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The FOMC minutes from yesterday gave us a snap reminder that the global financial market is heading into a post-LIBOR world on January 1st, 2022. This is certainly going to affect most financial markets. Congratulations to the organized global initiative to reach consensus and enter into action! We should see a swift shift on the USD, GBP, EURO, CHF, CAD, JPY and others, adopt the new alternative approaches for benchmark interest rates.
As for the current market, the DXY is not giving up, there is still a high chance that we will see price continue to move up. In addition, BTC keeps getting slashed by the bears in this classic market maker sell model.
Based on price re-accumulating, we have not changed bias yet for the DXY, we are still looking for price to continue going up. Monitoring the previous imbalance on the 4H chart that formed on the 95.621 – 95.411 range to become the new balanced price range now that we went through it and now becomes the resistance level. At the same time on the Daily we have the consolidation level range of 94.493 – 93.493 and a down candle at the 94.965 area signifying re-accumulating price, which makes the November 17th down candle look like another potential re-accumulating price move. Please watch the live session for a detailed explanation of the re-accumulating price concept.
We stayed out of the EURUSD yesterday and kept our eye on the Pound. For GBPUSD we expected price to go down based on watching the last up candle order block from November 10th in the 1.35243 – 1.35058 range to signify a short if we bounce this range. Today, price reached these levels during the London session and bounced off almost to a tee. The RSI was also dragged into overbought territory, where it got rejected before it leave a mark but still leaving a trace of confirmation for our trading minds to feed from. With that we remain bearish on GBPUSD eyeing the 1.33534 area. Sell on any rally to the upside especially the bearish order block.
For NZDUSD, we continued watching the 0.70628 gap and waiting for the New York session to start for the action to kick in and we are now watching the AUDNZD closely to determine the next move.
As far as AUDND is concerned, we covered a couple of setups since Monday during the live session and today our short target hit at 1.03316, this may retrace now, we will have to monitor as we have RSI bouncing off the extremely oversold territory to indicate resistance. This would give the NZDUSD weakness to the downside.
AUDUSD is currently in discount, so we prefer to sell NZDUSD instead of AUDUSD if the DXY continues to go up.
As the crypto market continue to spill over, we were stopped out on our SOL trade but we continue to hold our SOL Spot positions in our portfolio. Our AVAX position still looks good and we may look to add more size today. Other coins to keep an eye on are SAND and FTM for long opportunities. Look for BTC to sweep the lows of $58,000, or wick down to as long as $57,000 for a potential long to target the $61,000 area. For ETH, levels to watch for are the $4,030 and if we go lower, $3,800, and $3,670. Please be very careful with sizing your positions in these market conditions.
Don’t forget we cover more pairs in the live session with chart breakdown and detail.
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