EURUSD Monthly Chart with 5-EMA – Currently Not Extended

This post is a follow-on to the previous posts showing monthly charts with the 5-EMA. The charts for the USDCHF and GBPCHF pairs show current situations where price is extended away from the 5-EMA, and whether this is a decent clue for the risk of reversal remains to be seen. However, the yellow squares on the EURUSD chart definitely show that on many occasions when the EURUSD has been near a turning point on the monthly time frame, it has found itself extended away from the 5-EMA. The most recent example was 1 year ago with the EURUSD plunging to lows on the monthly chart in the low 1.2000’s high 1.1teens.

Image001

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: