This chart is comparing the equally weighted index of CAD with UJ. The main chart symbol looks like a long list of currency pairs but actually I compare only two things here. 1) CAD strength against the basket of other majors, USD, JPY, EUR, GBP, CHF, AUD & NZD. Indicated as the black line and titled CAD IDX. 2) USDJPY (UJ), the bar chart. The UJ seasonality...
DXY trip top on the weekly is a strong signal for USD reversal. In my opinion USD was already devaluing for some time but large group of speculators have kept it high longer than ever expected. On this chart also my preferred equally weighted index (EWI) of USD, which simply measures USD strength against the basket of major currencies, each equally weighted. This...
BTCUSD like XAUUSD and WTIUSD and others are all quoted in USD, in the form of XXXUSD. Because of USD devaluation they will likely all rise unless the underlying commodity, currency, financial instrument or derivative loses more value than USD. It is simple math really. Like having 6 / 3 = 2. For example if Gold (XAU) would be of value 6 and USD the value of 3...
Using an updated chart of earlier posted opportunity around AUDUSD (AU) I like to highlight and illustrate the exceptional speculation that has been going on since mid April onwards. The first and many incidence of the same speculation has often seen coming in very sudden which indicates a single source instead of graduate forming of buying/selling pressure you...
As momentum of JPY and GBP both appear to be directed to the upside and strong, it would feel quite certain to take a short position on GJ wjhen JPY clearly takes the lead on chart of currency strength indices. However CAD & USD collective selling pressure is lurking and may unexpectedly overpower JPY buying power in the strongest triangle of world economies and...
GBPCAD Cup & Hande at work. Continuation already started and this also confirms the Cup and Handle which is in this case the smaller one. It may continue to draw the handle of the larger cup after which we can expect a continuation of the larger as well.
Hammer on EUJ and clearly recognisable from structure of the day before.
As part of UJ Seasonality CADCHF is potentially going to drop approximately 300 pips. I predict it will be at least 80 pips to 0.752 if not 400 pips to 0.72
Good example of the triangle theory thanks to UJ seasonality. The theory says that a triangle will exit into the same direction as it came in. In this example the price came in from the south into direction north so it will exit north and validate the triangle. It's breaking out north while I am typing this.
Officially not a crash, but the threesome does throw of signals that make most of us think that this descent may go fast, very fast. Signals are for example the grouping of individual currency strength indices. For a longer period the currencies may move along the same path and look as if they are attached to each other. Which is in a sense true because of tight...
Let's try it again. Last year I said 1.5 and later 1.7, this year I have learned to be modest and accept 1.42975 which is still a rough 1000 pips. Over the course of 5 months that is 200 pips per month and not really shocking at all. We might even reach there earlier around mid April already. That is exactly when last year USD rallied its way to the top and...
With AUD reaching ultimate low around Feb 22, I predict we may manage to collect 4k or 5k pips before that day. Be aware it may pull back a 100 pips first. Happy trading!
Doubts about where the market will be heading the next few days? Here are my view on this. Don't pin me on it but I have spent quite a few hours/days/weeks/ if not months on UJ and UJ seasonality so I'm pretty confident. Nevertheless you never know if the USD raging bull got himself a new tool early for christmas and is capable of pushing over macroeconomic cycles...
Measured by US30, an index representing the 30 largest corporate enterprises of the United States of America, closed the week with the second largest green candle of the year 2019 while preceded by 2 minor red candles and another 8 larger green candles. My guess is this rally will continue for another couple weeks. Also backed by UJ seasonality, all relevant...
Next week will be decisive for AU to continue as the huge weekly hammer predicted three weeks ago. Because the same hammer also formed a double bottom we would tend to feel secure about our bullish choice. However, this was exactly what happened back in June and the same outcome could follow again, and back then we also had UJ seasonality to back up as...
Is gold drawing a Cup and Handle on the daily? With UJ seasonality in agreement the likelihood increases...
Sentiment on CADCHF is still 74% long according to Pepperstone ctrader sentiment indicators located under the buy and sell buttons of each symbol on your watchlist. Yesterday when I checked it was 97% ! Then I trade this one short. Also knowing that CAD will likely drop because of the triangle crash as I like to call it of USD, JPY & CAD. Somehow, every year,...
For the third year in a row I have witnessed what eventually leads to USD reversing and accelerate in a likely already existing downtrend. It is remarkable how cause and effect are here at play, because it starts with a slow descent of USD as investors moving from USD to safe havens like JPY, CHF and Gold. Due to tight correlations JPY and CAD are dragged down...