By: Doug Rosen
Retracements of the previous drop to be expected:
This pair continues to tank downward with a lot of force but just as I have noticed with other pairs, this pair has reached extreme lows. Price is way outside the lower Bollinger Bands on both the weekly and daily charts, has traveled a distance from the 5 ema on both charts and in the oversold zone of the Stochastics on practically all time frames. I just cannot help but to believe we are overdue for a retracement.
Price has pierced the Monthly S2 Reversal Pivot Point, price is approaching the weekly S1 Pivot and is bouncing off the Daily M1. As bearish as this pair is it, it is at extreme areas of support I really expect a retracement back to the 104.75 region and as high as 105.25 before continuing any further down. So don't lose self control and jump short on this pair. It has fallen fast and hard, wait for a reasonable pullback before getting caught up in this short. I would be looking more for reasons to go long than to go short at this point in the drop.
