Looking at weekly chart we see price finished a long term near all-time highs.
We see also a clear five wave impulse finished (wave 5 circled blue)
Here on D1 chart price already finished wave 1 (green in parenthesis) and made a deep retracement for wave 2(green).
An ideal setup for a short entry with low risk. SL above 14.000 would be enough, although technically SL should be at all-time highs.
If this count is correct price should reach the 1.61 fib expansion at least (target 2).
- SL above 14.000 (better above all-time highs)
- first target: last lows
- second target: 1.61 fib expansion
- third target : 2.61 fib expansion (near 10.000)
Other reasons to short:
- convergence-divergence setup (can you spot it?)
- pattern visible on H4 chart (see below)
- visible on H4 chart (see below)
@FullTimeTrader, and USDNOK or EURNOK?
Both look excellent as a short.