Wave Analysis
ETHUSDT → Correction and hunt for liquidity ahead of growth BINANCE:ETHUSD is showing positive dynamics and breaking through the resistance conglomerate (consolidation boundary and downward correction line). The fundamental background is positive, and bulls are generally quite confident...
The cryptocurrency market, Bitcoin, and altcoins are awaiting a batch of positive news. Traders are waiting for interest rates to fall, which could attract additional capital to the cryptocurrency market, especially ETH.
The breakout of the correction resistance and consolidation resistance gives the market hope for growth. The global trend is bullish, and the fundamental background is positive. If the bulls hold their defense above 4488-4450, ETH may strengthen.
Resistance levels: 4661, 4783
Support levels: 4488, 4450
Technically, I expect a false breakdown of support (retest of the liquidity zone). If this maneuver ends with the price closing above 4488 and the formation of a confirming bullish pattern, then in this case, we can consider the continuation of growth.
Sincerely, R. Linda!
USD/CAD - Forecast 13/9🕰 Weekly
Price has been holding inside a swing range with support around 1.36 – 1.37 and resistance higher near 1.46. Structure hints at a bigger bullish leg if buyers step in.
📅 Daily
Market is pressing against a descending trendline and sitting in a parallel channel. Demand is building around 1.37 – 1.38, while upside targets point toward 1.41 – 1.42 if broken.
⏱ 8H
Price recently swept liquidity below (BSL) and is now coiling under resistance. If we hold 1.37 support, the path opens for a push into 1.40 – 1.41.
🎯 Outlook
Bullish Case: Hold above 1.37 → breakout toward 1.40 – 1.42.
Bearish Case: Lose 1.37 → deeper correction back toward 1.35 demand.
⚖️ Bias : Short-term consolidation → mid-term bullish toward 1.40+.
Thanks traders and like and follow if you agree
Why Forex Reserves Matter in Trading1. What Are Forex Reserves?
Forex reserves are assets held by a nation’s central bank in foreign currencies, precious metals like gold, Special Drawing Rights (SDRs) from the International Monetary Fund (IMF), and other reserve assets. These reserves are not just passive holdings; they are active instruments used for monetary policy, currency stabilization, and ensuring global payment obligations.
Key Components of Forex Reserves
Foreign Currencies – Typically held in USD, EUR, JPY, GBP, and increasingly CNY.
Gold Holdings – A traditional hedge against inflation and currency risk.
SDRs (Special Drawing Rights) – An IMF-backed reserve asset that supplements official reserves.
IMF Reserve Position – Access to IMF funding if needed.
2. Why Countries Accumulate Forex Reserves
Stability in Currency Markets
Countries need reserves to intervene in forex markets to prevent excessive volatility in their domestic currency.
Confidence for International Trade
Exporters and importers prefer dealing with countries that can guarantee payment stability.
Debt Servicing
Reserves allow governments to service foreign debt obligations without defaulting.
Buffer Against Economic Shocks
Acts as insurance against sudden capital flight, trade imbalances, or geopolitical crises.
Support for Sovereign Credit Ratings
Higher reserves improve investor confidence and reduce borrowing costs.
3. Importance of Forex Reserves in Global Trading
3.1 Stabilizing Currency Values
A currency’s exchange rate plays a central role in trade competitiveness. For example, if the Indian Rupee depreciates too rapidly, imports like oil and electronics become expensive. The Reserve Bank of India (RBI) can sell USD from its reserves to supply dollars in the forex market, stabilizing the rupee.
3.2 Controlling Inflation
Imported inflation is a major risk for countries dependent on foreign goods. By using reserves to maintain a stable currency, central banks reduce inflationary pressures, which directly impacts stock and bond markets.
3.3 Investor Confidence
High reserves attract foreign institutional investors (FIIs) because they see lower risk of capital restrictions. Conversely, low reserves signal vulnerability, causing capital flight.
3.4 Crisis Management
During the 1997 Asian Financial Crisis, countries with low reserves like Thailand suffered massive currency collapses, while nations with higher reserves recovered faster.
4. How Forex Reserves Impact Trading Across Markets
4.1 Currency Trading (Forex Markets)
Traders closely monitor reserve levels to predict central bank interventions.
A rise in reserves indicates strong capital inflows or trade surpluses, usually strengthening the currency.
A fall in reserves may mean heavy intervention to defend the domestic currency, creating volatility.
4.2 Equity Markets
Strong reserves signal economic resilience, attracting long-term investments.
For export-driven companies, reserve usage can stabilize currency swings, reducing earnings risk.
4.3 Bond Markets
Nations with healthy reserves are seen as safer borrowers.
Sovereign bond yields fall when reserves are high, lowering borrowing costs.
4.4 Commodity Trading
Forex reserves influence global demand for commodities. For example, when China builds reserves, it often buys U.S. Treasuries and commodities, boosting global demand.
Gold prices also respond directly to central bank reserve diversification strategies.
5. Case Studies: Forex Reserves and Trading Dynamics
5.1 China
Holds the world’s largest reserves (over $3 trillion).
Uses reserves to keep the yuan stable, ensuring export competitiveness.
Global traders watch China’s reserve reports to gauge trade and commodity flows.
5.2 India
As of 2025, India’s reserves are above $650 billion.
Provides a cushion against oil import costs and FII outflows.
Traders interpret rising Indian reserves as bullish for the rupee and equity markets.
5.3 Russia (Post-Sanctions)
Sanctions froze Russia’s dollar reserves in 2022.
Moscow shifted to gold and yuan, changing global reserve composition.
Traders saw sharp volatility in ruble trading due to limited access to USD reserves.
6. Forex Reserves as a Trading Indicator
For traders, reserves serve as a leading indicator of currency and capital flow trends.
Rising Reserves: Suggests export growth, capital inflows, and stable currency → bullish sentiment.
Falling Reserves: Signals interventions, capital flight, or trade deficits → bearish sentiment.
Traders often combine reserve data with:
Balance of Payments (BoP) reports
Capital account movements
Central bank policy signals
7. Risks of Over-Reliance on Reserves
While reserves are critical, there are risks:
Opportunity Cost – Funds invested in low-yield assets like U.S. Treasuries could have been used domestically.
Geopolitical Risk – Sanctions can freeze reserves held abroad.
Currency Depreciation of Reserve Assets – Holding too many USD assets can hurt if the dollar weakens.
False Security – Excessive reliance may delay structural economic reforms.
8. Future of Forex Reserves in Global Trading
Shift Toward Gold & Yuan – Central banks are diversifying away from the USD.
Digital Reserves (CBDCs) – Future reserves may include digital currencies issued by central banks.
Geopolitical Weaponization of Reserves – The Russia-Ukraine war highlighted how reserves can be frozen, making diversification essential.
AI and Data-Driven Reserve Management – Advanced analytics will improve reserve allocation strategies.
9. Lessons for Traders and Investors
Currency traders should track reserve levels as part of fundamental analysis.
Equity investors should see reserves as a buffer against volatility.
Bond traders should link reserves with sovereign credit risk.
Commodity traders should monitor how reserve diversification affects gold and oil demand.
Conclusion
Forex reserves are not just a financial cushion for governments; they are a critical trading signal that reflects a country’s economic health, ability to withstand crises, and global credibility. From stabilizing exchange rates to influencing global capital flows, reserves touch every corner of financial markets.
For traders, understanding the dynamics of reserves means being able to anticipate currency movements, equity flows, bond yields, and commodity prices with greater accuracy. In a world of heightened volatility, forex reserves remain one of the most powerful forces shaping international trade and financial stability.
DOT/USDT has not made a new all-time high in the current cycle.In my opinion, in this cycle, considering the end of the trend and the fact that it hasn’t formed a proper bottom, we are unlikely to see a new high. However, we could reach the 50% or 68% retracement levels of the previous decline and start the first impulsive wave. This movement is similar to what XRP experienced in the previous cycle.
XAUUSD_15MGold Analysis
Short Time
Elliott Wave Analysis Style The market is forming the ABC correction wave and the path of completion of this wave is to the 3630 range. And to continue the path of the main wave, the rise or fall will be determined at the number 3630!
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USD/JPY SELLERS WILL DOMINATE THE MARKET|SHORT
Hello, Friends!
USD/JPY pair is in the uptrend because previous week’s candle is green, while the price is clearly rising on the 4H timeframe. And after the retest of the resistance line above I believe we will see a move down towards the target below at 146.564 because the pair overbought due to its proximity to the upper BB band and a bearish correction is likely.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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KERNELUSDT Wave 2 Correction SetupKernelUSDT has successfully completed Wave 1 of a fresh impulsive rally, and price action is now unfolding into the corrective Wave 2. The projected retracement zone sits around the 50% Fibonacci level, with the possibility of an extended correction toward the 78% Fib zone before the next bullish phase.
Once Wave 2 completes, we anticipate the next impulsive Wave 3 rally, which often delivers the strongest movement of the cycle. Levels are mapped on the chart for clarity.
What’s your outlook on KERNEL? Share your views below.
DOGE/USDT – Compression Before ExpansionBalanced Price Range (red FVG vs green FVG): We have overlapping inefficiencies — classic battleground for direction.
Current Structure: Price is sitting inside a daily demand (DLY) and testing a fresh 15m/1h confluence zone. Coiling behavior suggests an imminent expansion.
Volume: Spikes during down-legs show sellers aggressive, but absorption is visible near demand.
Hold this zone → expect squeeze back through the creek into premium imbalance.
Lose this zone → clean expansion lower into liquidity pools.
⚠️ Invalidation: close below Daily demand.
This is a Balanced Price Range (BPR) setup — opposites overlapping. The next break decides the trend.
EURJPY Bulls Struggle Near 174, Bears Eye Room to Push LowerEURJPY has been testing the upper resistance near 174.00, but repeated failures to hold above suggest exhaustion. With the euro under pressure from softening European growth data and the yen showing signs of life as BOJ policies evolve, this area looks like a pivot zone. The chart structure points toward potential downside back into the 172.40 and 171.30 supports if sellers step in.
Current Bias
Bearish – Price rejected near 174.00 and is showing signs of topping.
Key Fundamental Drivers
Eurozone: Weakening growth signals (stagnation in Germany and Italy CPI moderation) weigh on the euro.
Japan: Higher JGB yields and BOJ’s quiet policy shift toward tighter conditions give JPY some support.
Global risk sentiment: If equity markets retreat, yen demand could rise as a safe haven.
Macro Context
Interest rate expectations: ECB is unlikely to hike further, with markets leaning toward cuts in 2025; BOJ may gradually tighten through yield control tweaks.
Economic growth: Eurozone is flatlining, while Japan shows modest resilience through services PMI strength.
Geopolitical themes: Energy-driven inflation in Europe and tariff uncertainties continue to cloud EUR outlook.
Primary Risk to the Trend
A sudden rebound in euro sentiment (better PMI data or ECB hawkish signals) could invalidate bearish bias.
Most Critical Upcoming News/Event
Eurozone PMI & inflation updates – key for EUR direction.
BOJ communications and JGB auctions – important for JPY momentum.
Leader/Lagger Dynamics
EURJPY tends to be a lagger, reflecting flows from broader EURUSD and USDJPY moves. However, shifts in Japanese yields can make it temporarily a leader in JPY crosses.
Key Levels
Support Levels: 172.40, 171.30
Resistance Levels: 173.90, 174.30
Stop Loss (SL): 174.30 (above resistance and recent highs)
Take Profit (TP): 171.30 (major support level)
Summary: Bias and Watchpoints
EURJPY bias is bearish with SL at 174.30 and TP at 171.30. The euro is weighed down by stagnant growth and subdued inflation, while the yen is supported by creeping BOJ policy adjustments and higher yields. The main risk is an upside surprise from eurozone data or ECB rhetoric. If sellers hold below 174.00, downside momentum could accelerate toward 171.30.
DOGE: Ending Diagonal IdeaDoge is coming up on a resistance, making local higher high as RSI is still a lower high. So far, the structure looks to be a 3 wave move. The 5 waves move seems to be a part of a bigger 3 waves move, making it very difficult to count as an impulse overall. Hense the idea of an ending diagonal. Ending diagonals can form a structure over a very long period and it is almost impossible to identify until it is almost over. So, this idea will be something I will be tracking closely but, still not the primary idea. For now, overall markets are getting frothy, and a correction seems to be imminent. At this moment, having a true breakout to push RSI higher seems to be less probable, but not impossible. So, if price starts to retrace over the next 2-4 weeks, it might be the B wave before the yearend rally to complete C of 3. It could also be a leading diagonal to a wave 1 of 5, but we can talk about that down the road depending on the macro landscape.
AUD/USD BEARISH BIAS RIGHT NOW| SHORT
Hello, Friends!
AUD/USD pair is trading in a local uptrend which we know by looking at the previous 1W candle which is green. On the 6H timeframe the pair is going up too. The pair is overbought because the price is close to the upper band of the BB indicator. So we are looking to sell the pair with the upper BB line acting as resistance. The next target is 0.658 area.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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OPEN - 35% UP!🔥 NASDAQ:OPEN just pumped +35% from my bottom call! 🔥
Top tier #AI project & Current market cap is only ~$220M, and the price is down 55% from the ATH at listing, plenty of upside left?
What’s next?
If price consolidates above the main channel trend and holds $0.98, I’m expecting another leg up 🚀
Key resistance levels:
🔸$1.22 – $1.28
🔸
Keep this one on your radar! 👀
BTC: ALL GOING TO PLAN. TIME TO BAG SOME ALTS!Bitcoin continues to move within the framework we've been mapping out for a while now.
In crypto, unlike commodities, the waves are way too complex and nested. That's why relying solely on wave counts or any single specific scenario is pretty much pointless. Leveraged trading in crypto is like a bank heist: you see your signal, you go in, you grab the cash (or take a bullet to the shoulder), and you get the hell out without looking back.
But unlike other markets, crypto offers insane opportunities to diversify your trades across different assets.
The chart for BTC is looking bullish right now (ElliottWave count, moving averages support and also mind Fair Value Gaps), so I'm going hunting for opportunities on all the alts and shitcoins in my watchlist.