Date: 08.02.2012 Time: 22:33 Rate: 1.3258

Daily Chart

A quote from Yesterday’s review

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.

Current review for today

The price stayed at the same place after yesterday’s session and it looks like the effort of breaking the upper lip of the range was too hard and rested in order to gain some powers for the continuation of its move north. This scenario will take place if the price will close a candle above the previous one and the target of the price will probably be the 1.3436 price level, which is the 50% Fibonacci correction level of the last downtrend (red broken line). In case the price will not be able to recover from the effort it made for the breach and will go back under the 1.3200 price level, it is possible to go back to the ranging area and wait for another opportunity.

4 Hour Chart

A quote from Yesterday’s review

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).

Current review for today

It is possible to see that the scenario written on yesterday’s review happened fully with exact accuracy. The price has climbed to the 1.3287 price level and stopped, went back down, and touched the 1.3220 price level to check its capability to use as a support line and went back up. Breaking the 1.3287 price level will probably lead the price towards the 1.3400 target level (the depth of the price and throwing it upwards, described in blue broken lines). In case the price will go back under the 1.3220 price level before breaking the 1.3287 price level it will show the possibility for a technical correction of the last uptrend which started at the 1.3050 in size of between a third and two thirds by Fibonacci.

Important announcements for today:

09.30 (GMT+0) GBP – Manufacturing Production
12.00 (GMT+0) GBP – Official Bank Rate
12.45 (GMT+0) EUR – Minimum Bid Rate
13.30 (GMT+0) EUR – ECB Press conference
13.30 (GMT+0) USD – Unemployment Claims

By: Real Forex-a True ECN broker
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