By: Doug Rosen
Taking a brief look at the weekly time frame for the EUR/USD it is obvious that price is spaced away from the 5 ema. Most of the time, price needs to make contact with the 5 ema to continue along on its trend. The 5 ema gives price the fuel it needs to travel.
On the daily time frame price came close to making a double bottom recently and jumped up a bit. The stochastics is in the oversold zone and seems to be crossing to the upside. The 5 ema seems to be rolling over to the upside and price looks like it wants to head up and touch the 13 ema.
On the 4 hour time frame I have price in a small trap. Based on my other analysis I will watch for price to break out of this trap to the upside. I am mostly bullish on this pair today because I am bearish on the Swissy and the EUR/USD and the USD/CHF have nearly a perfect opposite correlation.
On the hourly time frame price is at the bottom of my price trap close to the nose. Price is in an area where something should happen soon. Either price will break below the trap and keep falling or it will bounce up and break through the upper trap line.
Technically price is in a downtrend at this time since price is below all the shorter ema's so a break to the upside could be very choppy and today there will be much news coming out of the ECB.