Forecast for October 21st, 2011
The EUR/USD currency pair keeps being unstable. Currently at the H4 chart of the pair we have “diamond”, a technical analysis pattern, forming. If the pair breaks this pattern, it may force a significant price movement. Conservative traders are advised to wait until the price leaves the pattern. One can try aggressive sales of the pair with the tight stop placed above the pattern’s upper border. One can consider increasing the amount of sales only after the price breaks the level of 1.3715. The target of the fall is the area of 1.3430. An alternative scenario suggests that the price may test the level of 1.4095.
Pound is stuck inside the sideways movement with the resistance level of 1.5855, and the support level of 1.5690. At the moment we can recommend to try to sell the pair with the tight stop when the price gets close to the upper border. If the price leaves this “channel”, we should expect the movement with the potential of 150 pips.
In case of the USD/CHF currency pair the price returned to the level where the descending channel had been broken. One can consider buying the pair from here with the tight stop below 0.8915. The closest target of the growth is the area of 0.9125. The price testing the trend’s rising line at the RSI is an additional signal to buy the pair. If the price reaches a new local minimum in the area of 0.8875, this case scenario will be cancelled.
Australian Dollar continues moving downwards, reaching new minimums, and is about to leave the rising channel. The RSI indicator is testing the trend’s broken rising line, we should expect it to rebound from the line. If the price is higher than the trend’s line by the end of the week, this case scenario will be cancelled.
Canadian Dollar keeps testing the rising channel’s lower border, and there is still a possibility that it may grow. The target of the rising movement is the area of 1.1000, one can consider buying the pair with the tight stop. The price testing the channel’s lower border at the RSI is an additional signal of the growth.
Gold is moving according to the forecast. Currently we can see the formation of the descending symmetrical pattern with the target if the area of 1580. One can consider selling the instrument with the tight stop. If the price breaks the descending channel’s upper border and leaves it, this case scenario will be cancelled.