29.10.201908:27 Forex Analysis & Reviews: Technical analysis of ETH/USD for 29/10/2019

Crypto Industry News:

China is considering using Blockchain and Artificial Intelligence (AI) for cross-border financing, according to financial media.

Lu Lei, deputy head of the Chinese regulatory body of the State Currency Exchange Administration (SAFE), reportedly said that there are plans to use Blockchain and AI in cross-border financing, with particular emphasis on risk management applications. Lei noted that SAFE promotes the use of fintech and AI in international finance and macro-prudential management.

His pursuit of innovation is in line with the comments of Chinese President Xi Jinping, who recently urged the country to accelerate the introduction of Blockchain technology as the basis for innovation. Lei also emphasized the importance of risk management:

"We must pay special attention to the rapid development of digital finance and fintech. [...] If we are not completely sure where the (new) form of activity is going, we must pay attention to risk management" - he said.

According to Lei, efficient financial infrastructure serves as the basis for risk management. He also promised to open Chinese capital markets, including bonds, and consolidate investment channels for foreign investors.

Technical Market Overview:

The bullish rally on the ETH/USD pair has been capped at the level of $196.61 and a big Shooting Star candlestick pattern was made. The market has entedt a corrective cycle with a low made at the level of $172.91 and as long as it 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 $188.93 and the nearest technical support is seen at the level of 4179.94.

Weekly Pivot Points:

WR3 - $249.74

WR2 - $225.62

WR1 - $207.85

Weekly Pivot - $177.85

WS1 - $161.54

WS2 - $131.99

WS3 - $115.01

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.