Technical analysis of EUR/USD 08.15.2012
The EUR/USD has been stopped and formed a supportive bottom price during its descending trend and after reaching the 1.23159 level. As you can see in the picture, the reason of the formation of this bottom price is the presence of a transformative level which prevents more descend of the price. Also, this level is the lower price of the daily candle of yesterday and therefore is a very important one. If the price ascended, the price would reach the drawn ascending lines in the picture.
Right now, if the 1.23159 level is maintained, the price would ascend to the 1.23159 level at the first level and then to the 1.23853. also, in the 4h time frame the Stoch indicator is located in the saturation sell area and by considering the next cycle we can expect the ascend of the price.