21/04/2015 EURUSD breaks below 1.075


The EURUSD suffered a surprising strong bullish action in the coming last week as the bull rally of the dollar ended surprisingly with a strong bearish action. The pair has ranged between 1.1 and 1.05 for the previous 3 weeks and as such is looking to create a new channel in the process. The pair has nonetheless depreciated significantly against its dollar counter part with many analysts predicting a parity in the coming year. This pair has currently moved towards the lowerside as well. With the 80 / 120 EMA cutting the 200 EMA previously and constantly remaining the lower levels, this pair is undoubtedly in the bearish trend. The ADX has currently lowered and is pointing lower, forming a weaker and weaker trend.H4

The H4 chart shows a strong resistance at the 200 EMA the pair has started upon a bearish movement again towards the lower level. Perhaps, this time the pair will be able to reach lower lows this time around. With the 20 EMA never reaching the 200 EMA and the 55 EMA never cutting the 200 EMA in the last few months, this pair is still undoubtably bearish, as according to the H4 chart. The ADX shows a picking up of the bearish trend yet again, with the Stochastic Oscillator at the oversold region. Buyers are advised to beware the possible lower movement at this point of time.H1

The h1 chart shows this bearish movement in a clearer detail. With the 55 EMA trending lightly above the 200 EMA and the 20 EMA doing the same but cutting the 55 EMA downwards, this pair may be looking for either a retracement or a continuation of the downward trend. The Trad MACD has cut the red line at the  below 0 level showing a possible sell entry and a continuation as well. The ADX is weak showing a lack of trend strength in entry. However, for those still in the trade, exit is not yet in sight.

Good luck all, and always use stop losses.

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