By: Doug Rosen
Retracements of the previous drop to be expected:
Looking at this pair I see it is approaching the Weekly 144 ema and at the edge of the Lower Bollinger Band. Viewing the daiy chart price is outside of the Bollinger Band, about 70 pips away from the Daily 5 ema and in the oversold zone of the Stochastics.
On the 4 Hour we are about 26 pips away from the 5 ema and I expect that 0.86 should be a strong area of resistance and a good place to look at further shorts. If taking shorts at 0.8600 set a stop at around 0.8625 and look for a profit target 0.8560.