By: Doug Rosen
Yesterday was yet another bearish day, price dropped quite a bit. On both the weekly and daily time frames price has fallen way ahead of the 5 ema's and is extended outside of the Bollinger bands and the stochastics is in the oversold zone. Around a hundred or so pips below on the weekly time frame is the 233 ema at .8310 which no doubt will act as strong support and cause a decent bounce up so be sure to watch out for that. The 233 ema nearly overlaps with trend line I have on my chart adding yet further reliability to the 233 ema.
Around that same price area of .8310 I also have a lower trend line from a price channel on my daily time frame. So, remember, watch that price zone for decent moves to the upside when they happen.
On the 4 hour time frame price has been perfectly riding down the ema's. There have been several opportunities to take shorts off of 233, 144, 55, 21 and 5 ema's and the 233, 144 and 55 ema's offer the biggest moves and in many cases they overlap with a fib retracement and those are the most reliable trades you can ever take. Line up an ema with a swing fib and maybe even a pivot point and find yourself in a decent trade.
On the hourly time frame same thing, pokes off the 144 and 233 ema's offer decent shorts and they all overlap with swing fibs.
On the 15 minute time frame price is in a tight range within Bollinger bands we call a tunnel but at some point price will want out of the bands and take off. After this consolidation is over I expect price to continue to the downside so I remain bearish on this pair.