By: Doug Rosen
Yesterday was a very low volatile day for the EUR/USD. Only have the volume it normally has, it only moved like 61 pips according to my calculations. Normally this pair moves 100 - 120 pips on a given day.
On the daily time frame this pair has made a couple higher lows and a couple lower highs which is another way of describing a triangle pattern if you can visualize that but to me it is just consolidation. Generally after steep moves like the ones we experienced last week price has a tendency to consolidate and go range bound for a bit giving the ema's on the longer term time frames to catch up with price and in this case push it down further. As bearish as I am on this pair and bullish on the Swissy which is the reciprocal of the EUR/USD I cannot help to still think that price may have to retrace up a bit before continuing to the downside and the daily stochastics is in the oversold zone.
On both the 4 hour and 1 hour time frames price is in a tight range and within the Bollinger band tunnels with the ema's all bunched together.
On the 15 minute time frame price is still below the 233 ema overlapped with the daily M3 pivot but if price were to break above 1.3030 which is the daily R1 I would look for longs and below the Central Pivot at 1.3006 I will watch for shorts.