Last week: It was a relatively quiet week for trend line breakout trades but that was not surprising given the huge moves over recent weeks. Another feature that might be giving some FX pairs pause though is the fact that they’re sitting near significant long-term S/R levels. This is the case for the EUR/JPY (135), AUD/USD (0.80), AUD/JPY (89), NZD/USD (0.73), GBP/USD (1.40), GBP/JPY (weekly 200EMA), EUR/AUD (1.55), GBP/NZD (1.90), EUR/NZD (1.675), EUR/GBP (0.89) and even BTC/USD ($10,000). Continue reading
Bitcoin is currently down near the 50% fib retracement of the weekly chart’s swing-high move; circa 10,000. Price might slow as it navigates this psychological whole-number support level but I’m still watching for any test and hold above the 61.8% fib which is down near 8,000. RIOT is one stock that can be used as a proxy Bitcoin trade and it carved out a basing style daily candle on Wednesday so watch trend lines for any recovery effort here.
A brief update and a bit late today as I had some other tasks this morning. There has been some Yen weakness which helped to trigger a few new trend line breakouts and TC signals. Bitcoin still has me looking for any test and hold of 8,000 to support a potential Wave 3 Elliott move. The Cable is nearing a major S/R level at 1.40 and is worth watching for any new make or break.
The FX pairs I monitor are mostly consolidating but Bitcoin has just broken through trend line support on increased Volume. IMHO, any hold above 8,000 for Bitcoin would be a very bullish signal. Watching for momentum-based trend line breakouts remains the way to go!