By: Doug Rosen
On the Daily we have broken a support line and are looking very bearish yet I believe a retracement is imminent. Daily Stochastics is in the oversold zone. Price is right on the Monthly S2 Pivot, the weekly M0 Pivot as well as the Daily S1.
It could be that end of the week profit taking at the end of a very bearish week will trigger a load of buy orders in the market forcing price to head back up. On the 15 Minute chart we are below the ema's and we are below yesterdays low.
I am watching for a Fib of the recent drop that can take us to yesterdays low then I could consider a short at 1.3876 with a tight stop just above 1.3890 If end of the week profit taking dominates price then I would expect price to break above 1.3876 then go to 1.3921, bounce back down a bit to the 1.3880 region, then I would look to take a long with a tight stop loss just below 1.3870 .