Forecast for February 13th, 2012
After an unsuccessful test of the local maximums, the EUR/USD currency pair fell down. Despite its attempts to grow up, Euro is still under pressure. At the weekly chart of the pair the price continues forming the descending pattern with the target in the area of 1.0990. At the moment Euro is testing the broken neckline, which is also a resistance line here. One can consider selling the pair with the tight stop when reversal patterns appear at shorter time frames.
At the daily chart of the pair the RSI indicator continues moving inside the descending channel. At the moment the RSI indicator is testing the channel’s upper border, we should expect it to rebound from the border and start moving downwards. Once can consider selling the pair only when signals for sales are formed at shorter time frames.
At the daily chart Pound 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 test of the area of 30 by the RSI.
At the H4 chart of the pair we have “head & shoulders” reversal pattern forming with the target in the area of 1.5535. Currently we should expect the price to grow to the level of 1.5875, where one can consider selling the pair with the tight stop and increase the amount of short positions only after the price breaks the level of 1.5750. If the pair grows higher than 1.5930, this case scenario will be cancelled.
New Zealand Dollar is moving inside the descending pattern. At the moment we should expect the price to test the area of 0.8309, where one can consider selling the pair. The target of the fall is the area of 0.8212. If the price breaks the descending channel’s upper border, this case scenario will be cancelled.
The EUR/JPY currency pair continues moving inside the rising channel. The trend’s rising line at the RSI has been already broken, we should expect the test of the similar line at the price chart. The target of the fall is the area of 100.75, one can consider selling the pair with the tight stop above 103.25.