EURUSD: Cyclic Phasing

It does not take a mastermind to look left and see that on a daily chart, momentum is due a cyclic low (pink boxes in subchart). The study covers 1day to 1week in momentum cycles. Volume has been steadily falling into the rise from 1.3294, with an uptick into yesterday, which can signify a throwover. The last nested low was 176 days ago at 1.27438, which was 181 days from the previous 1.20411 low. So, although only a guide, it is reasonable to expect an ongoing test of 1.27438 to continue at some point. However, in the interim, the daily momentum study (the quickest one) is overbought and keeping an eye on the price action as this makes its next low is key. With MACD at zero and suggesting a 'b' wave is in play (or wave 2 if bigger), any bounce off the 45 degree lines in the Gann Grid are likely to see downside acceleration. However, at this stage the MMA wave is compressed but undoubtedly bullish with price comfortably above both the 50period and 144 period FLDs (orange and blue respectively). If yesterday's high holds, then the 100% extension of the proposed 'a' down, would reach to 1.3146; this also houses the 144 period FLD and the next 45 degree line down. If that MMA wave does not turn down, expect the next drop to get bought aggressively. However, price would need to get through that 50% line at 1.34124 first, and that may be where the daily momentum study bottoms out initially. I continue to remain bullish on this pair but looking to short into demand zones for now.

 The 4hr chart shows the momentum study from 4hr-1day. As seen in the daily chart, we have further confirmation that the daily study needs to unwind to the downside. However, price firstly needs to get down through the trend line at 1.3540 which for now is 120 pips away with the 61.8% of the first leg below at 1.3575. Both of these lines in the sand float around yesterday's low, so unless there is a persistent decline that washes these support lines away, I am probably looking to cover my shorts there and see what happens next.