By: Doug Rosen
EUR/USD pair has obviously made a lot of headway since yesterday. Will it continue? That's the big question. We basically bounced off a fib level between the 50.0 and 61.8 which was expected and at this time the stochastics is in the oversold zone and beginning to cross up.
All this looks bullish in nature except for one thing, price has moved very fast and is now gapped a distance from the daily 5 ema therefore nothing is beneath price to force it upward.
Price now needs to give the 5 ema a chance t catch up. So, price has come up to the 55 ema which will play the role of resistance in this scenario and force price down a bit. Also, keep in mind that price has also just touched the upper Bollinger band and that is also dynamic resistance and the stochastics is in the overbought zone.
Moving over tot he 4 hour chart it is obvious that price has been riding the 5 ema and but price also just reached the monthly R2 reversal pivot point and profit taking and sell orders will take place at that level.
Moving over to the hourly chart we are in a tight range, doesn't really say a whole lot. Finally, I look at the 15 minute and that confirms the tight range we are in at this time.
My strategy as always is to buy at support and sell at resistance so I would wait for price to fall down to the daily central pivot point and take a long, or, I would wait for price to reach yesterdays high and see if it breaks and retests then take a long, or watch for a bounce down and a retest then look for a short. There are a few different ways to play this pair tonight.