Forex Weekly Review - 20.02.2012

[RLFX]

EUR-USD

Weekly chart

Last week review

The price has breached the 1.3241 price level but was thrown back after touching the Bollinger’s moving average that is heading sharply downwards and does not let the price to continue the uptrend. The price is located at the moment under the 1.3241 Fibonacci correction level and from this point we have the following options: breaking the peak of the last candle will indicate the possibility to check the 1.3433 price level which is a 50% Fibonacci correction level of the downtrend shown by red broken line. On the other hand, a brake in the current area and another check of the low of the last candle, breaking that will probably lead the price towards the closest support level at the 1.2910.

Current review for today

It is possible to see that the price is staying under the 1.3241 price level, which is a 38.2% correction by Fibonacci retracement of the last downtrend (red broken line), and none of the last four candles closed above this level. It is possible to assume that a closure of a candle above this level will sign the continuation of the correction to the next Fibonacci level at the 1.3433. On the other hand, stoppage at the current area will indicate that it is possible the price will go down and check the closest support on the1.2910 price level.

Daily chart

Last week review

The price did breached the 1.3210 price level but it is possible to see that most of the breaching candle (forth candle from the left) was under the breaching level and the following two candles were with small bodies, that shows the missing of power on the buyers. The last candle shows the attempts from the sellers to turn the trend around and after the obvious correction was made to the 1.3245 price level (a correction in size of a third of the downtrend described in red broken line), they will try to bring the price back to the last low at the 1.2645 price level, this is not an easy task and only a proven break of the 1.3077 price level and a descend of the price under the Bollinger’s moving average will give the sign of this move. On the other hand, entrance of buying powers and breaching the 1.3321 price level by that will sign the continuation of the uptrend with a target of the price at the 1.3436 price level, which is a 50% correction of the downtrend (red broken line).

Current review for today

It is possible to see that the range of the price lately does not allow analysis for a long period of time. As it was written on the previous review the price did descend to the 1.3077 price level and even touched the lower Bollinger band, but that’s it, the sellers could not do more than that by continuing the move downwards and the price went back to the middle of the range. The Bollinger bands are getting closer one to the other and the price range is getting smaller.

By: Real Forex – Exclusive Trading
Excellent conditions for experienced Traders.