(CLICK ON THE CHART TO ENLARGE IT)
169.00 was definitely A major double-top. Prices collapsed 750 pips so far....huge move...My SELL strategy on my last post worked well. Prices dropped fiercely from SELL break 165.86 to current levels...400 pip move....
It´s definitely early to say that this double-top at 169.00 marked the end of this amazing bullish trend. But prices are heading south so fast and so strongly that some precaution here is required before going long again. I do believe we are going to see some bullish move this week, due to the following factors:
* Prices just hit bottom of bullish channel at 160.60 (see chart...)
* MACD too away from its signal line.
* RSI too away from its Moving Average
* DMI- shot up too fast, it´s too away from ADX and is already turning down.
* Triple Bullish divergence on MACD and RSI on the 30-minute chart
LONG break 161.70 with tight 20/30 pip stop and target 162.50. Add new lots at break of 162.00 (38% fibo of last major up move 150.78 to 169.00) and at break of 162.35 (62EMA on 30-minute chart).
SHORT break 160.60
