Since last week didn’t work out as planned and we shot above the resistance line without any stops or retraces, shorts will be an easier trade next week. But I am working with 2 possible scenarios. The images below explain them better than words. We’ll either re-visit the important resistance zones from friday, 1320 and 1340, and start the short move on monday or we’ll break above 1380 and keep going up or topping until wednesday’s FED meeting. The first scenario should generate a retrace back towards a strong demand zone of 1200 and from then on we will see what happens. The second scenario, there is a large demand around the 1500 area, which could lead to a bigger drop, towards 1000-1060 minimum, during the next few weeks.
