It seems to me, the market has finally reached a possible peak point for the recent run-up. I will most definately NOT buy here. If you are already long, I would suggest to close partially your current positions or even enter a small short. Just take a closer look at the charts.
The first indication, that the market is ready to reverse is EUR/USD. It was unable to rise above 1.4444 (nice number) and after some sideways action it fell back down. EUR/USD has formed a Wyckoff top (you can read more on that here).
We have a strong negative divergence in MACD and the upper trend line is acting as resistance. As you can see from the charts, the current market action is pretty similar to the one we had at the beginning of June. Even if we rise some more, the rise would artificial and we’ll fall even more harder.
My target for this pullback is in a 960-940 range.
