As it was mentioned in previous technical analysis of this currency pair, there was the possibility of price ascending which finally could reach to the descending trend line and the important psycho resistance level of 1.06000 during the last weekend. Right now the descending trend line is not broken yet and this line could descend the price. There is Shooting Star candle pattern in the chart which was made in the last day of previous week and warns the formation of a top price but this warning is not important in technical analysis.
According to the last ascend of this currency pair in last week, there is a top price of 1.06225 which is fixed and until this top price is not broken. There is the possibility of descending and price reformation in this currency pair. Stoch indicator is located in the saturation sell area and shows the possibility of descending of price according to the next cycle. The first sign of more ascend is the closing of the ascending candle on descending trend line.
As it was mentioned in the last technical analysis of this currency at 6th of August, there was the possibility of ascending and increasing of the price with the formation of the bottom price on the ascending trend line and also the formed signs in weekly and monthly time frames, which finally this currency pair ascends. The price during its ascending trend reached to the red resistance line (the top edge of ascending channel) and descends.Predicting of this channel was true about the ascending of the price. Right now the top price of 0.81149 is fixed and the stoch indicator is in saturation sell area and shows the possibility of descends by the next signal. Generally the ascending of price is possible if the top price is preserved. There is a general trend in technical analysis view of this currency pair monthly and until the bottom price of 0.77624 is preserved this view is possible.
USD/JPY currency pair in its descending trend in last week by reaching to the blue ascending trend line has been stopped ( the formation of third point of ascending trend line ) , and the sellers are not able to reach to the lower price. As it is obvious in the picture below , the formation of long lower shadow in weekly candle shows the care and attention of the traders to the blue supportive trend line which finally this candle convert to Hammer candlestick pattern that shows the possibility of the formation of a bottom price and ascend of the price during the next weeks.
According to the next cycle, stoch indicator shows the potential and the possibility of ascend in weekly time frame. Right now the price in its ascending trend has reached to the short term descending trend line and is testing this resistance line. The most important sign of ascending is the closing of the ascending candles on descending trend line in daily time frame. And in this case the next important goal is the long term descending trend line, as it is drawn in the picture below.
USD/CHF currency pair in its descending trend from the top price of 0.99704 to the ascending trend line (fourth point of ascending trend line) has been stopped from more descends and made the bottom price of 0.92384 The formation of candles with small body in 17 ,18 and19th shows the Market indecision for ascending or descending that generally is the failure of the sellers for reaching to the lower price.
As it is drawn in the picture below , the price is on the supportive edge of the descending channel that was simultaneously with the formation of the third point on ascending trend line, and this is not an ideal mode for returning from supportive edge of Channel but there is the possibility of ascend and the price reformation. RSA indicator is in saturation sell area and shows the possibility of the formation of the bottom price to ascend and increase of the price during the next days in daily time frame. Generally until the supportive level of 0.92384 is preserved, there is the possibility of the price reformation.
In daily time frame of Gold, as it is obvious in the picture below, it recorded the bottom price in 16.05.2012 and confirming of it in 23rd and 30th of the same month and finally ascends. The price in its ascending trend recorded the level of 1786.85 and reached to the descending trend line which is made of two resistance point and finally stops. (The formation of third point of descending trend line)
With the formation of the six daily candle on this trending line and not starting of descending and downfall in chart, the strength of the buyers and non-cash transactions of their buy and finally they hope to the higher price. From the formed candles we can point to Shooting Star and Hanging Man Pattern which both of them warns about the formation of top price and descend. But the important point is here that the descending of next candle which is not observable yet.
Stoch indicator is in saturation sell area in daily and weekly time frame and shows the possibility of descend during the next days. Also with the recent movement of this indicator is in divergence mode in price chart which warns about ascending. Generally until the top price of 1786.85 is preserved, there is the possibility of the price reformation in this chart. The first sign of more ascend is the closing of ascending candle in this range.
EUR/USD currency pair during ascending from 25.07.2012, could record the price level of 1.31708. As it is obvious in the picture below, the drawn ascending channel is the guide for traders during top and bottom prices. In 11.09.2012 with the revert of the price and reaching to the resistance line of channel , the property of the resistance line will change and convert to the supportive line and cause ascending of the price.
Right now the price reached to this supportive line and stopped from more descends and recorded the bottom price of 1.28846. Stoch indicator is in saturation sell area and shows the possibility of ascend during the next candles. The first important sign and confirm of ascending mode is preserving of the created bottom price on supportive line and closing of ascending candle on resistance level of 1.29525 in 4 hours time frame.
GBP/CHF with creating the bottom price of 1.49893 and recording of it by the next candles provided a situation for ascending. From the top price of 1.54656 to the bottom price of 1.49893, AB=CD harmonic pattern with ideal ratios of 76.4 and 127.2 is observable, which is one of the reasons for recent ascend. Right now the price reached to the descending trend line that is made of three peak prices.
As it is obvious in the picture below, the formation of upper long shadows in ascending candles shows the cautious of the buyers and notice of traders to this descending trend line. Right now the price is testing it. The first sign of ascend in this currency pair is closing of ascending candles in daily time frame. According to the closing of candles in last week time frame, there is the possibility of the breakage of this trend line. stoch indicator is in saturation sell area and shows the possibility of ascend by the next cycle. Generally until the top price on the descending trend line is preserved (fourth point), there is the possibility of descending of the price during next days.
As it was mentioned in previous technical analysis of USD/CHF dated 20.09.2012, according to the formed signs of that chart, there was the potential of ascending in price which finally the price ascends. The price during its ascend could record the resistance level of 194163 and right now is the important resistance level. The descending channel is drawn by the close points of candles.
The top price is made under the conversion level (from support to resistance), and this conversion level is an important obstacle for ascending of price that prevented from the increase of the price twice. Stoch indicator is in the saturation sell area in daily time frame and shows descend of the price according to the next cycle, but it is not valid because of not being in the same direction of weekly time frame. Generally until the top price of 0.94163 is preserved, there is a potential of descend in this currency pair in daily time frame.
EUR/GBP by making the top price of 0.81149 and closing the descending candle in the next day recorded it. As it was mentioned in previous technical analysis of this currency pair dated 18.09.2012, from this resistant level there can be downfall of the price. Right now the price by reaching to the ascending trend line (the formation of the third point of ascending trend line) has been stopped from more ascend. The third point on this ascending trend line is recorded on the level of 0.79230.
As it is drawn in the picture below, in addition to the ascending trend line, there is other supportive line in this region. This line is made of three resistance points and after breaking of their level, it is converted to the supportive line, and show the possibility of formation of the bottom price in this region. The formation of candle patterns of Hammer and Inverted Hammer on ascending trend line and the alternate line shows the failure of the sellers for reaching to the lower price and the possibility of the formation of the bottom price for ascending of the price. Stoch indicator shows the possibility of ascend according to the next cycle during the next days. Generally according to the formed signs in the chart of EUR/GBP, until the bottom price of 0.79230 is preserved, there is the possibility of ascend in this currency pair.
GBP/CHF by making the bottom price of 1.49902 and fixing of it by the next candles, created the situation for ascending. From the top price of 1.54656 till the bottom price of 1.49902, there is the harmonic pattern of AB=CD with the ideal ratios of 76.4 and 127.2 which is one of the reasons for recent ascending of this currency pair.
The price reached to the descending trend line which is made of four peak prices. Stoch indicator in daily time frame confirms the top price (the fourth point on descending trend line) in the chart. In daily time frame until the fourth point is preserved on this trend line, the price has the potential to descend during the next days. In 4H time frame the price made the fourth point on ascending trend line. Indicator shows ascending trend of the next candles in this time frame, but because of not being in the same direction of daily time frame it is not so valid. Generally breaking of ascending trend line is the first warning for more descend in this chart.
