Forex news daily review- 12.09.2012

The price is looking like stopping on the upper lip of the tunnel and on the 1.2824 resistance level and it is possible that the candle will close as a “Harami” candle, which is a small candle with full body that is locked in the boundaries of the previous candle. The meaning of this candle is a stoppage of the current move and an addition of another candle of the same color will indicate that the current move is about to end. In anyway, only a change in the price structure will indicate a change in the trend which is currently is ascending. Breaching of the 1.2824 price level will sign that the price will continue the uptrend towards the closest target on the 1.2939 price level. On the other hand, stoppage of the uptrend at the current area and a creation of a descending price structure on the 4 hour chart will probably change the direction of the price downwards.

The price is breaching the 1.2824 price level (We still have to see how the current candle will close) and in case it will base above the descending trend line which is connecting the peaks, it is possible to assume that the price is going towards the 1.2939 price level, which is a 61.8% Fibonacci correction level of the downtrend marked in blue broken line.

The price did reach the ranging target on the 1.2690 price level and climbed upwards while touching the upper lip of the ascending price channel on the 1.2822 price level, stopped there and currently it is possible to see a correction of the uptrend which started on the 1.2500 price level (black broken line) in size of between a third and two thirds by Fibonacci, meaning between the 1.2624 and the 1.2700 price levels. On the other hand, breaching of the 1.2822 price level will confirm the continuation of the uptrend by the targets that were shown on the daily chart review.

The price has breached the 1.2822 price level and currently on its way towards the “One in, one out” pattern target on the 1.2887 price level, while breaking this level will lead the price towards the 1.2939 price level (see daily chart review for more details). A come back of the price under the upper lip of the ascending price channel and a creation of a descending price structure will sign the end of the uptrend and its correction of the uptrend in size of between a third and two thirds by Fibonacci retracement.

The price has reached the 1.5942 target level and continued towards the upper lip of the ascending price channel on the 1.6035 price level. Creation of a descending price structure will probably lead the price to a correction of the ascending move that is locked in the ascending tunnel (blue broken line), in size of between a third and two thirds of it, meaning between the 1.5700 and the 1.5827 price levels. On the other hand breaking the 1.6034 peak level will continue the uptrend towards the last peak on the 1.6300 price level.

The price is breaching the 1.6034 price and if it will establish above the upper lip of the tunnel, it is possible to assume that the uptrend will continue with a target on the last peak, meaning the 1.6300 price level. On the other hand, come back of the price under the lower lip of the tunnel and creation of a descending price structure will create a Fibonacci correction in size of between a third and two thirds of all the uptrend locked in the tunnel.

During the sharp ascending move the price has corrected the downtrend locked in the descending price channel by 50% towards the 1.0390 price level. It is possible to assume that the price is currently correcting the last uptrend in size of between a third and two thirds, meaning between the 1.0311 and the 1.0256 price levels, while standing in these boundaries and its comeback upwards while breaching the last peak on the 1.4000 price level will sign the continuation of the uptrend while the 1.0444 price level is used as the first target (61.8% Fibonacci correction of the downtrend locked in the tunnel. On the other hand, descend of the price under the 1.0256 price level will sign that the price might check the last low on the 1.0167 price level again.

By it’s breaching the 1.0390 price level the price has continued the uptrend and reached the 1.0444 price level which was mentioned on yesterdays review. At the moment the price is located around the trend line which is connecting the peaks (black broken line) while breaching the 1.0444 price level and establishment of the price above the trend line will probably lead the price towards a continuation of the uptrend towards the 1.0613 peak level

The price has fallen to the 0.9463 price level and currently located very close to the last low on the 0.9420 price level while it is leaning on the lower lip of the shrinking descending price channel (black broken lines). Proven breaking of this level will probably lead the price towards the next support on the 0.9260 price level. On the other hand, stoppage of the price at the current area and a creation of an ascending price structure will probably lead to a correction of the downtrend locked in the shrinking ascending price channel (red broken line) in size of between a third and two thirds by Fibonacci.

The price did break the 0.9430 price level and it is possible to assume that in case the price will continue under the 0.9368 support level, its next target will be the 0.9260 support level. On the other hand, if the price will get back to the lower lip of the shrinking descending price channel while creating an ascending price structure, we will see a correction in size of between a third and two third of the downtrend which started on the 0.9950 price level.

09.30 (GMT+1) GBP –  Unemployment Rate