Right now, this currency pair is in an ascending trend and in the daily time frame we can see the ascending channel pattern. As we predicted in the technical analysis of 07.23.2012 there was the possibility of descend and fall of the price. As you can see this descend has happened and it is moving toward the descending trend’s line. By reaching the supporting line the price will not be able to pass it and therefore it will form a bottom price and ascend toward the resistance line.
Right now, the price has formed for the fourth time a top price on the resistance line, and registered the 1.03404 level. In the top price, a Doji pattern has formed which indicates that a top price will form for descend of the price. Likewise, the previous technical analysis the Stoch indicator is showing the next cycle as a descending cycle and is issuing the warning of fall of the price. Generally, as the formed top price is maintained, there is the possibility of descend of the price.
In the weekly time frame, there is not any sign of descend of the price. also, the price is intended to reach the resistance lines in the weekly time frame. Right now, the buyers are leading a movement to reach the 105404 level and you can see this movement in the 4h charts.The price has been stopped from more descend during its descending trend from the 1.05404 to the transformative supporting level. Formation of Lower Long Shadow in the transformative level indicates the importance of supportive level and the intention of buyers to prevent descend of the price.