Tracking the EUR/USD Pair : 06.03.2012
 

Date: 05.03.2012 Time: 16:52 Rate: 1.3235

Daily chart

Yesterday’s review

It is possible to see that the 1.3484 price level served so far as a strong resistance level while none of the four candles which were close to it could close above. The last candle among those four is actually showing the decision of the sellers to invert the trend and after they have stopped the buyers they signed each other to push the price back to the next support on the 1.3077 price level. Another thing we can see is that the price has stopped on the 50% Fibonacci correction area of the last downtrend (red broken line). During the last uptrend a harmonic pattern named “Wolfe Waves” was created and described by points 1-5. This pattern supports a change in direction and the target of the price is the broken line connects points 1 and 4, meaning the 1.2900 price level approximately. This level is a strong support as it was written in the weekly chart review and it is possible that the price will stop there when it will reach it.

Current review for today

The price continued downwards just like the work plan says and strengthens by the “Wolfe Waves” pattern, now it reached the trend line connecting between points 2 and 4, meaning the line connects the lows and stops on them. But it is possible to see that the previous candle closed under the moving average so at the moment the price is located in the bearish area of the Bollinger bands. Breaking the ascending trend line will indicate that the price will continue its way towards the line connecting between points 1 and 4 and this is actually the pattern target, around the 1.2900 price level. Now a correction in size of between a third and two thirds of the last downtrend which started at the 1.3484 price level is possible (more about it in the 4 hour chart).

You can see the chart below:

http://www.real-forex.com/charts-daily/charts/RF13.jpg

4 Hour chart

Date: 05.03.2012 Time: 17:03 Rate: 1.3228

Yesterday’s review

After the failed attempts to break the 1.3486 price level, we can see that the price has closed a candle under the Bollinger’s moving average since the beginning of the uptrend (red broken line), at this moment the price is located on the neckline of a graphic pattern named “Double Top”. A proven breaking of this neckline (the 1.3366 price level) and it is possible that the price will continue towards the pattern target which is a little above the 50% Fibonacci correction level, the 1.3231 price level.

Current review for today

As it was predicted the price has completed the “Double Top” pattern target and reached the 1.3231 target, after that it even fell to the 1.3170 price level, which is a Fibonacci correction level of 61.8% of the last uptrend (blue broken line). Now it is possible that we will see a correction in size of between a third and two thirds of the last downtrend (red broken line), meaning between the 1.3285 and the 1.3366 price levels. Second option is a stoppage of the price in the current area (under the Bollinger’s moving average) and breaking the 1.3170 price level with the target of the last low at the 1.2970 price level.

You can see the chart below:

http://www.real-forex.com/charts-daily/charts/RF14.jpg

By: Real-Forex a true ECN broker
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