Analysis for August 19th, 2014
EUR USD, “Euro vs US Dollar”
On Tuesday, bears returned to the market with triumph. The price broke all previous minimums at a time and right now is sure to be able to stay below the 3/8 level. Later, one should pay attention to the 1/8 level, because if the pair rebounds from this level, it may be fatal for the current downtrend.
As we can see at the H1 chart, bears made everything with clock-wise precision: several rebounds from the 7/8 level, “cross” formed by Super Trends , and the fact that the price was able to stay below the 3/8 level - all these factors allowed Eurodollar to reach the 1/8 one. Of course, there is a possibility that bulls may try to get even and start a new correction from this level. However, even if it happens this way, the pair is unlikely to move higher than the 2/8 level, and later may start falling towards the -2/8 one.
USD CAD, “US Dollar vs Canadian Dollar”
In case of Canadian Dollar, the 6/8 level again showed its ability to become the starting point of a new price movement inside the current trend. The daily Super Trend also made its bit by supporting bulls. Now their next task is to try to enter “overbought zone”.
At the H1 chart, the situation is fully controlled by bulls; they have already been able to keep the price above the 5/8 level. Sellers aren’t likely to slow the things down and may reach the 8/8 level quite soon. On the other hand, if the price rebounds from the 7/8 level shortly, bears may steal initiative and start a new correction.
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