USD / IDR time for a correction - because everything corrects

flyinkiwi10 Updated   
FX_IDC:USDIDR   U.S. Dollar / Rupiah
This is 100% technical analysis and 0% fundamental analyis. I would like to see for myself if TA can stand on its own.

By my count there is some strong bearish divergence shown on the RSI. Three higher highs have translated to lower highs on the RSI, indicating slowing momentum. When that slowing momentum is also coincident with what seems to be (I only spent 5 mins on it) wave 5 of 5. Since this is the first time I have looked up the currency pair on a technical chart it would be unlikely that I did so "at the top" but right now it is a plausible scenaro.

Saying that I would normally expect wave 5 to at least reach the top of the channel, and of course, normally top the wave 3 high as well. However, it seems a real posibility that it will fall short. The IDR has been weakening for years and a correction may be warranted - especially if the USD loses strength.

What will happen now is the start of a small correction (to start with to the lower trend line) but keep an eye on signs that the correction may be steeper or deeper. If the lower trend-line is broken with momentum and volume I would stay in the short trade. Because wave 5 (if it turns out to be the wave 5 top) is truncated (lower) it would indicate there is significant downward pressure and the correction could be swift.

My other scenario is a lot more bullish; that this is just sub-wave 1 of the larger degree 5th wave up. This would mean all time highs for IDR in a year or two.

I am not "trading" IDR but keeping an eye on it. I don't trade FOREX - mainly commodities like bitcoin, silver, gold, and crude. This is published for my own education. Comments welcome. Let's see how it turns out.
I was a bit early in my call, it should be heading for the lower trend-line at least


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