Real-Forex Daily review- 24.07.2012

The price has checked again the 1.2290 price level, but at this point could not close a candle above this level, so at this point this level can be used as a resistance level. Breaking of the 1.2290 price level will probably lead the price to a Fibonacci correction in size of between a third and two thirds of the last downtrend which started at the 1.2692 price level. On the other hand, continuation of the downtrend will lead the price at first stage to the “One in, one out” pattern target on the 1.2122 price level (red broken lines).

As it is possible to see, the price could not breach the 1.2290 resistance level and descended to complete the “One in, one out” pattern target by reaching the 1.2122 price level. The price is moving now around this level while at the moment it is used as a balance point. It is possible to assume that breaking the 1.2067 price level will continue the downtrend towards the weekly chart target around the 1.1900 price level. on the other hand, establishment of the price at the current area and breaching the 1.2290 price level will indicate that we are headed towards a Fibonacci correction in size of between a third and two thirds of the down trend which started at the 1.2692 price level.

The price breached the 1.2290 but came back right after. Now the price is in the middle of the range between the 1.2167 and the 1.2290 price levels. Breaching of the 1.2290 resistance level will indicate that the price will continue at first stage to the 1.2340 price level, which is a 38.2% Fibonacci correction of the downtrend marked in red broken line. On the other hand, breaking of the 1.2167 price level will sign the continuation of the downtrend.

It is clearly possible to say that the price has reached the “Wolfe waves” pattern target by reaching the line connecting points 1 and 4. Now it is possible that the price will perform an ascending move to check the 1.2167 price level, which is used as a support level and it is possible that will be checked by the price as a resistance as well. Breaking of the 1.2067 price level will probably continue the downtrend towards the 1.1900 level area. On the other hand, breaching of the 1.2167 price level will indicate that it is possible we will see the price checking the 1.2250 price level again.

The price has reached the “One in, one out” pattern by touching the 1.5670 price level. Breaching of this level again will indicate that the price will continue towards the closest resistance on the 1.5716 price level. On the other hand, descend of the price under the 1.5517 price level will create descending price structure, that will probably lead the price back to the last low on the 1.5400 price level at first stage.

The price has reached under the 1.5517 price level, but it happened by a continuous downtrend without making a correction. Now the price is checking whether this level can change its function from a support to resistance, while breaking the 1.5485 price level will sign the continuation of the downtrend towards the 1.5400 price level. On the other hand, stoppage of the price at the current area will indicate that it is possible to see a Fibonacci correction in size of between a third and two thirds of the downtrend which started at the 1.5740 price level.

The price has breached the 1.0251 price level and reached the “One in, one out” pattern target on the 1.0300 price level. The price is moving in an ascending price structure while the continuation of the uptrend will lead the price towards the last peak on the 1.0326 price level. On the other hand, breaking of the 1.0202 price level will probably create a descending price structure which will lead the price towards the last low on the 1.0123 price level.

The price has corrected exactly 50% of the uptrend marked in blue broken line towards the 1.0270 price level and stopped at this area, at this point it is possible that the price will perform a correction in size of between a third and two thirds of the last downtrend which started at the 1.0444 price level. On the other hand, another breaking of the last low of the area at the 1.0240 price level will indicate that it is possible to see the price reaching the last low at the 1.0200 price level

13.30 (GMT+1) CAD –  Core Retail Sales (Monthly)