Last time we spoke, I mentioned that we could see a further rally in the USD. Indeed we did. However, looking at the 60- min. chart through today a bearish and bullish case can be made. I've attached a chart of the bullish interpretation. Should the bearish case prevail, a new low will occur. The same can be said for the ES_F. One can argue that the decline from 1182. 25 is a three wave structure and that today's wave pattern is tracing up in an impulsive manner or that the structure was corrective. Odds are that it is impulsive as the current decline from 1179.25 looks corrective, possibly a 4th wave at lower time frames. Expect a new high if the bullish scenario plays out.
What I want to make clear to the readership is that there is no clear wave pattern. When I run into this, I simply wait for the market to commit to me before I commit to it and place my money at risk. Momentum: Remains OB on weekly. Daily time frame has turned down from OB area. 60 min chart level has turned down.
Pattern: final wave.v of wave.c of wave.2
Time: The previous time relationships were negated.
Trade Strategy: Neutral. Remain flat but looking to establish a bearish position as momentum indicators and price confirm a top is in place.
Best of Trading
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