Tracking the EUR/USD Pair : 06.02.2012

[RLFX]

Daily chart

Last week review

As it was mentioned on our last review, the price has continued the move upwards while breaking the 1.3077 resistance level and practically creates a new peak that is higher than the last peak created during the downtrend. This fact is actually cancels the proper continuation of the downtrend and now it is possible to see a more significant uptrend then it seemed before breaking the mentioned level. At this point the price is located almost in a correction in size of a third by Fibonacci, meaning very close to the 1.3245 price level, and by breaching this level, the price will continue its way to the next Fibonacci correction level on the 1.3436 price level. A brake of the price at any point of the uptrend will probably create a correction move in size of between a third and two thirds from the level it started, the 1.2625 price level.

Current review for today

During the last trading week the price has stayed between the limits of the 1.3077 support level and the 1.3210 resistance, while almost every day the price has reached to both of those levels but could not close the candle above or under them. It is possible to assume that a closure of a candle with most of its body is under the 1.3077 price level will send the price to a correction in size of between a third (38.2%) and two thirds (61.8%) of the uptrend began from the 1.2625 price level. On the other hand, breaching the 1.3210 price level in a proven way will sign that the price will make it way towards the 1.3440 which is the 50% correction level.

By: Real-Forex a true ECN broker
Home of the Forex Elite