Forecast for February 29th, 2012
The EUR/USD currency pair continues growing up. In our previous analysis we discussed a possibility that the price may start moving downwards. Currently at the H4 chart we have “failure swing” reversal pattern forming at the RSI. One can try to sell Euro with the tight stop. The closest target of the fall is the area of 1.3385, the next one will be the rising channel’s lower border.
Pound continues moving sideways, one can consider selling the pair with the tight stop. The test of the trend’s descending line at the MACD is an additional signal to sell the pair. The closest target of the fall is the area of 1.5664. If the price breaks the level of 1.5920, this case scenario will be cancelled.
At the daily chart the RSI indicator returned to the broken trend’s line, we should expect a rebound and the start of the rising trend. One can consider buying the USD/CAD currency pair with the tight stop. If the price reaches new local minimums, this case scenario will be cancelled.
At the H4 chart the RSI indicator was supported by the trend’s rising line, we should expect it to rebound from the line and start moving upwards. After the pair breaks the level of 1.0050, the price will start forming “head & shoulders” reversal pattern with the target in the area of 1.0165.
Weekly chart analysis of the CAD/JPY currency pair also indicates that Canadian Dollar will continues falling down. Right now the pair is moving inside the descending channel. The RSI indicator faced the resistance from the trend’s descending line, we should expect it to rebound from the current levels. If the price breaks and leaves the descending channel, this case scenario will be cancelled.