The Daily Wave Analysis , Feb 22 2013

Daily Forex Technicals | Written by Admiral Markets | Feb 22 13 02:33 GMT

The Daily Wave Analysis

Currency pair USD/CHF

Presumably, the Impulse (v) of [a] is close to completion . If this assumption is correct, after its completion we can expect a downward price movement in line with the correctional wave formation [b] of 2.

Currency pair EUR/USD

Presumably, the Impulse formation (v) of [v] is close to completion . If this assumption is correct, after its completion we can expect an upward price movement in line with the correctional wave formation B of (2).

Currency pair GBP/USD

Presumably, the correctional wave [iv] of 5 is forming . If this assumption is correct, after its completion we can expect a downward price movement in line with the Impulse or Diagonal Triangle formation [v] of 5.

Currency pair USD/JPY

Supposedly, the correctional wave iv of (v) Is taking the shape of the Horizontal Triangle. If this assumption is correct, after its completion we can expect an upward price movement in line with the Impulse or Diagonal Triangle formation v of (v) of [iii].

The Daily Forecaster: EURUSD , Feb 22 2013

Daily Forex Technicals | Written by FX-Forecaster | Feb 22 13 02:43 GMT

The Daily Forecaster: EURUSD

Price: 1.3192

Bias: While 1.3194 - 1.3231 caps there still remains downside risk

The underlying MT direction is neutral while the daily bias is bearish. Therefore it may be better to sit out of the market or trade breaks when supported by bullish or bearish set up patterns. It is advisable to study both lower and higher time frame charts for evidence to support a trade in either direction. 2 It may well be advisable to take profits when seen or if there is a larger break out to consider using a trailing stop to protect profits. 3

Consider buy set ups at: 1.3019-37

Consider sell set ups at: 1.3190-20

Resistance	1.3194-08	1.3231	1.3254-62	1.3282-01	1.3320	1.3335-55
Support	1.3160	1.3136	1.3109	1.3091	1.3064	1.3019-37

Daily outlook

Yesterday's upside was hardly much at all and losses developed very directly once again even reaching the lower 1.3186 target and then 1.3160 early this morning. This new low looks more like the start of the next decline. I suspect it can still edge a bit higher but holding within the broad 1.3190-1.3231 area. From there we should see losses below 1.3160. At this point we cannot not yet identify intermediate stalling points although I suspect it may be in the 1.3091-09 area... Depending on how deep this current correction develops will imply the depth of the correction in or around 1.3090-09. However, the next larger downside target is identifiable and appears to be in the 1.3019-37 area. This should trigger a modest correction higher (130-150 points approx.) Do also keep in mind the 1.3064 projection.

An earlier break back above 1.3231 would surprise and complicate things a little. We should watch the 1.3254-62 area but there would seem to be more chance of seeing 1.3282-01 in a loose double bottom target and deeper retracement target. Also note 1.3320. I'd still then look for losses.

Medium Term Outlook

22nd February: Things are moving very quickly at the moment with targets being hit and further projections developing. With 4-hour momentum bearish my feeling is that we should see direct losses down to 1.3064 at least and I feel 1.3019-37 is a more likely target. This should provoke a much deeper correction to around 1.3150-80 approx. Beyond will still require further losses...

Only a break above 1.3320-50 would take this back higher directly

EUR/USD Holds Losses Above 1.32, But Still Vulnerable , Feb 22 2013

Daily Forex Technicals | Written by ZIFX.com | Feb 22 13 05:37 GMT

EUR/USD Holds Losses Above 1.32, But Still Vulnerable

EUR/USD Open 1.3190 High 1.3289 Low 1.3159 Close 1.3187

On Thursday Euro/Dollar continued decreasing with 130 pips. The European currency depreciated from 1.3289 to 1.3159 yesterday, matching the negative money flow sentiment at almost -26%, closing the day at 1.3187. This morning the Euro is trading quietly, with movements at the lower end of yesterday's range for now.

On the 1 hour chart new downward channel is forming, while on the 3 hour chart the upward channel is turning into range trading. Break above the nearest resistance and yesterday's top at 1.3289 may trigger further strengthening of the Euro. Going bellow today's bottom and first support at 1.3159, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3045.

Today's focus is on Germany Gross Domestic Product Q4, Italy CPI and HICP, Germany IFO business climate index, and Italy Consumer confidence, at 7, 9, and 10 GMT respectively.

Quotes are moving bellow the 20 and 50 EMA on the 1 hour chart, indicating bearish pressure. The value of the RSI indicator is negative and calm, MACD is negative and quiet too, while CCI has crossed down the 100 line on the 1 hour chart, giving over all short signals.

Technical resistance levels: 1.3289 1.3400 1.3524
Technical support levels: 1.3159 1.3045 1.2920