LTC/USD – June 2022 cycle against cycle in US Dollar Index

One of the well known facts of the market are correlations between instruments. However that rule does not apply every time in every instrument. Here at Elliott Wave Forecast we call a first degree correlation when 2 instruments move in accordance to their correlated nature. The opposite is called second dimension correlation. It occurs when the 2 correlated instruments do not move tick by tick the same and deviate the rule of first degree correlation. In this article we will overlay LTCUSD and USDX to see how a second dimension has been unfolding since cycle from 06.14.22.

Firstly, let’s have a look at Litecoin cycle from 06.14.22.

LTC/USD – Daily chart – Cycle from 06.14.22

We can see that Litecoin started a new cycle since 06.14.22. So far it looks to be within 5 waves. Currently wave (4) pivot is holding and we can potentially see one more leg higher to end larger degree wave ((1)) towards 90 – 100 area. Also from 06.14.22 until it ended wave (3) has moved up by about 110%.
Most traders after seeing the move would automatically assume that the USDX would have moved inverse to the move in LTCUSD. Well let’s have a look at the USDX next.

US Dollar Index – Daily chart within cycle from 09.28.22

The USDX is at the same level since 06.14.22 when Litecoin started its cycle. The 2 instruments have separated themselves from first degree correlation to second. Wave ((3)) cycle in USDX ended 09.28.22. In Litecoin as of today’s data larger degree cycle ended on 06.14.22.

Share: Cryptos feed

FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.