12.18 Lunch Thoughts
The Fed rate cut is about to land at 3 am on Thursday with a high probability of 25 basis points. Before the good news is about to land, the market has a pullback, which may be a performance of accumulating momentum to rise, and the market still has a need to break the high after the rate cut is landed. This shows that the market has responded to the expectation of the Fed's rate cut, and investors may be making arrangements in advance, waiting for further upward momentum after the rate cut is landed.
After the daily line closed with a cross star K, the white market continued to pull back, but did not fall below the key support. This shows that although there is a pullback pressure, the key support level is still in effect, and the market is in a more delicate state of balance.
After hitting a new high yesterday, the price of the currency fell back to the middle track to stop falling, which shows that the middle track has a certain supporting role. And in this process, the strength remains unchanged, which means that the overall upward trend is still continuing. In the short term, the middle track can be used as support for layout operations.
A wave of upward movement at midnight failed to stand firm near 107,500 for a long time, and then fell back, which reflects that the selling pressure above is strong and the bearish sentiment needs to be released. The waterfall-like decline in the morning was also expected. However, from the four-hour level, the price of the currency rebounded to a certain extent near the middle track of the Bollinger Band. We can observe the support strength of this line in the future, and we can go long when we go back!
It is recommended to go long at 104200 - 104600 for Bitcoin, with a target of 106800
It is recommended to go long at 3800 - 3830 for Ethereum, with a target of 4000
