Forex Weekly review- 24.09.2012

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.

The price has corrected a third (38.2%) of the last downtrend which is marked with a black broken line (from point number 5) by reaching to the 1.3150 price level. the support of the price on the 1.2910 support level. Breaching the 1.3150 price level will probably lead the price towards the next Fibonacci level which is also used as a resistance, the 1.3486 price level. On the other hand, proven breaking of the 1.2910 support will probably lead the price to a correction in size of between a third and two thirds of the last uptrend which started from the 1.2042 price level.

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 climbed a little above the 1.3000 price level and descended while correcting the last uptrend (blue broken line) by a third towards the 1.2916 price level. Breaking of this level will indicate that the next target of the price will probably be the next Fibonacci retracement on the 1.2824 price level which is also used as a support and its breaking will lead to the next Fibonacci on the 1.2750 support level. On the other hand, breaking of the last peak on the 1.3172 price level will send the price towards the following resistance levels- 1.3280, 1.3380 and the 1.3480 price level.

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.

As it was written on the last review, the price has reached the 1.6160 target level and even climbed a little above the next minor resistance on the 1.6300 price level while checking if the 1.6170 price level (the lower shadow of the last candle) can switch roles from resistance to support. Breaching the 1.6300 price level will probably lead the price upwards to the next resistance on the 1.6550 price level. On the other hand, stoppage of the price at the current area and its descending under the 1.6170 support level will lead the price to a correction in size of between a third and two thirds of the last uptrend which started from the 1.5390 price level.

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.

As it was written on the last market review, on the last trading day the price has reached to the 1.6300 price level which is the last peak after the last four days it seem that the candles are showing uncertainty regarding the future. Proven breaching of this level will probably lead the price towards the next resistance on the 1.6550 price level. On the other hand, stoppage of the price at the current area will probably lead the price to a Fibonacci correction in size of between a third and two thirds of the last uptrend (blue broken line).

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