I just love doing technical analysis. It really exercises my mind and my technical analysis skills. Sometimes, I may be wrong and at other times I might be right. Nevertheless, it gives me great joy and hence why I don’t mind doing this blog.
Looking at the euro dollar chart above. I see a few things happening. I feel (Elements of behavioral finance here. :p) that the main trend is still down and there is a possibility of the price reaching the 1.235 region based on Fibonacci.
Looking at my MACD histogram, the bars are telling me that there is a divergence with prices going lower but the red histogram bars going lower. There might be a corrective move up later on after a few more red bars. So, if you are long Euro Dollar, just be a tad more careful.
My Stochastic indicator is below the 20 level. I take it that the bearish momentum will continue from here. But again, just take note of the divergence we saw above.
Currently the price is supported by the S1 pivot level and also is trying to back into my 21ema, commonly known among my trader buddies as the Purple Channel. If the move back in is weak, more bearish momentum will resume.
Happy Trading guys!
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