Well, I can’t put my finger on it exactly but, something just doesn’t add up. I’m beginning to suspect a run to a new high and then the fall. Everything is shaping up nicely except…. GBP/USD looks to have one more leg up to about $1.6450 before declining; AUD/USD looks to have a push up in the makings as it is currently in a three wave decline; S&P500 has a three wave decline that says corrective all over it, and still has that 1384/96 target to hit (after hitting 1277 first); and most importantly, little Miss Dixie (/DX, U.S Dollar) has broken above an important trend line but is just sitting there doing nothing.
Given these nagging little shards I think it’s time to set some stops. Just in case the decline is for real perhaps a trailing stop is in order? Setting a TP (Take Profit) at $1.3992 (1.3976 is the actual target, it’s the 50% point of the last advance) and a 50pip trailing stop to start at $1.4251 (price is $1.4221 as I type this).
I hope the TP gets hit and it zooms up! If that happens, a new position will be figured out soon.