Forex Daily review- 02.08.2012

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.

It is possible to see how the Bollinger bands are closing on the price. That shows the volatility is decreasing. It is possible to assume that during the next few days the price will range between those bands while the balance area is around the 1.2290 price level. Breaking of the 1.2225 price level will indicate that the price will descend towards the lower Bollinger band. On the other hand, breaching of the purple broken line will probably lead to the upper Bollinger band.

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 looks like the price is refusing to leave the 1.2290 price level which is used as the balance point at the moment. Breaching of the 1.2367 price level (which is a 50% correction of the last downtrend which marked in red broken line), will continue the ascending move towards the 1.2444 price level which is a 61.8% Fibonacci correction level of the mentioned downtrend. On the other hand, stoppage of the price at the current area and breaking the 1.2216 price level will create a descending price structure with first target on the 1.2175 price level, that is a 61.8% Fibonacci correction level of the last move upwards (blue broken line)

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.

Indeed the price has broken the 1.5613 price level and currently the price is close to the target give on the last review, the 1.5577 price level, this is a 61.8% Fibonacci correction level of the uptrend marked in blue broken line. Breaking of this level will probably lead the price to check the last low on the 1.5460 price level. On the other hand, stoppage at the current area and a creation of an ascending price structure will be a sign for the end of the correction move and a possibility to see the price moving towards the last peak on the 1.5777 and its breaking.

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 price has reached again the upper lip of the ascending price channel (black broken lines), stoppage of the move upwards and breaking the 1.464 price level is suppose to lead the price towards the 1.0392 price level, which is the target of the “Double top” pattern from the 1.0540 area. On the other hand, breaching the 1.0540 price level and the upper lip of the tunnel will probably continue the move upwards.

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 supported by the 0.9750 price level which is used as a balance point. Breaking of the 0.9700 price level will confirm the continuation of the downtrend while its first target will be the 0.9650 price level, which is a 61.8% Fibonacci correction level (blue broken line). On the other hand, stoppage of the price at the current level and breaching the 0.9833 price level will probably lead the price to check the 0.9866 resistance level at first stage. In addition, it is a 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.

The price has checked the 77.94 last low and went back towards the middle of the range. Breaking the 77.94 price level will continue the downtrend towards the last low on the 77.66 price level. Stoppage at the current area and breaching the 78.70 price level will probably open the uptrend and its first target will be the 79.20 resistance level.

08.15 (GMT+1) CHF – Retail Sales (Yearly)

12.00 (GMT+1) GBP – Asset Purchase Facility

12.00 (GMT+1) GBP – Official Bank Rate

12.45 (GMT+1) EUR – ECB Rate Decision

13.30 (GMT+1) USD – ECB Press Conference

13.30 (GMT+1) EUR – Unemployment Claims