By: Doug Rosen
Well, it looks like this pair finally made the double bottom I was expecting at 1.5350 area then spiked back up and touched the daily 5 ema. At this point I will watch this pair very carefully to see what happens next. Will it fall back down and touch the 1.5350 yet again then go back up or will it break the 1.5350 level and keep on falling or will it just reverse fib from where it is now and keep on going? Looking at the weekly and the daily we are sitting on very strong visual support and I am sure there will be lots of profit taking from such levels so I would expect a reverse fib like the one we are getting at this moment on the 4 hour chart then continuation to the upside. It will not be easy since we will have the daily 5 ema to contend with but I do believe a trip back up tot he 1.5500 area is quite plausible.
On my 4 hour chart it is obvious to me we are sitting on last months low, and on the hourly chart we are above and bouncing off of last weeks low. Finally, on the 15 minute chart I am seeing higher highs and higher lows but strong resistance at around 1.5500 I do expect price to continue to that level. At that point I will watch to see if it bounces off and falls back down again or simply breaks that level and just keeps going up. Don't forget, this pair just made a double bottom so bullish action could soon be developing.
