Forecast for March 14th, 2012
After a slight correction, the EUR/USD currency pair is testing local minimums again. The RSI indicator is still inside a support area, we shouldn’t expect the price to make a significant descending movement from the current levels. If the pair is going to start moving downwards, the correction must be much deeper. Aggressive traders are recommended to try to buy the pair with the tight stop. If the price breaks the level of 1.3065, the target of the fall will be the area of 1.2880.
Pound was supported at the level of 1.5650. Here on shorter time frames we can see the formation of reversal patterns in the form of divergences. One can try to buy the pair aggressively with the target in the area of 1.5860. Right now the price is very unlikely to start falling down from the current levels.
Franc also can’t decide which way to move. The pair continues testing the descending channel’s upper border. The trend line at the RSI is an additional resistance level. One can consider selling the pair only after the price breaks the level of 0.9140. If the pair starts moving up significantly, we should expect the price to test the area of 0.9350.
Australian Dollar continues moving inside the ascending channel. Currently the price is testing the channel’s lower border, we should expect it to rebound from the border upwards. The test of the trend’s ascending line at the RSI is an additional signal to buy the pair. The target of the growth is the area of 1.1040. On shorter time frames we can see the formation of reversal signals in the form of divergences. One can consider buying the pair aggressively with the tight stop.
The EUR/JPY currency pair has been moving inside the sideways trend for the third day in a row. At the daily chart of the pair we can see the formation of “failure swing” reversal pattern. The price may try to test the level of 109.50, where one can consider selling the pair. The target of the fall is the area of 106. If the RSI indicator grows higher than 70, this case scenario will be cancelled.