After breaking important support levels at 281.80, Ethereum has established a strongly bearish downtrend which has developed in a highly orderly fashion.  Crypto markets have grown increasingly volatile, and this should signal warnings for newer investors.  Initially signaled by a lower high at 317.90, prices quickly violated the 50-period EMA on the daily charts and this created extreme selling pressure which sent valuations through double-bottom support at 227.30 and through the 200-day EMA in the process.

ETH/USD - Sell Bounce From Spike Lows

On the shorter-term charts, it might appear as though a nice recovery is in play (given the strong bounce from spike lows at 202.80).  However, the damage has clearly been done from the daily perspective -- and this creates a dominantly bearish bias for Ethereum. Indicator readings in the MACD have turned negative in these latest declines and this added confirmation suggests that any further rallies in ETH will be limited. 

Traders can consider establishing SELL positions in ETH/USD near current levels (231.90). Stop losses can be placed above 238.50 which is above the recovery highs (at a level which provides favorable risk/reward scenarios). Profit targets can be set just above 205, which will allow for a retest of the prior spike lows in ETH/USD.  

AAPL - Buy 205 Breakout

Apple, Inc. (AAPL) has found itself in a strong uptrend since the beginning of June and this could continue this week if we see a strong earnings report from Microsoft, Inc. (MSFT).  The latter company has developed an impressive streak of earnings beats over the last several quarters and if this happens again we will likely see another surge higher in the tech mega-caps.  Recently, Apple completed its best winning streak in 19 years and this shows momentum is clearly focused on the upside for the stock.

Recent break of strong resistance at 205 suggests this rally has further to run and a rising indicator condition in the MACD supports this assertion.  Stop losses can be placed below prior support at 198.60, which also coincides with the 50-period EMA on the hourly charts.

Partial profit targets can be set at the prior highs near 215.50 (half position), and traders should then consider moving stop losses to break even on the remainder of the position.  Consider closing the position (and reassess conditions) as prices approach 218.80.

GBP/CHF - Reversal Prospects Are Building

The GBP/CHF has been under intense selling pressure since the beginning of May.  However, slowing downside momentum and tremendously oversold conditions suggest that a reversal in this currency pair could be imminent.  

These two currencies are also mirror-opposites from an interest rate perspective.  Currently, the CHF is associated with a negative rate condition (-0.75%) while the GBP remains the beneficiary of positive interest rates (at +0.75%).  As a carry trade, longs capture this supportive interest rate differential (+1.50%) while bullish positions are held. This guaranteed gain can then be added to any upside that we see in the underlying exchange rate.

Buy positions in GBP/CHF can be established at the current levels of 1.2320.  Upside targets rest just below 1.25. Stop losses can be placed below 1.2250, which is the spike low from the beginning of January.  Traders should also consider moving stop losses to break-even on an approach to 1.24. Longer-term, the GBP/CHF is likely to remain one of my favorite long trades in the forex markets over the next few months.