Calling the Top on the EUR/USD

I am entering a short trade @ 1.5442 with a stop at 1.5485. My initial target will be below 1.5000.

I know it is risky to try calling a top. However, I am not betting too much on this trade, and I found 6 levels of resistance in the 1.5425-65 zone.

On the 2hr chart above, you can see that Wave5 is progressing nicely. It appears to be forming as an overlapping ending diagonal. Wavev of Wave5 has yet to complete, but once it does, look out below. Also MACD divergence is nearly confirmed.

The six levels of resistance are:
  • 1.5466: Monthly R1 pivot point
  • 1.5462: Wave5 = Wave1
  • 1.5446: 2.618 extension of Wave1
  • 1.5440: Weekly M4 pivot point
  • 1.5438: Triangle resistance (in 12hrs)
  • 1.5428: 2.618 extention of Wavei
  • 1.5410: Triangle resistance (current)
  • --------------------------------------
  • 1.5442: Average

Thus, I am entering at 1.5442 with a stop above the highest resistance point. If this trade fails, I will wait to enter short on the retracement of a clear 5-wave down move.

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