USDCAD is into former resistance at 1.2590. The line that crosses lows since 7/30 is about 1.2575. If a bounce were to materialize from the current level then the 61.8% retrace of the decline would be 1.2807…the exact same level as the 7/19 high. Bottom line, I’m looking for a bounce now.
GBPUSD hasn’t quite reached 1.4000 (high today was 1.3982) but the upper parallel was reached. I am on reversal watch in Cable right now…especially given bearish seasonal tendencies over the next few weeks (see below).
7415 has been discussed in these pages for months. That level is now reinforced by the 20 day average and a short term trendline. Also, the rally from the low would consist of 2 equal legs at .7427. If a strong downtrend is underway, then .7415/30 (or so) should provide resistance. The chart below shows price with a rolling 20 day midpoint. Notice how the 20 day midpoint acts as support or resistance during strong trends.
Short term waves suggest that crude has put in a lower high. Specifically, a 3 wave rally followed a 5 wave decline from a high. The implication is that another impulsive decline is underway. The March high at 68 is an initial level of interest on the downside. For context, the longer term chart is reproduced below.
EURUSD is in the exact opposite position as DXY. That is, the line that extends off of the September and March lows intersects the median line from the fork that originates at the January high. That intersection is about 1.1770. A break below there would be extremely bearish. The red parallel (25 line) is now resistance. That line is currently about 1.1950 about 6 pips per day.
NZDUSD went slightly through the median line (red line) but that line remains proposed resistance near .7020. Downside focus is the long held .6800 level (2 equal legs are at .6795).
Today’s move in USDOLLAR proves us correct in the assertion that action since the beginning of the year is a bullish base. The top side of the median line is now support near 11767. A pullback is possible from the center line of the channel from the yearly low. That line is near 11848. Strategically, either wait for a pullback to 11767 or a break above 11848 (median line) and then look to buy a pullback into 11848 (or so).
BTCUSD is still playing out in perfect Elliott form as price nears the noted zone of 42000-44000. The rally would consist of 2 equal legs at 42451 and the 38.2% retrace is 43963 (don’t forget about last week’s observation regarding 38.2% retraces in BTCUSD after plunges from record highs). Bottom line, we’re looking for the next high soon.
The demise of the dollar? Reserve currencies in the era of ‘going big’.
BITCOIN AND THE DEATH OF THE US DOLLAR.
Markets oscillate between extreme optimism and extreme pessimism. The above headlines suggest that the USD is at/near a bearish sentiment extreme…and therefore a price bottom.