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At the beginning of February 2018, Bitcoin reached the bottom $6,000 after reaching $20,000 at the end of December 2017. Since then Bitcoin was not able to get below the support level $6000 even though there were many attempts to break this level. Many people started to get impatient because it already looks like Bitcoin will never go below $6000, but what if it will? We are in a phase where you need to be patient. Until Bitcoin will not create a higher high, there is no uptrend in a sight. It is constantly creating lower highs, so we will probably see a break of support level $6000, or at least false-break. From a statistical point of view, we are in the second-longest downtrend on Bitcoin. The longest lasted 411 days from 30 November 2013 until 14 January 2015. Now downtrend lasts more than 270 days. That means we are close to the end of a downtrend, but it’s still there creating lower highs, but not lower lows. If Bitcoin breaks the support zone $6000 it can cause a dramatic selloff in markets, but it can also mean soon ending of that downtrend. We are bearish in short-term view, but we are bullish in long-term. Until Bitcoin won’t get to $5000, we are waiting. So, the important thing here is that Bitcoin is very likely to break or at least false-break support level $6000 and we are close to the end of a downtrend, but be patient.
This currency pair is in a downtrend for a few years, but now we see an opportunity to profit on the rise. We expect AUDSGD to go up at least 100 pips, but maybe more. If you look at monthly/weekly timeframe, there is a strong support which withstood the pressure and now the market is going back up. AUDSGD is currently creating a formation double bottom (DB) (with small false-break) after we expect it to go to at least 0.985 and another profit target is 0.994. This bullish setup is also supported with divergence. Overall, all currency pairs with Australian Dollar looks bullish, so Australian Dollar should be strong in a next few weeks. We are bearish on SGD.
CHFJPY is falling since it made a pin bar on 21.9., so the decline on this currency pair already lasts 3 weeks. Now it has got in the zone where the pullback is possible. There is a support zone with Fibonacci levels 50 and 61.8, which are the most reactive. The market is also creating a divergence after which we expect at least a little movement upwards. We plan to execute the trade somewhere between 112-113 if our algorithms confirm this buy signal. Don’t forget that successful trading is about timing. We are patiently waiting for this trade.
USDCNH has been in the uptrend for a long time. This uptrend lasts already more than a half year. The strange thing about this uptrend is the fact, that there has not really been some significant correction. Only a few days of move downwards and then it would rise again. In August 2018, the market stopped close below resistance and psychological level 7.0000. Since then, it has been in a sideways. Recently we were witnesses of a break of the trendline, but it doesn’t have to mean the beginning of a downtrend. USDCNH can still go higher and retest psychological resistance 7.0000 and then go down. Or even make a strong breakout to the upside. From weekly/monthly timeframe it looks like a double top pattern. Anyway, we are awaiting move downwards, but the sell signal needs to be confirmed by our algorithm. We are watching this pair a few weeks already. Patience is truly important if you want to succeed in trading and we are proof of that because we are watching this currency pair since September and still did not enter the trade.
Analysis on USDJPY was posted on our website. If you missed it, don’t worry. There will be more trading signals and analyses.
After one month of consolidation, we can finally see a breakout from the 300 pips zone. GBPJPY is giving a clear trading signal by breaking the trendline and support. After this, it will very probably go lower and the closest profit target is around a level 145.6. If the market goes back to 147, it would be a proper entry point for a short position.
Stop-loss could be placed at 147.8. GBPJPY was very lazy last month, so we should see some bigger moves soon. If GBPJPY fails to create a pullback from 147, we will probably witness a continuation of the uptrend which started in the middle of August.
GBPAUD is in the uptrend from the end of August and we see an opportunity to join this trend. The market is giving us a signal for another continuation of the uptrend. After 500 pips correction, it reached the level, where we already placed our long positions and we expect a move at least to 1.8405. Stoploss is at 1.805. Generally, almost all currency pairs including British pound looks bullish and that serves as another confirmation of this long position.
For the last few months, USDCHF was growing very steadily and by the end of the October it tried to break strong resistance 1.0067 but failed to do so. After the false-break of resistance, USDCHF created a candle pattern Engulfing, after which it should be falling in the next few weeks. When engulfing was created, divergence was confirmed and now the market should head to the blue zone, if not further. We have placed a short position with a stop-loss above the resistance targeting around 100-150 pips.
GBPNZD was falling thousands of pips after Brexit in 2016 and it found its bottom in later 2016. Since then an uptrend prevails on this market. This year GBPNZD broke psychological resistance 2.000 first time since Brexit and then it went quickly below 2.000 again. One thing is clear. There is an uptrend. This currency pair fell 1130 pips in less than a month and it is showing a signal for growth again. Currently, it is in a support zone from which it will probably go up a few hundreds of pips. GBPNZD is also in the area of the trendline. When the markets open, it can test previous low 1.9342 and then go up to the area 1.97-1.98. If the market breaks trendline, there´s an open space for other hundreds of pips downwards.
