SP500 and Bitcoin crash!
EURUSD did exactly what was expected – created a right shoulder of the iH&S pattern, broke the neckline and went higher. It all started with the false breakout from the descending triangle (yellow color). The sentiment is back into a positive one and will stay this way, as long as we will hold above the orange support.
Setup on the EURUSD is nice but the two main stars on Thursday are Indices and Bitcoin! First, we will start with the indices, SP500 to be precise. Price broke the combination of a dynamic and the horizontal support, which activates a super important sell signal. With this momentum, we should see the SP500 on the lows from February and April relatively soon.
Bitcoin is also bearish and we were expecting this drop for a while! The price bounced from the upper line of the descending triangle pattern and broke the lower line of the flag. The target is obvious – 5900 USD. What will happen later, depends on the price action on this level. We need a bit of patience, again.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis