By: Doug Rosen
No matter how you look at it this pair is looking very, very heavy. Slight retracements are possible just enough to catch up with ema's but I would only be looking for reasons to continue this pair to the downside.
Taking a quick peak at the weekly chart price has broken a rather strong visual support line and the lower Bollinger Band is open and pointing downward. Price is slightly out of the Bollinger Band but not so much that I don't think it can go down any further because it very well can. If anything at all I would expect price to consolidate awhile, causing the ema's to drop down and meet price.
Looking at the daily chart price is gracefully riding the 5 ema downward. Price is about 45 pips below the daily 5 ema. Movind over to the 4 hour chart price is slightly outside of the lower Bollinger Band and about 30 Pips away from the 4 hour 5 and a few pips above that is a descending trend line. On the hourly the 5 ema has just crossed below Fridays low. A 38.2 fib of the recent drop would put us at around 1.5746 which coincides with the weekly M2 as well as the hourly 21 ema and this level had been support last week so following role reversal logic this area should be a very strong area of resistance so if price were to reach even the 1.5740 region I would be looking for reasons to take a short with a stop loss not much more than 20 pips away.
