Date: 07.02.2012 Time: 21:30 Rate: 1.3263

Daily Chart

A quote from Yesterday’s review

Yesterday was another day that joins the last seven candles in which the price is ranging in the range of between the 1.3077 and the 1.3210 price levels, the price started the week under the closure of the previous, we have seen a sharp descending move and then the buyers came back into action and pushed the price back to the center of the range. The difference between this day and its previous is the fact that the price did not reach the higher lip of the range, is that a clue to for the future? We think that only a closure of the candle above or under the mentioned levels will define the direction of the price for the short term.

Current review for today

First of all it is important to mention that by breaking the 1.3200 the price has created an ascending price structure and the 1.3200 price level is used as a support level and suppose to be unbreakable without the option to go back. From here we are expecting to have a continuation of the uptrend with next target on the 1.3436 price level which is a 50% Fibonacci correction of the last downtrend (red broken line). In any way it is possible to see that the price has corrected a third of it by reaching the 1.3245 price level. Only if the price will go down under the 1.3200 price level, this assumption will not be valid.

4 Hour Chart

A quote from Yesterday’s review

On the following chart you can see clearly the range between the 1.3050 and the 1.3220 price levels with the price located exactly in the middle in the time of writing those lines, as if it were saying that the decision is not easy and the direction is not defined. In those situations of a long ranging period when the direction is finally determined, the price will speed up as if it was fired by cannon. There are cases in which the price can have false breaks, but after the clear definition of the price, it is probable to see a fast movement towards one of the directions shown in the chart.

Current review for today

On this chart we can see the range and the levels in which it took place with more details. The price has breached the higher ranging lip on the 1.3220 price level while most of the breaching candle is under this level, it shows some hesitation about the move, following that two small candles were created and the second one did not reached the first’s yet. This data brings us to a conclusion that it is possible to see a move downwards soon in order to see the strength of the 1.3200 price level as a support level. If we will see that this level did not break (whether the price reached there or not) it is possible that the price will climb to the 1.3400 target level which is the depth of the range “thrown” upwards (described by the blue broken lines).

Important announcements for today:

21.45 (GMT+0) NZD – Employment change
21.45 (GMT+0) NZD – Unemployment rate


By: Real Forex-a True ECN broker
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