Technical Strategy: I am aiming to catch the 5th wave from a nice pullback to the new support level.
Macro Insight: The RBA was quick to set another 25 basis point rate cut which lowered their key policy rate to a new record low of 0.50% to counter coronavirus hit. Although, a Safe Haven currency could have been my best bet to trade however I am very positive...
I am looking to take this short (after a pullback) after this has been rejected from the top side of this descending triangle.
I am also anticipating a new wave count and hoping to catch the 3rd wave.
RISK OFF SENTIMENT
Another thing that drove me to sell this pair is the fact...
MACROS: Brexit-related uncertainty with a combination of the UK's macroeconomic conditions. Until we see some more clarity on the EU-UK trade deal, we should be expecting GBP to weaken.
TECHNICALS: Expecting to complete C-Wave and break of the triangle pattern + support area before executing this trade.
BITCOIN TO THE DOLLAR
TARGET BASED ON FIBONACCI EXPANSION - 1.272 AND FIBONACCI EXTENSION 1.618
HOPING TO CATCH WAVE 3 ONCE IT BREAKS THE FLAG AND IDEALLY THAT HORIZONTAL RESISTANCE AREA (RED SHADED AREA).
THE ONLY OBSTACLE I CAN SEE IS THE DAILY RESISTANCE SHADED IN GREY
Technical Aspect: Elliott Wave Theory - 5th Wave target is based on Fibonacci Cluster.
Macros: If we see a dovish cut tonight from RBNZ, 1% to 0.75%, this should support the Technical Analysis. If RBNZ refuses to commit themselves from easing, we can potentially expect this move on a smaller timeframe.