EUR-USD
Weekly chart
Last week review
By the last candle closure we can see that its previous is used as a reversal and the present is the confirmation candle, it is possible to assume that the last uptrend which was a correction move to the previous downtrend, now ended and the price looks down towards the 1.2900 price level (support) which is used as the first target. A proven breaking of this level will send the price towards the next support on the 1.2580 price level and from there the road is probably open to the “Head and shoulders” target around the 1.1900 price level.
Current review for today
The price has closed the last trading week while it is still under the Bollinger’s moving average (bearish market). It is possible to see that the Bollinger bands are starting to close on the price, that should cause a lower volatility in the near future and a pretty high chance for a range between the 1.2900 and the 1.3400 price levels.
You can see the chart below:
Daily chart
Last week review
During the last trading week two important things occurred in the examination of the “Wolfe waves” pattern.
The first is the breaking of the ascending trend line that is connecting the lows (connecting points 2 and 4), that raises the chance for a continuation of the price towards the target of this pattern.
The second is the stoppage and checking the ascending trend line if it can change from a dynamic support to a dynamic resistance and descend of the price back under this trend line. This is another good reason to believe that we are in front of a continuation of the downtrend and the price is on its way down towards the patter4n target which is located in the line connecting points 1 and 4, around the 1.2900 (Remember the weekly chart?).
Current review for today
The price has reached close to the 1.2975 support level and stopped around this area in the last two days. The price still located in the bearish part of the Bollinger bands (under the moving average) and as long as the price structure pointing downwards (peaks and lows arranged in a descending order) the downtrend is still on. Breaking the 1.2975 price level will probably lead the price towards the “Wolfe waves” pattern target on the 1.2900 price level. On the other hand, a continuation of the current move upwards may lead to the next resistance area on the 1.3300 price level.
You can see the chart below:
GBP-USD
Weekly chart
It is possible to see that the price broke the 1.5650 price level but left a shadow and went back up to the tight ranging area between the 1.5650 and the 1.5940 price levels. In addition it is possible to notice wider ranging levels between the 1.5345 and the 1.6100 price levels.
In conclusion, the price is ranging between in narrow and wider limits and until those bounds will not be breached, it will be very hard to define the direction of the price for the long term.
You can see the chart below:
Daily chart
The price has reached the “Wolfe waves” pattern target (a cross of the price with the line connecting points 1 and 4), stopped exactly on this point and started an ascending move that probably on its way to check again the area between the 1.5880 and 1.6000 price levels. we can clearly see the creation of the range between the 1.5664 and the 1.6000 price levels, while only a breach of one of those levels will set the direction of the price, towards the 1.6100 or the 1.5580 price level.
You can see the chart below:
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