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Tracking the EUR/USD pair
Date: 29.08.2012 Time: 08:40 Rate: 1.2540
Daily chart
Last Review
The price is currently moving in an ascending tunnel, the price has breached the 38.2% Fibonacci correction level, meaning the 1.2517 price level and went back to check if it can be used as a proper support. In case the price will establish above the 1.2517 price level, we will probably see an ascending move towards the 1.2662 price level which is a 50% correction of the downtrend marked in red line. On the other hand, in case that the 1.2517 price level will not prove itself as a strong support, it is possible to assume that the price will make its way towards the Bollinger’s moving average on the 1.2400 area at first stage.
Current review for today
The last trading day started with a descending move during the night while the volumes were low, but it is possible to see that when the London session started, the Bulls has taken the wheel and took the price upwards. The price is still located in the middle of the ascending price channel and still in the range of the last 7 candles between the 1.2465 and the 1.2585. In addition we can see that the Moving averages are closing on each other and it looks like we are approaching a Bullish period of time. At this point it is possible to assume that the move upwards will continue towards the 50% Fibonacci correction level of the last downtrend (red line), around the 1.2662 price level as first target. On the other hand, the Moving averages are still Bearish and this uptrend is still a correction to the last downtrend (until it will pass the 61.8%) and we might see continuation of the range of the last several days, followed by a descending move towards the Bollinger’s moving average on the 1.2410 area.
You can see the chart below:
GBP/USD
Date: 29.08.2012 Time: 08:55 Rate: 1.5807
4 Hour chart
Last Review
It can clearly be seen that the price has reached the 38.2% Fibonacci correction level of the last uptrend (blue line). After touching the 1.5752 price level which is used at this point as a support the price has retraced and at this point it is possible to assume that this is the key level. Breaching the 1.5752 support level will probably lead the price towards the 1.5700 price level which is the 50% Fibonacci correction level of the last uptrend. On the other hand, the moving averages are Bullish and the main trend is still with the direction of the north, if the 1.5752 price will hold, it will be possible to assume that the first target of the price is the last peak on the 1.5912 price level.
Current review for today
On the last trading day we could see that the price got attached to the Bollinger’s moving average but did not make any significant move. It is possible to see that the moving averages are getting closer and we might see a change in the trend, in addition the Bollinger bands are closing on the price, that indicates that the volatility is low and it is less likely to see significant move at this point (probably because this is August). The 1.5752 is still a key level and it is possible to assume that the price will check it again before we will see the direction of the market. Breaching the 1.5752 support level will probably lead the price towards the 1.5700 price level which is the 50% Fibonacci correction level of the last uptrend. On the other hand, the moving averages are Bullish and the main trend is still with the direction of the north, if the 1.5752 price will hold, it will be possible to assume that the first target of the price is the last peak on the 1.5912 price level.
You can see the chart below:
Important announcements for today:
13.00 (GMT+1) USD – Prelim GDP
15.00 (GMT+1) USD – Pending Home Sales