By: Doug Rosen
The new weekly candle for the EUR/USD opened up over 100 pips below the weekly 5 ema. Last week's weekly candle printed at the lower Bollinger band. The EUR/USD will continue to drop, but before it can continue its fall it will need to retrace its way back up to the weekly 5 ema in order to keep heading down and the stochastics is in the oversold zone.
On the daily time frame stochastics is also in the oversold zone. price has been making higher lows the last couple of days so the daily timeframe may be heading its way back to the 13 ema at the 38.2 fib of the recent drop down at around 1.3175
On the 4 hour time frame the 5 and 13 ema's have lost their angle and separation between each other so price action may be about to shift over to the upside.
On the hourly time frame price action looks a little different. Price has just made a 50.0 fib to the downside and it is overlapped by the 13 ema and shortly above that is the 21 ema so it will be a tough nut to crack.
On the 15 minute time frame price is at a 50.0 fib of the recent swing down and it is overlapped with the 55 ema and this is strong resistance so if price breaks above the 55 ema it still has the 144 shortly above and the 233 ema not too much further than that. Above 1.3050 I will be watching for longs, under 1.2980 I will be watching for shorts