The trading week didn't start yet, but we can see a market crash on most cryptocurrencies. Bitcoin has lost over 10% till now, and this seems like a clear reversal sign. The previous high was 64800$ levels, and the price is trading right now at 54700$.
According to Elliot waves analysis, The price was moving on a diagonal pattern, and that pattern has completed at the previous high. For now, the price has made strong downside movements. I'm expecting some correction soon to 58-60K levels before falling down again to the 40K$ level.
I don't know, but this seems like the 4th wave on the weekly time frame. The price might make a deep correction to 30k-20k. But I think the most logical target for this wave will be the 41K level because the price has never retested that support level. After reaching that level, the price will go up again with another bullish wave to 65-70K before the next downside wave start.
We can see a lot of range movements on the H1 time frame. The price was moving on very complex correction waves due to the weakness of both USD and CAD, but it seems that the downside movements wave has ended. On Friday, and despite the USD weakness, the price has made a bullish wave from 1.2475 level to 1.2556 level. I can call the first wave. I think the market will open today with a pregap on the USD's pairs because the US Dollar is undervalued.
For this pair, the situation looks complicated, and that's why I'm not sure about this analysis, but at least I'm sure that price will make enough correction this week. The pair has dropped more than 230 pips, and according to my waves counting, I think the price is moving on the final wave. So, I think the price will go down again on Monday to the previous support level 108.40 level before starting a deep correction to 109.40-110 levels. That move will be the A and B waves.
---------- Post added 19-04-2021 at 01:38 AM ---------- Previous post was 18-04-2021 at 02:48 PM ----------
I have mentioned this trading opportunity in the last few weeks. I was waiting for the price to retest this level 63.08 to share this analysis. I think the Crude oil has made five waves and now has completed the correction with an ABC pattern. As you can see on the chart, it's clear that the price has completed the minor C wave, which means the downside will start again to 53-50$ levels. The Gold will follow it too, so I think the USD will be the main reason behind this downside which corresponds to my own view.
This pair looks interesting because it was on a bull rally. But on Friday, the price got a rejection from 0.8717 level and dropped +60 pips which I can call the first correction wave a. Probably the price will break the upward trend line and then retest it with before going down again to 0.8590 level. The Euro still overbought, and most of the Euro pairs will go down this week.
---------- Post added at 09:49 AM ---------- Previous post was at 01:38 AM ----------
Today, we have no high-impact data. All we have on the forex calendar is some low-impact data that won't move the market. I think many of you are expecting a boring week due to the lack of data, especially on Monday and Tuesday. For me, I think this week will have so much volatility because last week was a very calm and boring trading week. So, don't get surprised if you see the USD pair moving 100 pips in few hours. We still have the Covid-19 impact on the markets. The last high rate of Corona infections in the United States has raised concerns about the reopening of the US economy. So, the market will focus this week on developments in bond yield and the Coronavirus, which strongly affect the movements of the US dollar against other currencies. Let's see!
---------- Post added at 02:12 PM ---------- Previous post was at 09:49 AM ----------
Finally, my trades are closed with an 879$ loss which is the highest margin call on my bonus account. I'm not sad about getting a margin call because I did very well this time, I didn't get a margin call for six months, and it could be more if I didn't make these risky trades. The reason behind getting a margin call was always emotional trading and greed. That was another trading lesson for me, and I hope you will learn from my trading experiences.
In addition to using high lot size, the extended wave is one of the main reasons behind getting huge losses because it will stop only after kicking out all the sellers/buyers from the market. An extended wave is a wave when the market move in one direction roughly, doesn't make enough correction before continuing again. The current chart of the EURUSD is an example of this wave. +340 pips till now without any correction wave. That's why I keep updating my wave's counting on this pair every day. But, I still think that the price will turn down soon because the market makers need to take their profits. It looks like the pair is still moving on mini ABC waves. The price seems moving on the final bullish wave. I think the reversal will start tomorrow during London's session around 1.2070-1.2100 levels. The 5th wave hasn't ended yet. So, I don't recommend you selling it right now.