Forex Daily review- 01.08.2012

The price did reach the “One in, one out” pattern target (red broken lines), while at the same time a “Wolfe waves” pattern was created (brown background) and during the last 3 trading days (3 last candles) the price has reached the pattern target on the crossing of the price with the line connecting between points 1 and 4. In addition, the price has corrected the last downtrend which started at the 1.2692 price level by 50%. Breaking of the 1.2050 price level will indicate that the price will continue its way downwards to the 1.1877. On the other hand, continuation of the uptrend should lead the price to the upper Bollinger band.

 

The price has performed a correction in size of between a third and two thirds of the uptrend which started at the 1.2067 price level and it is possible to assume that breaching the 1.2407 resistance level will continue its movement with a first target on the upper Bollinger band. On the other hand, stoppage of the price at the current area and breaking the low of the last red candle will probably lead the price to check the last support on the 1.2122 price level.

 

 

The price has corrected 50% of the downtrend (red broken line) to the 1.2367 price level, it stopped on this level and at the moment the price is correcting the last move upwards. Closure of the current candle under the 1.2257 price level, which is a 38.2% Fibonacci correction of the mentioned move upwards, will indicate that the price will continue towards the 50% correction level on the 1.2216 price, while breaking it will probably lead the price towards the 1.2175 price level, 61.8% correction. On the other hand, breaching of the 1.2367 price level will continue the uptrend, while its first target will be the 1.2444 price level, this is a 61.8% Fibonacci correction level of the downtrend marked in red broken line.

 

The price has probably ended its correction of the last uptrend (blue broken line) and breaching the 1.2367 price level (a 50% correction of the downtrend marked in red broken line) will now continue the trend with first target on the 1.2444 price level, which is a 61.8% correction level of the mentioned downtrend. From another point of view stoppage of the price at the current area and breaking the 1.2216 price level will create a descending price structure while the target of the price will be the 1.2175 price level, this is a 61.8% Fibonacci correction level of the mentioned uptrend (blue broken line). 

 

It is possible to see that the price is ranging for a long period between the 1.5400 and the 1.5777 price levels. The price has reached the upper ranging level and it is possible to see a correction of the last move upwards in size of between a third and two thirds, meaning between the 1.5650 and the 1.5577 price levels. On the other hand, breaching the 1.5777 price level will lead the price to a continuation of the uptrend.

 

The price performed a correction of the last uptrend towards the 1.5640 price level and stopped at this level. breaching of the 1.5777 last peak level will probably lead the price to a continuation of the uptrend after the technical correction has been made. On the other hand, stoppage of the price at the current area and breaking the 1.5613 price level will probably lead the price towards the next Fibonacci at the 1.5577 price level.

 

The price has breached the last peak on the 1.04414 price level and we can clearly see how it is moving in the ascending price channel. The price has stopped two times on the upper lip of the tunnel, it is possible to assume that the current area is used as a resistance, only proven breaking of the upper lip will continue the uptrend. Stoppage of the price at the current area will probably lead the price to a correction of the uptrend which started at the 1.0200 price level in size of between a third and two thirds by Fibonacci.

 

It looks like the price has stopped after reaching the upper lip of the ascending price channel (black broken lines). Stoppage of the price at the current area will probably lead the price to a correction in size of between a third and two thirds of the last uptrend which started at the 1.0200 price level. From another point of view, breaching the upper lip of the tunnel will probably continue the current uptrend.

 

The last uptrend (blue broken line) has stopped on the 0.9950 price level and was corrected by exactly 50% to the 0.9718 price level. If the price will get supported on the 0.9800 price level, then it is reasonable that it will continue towards the 0.9866 price level. On the other hand, breaking of the 0.9700 price level will probably lead the price towards the 0.9650 price level which is 61.8% correction of the mentioned uptrend.

 

It looks like the correction of the downtrend (red broken line) has ended and breaking the 0.9700 price level will lead to a continuation of the downtrend while its first target is the 0.9650 price level, this is a technical 61.8% correction level of the last uptrend (blue broken line). On the other hand, stoppage at the current area and breaching the 0.9833 price level will probably lead the price to the 0.9866 resistance level at first stage, which is also the 61.8% Fibonacci correction level of the last downtrend (red broken line).

 

 

 

The price is still moving inside a descending price structure, breaking the 77.94 price level will continue the downtrend towards the last low on the 77.66 price level. Stoppage of the price at the current area and breaching the 78.70 price level will probably develop a move upwards to the 79.20 resistance level.

 

 

 

11.30 (GMT+1) GBP – Manufacturing PMI

13.15 (GMT+1) USD – ADP Non-Farm Employment Change

15.00 (GMT+1) USD – ISM Manufacturing PMI

19.15 (GMT+1) USD – FOMC Statement