Forecast for April 22nd, 2011EUR/USD
The EUR/USD currency pair has reached a new local maximum and continued growing. At the moment the hourly chart of the pair is still indicating the correction of the price into the area of 1.42. The value of the RSI indicator has not grown higher than 70. The weekly chart also indicates that Euro is falling down, we should expect the price to reach a new local minimum in the area of 1.14. The price testing the trend’s descending line at the RSI confirms the scenario described above. The indicator is moving inside the rising channel, we should expect the price to start moving downwards and test the channel’s lower border. But if the price breaks the level of 1.5140, this case scenario will be cancelled.
In case of Pound we should expect the price to fall to the channel’s lower border in the area of 1.6380. One can try to buy the pair from this area with the target of 1.6780. If the price breaks and leaves the channel, this case scenario will be cancelled.
At the hourly chart of the NZD/USD currency pair we have “failure swing” reversal pattern at the RSI indicator, the target of the fall is the area of 0.7945. One can try to sell the pair with the tight stop above 0.8020.
In case of Australian Dollar we should also expect the price to be corrected, to the level of 1.0665, where one can try to open long positions. The target of the growth is the level of 1.0825. If the price breaks the channel’s lower border, this case scenario will be cancelled and we should expect a strong corrective movement.