We review the most important levels across key financial instruments and the likely scenarios for price action.
Key topics
- Euro (EURUSD)
- British Pound (GBPUSD)
- Swiss Franc (USDCHF)
- Japanese Yen (USDJPY)
- Canadian Dollar (USDCAD)
- Australian Dollar (AUDUSD)
- Bitcoin (BTC)
- Ethereum (ETH)
- Apple Inc (AAPL)
- NVIDIA Corp (NVDA)
- Tesla Inc (TSLA)
- Summary
Euro (EURUSD)
The trend changed to bearish on the last closed candlestick when the support level (1.1584 — 1.1624) was broken. An impulse wave is developing. A sell entry point on a rebound may appear after a correction is formed.
The intermediate target for the downward movement is the support level with boundaries at 1.1443 — 1.1456. In case of successful trend development, a further target will be at the support level with boundaries at 1.1313 — 1.1348.
If the next correction ends near the resistance level (1.1645 — 1.1660), the potential reward/risk ratio could be more than 2:1. For the further target — about 4:1. If the correction ends near the last broken level (1.1584 — 1.1624), the potential reward/risk ratio could be around 1.2:1. When choosing the further target — approximately 2:1.
Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 1.1645 — 1.1660. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
EURUSD. Technical analysis. D1.
British Pound (GBPUSD)
The trend changed to bearish when the support level (1.3366 — 1.3427) was broken on the last closed candlestick. An impulse wave is developing. Sell entry points on a rebound on the daily timeframe may appear after a correction is formed.
The intermediate target for the downward movement is the support level with boundaries at 1.3302 — 1.3325. In case of successful trend development, a further target will be at the support level with boundaries at 1.3156 — 1.3196.
If the next correction ends near the resistance level (1.3466 — 1.3487), the potential reward/risk ratio could be approximately 1.6:1. For the further target — about 3:1. If the correction ends near the last broken level (1.3366 — 1.3427), the potential reward/risk ratio could be small (about 0.4:1). When choosing the further target — around 1.1:1.
Short positions will remain relevant as long as the market remains below the nearest resistance level of the daily timeframe with boundaries at 1.3466 — 1.3487. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
GBPUSD. Technical analysis. D1.
Swiss Franc (USDCHF)
The bullish trend continues, an impulse wave is developing. A buy entry point on a rebound may form after a correction is formed. The last broken level is the resistance (0.7871 — 0.7899). The breakout occurred 3 candlesticks ago.
Upon the resumption of the upward movement, the first target will be the resistance level with boundaries at 0.8010 — 0.8018.
If the correction ends near the support level (0.7794 — 0.7808), the potential reward/risk ratio could be around 3:1. However, if the correction ends near the last broken level (0.7871 — 0.7899), the potential reward/risk ratio could be insignificant (around 0.8:1).
Long positions will remain relevant as long as the market remains above the nearest support level of the daily timeframe with boundaries at 0.7794 — 0.7808. If the market successfully consolidates below this support, the trend will reverse to the opposite (bearish).
USDCHF. Technical analysis. D1.
Japanese Yen (USDJPY)
The bullish trend continues, an impulse wave is developing. A buy entry point on a rebound may form after a correction is formed. The last broken level is the resistance (157.68 — 157.89). The breakout occurred 17 candlesticks ago.
No relevant targets for the upward movement have been identified on the current timeframe.
Long positions will remain relevant as long as the market remains above the nearest support level with boundaries at 159.08 — 159.21. If the market successfully consolidates below this support, the trend will reverse to the opposite (bearish).
USDJPY. Technical analysis. D1.
Canadian Dollar (USDCAD)
The bullish trend continues, an impulse wave is developing. Buy entry points on a rebound on the daily timeframe may appear after a correction is formed. The last broken level is the resistance (1.3841 — 1.3869). The breakout occurred 3 candlesticks ago.
The intermediate target for the upward movement is the resistance level with boundaries at 1.3947 — 1.3949. In case of successful trend development, a further target will be at the resistance level with boundaries at 1.4108 — 1.4130.
The potential reward/risk ratio from current prices, when setting targets and defining risks based on the daily timeframe levels, could be small (about 0.1:1). When using a further target — also small (approximately 0.7:1). If the next correction ends near the support level (1.3768 — 1.3780), the potential reward/risk ratio could be approximately 2.3:1. For the further target — around 4.4:1. If the correction ends near the last broken level (1.3841 — 1.3869), the potential reward/risk ratio could be insignificant (about 0.6:1). When choosing the further target — around 1.6:1.
Long positions will remain relevant as long as the market stays above the nearest support level with boundaries at 1.3768 — 1.3780. If the market successfully consolidates below this nearest support, the trend will reverse to the opposite (bearish).
USDCAD. Technical analysis. D1.
Australian Dollar (AUDUSD)
The trend changed to bearish when the support level (0.7095 — 0.7137) was broken on the last closed candlestick. An impulse wave is developing. A sell entry point on a rebound may appear after a correction is formed.
The intermediate target for the downward movement is the support level with boundaries at 0.6983 — 0.7018. In case of successful trend development, a further target will be at the support level with boundaries at 0.6858 — 0.6890.
If the next correction ends near the resistance level (0.7184 — 0.7200), the potential reward/risk ratio could be approximately 2:1. For the further target — around 4:1. If the correction ends near the last broken level (0.7095 — 0.7137), the potential reward/risk ratio could be insignificant (about 0.6:1). When choosing the further target — approximately 1.5:1.
Short positions will remain relevant as long as the market remains below the nearest resistance level of the daily timeframe with boundaries at 0.7184 — 0.7200. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
AUDUSD. Technical analysis. D1.
Bitcoin (BTC)
The bearish trend continues, a correction ended 6 candlesticks ago, an impulse wave is developing. The last broken level is the support (74255 — 75488). The breakout occurred 9 candlesticks ago.
No relevant targets for the downward movement have been identified on the current timeframe.
Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 73755 — 74154. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
BTC. Technical analysis. D1.
Ethereum (ETH)
The bearish trend continues, an impulse wave is developing. A sell entry point on a rebound may form after a correction is formed. The last broken level is the support (1966 — 2008). The breakout occurred 4 candlesticks ago.
No relevant targets for the downward movement have been identified on the current timeframe.
Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 2019 — 2043. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
ETH. Technical analysis. D1.
Apple Inc (AAPL)
The bullish trend continues, a corrective wave is developing. A buy entry point on a rebound may form after the current correction is completed. The last broken level is the resistance (312.51 — 315.00). The breakout occurred 4 candlesticks ago.
Upon the resumption of the upward movement, the first target will be the resistance level with boundaries at 315.20 — 316.94.
The potential reward/risk ratio from current prices, when setting targets and defining risks based on the daily timeframe levels, could be insignificant (around 0.9:1). If the correction ends near the support level (305.02 — 306.31), the potential reward/risk ratio could be approximately 1.4:1.
Long positions will remain relevant as long as the market remains above the nearest support level with boundaries at 305.02 — 306.31. If the market successfully consolidates below this support, the trend will reverse to the opposite (bearish).
AAPL. Technical analysis. D1.
NVIDIA Corp (NVDA)
The bearish trend continues, an impulse wave is developing. A sell entry point on a rebound may appear after a correction is formed. The last broken level is the support (208.78 — 211.14). The breakout occurred on the last closed candlestick.
The intermediate target for the downward movement is the support level with boundaries at 194.74 — 196.50. In case of successful trend development, a further target will be at the support level with boundaries at 180.30 — 181.84.
If the next correction ends near the resistance level (227.18 — 232.28), the potential reward/risk ratio could be more than 2:1. For the further target — around 4:1. If the correction ends near the last broken level (208.78 — 211.14), the potential reward/risk ratio could be small (about 0.4:1). When choosing the further target — also small (approximately 0.9:1).
Short positions will remain relevant as long as the market stays below the nearest resistance level of the daily timeframe with boundaries at 227.18 — 232.28. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
NVDA. Technical analysis. D1.
Tesla Inc (TSLA)
The bearish trend continues, an impulse wave is developing. A sell entry point on a rebound may appear after a correction is formed. The last broken level is the support (413.65 — 415.88). The breakout occurred on the last closed candlestick.
The intermediate target for the downward movement is the support level with boundaries at 384.02 — 386.25. In case of successful trend development, a further target will be at the support level with boundaries at 337.25 — 343.15.
If the next correction ends near the resistance level (423.70 — 433.60), the potential reward/risk ratio could be approximately 2:1. For the further target — around 4:1. If the correction ends near the last broken level (413.65 — 415.88), the potential reward/risk ratio could be insignificant (around 0.8:1). When choosing the further target — approximately 2:1.
Short positions will remain relevant as long as the market stays below the nearest resistance level with boundaries at 423.70 — 433.60. If the market successfully consolidates above this nearest resistance, the trend will reverse to the opposite (bullish).
TSLA. Technical analysis. D1.
Summary
From the perspective of medium-term trading, the financial instruments with a correction close to completion on the Daily timeframe and/or potentially the most promising reward-to-risk ratio are: AAPL. Depending on the depth of the market correction, the following may soon be worthy of attention: NVDA.
The remaining financial instruments on the watchlist may also be of interest, but the conditions for a rebound on the daily timeframe in these markets will likely not appear earlier than in a week.