Forecast for January 19th, 2012
The EUR/USD currency pair keeps testing the descending channel’s upper border, and at the moment one can consider selling the pair with the tight stop above 1.2830. The target of the pattern is the area of 1.2538, the price is expected to reach it on January 20th. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.
At the H1 chart the breaking of the trend’s rising line at the RSI will be a signal to start selling the pair. In this case the closest target of the fall will be the level of 1.2690. The stop must be placed above 1.2810.
In general, the descending movement continues and may reach the level of 1.2129. Judging by the price structure, the fall may be a very significant one. An approximate time for this to happen is January 25th, 2012. If the price breaks the upper border and leaves the descending channel, this case scenario will be cancelled.
In case GBP/USD currency pair the situation hasn’t changed much. We should still expect the price to fall down to new minimums. One can consider selling the pair with the tight stop above 1.5400 and increase the amount of short positions only after the price breaks the level of 1.5310.
Franc continues moving inside the rising pattern, at the moment the price is testing the rising channel’s lower border. One can consider opening long positions with the tight stop. The test of the trend’s rising line at the RSI is an additional signal to buy the pair. If the price breaks the level of 0.9444, this case scenario will be cancelled.
New Zealand Dollar has almost reached the targets if the rising pattern. Currently the pair faced the resistance from the trend’s descending line at the RSI, we should expect it to rebound from the line and start moving downwards. The target of the fall is the area of 0.7730. After the RSI indicator leaves “triangle” pattern, we should expect the pair to make a significant descending movement.
Canadian Dollar keeps moving inside “triangle” pattern, thus indicating that the market is very unstable. We should wait until the price breaks the pattern upwards or downwards, and the start trading upwards or downwards respectively. Right now one can consider buying the pair with the tight stop.