EUR/USD Breaks Below The 1.3600 Level.
Masterforex-V | Feb 12, 2014 02:17PM ET
Today we are seeing a strong bearish momentum on the Euro versus the Dollar. This impulse has taken the price below the 1.3600 level. Now that the level of the 1.3600 has been broken, this same level should start acting as a resistance for prices in case they come back in the price action that we know as a pullback. If prices do not pullback to the 1.3600 level and continue going lower, then a visit to the 1.3500 level should give us a bounce there to the upside.
On the 4 hour chart, we see that besides having broken the 1.3600, prices also broke the 200 EMA (blue line) and the 55 EMA (purple line). At the moment prices are trying to retrace, so be attentive for a possible short entry.
Let us go a little lower on the time frames and take a look at the 1 hour chart. Notice that on this timeframe we seeing the pullback take place in better detail. There is a good probability of prices bouncing back down and try to test its lowest low again if the price reaches that 1.3600 where we have the 200 EMA on the 1 hour chart.
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