By: Doug Rosen
EUR/USD pair, as bearish as it has been has strayed too far from its weekly 5 ema and is too far below the lower Bollinger Band it is time for this pair to retrace a bit before it can continue down.
On the daily chart price and the 5 ema have connected, but it appears to me that price may want to make its way to the 13 ema before it continues back down, after all, the stochastics is in the oversold region prepping to cross over and out.
Moving onward to the 4 hour chart it is obvious to me that price is still riding the 5 ema up, yet it is approaching last months low that could act as resistance. On the hourly chart it is very bullish looking and it is obviously riding the 5 ema, however, I would have a hard time taking a long straight in the eye of a previous months low.
I would need to wait for a break and a retest of that low before considering a long. On the 15 minute chart price is obviously range bound. It doesn't know where it is going. If I was to consider entering trades with this pair I would only be considering Longs or shorts off of support and resistance area or wait for a break above 1.3383, then a retest then take a long.
At the time I write this analysis price is just below last month's low, just below last week's low and just above the daily central pivot point, all bearish conditions.
