Forecast for July 11th, 2011
The EUR/USD currency pair keeps moving inside the “triangle” pattern, which makes the market quite unstable. The RSI indicator is stuck between 2 resistance lines, and if they are broken, we should expect a significant price movement. According to the main scenario, one can expect the “triangle” to be broken downwards, the target of the fall will be the area of 1.3236. But if the price breaks the pattern’s upper border, this case scenario will be cancelled.
The RSI indicator is testing the rising trend’s line, we should expect the pair to grow to the closest resistance level in the area of 0.8530. One can consider buying the pair with the tight stop. If the price breaks the level of 0.8325, this case scenario will be cancelled.
In case of Australian Dollar we have “double top” reversal pattern, we should expect the pair to fall down to the support level of 1.0067. After the price breaks this level, one can consider increasing the amount of short positions and expect the pair to continue moving downwards into the area of 1.0552. But if the price grows higher than 1.0780, this case scenario will be cancelled.
In case of S&P 500 after a strong correction we have “head & shoulders” reversal pattern forming with the target of the fall in the area of 1120. One can consider selling the instrument with the tight stop above 1365. But if the price reaches a new local maximum in the area of 1370, this case scenario will be cancelled. One is recommended to increase the amount of short positions only after the price breaks the level of 1248.