(CLICK ON THE CHART TO ENLARGE IT)
(1st chart to show all waves - 2nd chart to show current indicators)
After Prices finishing its major bearish trend in Nov 2005, we´ve seen 4 major waves, marked in the attached chart, and explained as below:
* 1st wave: finished on Jan 24th, 2006. Prices then retraced to 61% fibo in mid Feb 2006 just to rally to the 2nd wave;
* 2nd wave: completed on May 15th after bullish rally from 1st wave´s 61%fibo 1.1836 to 1.2970. Then prices retraced to 38% fibo and formed a 400-pip trade range, from 38% fibo at 1.2530 to the top of the 2nd wave;
* 3nd wave: trade range is broken and prices rallied to form the 3nd wave at 1.3368 in the beginning of Dec 2006. Then again we have a fibonacci retracement to between 50% and 62%, at 1.2860 on Jan 12th, 2007.
* 4th wave: after a double-bottom formed on Jan 12th and 26th at the retracement of the 3rd wave, prices rallied again to form the 4th wave on April 27th, 2007 and, again, we have a perfect 50% fibonacci retracement to 1.3264 on June 13th.
* 5th wave: That´s the main question here. All previous waves were formed after at least a 138.00% fibo projection. Prices are right now at a new top at 1.3840, which is the 123.00% fibo projection from last 4th wave. Indicators are o/b, MACD already gave its sell signal and ADX at its higest level since January 2.005. But again, this is a very strong bullish trend so,
BUY break 1.3850
SELL break 1.3815 and add lots at break 1.3760
