EUR-USD
Date: 02/25/2013 Time: 22:42 Price: 1.3078
Strategy: Short
Graph 4 hours
Quote previous review:
The current upward movement stopped at the resistance level of 1.3400 and returned back down, when now it is in the middle of a ranging process between the levels of 1.3265 and the 1.3400. An outbreak of the latest might take the price to continue towards the first step, the level of 1.3458, whichis also a Fibonacci correction level of 38.2% on the downtrend that started at 1.3711 ( described by the red broken line), in addition, this level is a level of resistance. On the other hand, continuing moving downwards and breaking the current level of 1.3300, will“send it” to check the level of support at 1.3265.
Current Review today:
The pair makes a great move toward itstarget of a graphic format called “head and shoulders” (look at brown background), the level of 1.3000. You can see a breaking of the neck of thistemplate(purple dotted line), and it going down to the support level, an accurate testing of1.3166, also an increase of the bottom line of the neck, all of these in order to see whether it can switch roles from a support to resistance level and a make a sharp decline, while creating a new low structure of the falling prices of the last downtrend movement which began at the level of 1.3711. As long as the price structure does not changes, any move in an upwards direction, will signal us about a technical correction during thefuturedeclines.
You can see the graph here
GBP-USD
Date: 02/25/2013 Time: 23:03 Price: 1.5168
Strategy: Short / Long
Graph 4 hours
Quote previous review:
The price indeed continued the downtrend after breaking the level of 1.5490 and going towards the 1.5350 level, which is the target level formation called “Double Top” (described by the red dotted lines). The level of 1.5268 is a significant support area (you can see it in daily and weekly graphs) when its high falls, it’s certainly will signal us about a deep down move, of almost 1000 pips. On the other hand, blockingthe price rate at the current areais likely to create a technical correction between one third and two thirds by the Fibonacci bar on the last continuous downtrend which began at the 1.5828 level.
Current Review today:
A descending price structure indicates us about a continues downwards movement,while you can see the moving average of the Bollinger bands which protects the sellers frommany attempts of the buyers to change the direction andafailure of the last to closeacandle above it. On the other hand, the price stays, for the second time, over the lip of the parallel descending channel (fragmented red lines) and a creation of an increasing price structure,duringit basing above the moving average of the Bollinger bands, might send the price to a deep technical correctionof the downtrend which has started at the level of 1.5828, between one third and two thirds of it by the Fibonacci bar.
You can see the graph here:
