Forecast for March 27th, 2012
At the daily chart the EUR/USD currency pair continues moving inside “head & shoulders” reversal pattern, and currently the price is forming the right shoulder. One can consider selling the pair with the tight stop from local maximums. If the price grows higher than 1.3320, one should close positions, as Euro may change its direction and move upwards with the target in the area of 1.3440. If the price breaks the level of 1.30, the pair will start a significant descending movement.
Pound is also testing local maximums. On shorter time frames we can see the formation of reversal signals to sell in the form of divergences. One can consider opening short positions with the tight stop. If the price breaks the level of 1.5950, we should expect the pair to continue growing up. The closest target of the fall is the test of the area of 1.5770.
Australian Dollar is moving according to the forecast. We expected the level of 1.0420 to be a starting point of the correction, one can consider selling the pair with the tight stop near it. The target of the fall is the area of 1.0235. If the price grows higher than 1.0550, this case scenario will be cancelled. We recommend you to increase the amount of short positions only after the price breaks the level of 1.04.
At the H1 chart of the USD/CAD currency pair we can see the formation of an ascending symmetrical pattern. Currently the price is testing the channels’ lower border, we should expect a rebound upwards. One can consider buying the pair from the current levels in the area of 1.0045. If the price breaks the level of 0.9920, this case scenario will be cancelled and we should expect the pair to fall down.