Forecast for January 31st, 2012
The EUR/USD currency pair tested the neckline, we should expect it to rebound from the line and start moving downwards. The test of the trend’s descending line at the RSI is an additional signal to sell the pair. The closest support is the test of the area of 30 at the RSI.
At the H4 chart of the pair we should also expect the price to test the area of 1.3000. One can consider selling the pair with the tight stop above 1.3205. After the price breaks the trend’s rising line, we should expect the test of the support level in the area of 1.2675.
At the daily chart of the GBP/USD currency pair the RSI indicator faced the resistance from the trend’s descending line, we should expect it to rebound from the line and start falling down. The target of the fall is the area of 1.5365. In order to start opening short positions, one should wait until the reversal patterns appear at shorter time frames.
At the H4 chart Pound has reached all the targets of the rising pattern. Currently the price is testing the rising channel’s lower border, and one can consider selling the pair with the tight stop after the price breaks it. The target of the fall is the area of 1.5485. The stop must be placed above 1.5745.
Despite our expectations New Zealand Dollar continues reaching new local maximums. By now the pair has reached the resistance level in the area of 0.8225, which is expected to be a starting point of the correction and the descending movement as well. The target of the fall is the test of the rising trend’s line in the area of 0.7870.
At the H4 chart of the pair we can see the formation of the rising symmetrical pattern with the target in the area of 0.8344. At the moment we should expect the test of the area of 0.7837, where one can consider buying the pair with the tight stop. One can try to sell the NZD/USD currency pair from the current levels with the stop above 0.8245.