Forex Daily review- 25.07.2012

As it is possible to see, the price could not breach the 1.2290 resistance level and descended to complete the “One in, one out” pattern target by reaching the 1.2122 price level. The price is moving now around this level while at the moment it is used as a balance point. It is possible to assume that breaking the 1.2067 price level will continue the downtrend towards the weekly chart target around the 1.1900 price level. on the other hand, establishment of the price at the current area and breaching the 1.2290 price level will indicate that we are headed towards a Fibonacci correction in size of between a third and two thirds of the down trend which started at the 1.2692 price level.

As it was written in yesterday’s review, breaking of the 1.2067 price level will probably continue the downtrend towards the 1.1877 price level, this is a level which was given in the weekly chart review and is used as the “Head and shoulders” pattern target. On the other hand, breaching of the 1.2122 price level and its establishment above it will probably lead the price to a ranging period between this level and the 1.2290 price level.

It is clearly possible to say that the price has reached the “Wolfe waves” pattern target by reaching the line connecting points 1 and 4. Now it is possible that the price will perform an ascending move to check the 1.2167 price level, which is used as a support level and it is possible that will be checked by the price as a resistance as well. Breaking of the 1.2067 price level will probably continue the downtrend towards the 1.1900 level area. On the other hand, breaching of the 1.2167 price level will indicate that it is possible we will see the price checking the 1.2250 price level again.

The price is still holding at the last low at the 1.2067 price level while its breaking will probably continue the downtrend towards the daily chart review around the 1.1900 price level. On the other hand, breaching of the 1.2167 price level will probably lead the price to the next resistance on the 1.2250 price level.

The price has reached under the 1.5517 price level, but it happened by a continuous downtrend without making a correction. Now the price is checking whether this level can change its function from a support to resistance, while breaking the 1.5485 price level will sign the continuation of the downtrend towards the 1.5400 price level. On the other hand, stoppage of the price at the current area will indicate that it is possible to see a Fibonacci correction in size of between a third and two thirds of the downtrend which started at the 1.5740 price level.

The price is still checking the 1.5517 price level while it moves from both sides and it is used as a balance point. Breaking of the 1.5485 price level will sign the continuation of the downtrend towards the 1.5400 price level. on the other hand, stoppage of the price at the current area will probably lead to a technical correction in size of between a third and two thirds of the downtrend which started from the 1.5740 price level.

The price has corrected exactly 50% of the uptrend marked in blue broken line towards the 1.0270 price level and stopped at this area, at this point it is possible that the price will perform a correction in size of between a third and two thirds of the last downtrend which started at the 1.0444 price level. On the other hand, another breaking of the last low of the area at the 1.0240 price level will indicate that it is possible to see the price reaching the last low at the 1.0200 price level.

The price has corrected the last downtrend (red broken line) and from this point it is possible that we will see a breaking of the 1.0251 price level which will probably lead the price at first stage to the 1.0232 price level which is a 61.8% Fibonacci correction level of the uptrend marked in blue broken line, breaking this level will probably lead the price to the closest support on the 1.0202 price level. On the other hand, only breaching of the 1.0326 resistance level in a proven way might lead the price to check the last peak on the 1.0444 price level.

08.00 (GMT+1) EUR – German IFO Business Climate

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