Forex Technical Analysis 2011/11/10 (EUR/USD, DOLLAR INDEX, USD/CHF, AUD/USD) Forecast FX

Forecast for October 11^th, 2011

EUR/USD

The EUR/USD currency pair is moving according to the forecast. The RSI indicator got very close to the trend’s descending line, and if the indicator breaks it, we should expect the test of the similar line at the price chart in the area of 1.4210. One can consider buying the pair with the tight stop. But if the price falls lower than 1.33, this case scenario will be cancelled.

DOLLAR INDEX

At the daily chart of Dollar Index we have “failure swing” reversal pattern forming with the target of the fall in the area of 76.70. One can consider selling Dollar only after the price breaks the support level at the RSI. But if the RSI grows higher than 70, this case scenario will be cancelled.



At the H4 chart we can also see signs of a reverse. The RSI indicator has returned to the trend’s broken line, we should expect it to rebound from the line and start moving downwards. The closest target is the channel’s lower border, and after the market breaks the channel, we should expect the price to test the support level in the area of 73.58.

USD/CHF

Pound is also moving according to the forecast. At the moment at the H4 chart we have “head & shoulders” reversal pattern forming with the target in the area of 0.8970. One can try to sell the USD/CHF currency pair with the tight stop. If the pair grows higher than 0.9240, this case scenario will be cancelled.

AUD/USD

Australian Dollar is moving according to the forecast as well, we should expect the price to test the area of 1.0300. One can try to buy the pair with the tight stop. Also, there is some potential for “head & shoulders” reversal to be formed. If the price falls into the area of 0.9650, one can consider buying the pair with the tight stop. But if the price falls lower than 0.9500, this case scenario will be cancelled.