Forecast for January 11th, 2012
At the H4 chart of the EUR/USD currency pair the price formed “head & shoulders” reversal pattern. Currently we should expect the pair to test the descending channel’s upper border in the area of 1.2929. One can consider buying the pair near the neckline with the stop below 1.2735. The pair may continue growing up after the price leaves the descending channel.
Australian Dollar is moving according to the forecast. The target of the rising pattern is the area of 1.0515. One can consider buying the pair with the tight stop. Conservative traders are advised to wait for the test of the area of 1.0220, where they can consider opening long positions. If the price breaks the channel’s lower border, this case scenario will be cancelled.
At the weekly chart of the USD/CAD currency pair we can see the formation of the reversal pattern at the RSI with the target in the area of 0.9913. We should expect the pair to test the area of 0.9602 after the price breaks the trend’s rising line at the RSI. One can consider selling the pair if reversal patterns are formed at shorter timeframes.
At the weekly chart of Dollar Index the RSI indicator faced the resistance line, we should expect it to start moving downwards and test the trend’s line in the area of 77.00. In this course of events we should expect the American Dollar to fall in all currency pairs. If the RSI indicator grows higher than 70, this case scenario will be cancelled.
At the daily chart we have “head & shoulders” reversal pattern forming at the RSI. The channel’s upper border is the resistance level. After the price breaks the level of 50 at the RSI, we should expect the indicator to fall down to the channel’s lower border in the area of 76.70.
In case of the USD/RUR currency pair the situation is quite similar to that of Canadian Dollar. Here we also have “failure swing” reversal pattern forming at the RSI with the target in the area of 29.76. The price has already broken the trend’s rising line, thus indicating that the pair may continue falling down toward the level of 28.14. If the price reaches new local maximums, this case scenario will be cancelled.