By: Doug Rosen
This pair looks to me like it is ready to continue to the downside. Taking a look at the weekly chart price has already met up with the weekly 5 ema and the 13 is crossing the 21 ema. Looking at the daily chart price is also againt the 5 and 13 ema's and the 21 and 233 is much further above.
Moving over to the 4 hour the 5 has crossed below the 13 and is crossing the 21 ema which looks very bearish, however, I must acknowledge we are at a 38.2 Fib of the recent move up and that fib coincides with the S1 Pivot Point and the lower Bollinger Band is pointing up so with all that being said a reaction or bound to the upside is expected.
Switching over to my 1 hour chart I cannot see that price has a lot of room to rise to the upside. We are riding the hourly 5 down, the 13 ema is not far above and it has crossed the 233 and the 21 is beginning to cross the 233 as well, all of this is very bearish in nature. The weekly Central Pivot is at 0.8679 so that which is just below the 38.2 Fib level of the recent move up this could be the area where a bounce could take place. If price were to bounce up from that level I really would not expect it to go much further beyond 0.8712 which just happens to be the Friday low and coincides with the 15 minute 55 ema with an upper Bollinger band just below and the 15 minute Stochastics just below the overbought zone and crossing to the downside. If this pair is to continue to fall, I expect it to fall to the 0.8665 area which happens to be the daily S2.
