By: Doug Rosen
The EUR/USD continued to fall yesterday and needs to retrace a bit sooner or later. On the weekly time frame price is nearly 300 pips below the 5 ema and price is already bouncing off the lower Bollinger band. Stochastics is also in the oversold zone.
On the daily time frame price fell out below the lower Bollinger band and seems to want to snap back in. Stochastics is also in the oversold zone.
On the 4 hour time frame price has bounced up and is now above the 5 ema heading up. I expect a fib to the 21 ema should be enough to send price diving down further.
On the hourly time frame price seems to be rolling over to the upside, the first area of resistance will be the 55 ema which is just below the weekly S3 at 1.3073 and this area could send price down tanking or price could break through this level then it will head up to the 144 ema which is overlapped with the weekly S2 at 1.3177 then for sure price should begin to drop.
Finally, on the 15 minute time frame price went up to the 144 ema only to be rejected and is now falling back and will soon head back up. Keep in mind there is an abundance of news today so expect must volatility in the market today.