Last week review
It is possible to see that the price couldn’t close above the 1.3408 price level which is a 50% correction of the long uptrend (blue broken line). On the other hand, the last candle called “Harami”, this is a candle of uncertainty when it comes with large shadows from both sides. It is possible that that price will start raising now and perform a correction in size of between a third (38.2%) and two thirds (61.8%) of the last downtrend. On the other hand, a proven break of the last low on the 1.3146 price level will indicate that the price will check the 1.2910 support level.
Current review for today
The price continued with its low volatility and small movement another week while creating a small sized candle as a continuation to the last week. It is possible to see that this week’s candle closed under the 1.3408 resistance level too, a level which is a 50% correction to the uptrend marked by the blue broken line. An answer to weather it will continue its way downwards we will receive with a proven break of the 1.3146 price level, it is possible to assume that a break of this price will lead the price towards around the 1.2900 area. On the other hand, a closure of the candle above the 1.3408 price level will indicate the possibility for a correction of the last move down.
You can see the chart below:
EUR/USD
Daily chart
Last week review
The price breached the upper lip of the shrinking descending price channel and now the possibility that the price will perform a correction in size of between a third and two thirds of the last move downwards (red broken line) rises. It is possible to see that the lower Bollinger band became horizontal and used as a support line as well. It is possible that the price will continue the downtrend until the 1.3210 price level or around it and a correction/ new uptrend only after that.
Current review for today
The last 10 candles (blue rectangle) describe the last two candles of the weekly chart. We can see the battle that is going on between the buyers and the sellers by the ranging pattern in the area, together with long candle shadows and small bodies. Since the whole last move is leaning on the low level, there is a possibility that a strong support level is being created and the price will start its way upwards for a correction in size of between a third to two thirds of the downtrend locked in the shrinking descending price channel (red broken line), meaning between the 1.3600 and the 1.3860 price levels. it is possible to assume that by the creation of the Bollinger bands, the range will continue for few more days, but when it will occur, it will be with very strong powers. A proven break of the 1.3200 price level will continue the downtrend as it is described in the weekly chart review.
You can see the chart below:
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