ZIGA SET Island ReversalI bought 4.9 with SL tp at previous top.
An island reversal is a price pattern on bar charts or candlestick charts that, on a daily chart, features a grouping of days separated on either side by gaps in the price action. This price pattern suggests that prices may reverse whatever trend they are currently exhibiting, whether from upward to downward or from downward to upward.
Iceland
Two possible scenariosIcelandic krona reached a critical level. It formed a classic double bottom (bullish reversal pattern) on monthly. By double bottom rules it should hit 119 (height of double bottom projected from upper double bottom neckline) pretty soon. There we also have Ichimoku cloud resistance, RSI trendline and Gann (Fibonacci) angle as you see. So 120 is critical level. Here it should turn down as future cloud is bearish. If price doesnt reverse there and breaks through RSI trendline, then its very likely to break through Kumo cloud (which is not very thick there as you see) resistance. If price hits 134 thats it, it will shoot to 193 (the height of bullish flag pole, by flag pole rules). If it turns at 120 then it will be dropping to 98-96 until 2022 from where it will shoot up anyway (or will be going in range channel btw 98-110 if Iceland's economics gets really strong). Though, I simply dont believe in Icelandic krona's stability that it will move in narrow ranges. ISK has bad history and has always been as volatile as Turkish lira. It never moved in tight ranges. So expect a bitcoinish volatility! It would be best if they would peg it to EUR or would simple "delete" it by replace it with EUR or USD.
USDISK. End of the miracleIceland people deserve good words as they could manage the strong financial crisis and an awful devaluation of krona in 2008 (>160%).
Since then the ISK won back the most of the loss against the dollar almost hitting the 61.8% Fibonacci.
In spite of this, the structure of the chart calls for another rise of USDISK at least to the former top beyond 150 level.
Before that, there is another drop is pending in wave 5 of C to complete the correction.
USDISK is gonna fly to the moon, again...After applying a fixed Gann sqaure to Icelandic krona weekly chart, we seem to have arrived to the start of a new Gann wave, which if correlated with 2 previous waves, should be a much steeper run to a new high at about 156 or higher. Ichimoku elements show bullish momentum as well (amazing how well Ichimoku aligns with Gann square ). Even if we take into consideration solely a double bottom (W pattern), price should hit 120 (the length of W move) pretty soon. USDISK´s rise aligns well with our DXY 0.00% 0.00% 0.00% ( dollar index -0.27% -0.27% -0.27% ) Gann projection, which is only to strengthen this year. One thing I do not understand, why does not Iceland´s government replace ISK (which as volatile as crude or bitcoin) with a more stable currency like EUR. Theu could have done so a long time ago, being EEA member.