Tracking the EUR/USD Pair : 16.02.2012

[RLFX]

Date: 15.02.2012 Time: 17:26 Rate: 1.3077

Daily chart

A quote from Yesterday’s review

During the last trading day the price checked if the 1.3210 price can be used as a resistance level and left a long shadow upwards. At this moment the price is very close to the moving average of the Bollinger bands and it is possible to see that its angle pointing upwards and it seems like it is preventing from the price the move downwards. In any case the 1.3077 price level is used as a significant support level and a proven break of this will probably send the price to check the lower Bollinger band while the both bands are getting closer to each other and reducing the volatility of the pair in the short term.

Current review for today

At the moment the price is located on the 1.3077 price level, the support level that was mentioned in yesterday’s review, the sellers succeed to push the buyers back after the try to bite some of the downtrend (red broken line) and eliminate 50% of the correction. Now both sides are back in the starting point of the battle, the 1.3077 price level that is used as a balance point. The signs of the struggle and indecisiveness are shown on the Bollinger bands which are closing on the price and lower the volatility. It is possible to assume that breaking the 1.3077 price level in a proven way will send the price to check the lower Bollinger band at first stage. On the other hand, a stoppage of the price at the current area and it is possible that the price will continue ranging between the 1.3077 and the 1.3200 price levels.

4 Hour chart

A quote from Yesterday’s review

We can clearly see the descending price structure (highs and lows arranged in a descending price structure) which was started around the 1.3300 price level, it is possible to assume that breaking the last low on the 1.3128 price level will continue this trend while the 1.3050 support level is the target of the price.

Current review for today

The price continued its way downwards while keeping the descending price structure and it is very close to the first target level which were given in yesterday’s review, the 1.3050 price level, this level used as the lower level of the ranging pattern (thick black lines) and also a very significant support level that its breaking will sign clearly on the expected target of the price, the first target is the 1.2970 price level, which is a 50% Fibonacci correction level of the last uptrend (brown broken line). On the other hand, stoppage of the price at the current level and the ranging period between the 1.3050 and the 1.3220 price levels will continue.

Important announcements for today:

13.30 (GMT+0) USD – Building Permits
13.30 (GMT+0) USD – PPI (Monthly)
13.30 (GMT+0) USD – Unemployment Claims
14.00 (GMT+0) USD – FED Chairman Bernanke Speaks
15.00 (GMT+0) USD – Philly Fed Manufacturing Index

By: Real-Forex a true ECN broker
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