The US Dollar (USD) was declining all week last week. I did say that it looked more like a retrace of the move which started earlier in September. Well, this week the USD resumed the trend it started in September as it pushes higher against all major currencies.

Any dip in cryptos is a good opportunity to buy.

USD Back on Track

Last week the USD was on a slippery slide as it lost around two cents across the board. EUR/USD climbed to the 1.1880s, but on Friday the price action showed us that the pressure was on the bottom side in this forex pair.

EUR/USD jumped around 70 pips after the US inflation numbers (CPI) but in a couple of hours it gave back all the gains. This means that the USD bulls saw any dip in the USD as an opportunity to get in on the long side or on the short side of EUR/USD.   

So, we held on to our long term EUR/USD sell signal despite the surge. This week the bullish sentiment returned for the USD and since Monday we have only seen one way traffic in EUR/USD.

Similarly, USD/JPY has climbed pretty fast in the last few days. Last evening this forex pair retraced lower to the 200 SMA on the hourly chart and we saw that as an opportunity to go long. We opened a buy forex signal which hit TP this morning among USD strength.    

Cryptocurrencies Are on the Slide

The price action in cryptocurrencies has been quite the opposite of what we have seen in the USD. Last week, cryptocurrencies kept climbing nonstop while the buck was sliding lower.

This week though, the USD has reversed, and it’s climbing higher, while cryptos are sliding lower. Bitcoin has lost some of its shine, Ripple Coin has given back almost all of last week’s gains, Ethereum is doing even worse, while Litecoin is just a tad better off, although it trades in a downtrend too.

But, a few minutes ago we saw a sign that the buyers are not dead yet. Cryptocurrencies made a quick jump from the lows with Litecoin jumping about $5.

The sellers quickly pushed back down but at least we got a sign from the bulls that they are here and waiting for the right time to get in on the long side. We are already long on Litecoin from higher above, but there’s a chance to look for more longs on cryptos right now, which we will highlight on the section below.

Trades in Sight

Bullish Litecoin Mini

1. The trend has been bullish in the last few weeks
2. The bigger trend is bullish of course
3. The $54 level is prior resistance
4. The H1 and H4 charts are oversold

We're above a long term support level.

So, Litecoin was surging last week, but this week it has been sliding lower, following the other major cryptocurrencies. This looks like a retrace of the bigger uptrend and the retrace seems to be almost over. The H1 and H4 charts are oversold while there’s still some room left on the daily chart. But a number of moving averages are providing support on the H4 chart and the buyers are starting to get itchy, so I think that we will see a reverse higher soon.  

In Conclusion

Cryptocurrencies are sliding lower as the USD climbs higher. Although, we see this decline as an opportunity to get in long on cryptos. We have an open buy signal in Litecoin, but we might add more down here.