Forex Daily review- 23.08.2012

The price is looking like breaching the 1.2436 price level and it is possible to assume that its establishment above this level will continue the creating uptrend, while its first target is the closest resistance on the 1.2560 price level. On the other hand, in case the price will go back under the 1.2436 price level will indicate that the range will continue between this level and the 1.2290 price level.

 

The last move upwards continued its way after checking the 1.2436 price level (the shadow of the last candle), if it can be used as a support level. It looks like the price is making its way towards the 1.2560 price level at first stage, while breaching this level is suppose to lead the price towards the next resistance on the 1.2692 price level. On the other hand, stoppage of the price at the current area will show that it is possible to see a new range creating between the 1.2436 and the 1.2560 price levels.

 

 

Indeed the breaking of the 1.2387 price level led the price to a sharp move upwards which reached the target of yesterday’s review on the 1.2444 price level and even breached it. Its closest target at this point is the 1.2517 price level, which was taken from the depth of the range (light blue background) and its throw upwards. It is possible to assume that before reaching the target, the price will perform a technical correction in size of between a third and two thirds of the uptrend started on the 1.2290 price level.

 

As we can see, the price has reached our target from yesterday’s review, the ranging target on the 1.2517 price level (Blue broken lines). The continuation of the move upwards will lead the price at first stage to the trend line connecting the last peaks (points 1, 3, 5), and breaching this trend line will continue the move towards the last peak on the 1.2690 price level. On the other hand, stoppage of the price at the current area will probably lead the price to a technical correction in size of between a third and two thirds of the move that started from the 1.2290 price level.

 

 

The price has breached the 1.5745 price level which is used as the neck line of the “One in, one out” pattern (blue broken lines), while its target is the 1.5816 price level. It is possible to see that the price has breached the last peak on the 1.5777 price level, at this point the price might perform a correction of the last uptrend which started on the 1.5674 price level and its depth will be in size of between a third and two thirds of the uptrend.

 

As it can be seen, the price has reached the 1.5816 price level which was given on yesterdays review and even breached it. At this point it looks like the price is making its way to the target of the daily chart (last weekly review) on the 1.6015 price level. It is possible to assume that during the current uptrend we will see a Fibonacci correction in size of between a third and two thirds of the last uptrend which started from the 1.5674 price level.

 

 

 

The price has breached the upper lip of the descending price channel (red broken lines), but returns now to check if this trend line can switch positions and be used as a support line. In case it can, breaching the next resistance on the 1.0540 price level will probably lead the price to a continuation of the uptrend towards the last peak of the 1.0613 price level. On the other hand, its return into the descending tunnel and another breaking of the 1.0444 price level will probably lead to a correction in size of between a third and two thirds of the uptrend which is locked in the ascending price channel (blue broken line), probably to the area between the 1.0377 and the 1.0232 price levels.

 

The price has descended exactly to the lower lip of the ascending price channel while creating a technical pattern named “Double Bottom” on the 1.0411 price level, by breaching the 1.0540 resistance level, the pattern will lead the price towards the 1.0613 peak level. On the other hand, stoppage of the price at the current area and its descending under the lower lip of the ascending price channel will probably lead to a continuation of the downtrend (lower probability).

 

 

 

The price has breached the 0.9700 price level and reached the target from yesterday’s review, the 0.9650 price level. By breaking this level, the price will probably continue towards the next support on the 0.9564 price level, while in first stage it is possible that the price will perform a correction in size of between a third and two thirds of the last downtrend.

 

After breaking the 0.9650 Fibonacci level, the price went up to check if this level can switch positions and be used as a resistance. After checking the mentioned level, the price continued downwards and currently its closest target is the 0.9564 support level while breaking this level will lead the price to the next support on the 0.9513 price level. It is possible to assume that during the mentioned move we will see a correction in size of between a third and two thirds by Fibonacci retracement.

 

 

The price is ranging now between the 79.20 and the 79.80 price levels while it is possible to how the Bollinger bands are closing on the price and reducing the volatility. Breaching of the 79.80 price level in a proven way will probably lead towards the last peak on the 80.60 price level. On the other hand, it is possible to see a technical correction in size of between a third and two thirds of the last uptrend which started on the 78.15 price level.

 

After a struggling ascending move to the 79.80 price level, the price has fell and retraced the entire move that started from the 78.15 by one candle. It is possible to assume that breaking the trend line which is connecting the lows (black broken line) and closure of the candle under it, will sign the continuation of the downtrend towards its first target on the 77.90 support level, and breaking this level will lead the price towards the last low on the 77.66 price level. Stoppage of the price at the current area will probably continue the ranging period between the 77.94 and the 79.80 price levels.

 

 

 

08.30 (GMT+1) EUR – German Flash Manufacturing PMI

13.30 (GMT+1) USD – Unemployment Claims

15.00 (GMT+1) USD – New Home Sales