A BTC reversal could be on the way. We continue to reach our targets in the Bear Crypto market, and have been selling BTCUSD all the way down since November 28th. We have finally reached a draw on liquidity for BTC, and will be sitting on our hands to see if there will be a BTC reversal, or if price will keep heading down. Our bias on the DXY remains bullish, and we have set up multiple models to take advantage of price on multiple currency pairs.
On the DXY, bullish bias remains up to ( members only ), but we are looking to close above ( members only ) on the Daily timeframe as confirmation. Once we close above this swing high, we can anticipate our initial draw on liquidity to be at ( members only ), and then ( members only ).
We are still looking for sell ideas on EURUSD, with a close of the bullish order block (which is below ( members only )). The downside objectives would be at ( members only ) and down to ( members only ).
MMBM should be done on GBPUSD as we have traded into optimal trade entry, but we are not selling until a close below the swing low at ( members only ). After that, we would look for potential continuation to the downside. So, hands off GBPUSD for now, waiting for DXY run up to drive price down.
AUDUSD might struggle to go down due to high resistance, however with the DXT rise we see a draw on liquidity at ( members only ).
On NZDUSD, the draw on liquidity is at ( members only ). You could take a sell once ( members only ) is taken out, down to ( members only ).
For EURGBP, we are not doing anything at the moment. We are holding on to the monthly bullish order block, waiting for close below ( members only ). We could see price drive to ( members only ) range on the Monthly.
Turning to USDCAD, the next draw on liquidity is at ( members only ). With the DXY narrative, we can wait for ( members only ) area to resist and send it up to our levels.
With USOIL, we broke down the short term low on the 4H, so we are expecting USOIL to drop down to ( members only ) based on MMSM. We are at a junction, if it is not a buy then we could see it reverse slightly to the next impulse leg pullback.
GOLD is bearish, and should trade down to the ( members only ) area as a draw on liquidity and potentially down to the ( members only ) level which is the imbalance on the 4H. We can then expect buys to unfold at either the draw on liquidity or at the imbalance, since we have seasonality in favor of bulls, so this either should be great opportunities for entry as well.
BTCUSD hitting the ( members only ) level we mentioned last week. We are waiting for more information because the draw on liquidity has now been reached, so we could now either see a reversal or the next level down.
Turning to ETHUSD, we see that it still has some room to the downside to reach max draw on liquidity at ( members only ). And, If you are looking to pick up some quality alts today, some assets you might want to consider are: SUSHI, NEAR, FTM, ONE, and ATOM.
Looking deeper into crypto, some concerns and things to consider right now are why aren’t the equities market bouncing and why aren’t any of the quality L1s breaking out? A safer play would be to wait for strength to buy. But, if you are under allocated in any assets, these days are as good as any to add some weight. We are choosing to stay in full cash for the time being in our own account.
FOMC and Fed speeches will take place this week, and we will keep you posted on any major changes in sentiment or worthy information. Other key dates to note are Core CPI data on Wednesday, PPI on Thursday and Core Retail sales on Friday.
And there’s a ton more of currency, crypto, commodities and other indices left to go over, paid members get to follow along with the trader daily inside our trading portal.
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