Forex news – Monthly review- 10.09.2012

Eventually the 1.2290 price level was used as a strong support and we can see that the price has continued towards its closest target on the 1.2580 resistance level which is also used as a 38.2% Fibonacci correction level of the last downtrend (blue broken line) and as a dynamic resistance area (the lower lip of the descending price channel which is marked in red broken lines). Breaching of the mentioned followed by the 1.2680 price level (located in the same area) will indicate that the price will continue towards the next resistance on the 1.2910 price level. On the other hand, stoppage of the price at the current area and its descending under the 1.2290 price level will probably lead the price towards the last low on the 1.2042 price level.

The price has broken the 1.2580 resistance level in addition to the upper lip of the descending price channel (red broken lines), the price has done that with a significant green candle, that shows the buyers strength. It is possible to assume that the price is making its way towards the closest resistance on the 1.2910 price level, while a stoppage in this area might create a technical correction in size of between a third and two thirds of the current uptrend which started on the 1.2042 price level.

It is possible to see that the price has corrected the whole last downtrend (blue broken line) by 38.2% by Fibonacci retracement towards the 1.2594 price level, while the red broken line is the upper lip of the descending tunnel from the weekly review and used as a dynamic resistance area. In addition it is possible to see that the current uptrend which started on the 1.2067 price level is going into a shrinking ascending price channel that its target is breaking of the lower lip while correcting the ascending move which happened inside. All those are showing the possibility of a stoppage of the current uptrend in case of a change in the direction of the price towards the last low on the 1.2067 price level. On the other hand, we can see that currently the price is climbing with an ascending price structure and while it stays this way, the targets of the price will be the 1.2692, 1.2750, 1.2824 price levels in this order.

As it was written in the last review, during the last sharp ascending move, the price has reached its targets while it is reaching its last one on the 1.2824 price level, a minor resistance level, right now. Breaching this level will probably lead the price towards the 1.2939 price level which is a 61.8% Fibonacci correction level of the downtrend marked in blue broken line, in addition this level is a significant resistance level that can be seen in the weekly chart. On the other hand, stoppage in the current area and a descend of the price under the lower lip of the ascending price channel (black broken lines), it will be possible that the rice will perform a correction in size of between a third and two thirds of the uptrend which started on the 1.2290 price level.

The price has breached the 1.5778 upper ranging level and we can see that on the last candle the price has checked if this level can switch roles and function as a support (it can be better seen on the daily chart), followed an ascending move once the check was done. Breaching of the 1.5778 price level is breaching the neckline of the “One in, one out” pattern (blue broken lines), while its target is the next resistance on the 1.6170 price level. Only breaking of the 1.5778 price level will stall the current uptrend while it is possible to see a technical correction of the uptrend which started around the 1.5400 area.

Breaching the upper ranging lip on the 1.5778 price level gave the sign for the beginning of the uptrend which is taking place for the second week in a row, while the target of the price is exactly the next resistance on the 1.6170 price level, a level which is also the target of the “One in, one out” pattern (blue broken lines), In addition, it is possible to see that this level is located on the descending trend line between the peaks (red broken line) which is also used as a dynamic support. It is possible that from this point we will see a technical correction to the uptrend which started on the 1.5270 price level.

The price has breached the 1.5737 resistance level and reached the 1.5906 by doing a sharp move upwards. At this stage the price has stopped and went down to check the 1.5784 support level (from the weekly chart review) while on the last day of the week, the price has climbed and currently located on the 1.5906 last peak level. Breaching of this level will probably lead the price to complete the “One in, one out” pattern target (blue broken lines), on the 1.6015 price level. Only breaking of the price on the ascending trend line which is connecting the lows will change this assumption.

The price has reached the “One in, one out” on the 1.6015 price level as it was written in last week review. The next resistance on the 1.6070 price level is located pretty close while its breaking will probably lead the price towards the last peak on the 1.6300 price level. On the other hand, stoppage of the price at the current area and the creation of a descending price structure will send the price to a technical correction of the uptrend which started on the 1.5400 price level.