05.11.201908:39 Forex Analysis & Reviews: Technical analysis of ETH/USD for 05/11/2019

Crypto Industry News:

The British Tax, Payment and Customs Authority, Her Majesty's Revenue and Customs (HMRC), has updated its guidelines for taxing cryptocurrencies for businesses and individuals. The UK government tax agency, which manages taxes along with other financial policies, has issued tax guidance updates that further clarify its position on the taxation of businesses and individuals associated with cryptocurrencies.

The guidelines present HMRC's views on cryptocurrency transactions that apply taxes, how to submit tax returns and accounting practices. It also considers the taxation of exchange tokens, while stating that the rules for utility or security tokens will be added in the future.

Companies that buy or sell tokens, extract or exchange them for other assets, or provide goods or services in exchange for tokens are required to pay one or more different types of taxes. These taxes include income tax, corporate income tax, capital gains tax, tax and social security contributions.

The tax authority has explicitly stated that it does not consider any of the current types of cryptocurrencies as money or currency.

HMRC also recognized that the cryptocurrency sector is a rapidly changing sector, therefore it will analyze the facts of each case separately and apply the relevant tax regulations in line with what actually happened instead of relying solely on theory.

Previously, HMRC considered cryptocurrency trading to be the same as gambling. However, the latest update of the tax guidelines states that the agency no longer thinks so.

Technical Overview:

The ETH/USD pair is making lower highs, so the bearish pressure might be clear now and confirmed by the recent Pin Bar, Harami and Shooting Star candlestick patterns on the H4 timeframe chart. The market continues a corrective cycle with a low made at the level of $172.91, 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.