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EUR/USD Bullish Action Soon Expected

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

Starting out with the weekly chart I can see that price has perfectly fibbed to the 38.2 level and this fib is overlapped with a 144 ema and we have a stochastics in the trade zone pointing up.

EUR/USD Weekly Chart 11/1/11

Moving on to the daily chart it is obvious that yesterdays drop has caused some ema crossovers to the downside and it is also obvious that price has broken a trend line and the stochastic is falling and pointing down.

EUR/USD Daily Chart 11/1/11

Moving on to the 4 hour monthly pivot chart price has breached the 233 and 144 ema's and has touched the lower Bollinger band. The central pivot is at 1.3749 which would be the next area of major support that could cause a bullish reaction. Stochastics also happens to be in the oversold zone.

EUR/USD 4 Hour Chart 11/1/11

Moving on to the hourly weekly pivot chart price has been gracefully riding down the 5 ema but has reacted off last week's lower 1.3797. This could cause a bounce that will either push price back up to the 5 ema so that it can continue downward or it could be the beginning of a move back up. I think that price is still heading down just a bit and that the 5 ema will further push price downward.

EUR/USD 1 Hour Chart 11/1/11

Finally, I move on to the 15 minute daily pivot chart and can see price has been coasting down along the 21 ema and has broken through yesterdays low at 1.3827 and has fibbed back up and price is still looking bearish to me. If price continues to head up above the daily M2 at 1.3843 then retests it I would be looking to go long but until it breaks that zone I will watch for continued bearish action, however, on the longer term charts, price is against support, but support can always be broken. In any case, price is currently at a critical area where i expect something to happen soon.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.
 

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