Harmonic Patterns
XAUUSD - The Wyckoff MethodGold is illustrating a classic Wyckoff Accumulation Schematic on 4-hour timeframe, highlighting a transition from a markdown to a markup phase. Initially, the price drops sharply in the markdown phase, falling from around $3,520, signaling strong selling pressure. This is followed by the accumulation phase, where the price consolidates between approximately $3,105 and $3,215 as institutional players quietly accumulate positions. A brief dip below this range forms the spring around $3,104.16—a false breakdown intended to trap sellers—before the price quickly recovers. The subsequent break of structure above $3,214.30 confirms a shift in market sentiment, leading to a clear buying point in anticipation of a bullish move. Price then enters the markup phase, targeting highs near $3,495.13, with a protective stop-loss ideally placed just below the spring. This structure suggests a strong bullish setup. Ideally this trend can be rode until a strong bearish divergence is observed on the Relative Strength Index
USDCADKey Reasons for CAD Strengthening Today
Market-Wide US Dollar Weakness
The CAD gained sharply against the USD, rising about 1% and reaching seven-month highs, largely driven by broad US dollar weakness rather than strong Canadian data alone.
Renewed tariff threats from US President Donald Trump against the EU and tech companies fueled risk-off sentiment, weakening the USD and benefiting the CAD as a commodity-linked currency.
Mid-Tier Canadian Economic Data and Oil Prices
Although Canadian economic data this week has been mostly mid-tier and not spectacular, the market focused on stable fundamentals like retail sales and trade balance, which support the currency.
Canada’s oil prices, a major export driver, remain supportive, helping underpin the CAD’s value.
Inflation and Interest Rate Expectations
Canada’s inflation remains somewhat elevated but controlled, with the Bank of Canada (BoC) expected to maintain relatively higher interest rates compared to other economies. This attracts capital inflows and supports the CAD.
The BoC’s stance contrasts with expectations of US Federal Reserve easing, contributing to the interest rate differential favoring the CAD.
Improved Trade Outlook and Economic Resilience
Talks between US and Canadian officials have eased some trade uncertainties, reducing risks to Canadian exports.
Canada’s trade deficit narrowed recently, and GDP growth showed resilience in key sectors, supporting market confidence in the CAD.
Risk-On Sentiment and Global Capital Flows
Investors’ risk appetite improved amid easing fears of a US recession and trade war escalation, leading to increased demand for risk-sensitive currencies like the CAD.
Risk-On Market Sentiment Encourages investment in CAD
USD and CAD Interest Rate Differential and 10-Year Bond Prices (May 2025)
Interest Rate Differential
The US 10-year Treasury yield is approximately 4.54% (recent 2025 data).
The Canadian 10-year Government Bond yield is slightly lower, around 3.50% to 3.60% (typical range in early 2025).
This creates an interest rate differential of roughly 0.9% to 1.0% in favor of the US.
Impact of Interest Rate Differential
The widening interest rate gap, with US yields higher than Canadian yields by about 1 percentage point, has contributed to a modest depreciation of the Canadian dollar (CAD) against the US dollar (USD) since late 2024.
Investors find US assets more attractive due to higher yields, leading to capital flows into USD and downward pressure on CAD.
The Bank of Canada’s expected policy rate is around 2.5% by end-2025, while the US Federal Reserve’s expected rate is higher near 3.75–4.0%, reinforcing the yield advantage for USD assets.
10-Year Bond Prices
Bond prices move inversely to yields. With US 10-year yields higher, US bond prices have declined relative to Canadian bonds.
The higher US yields reflect tighter monetary policy and stronger economic outlook compared to Canada, where monetary policy is expected to be more accommodative.
This divergence in bond prices and yields supports the USD’s relative strength versus CAD
USD/CAD Exchange Rate and Market Sentiment
USD/CAD has been trading in a broad range in 2025, with forecasts varying between 1.25 and 1.45 for the year.
The Canadian dollar is considered overvalued by about 9 cents relative to the USD, according to some models.
Market analysts expect the USD to maintain moderate strength against CAD due to the interest rate differential and divergent monetary policies.
Summary Table
Metric USD CAD
10-Year Bond Yield (%) ~4.54% ~3.50–3.60%
Interest Rate Differential +0.9% to 1.0% (USD over CAD) —
Bond Price Trend Lower (due to higher yield) Higher (due to lower yield)
Exchange Rate (USD/CAD) Stronger USD Weaker CAD
Conclusion
Today’s CAD strength was largely driven by broad US dollar weakness amid renewed trade tensions and tariff threats, combined with stable Canadian economic fundamentals and supportive oil prices. While Canadian data was not overwhelmingly strong, it was sufficient to maintain investor confidence, especially against a weakening USD, resulting in a notable rally in the Canadian dollar.
The higher US 10-year bond yields relative to Canada’s have contributed to a significant interest rate differential (~1%), favoring USD assets. This has led to USD strength against CAD and lower US bond prices compared to Canadian bonds. The ongoing divergence in monetary policy outlooks between the Federal Reserve and the Bank of Canada underpins this trend, influencing currency flows and bond market dynamics in 2025.
Future Trading Strategy as of 2025.05.24We are the SeoVereign Trading Team.
With sharp insight and precise analysis, we regularly share trading ideas on Bitcoin and other major assets—always guided by structure, sentiment, and momentum.
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Serverin Team's Upcoming Trading Strategy – Full Disclosure
Hello, this is Serverin, operator of the Serverin Team.
After Bitcoin surpassed its all-time high of $112,000, it has experienced a decline of approximately 4% as of May 24, 2025.
The primary cause of this downturn is believed to be the global market risk triggered by President Trump's announcement of a 50% tariff on Europe.
Technical Analysis
Let’s begin with the technical analysis.
As shown in the following chart, a Shark pattern has formed within the harmonic pattern framework, and the Potential Reversal Zone (PRZ) is confirmed at a 1:1 extension level.
Additionally, since Bitcoin decisively broke through its previous all-time high of $109,700, a short-term correction in this zone is a likely scenario.
Due to the highly volatile nature of cryptocurrencies, it is common for prices to revisit and consolidate around previous highs after a breakout.
We believe the current price action reflects this typical behavior.
Key Factors Behind the Current Decline
Psychological correction following the breakout of previous highs
Technical confirmation of the Shark pattern
President Trump's announcement of European tariffs
Future Trading Strategy
The Serverin Team still maintains a bullish outlook on Bitcoin.
This view remains consistent with the idea posted on May 18.
Accordingly, we are holding significant long positions in both Bitcoin and major altcoins.
If a deeper correction occurs, we plan to increase our positions. Conversely, if the price resumes its upward movement, we will continue to add to our longs.
However, if Bitcoin forms a top around $112,500 and begins to reverse, we are prepared to gradually exit the market.
For trend reversal confirmation, we rely on the Fibonacci 1.414 extension level.
This level is approximately at the $59,000 range for Bitcoin.
Scenario Overview
We are currently focusing on the green and blue scenarios.
Should either of these play out, we will continue to aggressively increase our exposure.
On the other hand, if the market follows the red scenario and shifts into a downtrend,
we will start reducing our positions with stop-losses, using the $59,000 level as our reference.
That concludes the Serverin Team’s trading strategy briefing.
Thank you.
Bitcoin Cash (BCH): Bearish CME + Lower Liquidation ZoneWe are seeing an unfilled bearish CME gap on BCH coin, which might send the price even lower.
We are looking for the CME gap to be filled, whereupon seeing further pressure from sellers, we are going to look for a possible breakdown to form there, which then would send the price to our next target zone at $276.
Swallow Academy
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Binance Coin (BNB): We Might Be Falling Hard | Key Resistance Binance coin is trading in inbetween the key resistance zone and a liquidity barrier where we are seeing the pressure from sellers and overall a bigger movement to lower zones. to happen soon.
More in-depth info is in the video—enjoy!
Swallow Academy
RIOT / 2hNASDAQ:RIOT
The rising leading diagonal quite well ended with an ending diagonal inside!!
Trend Analysis >> Considering the wave structure and closing the week with an 11% decline suggests that an expected relatively deep correction should have begun its way down toward the Fib-retracement levels. It will take a few coming weeks.
The first retracement target >> 7.68
#CryptoStocks #RIOT #BTCMining #Bitcoin #BTC
CLSK / 4hAs anticipated, NASDAQ:CLSK turned down by a 17.33% decline since the May high >> 11.04, and it's very close to the estimated target >> 11.22 in my analysis on May 19!!
Wave Analysis >> The structure of the rising expanded diagonal in Minute degree wave i (circled) is quite well over, and its correction in the same degree wave ii (circled) has begun its way down.
Trend Analysis >> The Minute-degree trend has turned downward to (likely) a relatively deep retracement in wave ii (circled) over a few coming weeks.
The leading diagonal pattern in Minute degree would align with the Minor degree trend upward >> An impulsive wave C should be likely underway. (Just its waves i, ii & iii (circled) shown on the chart.)
Fib-retracement targets for the ongoing decline in wave ii (circled) >> 7.93 >> 7.24
#CryptoStocks #CLSK #BTCMining #Bitcoin #BTC
Gold operation strategyFrom the 4-hour market trend, the short-term support below is around 3275-3280, with a focus on the support at 3253-60. The short-term bullish strong dividing line is 3253. The daily level stabilizes above this position and continues to maintain the bullish rhythm of stepping back on lows and following the trend.
Gold operation strategy:
1. Go long when gold falls back to 3290-3295, and add more when it falls back to 3275-80, stop loss at 3269, target 3316-3320, and break to 3340-45;
2. If gold rebounds to 3340-45 but does not break, you can go short with a light position, stop loss at 3353, target 3300-3306;
Trend analysis under the interweaving of long and short factorsDuring the European session on Thursday, spot gold maintained a volatile downward trend and is now trading around $3,295/oz. During the day, everyone needs to focus on the US PMI data, which may cause significant fluctuations in the gold market. Although gold prices recorded a fourth consecutive trading day of gains on Thursday and hit a two-week high of $3,350/oz, the current rise has slowed down. The recent trend of gold is mainly supported by multiple factors: rising geopolitical risks, worsening US fiscal conditions and continued weakening of the US dollar. Specifically, Moody's downgraded the US sovereign credit rating and warned that the Trump administration's new round of tax reforms and spending plans may increase the size of US debt by 3 to 5 trillion US dollars, which significantly exacerbated market concerns about US debt risks. In addition, the increased expectations of the Federal Reserve's interest rate cuts and the escalation of global trade tensions also supported gold prices.
During the Asian session, gold prices approached a two-week high. However, as the market digests the previous good news, coupled with the upcoming intensive release of European and American economic data, the short-term trend of gold faces uncertainty. This trading day reminds everyone to pay attention to the key data including the May PMI data of European and American countries, the change in the number of initial jobless claims in the United States, and the annualized total number of existing home sales in April. At the same time, the international trade situation, geopolitical dynamics, the progress of the G7 meeting, and the speeches of Federal Reserve officials may also have an impact on the market. It is recommended that everyone keep a close eye on it.
On the 2-hour gold chart, gold rebounded continuously, setting a new high for the week, but the gold price fell back after rising during the day, and it is necessary to pay attention to the risk of short-term correction. Secondly, the intraday high point of gold is 3345 US dollars. The 5-day moving average slightly crosses, the MACD indicator crosses upward, the RSI indicator crosses downward, and the KDJ indicator crosses slightly. The short-term technical aspect shows that the downtrend is dominant, but the RSI indicator suggests that there is a need for adjustment in the short-term gold price, and it is recommended to be bearish.
Operation strategy:
Gold is recommended to short near the current price of 3290, stop loss at 3298, target 3275-3255, and hold after breaking.
Geopolitical risks + policy games, the latest gold operationsAt present, the US fiscal policy game is fierce. The Trump administration is pushing forward a comprehensive tax cut bill with a scale of trillions of dollars, but there are serious divisions within the Republican Party. Against this background, the spot gold price has broken through the key psychological barrier of $3,300, and the technical side shows a bullish "golden cross" pattern. It should be noted that if the US Congress unexpectedly passes the fiscal bill, it may trigger short-term profit-taking. In the medium and long term, supported by the rising global geopolitical risks and the shift in monetary policy, gold still has strategic allocation value. Many investment banks have raised their year-end target prices to above $3,500.
From a technical perspective, gold has been strong recently. Spot gold closed at $3,289.54 per ounce on Tuesday, and further broke through $3,300 in the Asian market on Wednesday, reaching a high of $3,304.06, a new high in more than a week. In the short term, gold prices need to break through the key resistance level of $3,370 to open up further upside space; $3,150 has formed a solid support below. If there are new variables in the geopolitical situation or economic data, gold prices may even challenge the $3,400 mark. Based on the current trend, the trading idea on Wednesday is clear: wait for the price to fall back and continue to intervene in long orders around 3,300, and maintain a bullish strategy.
Operation strategy:
Gold is recommended to go long in the 3300-3305 area, with a stop loss at 3292, and a target of 3315-3330. Hold if it breaks through.
Gold fluctuates at high levels, are bulls regaining confidence?The hourly moving average of gold crosses upward, and eventually diverges upward. The volume of gold bulls is opening up. The resistance of gold at 3253-60 has now turned into support. Gold continues to buy on dips when it falls back in the US market. Since gold has broken through, the decline is an opportunity to buy. We never do long or short positions. The current decline of gold is to buy with the trend. To be a steady hunter, you must have amazing patience and lonely torment, so that you can kill the prey with one blow. To do gold, you also need to be steady and patient to wait for the entry point to enter the market. If your current gold operation is not ideal, I hope I can help you avoid detours in your investment. Welcome to communicate with us!
From the 4-hour analysis, the upper short-term focus is on the short-term suppression of 3290, and the important suppression of 3300. Gold still broke through the US market and rose strongly, and the gold bulls started. After the gold US market broke through the box and oscillated strongly, gold fell back and continued to be long. In the middle position, watch more and do less, be cautious in chasing orders, and wait patiently for key points to enter the market.
Gold operation strategy:
Go long on gold at 3260-65, stop loss at 3250, target at 3290-3300;
Gold's strong rise continuesToday's opening fell directly, and tested 3206 yesterday's low again. The more it tests, the greater the probability of breaking. Focus on the pressure of 3222-3232 during the day, the watershed is 3240, the target is 3190-3170, and the support is 3154-3120! Before the real big drop, it may be accompanied by the rise of the five-minute K line, up and down washing, which needs to be noted.
As long as the European market is not strong, it can still be short; if the European market weakens, it will be short for the second time, but pay attention to the timing and beware of rebound.
Finally, I would like to emphasize that the current decline in gold does not affect the long-term bullish direction. The US dollar index will continue to weaken and enter a downward cycle. It is only a matter of time before the US Reserve cuts interest rates, so the bull market of gold is still there, there is no doubt about it. It's just that the abnormal surge in April will always have some corrections. The market needs to cool down and return to rationality. The price base is high and the increase is large, so the correction range must be large, so look at it rationally.
Moody's downgrade hits the US dollar!In today's Asian session, gold rose slightly after opening and then turned down, falling to a low of $3204/ounce before rebounding, and consolidating in a narrow range of 3210-3220. After entering the European session, gold strengthened, reaching a high of around $3239. Technically, the 2-hour MACD indicator formed a golden cross, and the gold price has stabilized on the middle track on the 3-hour chart, but the 2-hour Bollinger band opening narrowed, indicating that the price fluctuation space is limited. Based on the current trend, it is recommended to adopt a buy on dip strategy.
Operation strategy:
Gold is recommended to buy near 3225 when it falls back, with a stop loss at 3202, and a target of 3235-3245. Hold if it breaks.