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Lately the market has been kind of rotten.
In general, both Forex, futures and cryptocurrency.
Most likely there is an explanation for this.
The longer the market stands still, the longer and further the distribution will go.
There is a secret, not everyone will tell you about it 🤫
Distribution after consolidation occurs generally between 20% and 40% of the accumulated potential.
This means that the distribution time will be approximately equal to 20-40% of the time of consolidation formation.
Here is an example: the consolidation of a currency pair took place for 124 days and formed 88 bars (range on a high timeframe).
Therefore, the distribution time (it can be the formation of a trend or local movement in one direction or another) is 20-40%, which is from 18 to 35 days.
If you apply this information correctly, it will improve your trading strategy (not for scalping)
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Unexpected growth in the US GDP number sent traders to the greenback, lifting its valuation across all major rivals.
US gross domestic product grew by a surprise 3.3% rate for the December quarter, shooting past estimates for a modest 2% rate of expansion. The news stirred up forex dealmaking, sending the US dollar higher against all other major currencies and lifting the index DXY on track for its fourth consecutive week of green candlesticks.
- #EURUSD pair tanked early Friday, extending its decline from a day earlier when the US revealed its economy expanded more than expected.
- Across forex corners, #USDJPY was back on the offensive, erasing some of its weekly losses to trade near the ¥148.00 handle.
- #GBPUSD remained under pressure early on Friday, extending its range-bound sideways trading near the $1.27 area.
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BTC has not reacted for the second day to negative news about Grayscale transfers to exchanges, and yesterday absorbed the news that the US government intends to sell the coin for $130 million
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💡 Ideas For IOTXUSDT 📈
📈 IOTXUSDT → The pair may rise to 0.065. Waiting for confirmation
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IOTXUSDT is showing bullish momentum amid a correcting cryptocurrency market along with the flagship. The price is trying to break trend resistance
On the high timeframe, the price forms a false breakout and a small correction relative to 0.04400. A retest is formed and the price returns to the resistance. On the background of pre-breakdown consolidation and another retest, the market has chances to break this line. Consolidation of the price above 0.04400 will show a bullish potential for purchases.
On H4 we see a local downtrend and the price going beyond the resistance, which is a good signal for the medium term. The next hurdle is to overcome 0.04400.
On H4, the price is trading above MA-50 and a retest of MA-200 is formed.
Support levels: MA50, 0.04110, 0.03900
Resistance levels: 0.0440, 0.04888
There is a signal for a possible growth of the cryptocurrency pair, but to confirm this signal the market needs to overcome 0.0440 and consolidate the price above this line.
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#IOTXUSDT 📈
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BTCUSD continues to form a correction. Pay attention to the range of 48K - 33K. The price can easily test the support area. This correction fits within the limits of acceptable movement - it is a technical nuance on the background of a bullish trend.
It is likely that whales may continue to buy in the 36K - 33K area
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The EURUSD pair is globally in an uptrend.
There is a chance that the price may continue to grow. But, the trigger for growth may be 1.0948. Globally and locally the trends coincide.
After the news, we should wait until the market calms down and then look for a place to open orders.
But, there is a risk zone, when breaking through which the price may go down: 1.084 - 1.085.
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Santiment notes super bearish sentiment on Telegram and X towards BTC. Reddit users, on the contrary - trying to buy back the fall
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Nonsense these sentiments. Each community will view the situation on an asset differently. It all depends on the authoritative view.
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Technical analysis in combination with fundamental analysis gives an excellent view of the medium and even long-term prospects of any trading instrument, be it gold, eurusd, btc, indices or commodity funds.
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👑 Ideas For XAUUSD / GOLD
📈 GOLD → How long will the distribution phase in the channel last?
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GOLD is entering the distribution phase after the consolidation phase. The market is trying to test the local lows, but will the price go even lower, because there is news ahead
The chart shows that the bulls will continue to hold the area of 2010-2020 on the background of numerous retests, but the sellers are gaining momentum and continue to push the price to the level. At the moment in the distribution phase the price is heading towards 2009 - 2004. And there is a high probability of testing these levels, but we are interested in the news (fundamental) background. Since gold is trading inside the descending price channel, and the price has not yet tested the trend support area, it is difficult for us to talk about the possibility of its breakout, as we do not know the reaction and local preconditions. There is a higher probability of a bounce from the levels.
Support levels: 2009 (2010), 2004
Resistance levels: 2018, 2020, 2035
Gold's decline is difficult and slow as strong bulls try to contain the support area. A break of support will generate strong momentum and huge volume, but will it happen on the back of the news?
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#XAUUSD 👑
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Brief overview and determination of FOREX direction
#EURUSD 🇪🇺/🇺🇸 - SHORT 📉
Trading continues inside the range. The price is heading towards 1.0972, a rebound from the resistance is possible.
#GBPUSD 🇬🇧/🇺🇸 - SHORT 📉
Consolidation. Breakthrough of resistance will give continuation of the trend. But at the moment there are no preconditions for a breakout. A rebound may follow
#USDJPY 🇺🇸/🇯🇵 - LONG 📈
A correction to the support is being formed. On the background of the dollar growth the growth of the currency pair may continue from 146.67
#NZDUSD 🇳🇿/🇺🇸 - LONG 📈
False break of support. The price enters the range. If the price fixes above 0.612, the growth will continue to resistance
#USDCHF 🇺🇸/🇨🇭 - SHORT 📉
False resistance breakout. The market may test 0.8554, on the background of unstable environment. The target for MM is liquidity in the support zone.
#USDCAD 🇺🇸/🇨🇦 - SHORT 📉
False breakdown. Against the background of the retest, the pair consolidated under 1.3487. The fall may continue to 1.33
#XAUUSD 👑 - LONG 📈
False breakdown of support. Consolidation is formed above the level, which is favorable for growth. The target is 2035. 2040. 2048
#DXY 💲 (Dollar) - SHORT 📉
Correction after a false breakdown. The target is support before the news. Further growth from 102.6 is possible
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👑 Ideas For XAUUSD / GOLD
📈 GOLD → Retest of resistance inside the range at the downtrend
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GOLD continues to consolidate in the range of 2035-2020. It is likely that tomorrow's news may revitalize the market
Today the market continues to stand still, this can be seen in both the dollar and gold. Consolidation continues as the market is still uncertain with the future outlook, this could continue until tomorrow as tomorrow's news is Initial Jobless Claims, GDP, and the strength of these factors could determine the medium term outlook.
Technically, GOLD is still in consolidation, but within a downtrend. For now, we continue to emphasize the in-range trading strategy (buy and sell from consolidation boundaries or strong levels). Let me remind you that the global trend is neutral and this is an ideal nuance for intra-range trading. And the local downtrend indicates the approximate market mood.
Resistance levels: 2035, 2038, 2039.4
Support levels: 2025, 2020, 2018
A false break of support defines a local target in the form of resistance. A test of range resistance can form a sell signal. As long as the price does not break the trend or the range boundary, trading within this framework will continue
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#XAUUSD 👑
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The USDJPY 🇺🇸🇯🇵 declined for the third consecutive day on Tuesday as early-week trades picked up steam. The exchange rate retreated about 180 pips from Friday's peak of ¥148.80 as traders reacted to the Bank of Japan's two-day meeting, which ended on Tuesday.
Japan's central bank said it decided to keep its notoriously negative interest rate at -0.1%. Moreover, it stuck to its policy of controlling the yield curve by setting the yield cap on 10-year government bonds at 1%. Policymakers also lowered their forecast for core inflation to 2.4%, down from October's forecast of 2.8%.
But it was not the BOJ's commitment to maintain its policy that triggered a sell-off reaction in USDJPY . The market believed that Japan will abandon the negative rate regime as early as April. Japan is currently the only country where negative interest rates are allowed and this approach has been weighing on the yen for years
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The current correction in BTC is quite adequate - so far only 0.5 standard deviations from the aggregate breakeven of holdings. It was much worse before the previous halving - Glassnode data
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historically, in halving years, BTC usually "shed" by March, after which the halving rally started - reminiscent of Matrixport.
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GBPUSD 🇬🇧🇺🇸 has been trading in the range between $1.2750 to $1.2700 as trades eye the next big event – PCE data
The personal consumption expenditures index, or the Federal Reserve’s preferred measure of inflation, is on deck for release Friday. Analysts expect a highly upbeat figure of 3.0% for December, down from 3.2% in November.
Anywhere above that number might throw the GBPUSD into whipsaw trading as speculators try to bake in rising price pressures all over again. Further, a hot-to-warm report will complicate the Fed’s timeline of three interest rate cuts for 2024 already factored in by market participants
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👑 Ideas For XAUUSD / GOLD
📈 GOLD → Downtrend and fundamental background
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GOLD continues to forge a downward price channel as the dollar index strengthens on a positive fundamental backdrop. In general, this is a negative scenario for gold, but the bulls continue to keep the price from a strong fall as much as possible
Today Core PCE PI is published, a slight change for the worse is expected (by analysts and traders), but I don't think it will make a global difference against the backdrop of GDP and yesterday's news. BUT, only if the actual data is not released with a big difference to the expected data.
Technically, gold is testing the strong 2020-2050 zones on the back of the downtrend within H1-H4. Earlier we saw the price moving out of the range, at the moment the price is testing this area. Before a possible further decline, the price of gold may test the trend resistance, which in the mid-term may continue on the background of a rising DXY.
Resistance levels: 2020, 2025, 2035
Support levels: 2010, 204, 2000
Since gold is trading with a negative fundamental background (at the moment there are no fundamental or technical preconditions for growth or change of trend) and within a downtrend, at the moment the market has chances to test local lows up to 2004 (1985)
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#XAUUSD 👑
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GBPUSD is forming a strong consolidation and is not preparing to go down. It looks like an ascending triangle. The price is trying to consolidate above the orange line, which divides the market plane into bullish and bearish.
Since the price is in a range, the pair has to overcome resistance or support to continue moving up or down. There is a high chance that the pair may head towards 1.30 after breaking the resistance
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At 13:30 GMT expected news such as:
Core Durable Goods Order
GDP (QoQ) (Q4)
Initial Jobless Claims
And across the conglomerate, traders and analysts are expecting bad data for the US market.
Last period GDP was 4.9%, at this point traders are expecting 2.0%. The decline to this level is possible because at the moment the fundamental and political side is getting worse and it is seen on the background of another crisis in the red sea, which plays an important role for the world market, including the US. Huge spending on foreign policy, as well as rumors of an attempt to get rid of such a frontier as Syria. rlinda dot com. Some conclusions can be drawn from this.
The Durable Goods Orders Core measures the change in the total value of new orders for manufactured durable goods, excluding transportation goods.
It is a kind of inflation indicator. Analysts also expect the indicator to deteriorate by almost twofold.
Regarding Initial Jobless Claims. Last period the market received 187K. At the moment, based on the overall data, the probability is not so high that the indicator will decrease relative to this bar. rlinda dot com. Traders are expecting 200K and that is the more likely scenario.
If expectations are confirmed and the market receives either such information or data worse than expected, it may have a bad impact on the dollar. Accordingly, Forex may strengthen, as well as gold.
ECB is expected to leave the rate unchanged at today's meeting. Rate cuts expected to start in June - analysts - BBG survey
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💡 Ideas For USDCAD 🇺🇸🇨🇦
📈 USDCAD → Trend change, bullish mood, but...
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USDCAD is forming a trend change. The completed correction, recovery and formation of a pre-breakout set-up hint at the continuation of growth
A global trend is forming on D1, which indicates neutrality in the market. The price is moving mainly from the borders of the global range. A reversal pattern is forming against the support and the market is heading towards the resistance area. Bulls are interested in the blue area.
On H4, the level of 1.3528 is formed, a pre-breakdown consolidation is formed relative to the level. Earlier the price overcame the key boundary at 1.3487, which confirms the change of the pattern and the breakdown of the structure. The consolidation of the price at 1.3528 will favorably influence the continuation of growth to 1.3629.
Support levels: 1.3487, 1.3422, 1.3350
Resistance levels: 1.3528, 1.3629
An ascending pattern of price movement is formed locally. The chart indicates a bullish mood and local zones that are worth paying attention to for trading
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#USDCAD 🇺🇸🇨🇦
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Bitwise Investment Director: current inflows into spot 🪙 BTC-ETFs exceed outflows, and the sell-off in BTC is because the approval of spot BTC-ETFs has become a "sell the news" event
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PS: there is some truth to this.
From a technical point of view, there was a false break of resistance and price is heading for support from range resistance.
From fundamental point of view: Sell the news, as well as correction before halving
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Let me tell you a little bit about the dollar index and why things are tight in forex right now.
Note that the dollar index is standing still for a lot of time within a consolidation.
But at the same time the market is within a range. Within this range the price can move any way it wants, because there is no clear trend, there is a local direction.
Now the local direction is upward, earlier there was a support retest and a reversal setup was formed. This is based on the fundamental sentiment.
The Fed will not cut rates early, thus indicating that they will continue to support the dollar, which in turn may strengthen.
The zone of interest for the dollar indices is 104.3 (marked by the turquoise line, as well as 105, 106.
In this case, in the future, before a possible rate cut in spring-summer, the dollar index may rise, which will affect the Forex market and gold.
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💡 Ideas For EURUSD 🇪🇺🇺🇸
📈 EURUSD → Will the change in trend be confirmed?
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EURUSD is forming an attempt to change the uptrend amid the strengthening of the Dollar Index. The price is testing the resistance at 1.0888 in the correction phase.
If we pay attention to the dollar index, we can see that it has been standing still during the week. Most likely, tomorrow's news: Initial Jobless Claims, GDP, CDGO may push the index to start moving. But, in any case, the medium and long term potential is determined by the Fed's decision on the interest rate, which at the moment they do not dare to lower.
The currency pair is breaking the trend support, testing the low and forming a correction. For the market, from a technical point of view, the target of 1.0756 has appeared. The currency pair is likely to test the resistance at 1.0888 - 1.095 before further falling to the range support.
Resistance levels: 1.0888, 1.0950
Support levels: 1.083, 1.0756
Correction after a trend change is a standard formation. The price can test the area in the format of a false breakout and after maintaining the liquidity to direct the price to a new target.
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#EURUSD 🇪🇺/🇺🇸
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The precious metal is floating right at the 50-day moving average, provoking a clash between bulls and bears.
#XAUUSD 👑 traded sideways at the beginning of the week after a UBS note failed to generate buying enthusiasm. Early Tuesday, the gold price was changing hands at levels around $2,030 as investors awaited new clues regarding the timing of interest rate hikes by the FED.
It is that timing that has driven UBS to push gold prices up 10% this year. Analysts at the megabank predicted the yellow metal could exit 2024 with a price of more than $2,250 a troy ounce, breaking its record set in December. It all depends on the Fed's future actions
The U.S. central bank, according to UBS strategists, could push up gold prices by cutting interest rates, which has already been reported. In addition, gold, widely seen as a safe haven, could see increased interest due to geopolitical instability, market uncertainty and widespread flight to safety
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The #EURUSD 🇪🇺🇺🇸 pair advanced moderately in early Monday deals as forex market participants punched in for the week. The euro powered higher by a mere 15 pips to cross $1.09 as it struggled to break out of a three-day consolidation area around the $1.0850 threshold.
The euro got battered in the past couple of weeks as shifting sentiment positioned the dollar at the EURUSD has lost roughly 150 pips, or 1.3%, as the pair dived under the 50-day moving average, indicating short-term bearish pressure.
Looking ahead, volatility is bound to pick up as economic reports stir up the trading arena. On Thursday, the European Central Bank will announce its interest rate decision. Analysts expect Europe’s central bankers to maintain the benchmark rate unchanged at 4.50%. First rate cuts are projected for June, or later than markets had expected.
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