We are just slightly past a 618 retracement of the long bullish leg and at a 127 extension of the lastest correction leg. Also, oversold on the daily chart.
This could be the reversal zone. I'm going to take a flyer on this, with a fairly tight stop.
The top of the channel matching a 618 retracement and an over bought RSI provides a nice setup.
If the 0.9397 structure is broken, could see a move all the way the 127 extension at structure from the weekly chart. excellent 1:7 R/R!
retracement to the 382 at previous structure presents a nice down trend continuation setup.
My target will be just inside the 127 extension since the last structure to work off of is July 2010.
After a mighty retrace to the 618 at previous resistance. I'm expecting a continuation in the downtrend. Possibly to the 1414 at previous support in the 1.37 range. Could be a potential 700 pip move over the next month....
