By: Doug Rosen
As of yesterday, this pair took off and broke out of the price channel it has been trapped in since the summer to the upside. This move was mostly inspired by fundamentals.
This move was very extreme and there will most likely be continuation to the upside, however, usually after such a brisk move such as this, consolidation usually occurs. The reason is because the daily EMA's need to catch up with price.
Observing the daily chart it is obvious that there is a wide gap between price and the 5 ema. I am just as bullish as ever with this pair, however, a retracement back to the daily 5 ema is expected. All conditions are bullish. Upper Bollinger band is pointing up, 5 ema is pointing up and so is the stochastic.
Moving on to the 4 hour and monthly pivot chart price has touched the M5 bounced off and back down to the R2. The 4 hour 5 ema is just under the current price candle and all conditions are bullish except the stochastic is in the overbought zone.
Moving on to the hourly and weekly pivot chart price is hovering just on the M4 and the 5 ema is rolling over toward the 13 ema. Stochastic has come out of the overbought zone and is pointing down.
Finally, on the 15 minute daily pivot chart price is in a consolidation range. Price is just under the M3. I expect price to consolidate a bit, possible retrace just a little then continue onward. Most likely, today's price action will not be as active as yesterday.