EURUSD Daily 24.2.12

This is a very concentrated daily chart. The point of such a concentration of datas is that here I want to show the main price Fibo trend and its impacts in the future. Here we analyse the main uptrend which starts on the 10th of Jan 2011 and goes up to the 4th of June 2011. I used 6 sub-trends to dismantle the overall trend. As we can see the red Fibo trend had designed the final bottom of a EUR freefall in 2012 at the 150% level. Important price fields are in red rectangles. This scheme is also affected by the light green Fibo lines which come from a weekly chart (will be explained later). Here I can recomend one simple thing: when doing a price analysis with Fibo tools, always look for the colour which affected the future price actions the most… or a consorcium of colours. Second point is to watch the previous price levels the asset has reached in the past. Using these two rules you will always get a good result. First, price tends to stick to the previous levels, second Fibo analysis is sort of a “lock” which the price reaches and bounces back or goes further after a short-term shuffling around.