Forecast for March 7th, 2012
The EUR/USD currency pair moved upwards a little bit and reached new local maximum. Currently the price is testing the area for purchases, which is close to the ascending channel’s lower border. One can try to buy Euro with the tight stop. Also, there is a possibility that the pair may grow into the area of 1.38. However, if the price leaves the channel, we will change our forecast in favor of the fall. Conservative traders are advised to wait for the price to break the level of 1.3205, and only then try to buy the pair.
Pound made a short movement in an upward direction and then continued falling down. The price is supported at the current levels, and if this support is broken, we should expect the pair to test the area of 1.5650. In this situation, one can consider buying the GBP/USD currency pair with the tight stop below 1.5740. The target of the ascending pattern is the area of 1.60.
Franc, like Euro, reached new local maximums. At the moment the price is testing the descending channel’ upper border, one can consider selling the pair with the tight stop. The closest target of the fall is the area of 0.90. We recommend you to increase the amount of short positions only after the price breaks the level of 0.9110.
Canadian Dollar is still inside the descending channel and currently moving at the level of 0.9990. The target of the fall is the area of 0.9670, one can consider selling the pair at the current prices. Conservative traders are advised to wait for the price to test the level of 1.0070, and then try to sell Canadian Dollar 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 grows higher than the level of 1.01, this case scenario will be cancelled.
New Zealand Dollar reached the area for purchases, currently the pair is moving near the ascending channel’s lower border at the level of 0.8140. The RSI indicator was supported by the trend’s ascending line, we should expect a rebound from the current levels in a upward direction. The target of the growth is the area of 0.8560.