In the ABC corrections after 1995-98 and 2012-15 uptrends, both had wave As ending after a volatile break under the .5 fib level followed by a sharp recovery. The current price is just above .5 fib level. The historical data (sample size of 2, speculation at its finest) suggests longs during capitulation after a break of .5 fib is a good trade. I'll be trying...
Chart of past 2 spikes in USDJPY which appear similar to spike in 2022. Both ended correction wave A at the .5 fib level. We are approaching this level in the current correction. Seems noteworthy.
Pullback entries for long gold. I'm not planning for entry zone unless there's a sizable pullback. If I do enter without pullback, it will be to hedge a USDJPY long position, but I would probably just lower USDJPY exposure as opposed to entering XAUUSD for an impulsive hedge. If I end up getting ideal XAUUSD entry before USDJPY, I'd be more open to entering USDJPY...
This is just two example scenarios. I'm not expecting price action to actually play out exactly like the drawings. The drawings are more of a framework to help visualize and plan. Basically, the orange scenario symbolizes dollar weakness continuing with strength. In this outcome, I would look to find entries close to the bottom red downtrend trendline, so at new...
I'm publishing an idea just to organize my trading plan for USD. This way you can see the chart and what I drew. Hoping to get your thoughts and how you plan on trading. As of now, it seems more likely the DXY will make another leg down before continuing long term up trend. I do have conviction that USD will continue its rise eventually due to technicals and...
WTI is trading at major 61.8 fib level.
CAD has positive correlation with oil prices -
Canada is the world's third-largest exporter of oil . At times, the positive correlation between CAD and oil can be over 95%.
JPY has negative correlation with oil prices -
Japan is the third largest importer of oil in the world importing around 78% of its oil consumption, so...
CADJPY fib levels. I'd be looking to short any bounces to 61.8/50 levels. It may be wise to sit out of any CADJPY longs and just look to short bounces. If downtrend continues through lows, same logic applies: short any rallies/retests of previous downside breakouts.
