Forex Weekly review- 27.08.2012

On the last trading week the pair has performed an ascending move from the 1.2300 to the 1.2600 price level, 300 pips movement. On Thursday and Friday we have seen a retracement pattern. The main trend at this point is a downtrend while since the middle of July we see the secondary trend that is an ascending move. The pair is moving in a shrinking ascending tunnel with first target around the 1.2350 – 1.2400 price levels. on this area there is a crossing of the ascending trend line with the 50% – 61.8% Fibonacci correction levels from last week uptrend. In case of a stoppage around the 1.2350 – 1.2400 price levels, we will probably see the continuation of the uptrend towards the 1.2700 price level. On the other hand, breaking of the ascending trend line of the secondary trend, checking the trend line and confirming the breaching (in case of a creation of new lows), we will probably see the price moving towards the last low on the 1.2100 price level.

 

 

 

 

 

The Gold has breached the triangle from the last two and a half months, made an aggressive ascending move in size of more than 80 USD and stopped on the 1676 last peak. A simple technical analysis will say that the target of the breaching is in size of the triangles basis, here we have a basis in size of 100 USD, and this is why the target of the price will be around the 1730 price level. At this point, after a strong movement, we can expect a correction in size of between a third and two thirds of the last move upwards, meaning between the 1621 and the 1643 price levels.