Forex Technical Analysis 2012/16/03 (EUR/USD, GBP/USD, USD/CHF, NZD/USD, EUR/JPY, EUR/GBP) Forecast FX

Forecast for March 16^th, 2012

EUR/USD

The EUR/USD currency pair continues moving downwards slowly. Right now the price is forming a descending pattern, one can consider selling Euro at the current prices. The closest target of the fall is the area of 1.2940, which is expected to be a starting point of the correction to the level of 1.3035. The test of the trend’s descending line at the RSI H1 chart is an additional signal to sell the pair.

GBP/USD

Pound has left an ascending channel, we should expect the price to fall down into the area of 1.5440. One can consider selling the pair near the level of 1.5710, the stop in this case must be placed above 1.5750. We recommend you to increase the amount of short positions only after the price breaks the level of 1.5630.

USD/CHF

At the H1 chart of the USD/CHF currency pair the price continues forming an ascending pattern, the target of the growth is the area of 0.94. At the moment we should expect the price to test the level of 0.9230, where one can consider buying the pair with the tight stop. If the price breaks the level of 0.9220, this case scenario will be cancelled.

NZD/USD

New Zealand Dollar continues falling down. Currently the price is forming a descending pattern at the M30 chart of the pair, the target of the fall is the area of 0.8020. One can consider selling the pair at the current prices, the stop must be placed above 0.8195. If the price breaks the descending channel’s upper border, this case scenario will be cancelled.

EUR/JPY

At the daily chart of the EUR/JPY currency pair the price continues forming “failure swing” reversal pattern. The pair rebounded from the level of 109.50 and right now is moving in the area of 108.80, one can consider selling it from here. The target of the fall is the area of 106, the stop must be placed above 109.50. If the RSI indicator grows higher than 70, this case scenario will be cancelled.

EUR/GBP

The EUR/GBP currency pair is moving according to our forecast, by now the price has formed “head & shoulder” pattern, which in this case is the continuation pattern. The price is testing the broken neckline, one can consider selling the pair from the current levels. The stop must be placed above 0.8370, the target of the fall is the area of 0.8210.