Forecast for March 13th, 2012
The EUR/USD currency pair continues testing the critical level of 1.31. Right now we can’t say for sure that the price is moving inside the descending trend. The RSI indicator was supported by the trend’s ascending line, we should expect a rebound from the current levels. One can consider buying Euro after the price breaks the level of 1.3150. The closest target is the test of the level of 1.3280.
Pound continues falling down. However, on shorter time frames we can see the formation of reversal signals in the form of divergences. The closest target of the fall is the area of 1.5586, where one can try to buy the pair aggressively with the tight stop. The target of the growth is the test of the channel’s broken line in the area of 1.57.
Franc continues testing the descending channel’s upper border, one can consider selling the pair from the current levels with the stop above 0.9220. The closest target of the fall is the level of 0.9070. The RSI indicator was also supported by the trend’s descending line, we should expect a rebound from the current levels.
At the H4 chart of the AUD/USD currency pair we can see the formation of “failure swing” reversal pattern. The target of the growth is the level of 1.0650. One can try to buy the pair aggressively with the tight stop. If the RSI indicator falls lower than 30, this case scenario will be cancelled.
At the daily chart of Silver we have a very interesting situation. The price has been moving inside the descending trend for a long time. Currently it can be seen that the correction is almost completed, and we should expect the price to start falling down. The formation of “head & shoulders” reversal pattern is an additional signal for a reverse. The target of the pattern is the area of 27, the target of the fall is the area of 20. One can consider selling the instrument at the current prices and increase the amount of sales only after the price breaks the level of 32.