Forecast for February 14th, 2012
The EUR/USD currency pair continues moving inside the rising channel. Currently we should expect the price to test the upper border, where one can consider selling the pair with the tight stop. The test of the trend’s descending line at the RSI is an additional signal to sell the pair. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.
In case of Pound we have “head & shoulders” reversal pattern forming. At the moment we should expect the price to test the area of 1.5880, where one can consider selling the pair with the tight stop above 1.5930 and increase the amount of short positions only after the price breaks the level of 1.5729. The target of the fall is the area of 1.5529. If the pair grows higher than 1.5930, this case scenario will be cancelled.
Australian Dollar is testing the trend’s broken line at the RSI, we should expect it to rebound from the line and start falling down to the level of 1.0650. One can consider selling the AUD/USD currency pair with the tight stop and increase the amount of sales only after the price breaks the channel’s lower border.
At the H4 chart of the EUR/JPY currency pair we have “failure swing” reversal pattern forming at the RSI. The closest target of the fall is the area of 102.35, one can consider selling the pair with the tight stop. If the pair breaks the trend’s rising line at the RSI, the target will be a similar line at the price chart in the area of 100.50.