Real-Forex Daily review- 12.07.2012

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.

The price is making its way towards the 1.2170 price level as it was written on yesterday’s review. It is possible to see that the price checked if the 1.2290 price level can switch positions from a support to a resistance. Only the comeback of the price above the 1.2290 price level will delay the continuation of the downtrend.

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.

The price closed the last candle clearly under the 1.2256 support level and from this point we will probably see checking of this level as a resistance. The other option is that the price will continue downwards to the “Wolfe waves” pattern target (crossing of the price with the line connecting points 1 and 4), while it is possible to see that the Bollinger bands are opening for this kind of possibility. Only by breaching the 1.2334 price level it will be possible to see a correction of the last downtrend (red broken line) in size of between a third and two thirds, meaning between the 1.2400 and the 1.2485 price levels.

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.

The price has corrected by 38.2% of the last downtrend (red broken line) towards the 1.5560 price level and it looks like it stopped there. If it will descend under the Bollinger’s moving average, it is possible to see another checking of the last low on the 1.5460 price level. On the other hand, its establishment at the current area and breaching the 1.5560 price level will probably lead the price towards the 1.5590 price level which is a 50% Fibonacci correction level of the mentioned downtrend.

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.

As it was written on yesterday’s review, the price did reach its target on the 1.0278 price level and it looks like it stopped in this area. Breaking of this level will probably lead the price towards the last peak on the 1.0326 price level. on the other hand, stoppage at the current area and descend under the Bollinger’s moving average will indicate that the price will probably breach the 1.0163 price level and the target of the price will set on the 1.0123 price level, this is a 61.8% Fibonacci correction level of the uptrend marked in blue broken line.

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.

The crossing of the price with the line connecting points 1 and 4 (“Wolfe waves” pattern target) seem inevitable at this moment, while after it we might see a descending correction move of the uptrend which started at the 0.9513 price level. this correction is suppose to be in size of between a third and two thirds by Fibonacci retracement, this correction will take place only in case the price structure will change from the current ascending into descending.

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.

In the present trading day the price has performed an impressive ascending move while it is reaching now to the 79.80 resistance level. as it was mentioned on the last reviews, breaching of the 80.60 price level will probably lead the price to a continuation of 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, in case the price will descend under the 78.80 price level, it is possible that it will check the last low on the 77.66 price level.

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