Daily Chart
A quote from Yesterday’s review
The last candle is prominent by its green color and relatively large for the candles around it, but still the last five candles are located at the rims of the downtrend and we cannot say that a significant move upwards is starting. Still an intersection between the price and the 1.3146 resistance level is possible and even a correction in size of between a third and two thirds of the last downtrend (red broken line) can occur. In anyway, the support level which is the lower lip of the trend channel (black broken lines) is holding the price and only a proven break of it will sign the continuation of the movement downwards.
Current review for today
The price has corrected 38.2% of the last downtrend (blue
broken line) and it is possible that the price will continue descending with a confirmation to it will be the breaking of the 1.2950 price level. If the price will break this level in a proven way, its target will be the 1.2696 price level by the “One in, one out” pattern. Breaching the 1.3210 price level (low probability) will indicate that the price will continue with the correction mentioned above.
You can see the chart below:
4 Hour Chart
A quote from Yesterday’s review
The price has broken the 1.3050 price level, and as it was mentioned in yesterday’s review, reached the 38.2% Fibonacci correction level (blue broken line) at the 1.3113 price level and stopped there for now. Since the price has reached this correction level, it can continue the move downwards after it will break the 1.2950 price level. On the other hand, a break of the 1.3050 price level will lead it to the 1.3164 price level (50% correction) as first target and the 1.3215 price level (61.8% correction) as the second.
Current review for today
The price did breached the 1.3113 price level and continued the correction move almost to the 1.3215 price level, stopped there and continued its move downwards creating a red candle while leaving a long shadow behind. It is possible that at this point the price will reach the last low at the 1.2950 price level at first stage and breaking this level will lead it to the 1.2696 price level which was mentioned in the daily chart review.
You can see the chart below:
60 Minutes Chart
Date: 21.12.2011 Time: 04:40 Rate: 1.3116
A quote from Yesterday’s review
The price has stopped exactly on the 1.3132 price level which is the 38.2% Fibonacci correction level of the downtrend locked in the widening descending price channel (red broken line) and now a break of the 1.3132 price level will continue its move towards the 1.3200 price level. On the other hand, a brake of the price at the current level and a break of the 1.3063 price level will create a descending price structure with a target on the 1.2994 price level.
Potential trades:
Long
Entry: 1.3134
Stop Loss: 1.3061
Target: 1.3200
Short
Entry: 1.3061
Stop Loss: 1.3134
Target: 1.2994
Current review for today
The price did breached the 1.3132 price level and was close by 5 pips to reach the 1.3201 target level before stopping, then created a sharp descending move to the 1.3025 price level. It is possible to assume that a break of the ascending trend line (black broken line) and a break of the 1.3025 price level after will create a descending move towards the last low at the 1.2967 price level.
Potential trades:
Short
Entry: 1.3023
Stop Loss: 1.3085
Target: 1.2967
Important to mention: the liquidity in the markets is low at this time of the year and we should be extra cautious.
You can see the chart below: