(Click on the Daily chart to enlarge it)
Prices are forming a nice Wedge Falling, but are still too far away from its apex. So it´s hard to say if this Wedge Falling will work this week, pushing prices up for a big Bullish rally.
A few factors raise the odds in favour of this Wedge Falling working this week, as below:
*) A clear Morning Star at major bottom 1.0033 on Oct 22th, with MACD and RSI showing a Bullish Divergence;
*) A Doji at bottom 1.0127 on Nov 05th, and prices closing higher than this support level on Nov 06th (Close at 1.0174).
My strategy for this week will be:
*) If prices broke down the support 1.0127 it will mean that this Wedge Falling still has some more room for a bearish move before actually working. So I´ll SELL SHORT, watching the next imporant support at 1.0033. Will add lots if this supoprt 1.0033 gets broken down;
*) If prices breaks up last Friday´s close at 1.0174 and remains above this level, I´ll enter LONG after a consistent break of resistance 1.0202. I´ll add lots if prices close above the upper line of this Wedge Falling, confirming the pattern. If that really happens, the LIMIT is quite sugnificant, at around 1.0930
