By: Doug Rosen
The EUR/USD took quite a dive yesterday as I had predicted. Price open just below the 13 ema yesterday and just dropped without really looking back. Price has fallen to a level just above weekly visual support and I think a bounce back up may be imminent.
On the daily timeframe price needs to make its way back up to the 5 ema so that it can continue its way down. The fact that the Swissy is nearing strong resistance which should force it down it should help the EUR/USD head up.
On the 4 hour timeframe price is still riding the 5 ema downward but has bounced up off the lower trend line and has made contact witht he 5 ema so naturally price is expected to continue to fall, hoever, the Swissy should take a dive and the US Dollar Index is also looking bearish so I know price has to roll over to the upside.
Nothing really has to happen that way, the Swissy could just end up breaking all this tough resistance and just take off to the sky therefore forcing the EUR/USD to take a dive so I guess we will just have to see what will happen. Meanwhile, on the hourly time frame price does look bearish.
Price recently rose up and kissed the 21 ema then dropped but has now made a reverse fib which could force price upward, however, stochastics is on the oversold zone pointing down so I guess we will just have to wait and see what will happen. It could also turn out to be just a range bound night due to the American holiday.