The completed 61.8% retracement and bullish momentum (MACDH) divergences warn to watch for an upwards trend line break. I know last week's upwards trend line break didn't work out, but you've gotta play the current delivery, not the last one.
Tuesday, 22 May 2012
USD/JPY completed 61.8% retracement and bullish momentum divergences warn to watch for upwards trend line break
Momentum at two different time frames indicates that lower prices are likely in the near term for the EUR/USD, and that the one year old down trend has further to go.
Next chart is a daily candlestick for the past 9 months or so. If the down trend was approaching an end it would be expected to show positive momentum divergences. The present case for the EUR/USD shows the opposite of that. The most recent MACDH trough was actually lower than the previous six troughs! This is the thumbprint of a kick-off move, suggesting that the down trend has renewed strength and has further to run.