Real-Forex Daily review- 11.07.2012

Tracking the EUR/USD pair

The price in its breaking of the 1.2346 price level, has reached the last low at the 1.2290 price level and at this point we can see a stoppage of the price. Breaking the low of the last candle will probably lead the price towards the 1.2170 area (more about it in the 4 hour chart review). On the other hand, stoppage of the price at the current area will indicate that it is possible to see a technical correction in size of between a third and two thirds of the downtrends which started at the 1.2670 price level.

If the price will close the current level under the 1.2290 price level, it will be possible to assume that it will continue its way towards the 1.2170 area. On the other hand, closure of the candle above the 1.2290 price level which is used as a support level, will stall the continuation of the downtrend and it is even possible to see an ascending move for a Fibonacci correction in size of between a third and two thirds of the downtrend that started at the 1.2670 price level.

As it was written on the last review, the price did reach the 1.2290 support level and it looks like it stopped in this area. Breaking of the 1.2256 price level will probably lead the price to the line connecting points 1 and 4, which is the “Wolfe waves” pattern target, around the 1.2170 price level. On the other hand, continuation of the uptrend from this area will probably lead the price to a Fibonacci correction in size of between a third and two thirds of the downtrend marked in red broken line, meaning between the 1.2400 and the 1.2485 price levels.

The price has dropped again to the last low on the 1.2256 price level and even broke it while in those very moments it is checked if it can change from a support level to a resistance. If it can, it is possible to assume that the price will continue its way downwards to the “Wolfe waves” pattern target on the crossing of the price with the line connecting points 1 and 4.

Date: 10.07.2012   Time: 17:16  Rate: 1.5504

The price has stopped on the 1.5460 price level after the downtrend which started at the 1.5716 price level. Breaking of the 1.5460 level will indicate that we will see the price continues towards the “Wolfe waves” pattern target, meaning the line connecting points 1 and 4. On the other hand, if the price will continue the small ascending move which started now, we will probably see a Fibonacci correction in size of between a third and two thirds of the downtrend marked in red broken line, and its first target is the 1.5560 price level.

During the last trading day the price has tried to breach the 1.5540 resistance level without the possibility to close a candle above it. At the moment the price is located under the Bollinger’s moving average (bearish market) and it is possible that the continuation of the downtrend will lead it in first stage to the last low at the 1.5460 price level. On the other hand, its establishment above the Bollinger’s moving average will probably lead the price to a Fibonacci correction move in size of between a third and two thirds of the downtrend described in red broken line, in this case its first target will be the 1.5560 price level.

Date: 10.07.2012   Time: 17:25 Rate: 1.0213

The price has corrected exactly 50% of the uptrend marked in blue broken line. Breaching the 1.0326 price level will probably continue the uptrend towards the next resistance on the 1.0474 price level. On the other, stoppage of the price and its way back under the 1.0163 price level will lead it to the 1.0123 price level at first stage, this is a 61.8% Fibonacci correction level of the mentioned uptrend.

During the last trading day the price the price tried to breach the 1.0224 price level which is used as a dynamic resistance, but could not succeed to do so. It is possible to assume that a continuation of the downtrend will lead the price towards the last support on the 1.0163 price level and its breaking will continue the downtrend towards the 1.0123 price level, this is a 61.8% Fibonacci correction level of the uptrend marked with a blue broken line. On the other hand, breaching and establishment of the price above the 1.0224 price level will indicate that the price will probably ascend at first stage towards the closest resistance on the 1.0278 price level and its breaching will lead the price towards the last peak on the 1.0326 price level.

Date: 10.07.2012   Time: 17:31 Rate: 0.9803

The price has reached the double bottom pattern target on the 0.9700price level (blue broken lines) and reached very closely to the “Wolfe waves” pattern target (crossing of the price with the line connecting points 1 and 4). It is possible to assume that in case the price will continue the downtrend, it will perform a correction in size of between a third and two thirds of the last uptrend which started at the 0.9513 price level. if the price will get back up, it is possible to assume that its first target will be the “Wolfe waves” pattern target.

The price is getting closer to the “Wolfe waves” pattern target (crossing of the price with the line connecting between points 1 and 4), if the price will reach this target, it is possible to see a technical correction in size of between a third and two thirds of the last uptrend that started at the 0.9513 and was not corrected yet.

Date: 10.07.2012   Time: 17:34 Rate: 79.47

The price still does not have a target. It is ranging between the 80.15 and the 79.00 price levels. Breaching of the 80.60 price level will indicate that the price will continue its move north towards the 81.70 price level at first stage, this is a 61.8% Fibonacci correction level of the downtrend marked in red broken line. On the other hand, descend of the price under the 78.80 price level will indicate that the price will check the last low at the 77.66 price level.

The price is currently located under the Bollinger’s moving average (bearish market) but still ranging between the 79.00 and the 80.15 price levels. Breaching the 80.60 price level will indicate that the price will continue the uptrend towards the 81.70 price level at first stage, this is a 61.8% Fibonacci correction level of the downtrend marked in red broken line. On the other hand, falling of the price under the 78.80 price level will probably lead it to check the last low at the 77.66 price level.

13.30 (GMT+1) CAD – Trade Balance

13.30 (GMT+1) USD – Trade Balance

19.00 (GMT+1) USD – FOMC Meeting Minutes

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