12.16.2021

It appears that market participants, in a reaction to RISK and in an attempt to HEDGE assets have gone LONG USD and created a very crowded space. We have been cautious of these levels for over 1 week and been looking at charts figuring out levels of engagement.

Yesterday was the day to get involved, as you saw on the BLOG (GBP, EUR and commodity currencies, NZD).

USD crosses should now enter a corrective wave. This will be a classic WAVE-4 in EW. The expectation is a move back to the 38.2% FIBO. We will track this and break down USD charts to figure out best levels to take profit, and at some point PIVOT to long USD positions. For now, we expect choppiness and will trail our STOPS.