Correct, you can also combo normally.off his jab while circling left or right, so you can either throw a moving combo or plant after the jab and combo normally.
There's a learning curve, but Cruz is a beast when you get him down, you can pretty much do everything, counterstrike, stick and move, pressure, I generally slip a lot in the first while untouchable is active and he has 103 headmovement, then fall back to a rangey, short and unique lunge based footwork and jab game with sporadic wrasslin' for good measure.
As for the unique 1-2, I believe you can combo a lead hook off the 2, but it feels delayed, you can possibly also throw an inside leg kick, but I'm not 100%, you can also cancel the 2 and it'll turn into his unique evasion lunge, handy for baiting counters as you can combo a 2 out of that lunge as well.