Looking at a 1 hour chart, there are great things going our way. We see that the ADX
shows very low power, and that the pair will make a big move soon. Since the ADX
shows power being built up, we need to look for which way the move will be. The MACD
shows downward momentum, and there is also divergence in the MACD
. Take a look at the RSI
. There is also divergence in the RSI
. The pair is reaching a pretty high point. 2 things might happen.
The pair will go up, spike, and then drop hard.
The pair will have a decent drop, work its way back up, the EMA's will cross down, and the pair will tank.
Either way, downtrend if forming. If you want to be risky, but safe, don't place a stop loss within 300 pips above where it is currently at. We could see this pair run up a little bit more, but probability shows that it should go down.
Also, 4 hour charts show divergence.