EURUSD Weekly Forex forecast: 4 — 8 February, 2013, based on the rules of graphic strategies forex strategy video course «Safe forex» including
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Analysis of the price movement of the currency pair EURUSD over the past trading week:
1) Thursday closed the first month of 2013 — January, candles confident shopping with tail below, and retest and rebound from the long dark blue trend line.
2) The week closed candles white candles supposedly buying with equivalent tails above and below.
3) Day Friday closed while white candles, but still with a fairly long tail on top, so that the pullback on Monday down is possible.
Now look at the most important levels of resistance for the price, location above the closing price of the week:
1) First of all, the top line of light brown channel, from which there was a rebound down on Friday on H1-H4. In yet another approach, the bottom-up, hang up the most likely, at least temporarily, although priority to move up still remains. Hence the breakdown of the channel line up and to retest the top, consider options purchases.
2) The upper limit of the violet channel + maybe it will be pink and the trend line, if the approach to them will be around Tuesday-Wednesday. If the price will come to this border channel, since it is the 4th approach, then hang down quite possible, if only to retest light brown channel. Moreover, if the approach will be somewhere in the Wednesday-Thursday, on the same level is the 61.8% Fibonacci Blue, hence increasing the chances to fight back down!
If, nevertheless, there is a breakdown purple up, then retest of the same level — the signal for further purchases. But it is advisable to wait for a pre-closing H4-D1 candle above the channel.
3) The upper limit of the orange channel — at this point, I personally think this line target for the whole of the last upward movement upward. Therefore expect the closing days of the week and more on this line. In the first approach to it, I think the most likely hang down!
But still, and exclude options further purchases is also not necessary, as the 2nd level target at this point, to my knowledge — 76.4% Fibonacci blue. Therefore, a daily close above this week of the channel — consider options for purchases — 76.4% Fibonacci.
At this point, it’s all for shopping resistance levels.
Now let’s look at the levels of resistance to movement of the price below the close of the week:
In this direction, of course a very big resistance levels formed, but I will try to examine the most important of them.
1) The blue line is the trend level of + 61.8% Fibonacci of the last upward movement Friday. Lights out is quite possible up, but if there is a breakdown down, then consider the option as a signal to sell for — another retest background blue channel at least.
2) The background level of the channel Blue + 38.2% Fibonacci retracement of the up move with a minimum of 1.3413. It is quite possible hang up, especially if the approach to this level happen on Tuesday and at the same level will be is a light brown line channel. Interested closing D1 candles on this level! Break down this border + daily close below these kanalaov and desirable retest the bottom-up — a signal for future sales.
3) Light brown canal — a similar situation. Part of it was described above.
4) The upper limit of the gray channel + 38.2% + 61.8% Fibonacci — quite possible hang up! But if the day closes below the channel is + retest its bottom-up — consider options sales.
5) The lower boundary of the channel purple — is the third approach and hang up prices is quite possible, at least temporarily. Especially if it pripadut and 38.2 + 61.8% Fibonacci for above (in paragraph 4).
Break this down trendline + daily close below retest bottom up — consider options for further sales!
6) The purple trend line from the maxima of the flag can also create resistance to at least temporarily, the more so here is the level of 23.6% Fibonacci retracement from the low of the orange background channel (that is, the total upward movement). Break it down — a signal to sell.
7) The upper limit of the symmetrical triangle — the situation is exactly the same!
8) The lower boundary of the triangle + level of 38.2% Fibonacci with a minimum of 1.2662 — hang up the most probable. But if there is a breakdown, the next target — the lower limit of background blue channel.
That’s all the resistance levels at this point …
As for me, I will still give priority to buying, and explicit on this point (closing candles month, week, breakdown of important levels — 50%, the background of blue channel), but also the options of correctional movements in any case do not deny the fact since the close on Friday speaks for itself — a candle with a long tail on top.
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