This analysis is based on a Swing Trade Strategy ive been checking out which i came across at http://www.swing-trade-stocks.com
Swing Traders look for pullbacks to trade. In this scenario and what the website above suggest, you use 10SMA and 30EMA moving averages. The area in between the moving averages is called the Traders Action Zone (TAZ). This is the area where you look to enter a position with the current trend, in the case of the euro/usd this is down.
You would check the ADX indicator to check whether the strength of the trend is strong (above 25). Its 33 right now on the daily chart. Use the Williams %R on setting 3. You would look for the Williams %R to be overbought (above -20). Its hit -20 but not gone above.
The current price is not near any support and resistance though.
It is tempting though to short for low stakes at first!
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