After bouncing off the previous Major trendline last month, Bitcoin seems to be retesting the support area again in hopes of catching a bullish momentum.
USD/JPY: potential harmonic pattern
2022-05-17 • Updated
SELL 107.40; TP 107.05; SL 107.55
USD/JPY is forming on the H1 what looks like a bearish “Butterfly” pattern. The pattern will allow the pair to rise to the 107.50/60 area (limited by the 100-day MA and 100-period MA on the H4). There’s also an obstacle in the form of the 200-period MA on the H4 at 107.40. After the advance to the mentioned levels, the pattern should trigger a decline to the 107.05/00 zone. Trading the pattern should involve some on-the-spot decision making: if you see the signs of reversal near 107.60, you can sell there. If the pair gets above 107.40 and then returns below it, it will mean that the upside is over and a short-term decline has started, so once again you will be able to open a short position. The rise above 107.70 is needed to open the way up to 108.00/50.
After completing a substantial 4-week bullish rally, the US Dollar closed last week with a big bearish candle, which has led to a 2.63% decline in US Dollar prices. The million-Dollar question on traders' and investors' minds: is this the start of a US Dollar dump or just a correction?
All eyes seem to be on the US Dollar as traders await the Federal Reserve Chair's speech this Thursday at the Cato Institute's Annual Monetary Conference.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD
The US dollar index has all chances of reaching the 2000s high of 120.00.
The Consumer Price Index announcement by Statistics Canada is set for release in a few hours will reveal the state of inflation in the Canadian economy