI refuses to fall below 60 and seeks support near 60. RSI tends to swing between 60 and 80 during this highly bullish era. Consider the following Reliance example.

Screenshot-5.png


2. Bullish Range
When a stock is rising, the RSI will not fall below 40. Instead, it looks for help around the level of 40. For example, see the Lupin chart below, where the RSI refused to move below 40 and fluctuated between 40 and 80.

Screenshot-6.png


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Solid ECN Market Analysis

USDCHF, H4

On the four-hour chart, the Three "bearish" steps downwards trend continuation pattern is formed, which signals increasing sales. However, the asset has also formed the Doji rickshaw model. This figure means that the forces of "bulls" and "bears" are equal at the moment, but its appearance in a local base can mean both a reversal of quotes up and a continuation of the downward movement. In the current situation, the decrease to the support level of 0.9538 seems more likely, which breakdown will allow sellers to move into the range of 0.9410–0.9167. An alternative option is possible after the price breaks the upper border of the trend channel and the resistance level of 0.9667 with the growth target at 0.9828–1.0032.

usdchf-1.png


USDCHF, D1
On the daily chart, at 0.9828, Shooting star and Hanging man reversal patterns are forming, from where the asset rushed down. Also, a series of Three "bearish" steps candlestick analysis patterns have formed, which are models for the continuation of a downtrend. Probably, the asset is trying to test the key support level of 0.9538, and if the "bulls" fail to hold it, then the movement will continue to the area of 0.9410–0.9167.

Support levels: 0.9538, 0.941, 0.9167 | Resistance levels: 0.9667, 0.9828, 1.0032

usdchf-2.png


 

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BTCUSD - Predicted US Fed rate hike pushes prices downwards​

It is expected that the financial authorities will once again adjust the interest rate indicator by 75 or even 100 basis points to combat record inflation. Traders will be watching for comments from the head of the regulator, Jerome Powell. If they turn out to be "hawkish" and the official confirms the need for further significant tightening of monetary parameters, the US dollar will receive an additional driver for growth.

In turn, the general pressure on the cryptocurrency market and BTC continues to be exerted by the problems of technology companies focused on digital assets. In particular, last week, it became known that the SkyBridge Capital hedge fund was temporarily suspending payments on investment shares. The American cryptocurrency exchange Blockchain.com announced the dismissal of 25% of its employees due to a difficult market situation. Marketplace Gemini, whose management has already gone on a cut of 10% of the staff, intends to fire another 7% of specialists to reduce costs.

In general, BTC has slightly strengthened its position since mid-July, but quotations' growth does not look sufficient to break the long-term downtrend.

btc.png


The cryptocurrency price is close to the middle line of Bollinger bands, around 21500. If it is broken down, the decline may continue to 18750 (the bottom line of Bollinger bands), and 16900. The key "bullish" level is 25000, the breakdown of which will allow the quotes of the trading instrument to grow to the area of 28125, and 31250. Technical indicators do not give a single signal. Bollinger bands reverse upwards, the MACD histogram is near the zero line, its volumes are insignificant, and Stochastic is pointing downwards.

Resistance levels: 25000, 28125, 31250 | Support levels: 21500, 18750, 16900​


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What is Moving Average Convergence Divergence?​

One of the most often used technical analysis indicators is moving average convergence divergence. It’s a trend-following momentum indicator, which means it looks at the momentum of an asset to see whether it’s trending up or down. It may be used to generate trade signals and discover trading opportunities. The Moving Average Convergence Divergence indicator is shown in a separate window beneath the chart. It has the appearance of a histogram with an auxiliary line.

The divergence of two moving averages is depicted in the histogram. The histogram bars increase longer as one travels away from the other; the bars get shorter as the moving averages get closer. Rapid movements will show up as long bars in the MACD histogram, whereas flat will show up as short bars. The default values for the indicator are 12,26,9. However, it’s worth noting that many traders confuse the indicator’s two lines with simple moving averages.

elementry-1.png


Remember that the lines are exponential moving averages, which will react more strongly to recent price movement than a standard moving average (SMA). Thus, the MACD lines are represented as 12-period EMA and 26-period EMA.

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XRPUSD - Murrey analysis​

The XRPUSD pair continues to trade within a long-term downtrend. However, in early June, the quotes formed a sideways range of 0.293–0.366, which they still cannot leave. Last week, the cryptocurrency again tested its upper limit but failed to break through higher and began to decline. At present, the price of the asset has consolidated below 0.3418, supported by the middle line of Bollinger bands, which gives the prospect of further decline to 0.2930. In case of a repeated breakout of 0.3418, the price will return to the area of 0.3662. In general, movement is predicted within the formed sideways range since there are no serious drivers for a trend change in the market.

xrp.png


Technical indicators show opposite signals, confirming the uncertainty of the market: Bollinger bands are directed upwards, Stochastic reversed downwards, and the MACD histogram is near the zero line. Its volumes are insignificant.

Resistance levels: 0.3418, 0.366, 0.39 | Support levels: 0.3174, 0.293

 

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Solid ECN - Account Types​

Solid ECN gives multiple account types on the MetaTrader 5 trading platform to help individuals and corporate customers to exchange Forex and Derivatives online.

All Retail, associates, and White-Label clients have the possibility to access various spreads and liquidity via state-of-the-art automatic trading platforms. Solid ECN grants an exceptional type of account options that clients can choose to experience a tailored trading experience that perfectly fills their needs.

United with excellent trading conditions and lightning-fast execution, Solid ECN provides all the tools and aids required for clients of any level to accomplish their trading goals.

Whether you’re a casual trader or experienced investor, Solid ECN offers an extensive range of account options. Through our true ECN accounts, we’re able to deliver spreads from 0 pips and millisecond execution against best bid / ask prices—all with world-class customer service.

Min Deposit​
Max Leverage​
Min Spread​
Fee​
Micro​
$5​
1:1000​
2 pips​
No​
Standard​
$10​
1:1000​
0.3 pips​
No​
Swap Free​
$10​
1:1000​
0.3 pips​
No​
ECN​
$10​
1:1000​
0​
$3​
 

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Solid ECN Trading Products​

A professional method to secure assets reasonably is diversified trading. Trading on limited numbers of instruments was never suggested by the market leaders and hedge funders. They always spread their investments among commodities, indices, and or currencies. Diversity is one of the many keys to having success in the trading world.

At Solid ECN, clients have access to trade the world with high leverage whilst the spread is tightened at its minimum. You can create your dealing basket to enjoy the product diversity with Solid ECN. We strive to offer our customers the most popular and trending products, and we made a live and long list of trading instruments.​
  • Forex (Major | Crosses | Minor)​
  • Precious Metals (Gold | Silver | Palladium | Platinum)​
  • Energy (Brent | WTI)​
  • Indices (spot)​
  • Nasdaq​
  • EPA (Adidas | British American Tobacco | BMW | Airbus and more …)​
  • Cryptocurrencies (Cardano | Algorand | BNB | Dogecoin | Ripple and more …)​


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$50 No Deposit Bonus​

Solid ECN offers its clients multiple trading benefits to stay at Solid ECN, starting with a $50 Trading Bonus. In other words, we give you $50 worth of credit (non-withdrawable) just for opening your first Real Account, allowing you to test our products and services by starting to trade with no initial deposit.

Who Can Claim it?​

This promotion is available to all traders opening a Solid ECN Real Account for the first time. This promotion is not available for the citizens of Indonesia, Russia, Uzbekistan, Tajikistan, Egypt, Iraq, Pakistan, Syria, Afghanistan, and Palestine.

There is a 5-day limit from the date of opening your account in which time you must claim the bonus before it is rendered unavailable.

How to Get the Trading Bonus?​

  • To claim the Bonus, you need to follow a few simple steps:​
  • Open a Real Account​
  • Log in to the Members Area using your credentials.​
  • Provide the relevant identification documents to validate your account (ID - Address - Valid cell phone number)​
  • Click the Create No Deposit Account button to Claim your Bonus​

 

SOLIDECN

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Top Growth Stocks for August 2022

These are the stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and generating more money that it can reinvest or return to shareholders. Companies with a quarterly EPS of more than 2,500% were excluded as outliers.
Top Growth Stocks by EPS Growth​
Price ($)​
Market Cap ($B)​
EPS Growth (%)​
Cleveland-Cliffs Inc. (CLF)​
16.48​
8.6​
2,040​
Ashland Global Holdings Inc. (ASH)​
103.18​
5.6​
1,940​
Marathon Oil Corp. (MRO)​
22.05​
15.6​
1,380​

Cleveland-Cliffs Inc: Cleveland-Cliffs is a major North American flat-rolled steel producer and supplier of iron ore pellets. The company also supplies stainless steel tubing and other products.

Ashland Global Holdings Inc: Ashland Global Holdings makes specialty materials for customers in markets including energy, automotive, construction, food and architectural coating. Ashland's Q2 FY 2022 ended March 31, 2022 and the company released an earnings report for the quarter on April 26. For that period, net income grew more than 19-fold as sales climbed more modestly year-over-year (YOY). Performance was driven by double-digit sales growth across each of Ashland's reportable segments.

Marathon Oil Corp: Marathon Oil is an independent energy company focused on the exploration and production of oil and gas. The company's operations are primarily located in Texas, North Dakota, Oklahoma, New Mexico, and Equatorial Guinea. On June 10, the company paid a quarterly dividend of 8 cents per share of common stock, constituting an increase of 15% over the previous base dividend.

 

SOLIDECN

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What Is a Margin Call?​

A margin call occurs when the value of an investor’s margin account falls below the broker’s required amount. An investor’s margin account contains securities bought with borrowed money (typically a combination of the investor’s own money and money borrowed from the investor’s broker). A margin call refers specifically to a broker’s demand that an investor deposit additional money or securities into the account so that it is brought up to the minimum value, known as the maintenance margin.

A margin call is usually an indicator that one or more of the securities held in the margin account has decreased in value. When a margin call occurs, the investor must choose to either deposit additional funds or marginable securities in the account or sell some of the assets held in their account.​
  • A margin call occurs when a margin account runs low on funds, usually because of a losing trade.​
  • Margin calls are demands for additional capital or securities to bring a margin account up to the minimum maintenance margin.​
  • Since short sales can only be made in margin accounts, margin calls can also occur when a stock goes up in price and losses start mounting in accounts that have sold the stock short.​

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SOLIDECN

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What Is Netting?​

Netting entails offsetting the value of multiple positions or payments due to be exchanged between two or more parties. It can be used to determine which party is owed remuneration in a multiparty agreement. Netting is a general concept that has a number of more specific uses, including in the financial markets.​
  • Netting offsets the value of multiple positions or payments due to be exchanged between two or more parties.​
  • Netting is used in a number of settings and instances—securities or currency trading, bankruptcy, and inter-company transactions, among others.​
  • Netting can involve more than two parties, called multilateral netting, and generally involves a central exchange or clearinghouse.​

How Netting Works​

Netting is a method of reducing risks in financial contracts by combining or aggregating multiple financial obligations to arrive at a net obligation amount. Netting is used to reduce settlement, credit, and other financial risks between two or more parties.

Netting is often used in trading, where an investor can offset a position in one security or currency with another position either in the same security or a different one. The goal of netting is to offset losses in one position with gains in another. For example, if an investor is short 40 shares of a security and long 100 shares of the same security, the position is net long 60 shares.​


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ASK (OFFER) PRICE​

The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Ask. The Ask price is also known as the Offer. In FX trading, the Ask represents the price at which a trader can buy the base currency, shown to the left in a currency pair. For example, in the quote USDCHF 1.4527/32, the base currency is USD, and the Ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs.

In CFD trading, the Ask also represents the price at which a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the Ask price is £111.16 for one unit of the underlying market.​


 

Ethelbert

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Aug 17, 2021
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I am a swing trader. I see your brokerage firm offers high leverage. Would you recommend I will be profitable with my current strategy with your firm, Ive been told swing traders should refrain from high leverage.
 
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Solid ECN

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Morning Market Review​



EURUSD
The European currency shows mixed trading dynamics, consolidating near 0.9960. Market activity remains low ahead of US Federal Reserve Chairman Jerome Powell's speech at the annual symposium in Jackson Hole. It is expected that the official may speak in favor of raising the interest rate in September by another 75 basis points (for the third time in a row), which will provide moderate short-term support to the US currency. Investors have no doubt that the regulator will continue a rather tight monetary policy, so the whole question is only in the pace of this tightening. Also, traders would like to hear updated forecasts regarding the prospects for economic growth. The global economy continues to show a steady downtrend, and the widespread increase in interest rates is only exacerbating the situation caused by rising energy prices. In particular, it became known that a number of large industrial enterprises in Europe (zinc and aluminum plants) were forced to temporarily close due to a sharp increase in electricity tariffs. In turn, the euro was moderately supported yesterday by optimistic macroeconomic statistics from Germany. The revised indicator of Gross Domestic Product (GDP) reflected the growth of the German economy in the second quarter by 0.1% (previously, zero dynamics were assumed), and excluding seasonal fluctuations, GDP in annual terms grew by 1.7% against the previous estimate of 1.4%. In turn, the index of Economic Expectations from the IFO in August fell by only 0.1 points to 80.3 points, while forecasts suggested a fall to 79.0 points.​


GBPUSD
The pound is trading with a downtrend, testing the level of 1.18 for a breakdown. The British currency slightly strengthened the day before, which, however, was caused only by technical factors, as well as expectations that the Bank of England will continue to tighten its monetary policy. The Governor of the regulator, Andrew Bailey, announced his readiness to adjust the interest rate to fight inflation, despite the fact that as early as the fourth quarter, the national economy could enter a recession, the risks of which increase against the backdrop of an intensifying energy crisis, which could turn into a full-fledged industrial one. Due to high prices, many enterprises are forced to reduce production rates or temporarily close, while with the onset of cold weather, conditions can worsen even more. The situation is aggravated by the uncertainty brought about by the forthcoming elections of the British Prime Minister scheduled for autumn.​


NZDUSD
The New Zealand dollar shows a moderate decline, correcting after an attempt to grow the day before, which led to a short-term update of local highs from August 19. The uptrend was not hindered by weak macroeconomic data from New Zealand, released yesterday. Retail Sales fell 2.3% in the second quarter, after falling 0.9% in the prior period, and Retail Sales excluding Autos fell 1.6% after falling 0.3% a quarter earlier. At the same time, the statistical picture from the USA turned out to be mixed. Revised annual data on Gross Domestic Product (GDP) in the second quarter showed a decline of 0.6%, which was significantly better than the previous estimate of –0.9%. At the same time, the Gross Domestic Product Price Index for the same period was revised upward from 8.9% to 9.0%, while the forecast was for a decrease to 8.7%. This means that inflationary risks in the country remain high, and therefore the US Federal Reserve may continue to tighten monetary policy at a record pace. The instrument is slightly supported today by the statistics from New Zealand: the ANZ Roy Morgan Consumer Confidence in August rose noticeably from 81.9 points to 85.4 points, which turned out to be better than the average analysts' expectations.​


USDJPY
The US dollar shows weak growth, consolidating above 136.8. The American currency is trying to win back the corrective losses incurred the day before; however, investors are in no hurry to open new positions ahead of the speech of US Federal Reserve Chairman Jerome Powell at the annual symposium of representatives of leading central banks in Jackson Hole. Moderate support for the yen today is provided by optimistic macroeconomic statistics from Japan. Tokyo Consumer Price Index in August accelerated from 2.5% to 2.9%, while analysts expected the same growth rates to be maintained. CPI excluding Fresh Food accelerated from 2.3% to 2.6%, 0.1% ahead of market forecasts. Excluding Food and Energy prices, the index rose from 1.2% to 1.4%, falling short of the expected 1.5%. Thus, the situation in a country accustomed to deflationary phenomena in the economy may soon change. Rising consumer prices potentially mean that the Bank of Japan may reduce the pace of stimulus, and in the longer term, even decide to raise interest rates.​


XAUUSD
Gold prices practically do not change, consolidating near 1755. The day before, the instrument made an attempt to grow, and the XAUUSD pair managed to update local highs from August 18, but failed to consolidate at new levels. Investors tend to stay out of the market until comments from US Federal Reserve Chairman Jerome Powell, who will give a speech at the annual symposium in Jackson Hole today. The official is expected to confirm a further increase in the interest rate by 75 basis points. If the pace of monetary tightening is reduced to 50 basis points, this may put short-term pressure on the positions of the US currency, and will also mean that the regulator is concerned about the risks of a recession in the national economy, which could provoke an increase in alarming sentiment across the entire spectrum of the market.

 

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Morning Market Review​


EURUSD
The European currency is falling, again testing the level of 0.9900 for a breakdown and returning to the previous local lows, updated at the beginning of last week. The euro is again under pressure from the rising dollar, which received an impetus to grow on Friday after the speech of the Chair of the US Federal Reserve, Jerome Powell. The official emphasized the regulator's resolute readiness to continue the policy of high interest rates, even if this leads to a slowdown in the national economy. Thus, the majority of analysts (approximately 75%) are again counting on a correction of the value by 75 basis points during the September meeting of the Fed. In turn, the euro reacts negatively to the prospects for the European economy in the face of a sharp rise in energy costs. Natural gas quotes are once again updating record highs, and electricity suppliers are warning consumers about higher prices for their services. In Germany, the basic electricity tariff for 2023 exceeded 800 euros per MWh, a new record high. In addition, the country is still experiencing a sharp drop in consumer confidence: the September Gfk Consumer Confidence index fell from –30.9 points to –36.5 points, while analysts had expected a decline to –31.8 points.


GBPUSD
The British pound is trading down, building on the "bearish" momentum that was formed last Friday. The GBP/USD pair is making new 40-year lows, testing 1.1650 for a breakdown, below which the instrument last traded in March 2020. The pound, like many other risky assets, is reacting to a noticeable strengthening of the US currency after the "hawkish" comments of the Chair of the US Federal Reserve, Jerome Powell, who spoke in favor of further raising interest rates at a record pace. The official urged to maintain a tight monetary policy, seeking to bring under control the high inflation rates that are still observed in the US economy. Thus, traders have revised their forecasts for the September meeting of the regulator: at the moment, most analysts expect a 75 basis point increase in interest rates, while earlier the chances of adjusting the value by 50 basis points and 75 basis points were estimated to be about the same. Meanwhile, the pound remains under pressure amid record inflation in the EU and the UK due to a sharp rise in energy prices. Ahead of the cold weather and the beginning of the heating season, politicians are trying to prepare their voters for an increase in tariffs for heat and electricity, which leads to a noticeable decrease in consumer activity and the level of confidence.


AUDUSD
The Australian dollar is noticeably declining, developing the downward momentum formed at the end of last week. The instrument showed active negative trend, having reacted to the speech of the Chair of the US Federal Reserve Jerome Powell at the annual symposium in Jackson Hole. As expected, the official advocated further tightening of monetary policy in order to control the inflation rate in the country. In addition, despite receiving the first evidence of some slowdown in consumer prices in the US, the Fed is clearly concerned about the current situation. This is an extremely negative signal for the entire global economy, as the overall picture is complicated by a further rise in energy prices and the onset of cold weather in the northern hemisphere. Today, the instrument practically does not react to the publication of optimistic macroeconomic statistics from Australia. Thus, Retail Sales in July increased by 1.3% after an increase of 0.2% a month earlier, although analysts' forecasts suggested a slight correction of the indicator by 0.3%.


USDJPY
The US dollar is actively adding in value during morning trading, testing the level of 138.80 for a breakout. The USD/JPY pair is approaching its previous record highs, updated in mid-July, while the US currency received a new impetus, reacting to the comments of US Federal Reserve Chairman Jerome Powell on the need to maintain a "hawkish" monetary policy. The official is convinced that raising interest rates will help bring record inflation under control, even if it means sacrificing economic growth. In turn, macroeconomic statistics from the US, published on Friday, put some pressure on the dollar. In particular, the Personal Income in July slowed down from 0.7% to 0.2%, which turned out to be noticeably worse than market expectations at the level of 0.6%, and Personal Spending decreased from 1.0% to 0.1%, with the forecast at 0.4%. Additional pressure on the position of the yen today is exerted by statistics from Japan: the Coincident Index in June fell from 99.0 points to 98.6 points, and the Leading Economic Index for the same period fell from 101.2 points to 100.9 points, while forecasts assumed a fall to 100.6 points.


XAUUSD
Gold prices are noticeably declining, developing a "bearish" trend of the end of last week. On Friday, the US dollar received a powerful impetus to growth, reacting to statements by the Chair of the US Federal Reserve, Jerome Powell, about the need to continue high interest rates. In fact, the official confirmed the possibility of an additional 75 basis points correction in the value, which would negatively affect non-interest bearing gold. Recall that the target inflation rate is still at 2.0%. In turn, in July, consumer price growth in the US slowed down somewhat and receded from the record high at around 9.1% to 8.5%, which is still well above the target levels.


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ETHUSD - Price increase may be temporary​

The ETHUSD pair started the current week with growth and regained some of the losses incurred after the statement of the head of the US Fed Jerome Powell on Friday. Against the background of confirmation of the regulator's determination to continue tightening monetary policy and keep interest rates high for a long time, the price of the cryptocurrency has adjusted to the area of 1423.2, but has now returned to the level of 1590.

The traditional support for the asset is provided by the expectation of the transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, which should significantly increase its throughput and create new opportunities for using smart contracts. According to the roadmap published by the Ethereum Foundation, the Bellatrix update is scheduled to be released on September 6 and will be the beginning of the process of merging the Ethereum and Ethereum 2.0 networks, which will be finally completed in the period from September 10 to September 20. Most experts are confident that switching to PoS will lead to an increase in the value of ETH, however, some believe that on the eve of this important event, the price will remain under pressure. For example, Bank of America analysts note that investors can switch to a wait-and-see position or temporarily start moving to other blockchains, such as BSC, Tron, Avalanche and Solana, in order to wait out technical instability, but so far this skepticism is not justified, and the price continues to rise.

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Technically, a short-term downward trend remains in the ETHUSD pair, as evidenced by the downward reversal of the Bollinger Bands and the stabilization of the MACD histogram in the negative zone. The key for the "bulls" is the level of 1750 (Murray [6/8]), supported by the middle line of the Bollinger Bands, the breakout of which will give the prospect of continued growth to the levels of 1895 (Fibo retracement 38.2%, Murray [7/8]), 2030 (the area of August highs). With a breakdown of the level of 1500 (Fibo retracement 23.6%, Murray [4/8]), the decline will be able to resume to the levels of 1375 (Murray [3/8]), 1250 (Murray [2/8]), 1125 (Murray [1/8]).

Resistance levels: 1750, 1895., 2030 | Support levels: 1500, 1375, 1250, 1125​


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