Our entry on this trade was at 220. As political uncertainty rises and stocks plummet, we see capital shifting in cryptocurrencies as bullish momentum builds around all the coins. To add to our fundamental analysis, the IMF had their first official cryptocurrency/blockchain meeting in which they stated that "banks should start investing more in cryptocurrencies"....
We had a break of a 3 year long bullish trend line to coincide with the increments of political uncertainty. The dollar is close to fully retracing the "Trump Trade" (since his election in November) and we believe it has lower to go. My analysis dictates that a correction wave is due to roughly .98500. Targets will be any from .96 to .955.
My bias on this pair is to the downside. If we breach the white and yellow trend-line we will go long. Current bias is short though, looking for targets at 108 and then 106.
On the Daily/Weekly time frame we had an inverse head and shoulders formation. The neckline was broken follow by a strong follow through. I would like to see a re-test of the neckline/support zone (blue) to set up a buy limit, target zone is highlighted between 1.325 and 1.33. The only concern I would have about this trade is Brexit jitters but with elections...
