Higher High

The first thing to point out is that there will be a higher high.

The Daily stochastic went so ridiculousky overbought that it would have to show slowing down by making a reversal divergence. That’s not to say that you cannot have a 77-90 pips dip in between.

The next long cover projection is at 1.1151. May or may not get there.

There is 1.1149 as the next weekly resistance line and there is a swing high just below that

The second thing should help you understand how embedding works.

The 120-sample stoch was staying overbought whilst the money flow was in a deflated state. This gave room for relentless buying until the money flow went red hot. I will make a hourly exit plot with 60-sample stoch and use 10-sample MFI making a peak above 85.

The volatility compression printed a 0.5 (anchor of the gray divg.), that should serve as hint for more divegences to come.

SOB is at 10-40. Over and out.