Forex Chart Alert – EUR/USD Gets Another Bearish Signal
March 9, 2013 10:13 am GMT+0 in Chart Alert
EUR/USD’s move below 200-day moving average gad given a strong bearish signal as was indicated in this EUR/USD chart alert. However, the pair had gone into a very volatile sideways mode since then. The upward jump found resistance below 22-day EMA and then price fell below the 200-day EMA again. The new bearish signal was when 5-day EMA moved below the 200-day moving average line. Please note that this crossover is still in the early stage but during the past such signals were generally followed by roughly 300 to 1000 pips moves. There are always some false signals and exceptions.
In case the 22-day EMA resistance holds and no reversal of the above mentioned crossover (5-day EMA line moving over 220-day SMA) takes place during the next week then some quite deeper moves can be expected.
In the following chart the while line is 200-day SMA, Green is 5-day EMA, yellow is 22-day EMA and Red is 55-day EMA.
EUR/USD daily chart
Lets also have a look on the possible resistance zones for EUR/USD, based on Fibonacci retracement levels and past price action and resistances: