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EUR/USD - Bearish Breakout Coming

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

The EUR/USD kicks off the new week at the 50.0 price level to the upside, however, the 5 ema has rolled over and appears to be pushing price down.

EUR/USD Weekly 11/7/11

On the daily chart the 5 ema has already crossed below the 13 as well as the 21 and I think price will break the 50.0 fib level and head down to at least the 61.8 fib level.

EUR/USD Daily 11/7/11

Moving on to the 4 hour time frame price does look like it is very bearish, however, price is approaching what appears to be a strong area of support. Price is below the monthly central pivot point at 1.3749 but price is up against a support line it has respected a couple times so far.

EUR/USD 4 Hour 11/7/11

Moving on to the hourly time frame price is below the 5 ema with the stochastics in the trade zone pointing down. Price is also below the weekly central pivot point.

EUR/USD 1 Hour 11/7/11

Finally, on the 15 minute chart price is riding the 5 ema strong and witht he energy and force behind this pairs price action, I expect support at 1.3715 to be broken and a breakout to the downside to occur.

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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