Today we will talk about US Dollar and Bitcoin!
We have noticed very interesting patterns and correlation between US Dollar and Bitcoin .
In the first chart we can clearly see setup on US Dollar after that sharp and impulsive decline followed by a three-wave a-b-c expanded back to ideal 61,8% Fibo. retracement. At the same time, in the sceond chart even EURUSD can be making setup after that strong five-wave rally followed by a three-wave a-b-c decline with a triangle in wave "b" back to ideal 78,6% Fibo. retracement, which indicates a corrective drop!
So, based on USD correlations, seems like USD Index can see some weakness in the upcoming sessions at least towards 97.00 - 96.50 area, while EURUSD may start recovering back to 1.1250 highs or maybe even 1.1300 area!
Well, as you can see in the third chart, when EURUSD turned down into a correction, even BTCUSD made a bigger and in our opinion corrective decline down to 9500 level, ideally for wave C of a big , which can be seen in our previous idea! So, according to correlations with EURUSD , we believe that even BTCUSD can see a bigger recovery soon, ideally back to 61,8% - 78,6% Fibo. retracement and 11200 - 11700 area for wave D!
That being said, while USD Index can be headed lower, watch out for the recovery on EURUSD and BTCUSD in the upcoming week!
Bu humble and trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.