Forecast for February 22nd, 2012
The EUR/USD currency pair is still being corrected, however, the daily chart indicates that Euro may continue falling down towards new minimums. The RSI indicator is testing the trend’s descending line, we should expect it to rebound and start moving downwards. One can consider selling the pair with the tight stop.
Pound continues moving according to our forecast, and right now the price is completing “head & shoulders” reversal pattern with the target in the area of 1.5724. One can consider selling the GBP/USD currency pair with the tight stop above 1.5865. The next target is the area of 1.5680.
In case of Franc we should also expect it to grow up, the target of the rising movement is the area of 0.9275. One can consider buying the USD/CHF currency pair at current prices. The formation of “head & shoulders” reversal pattern at the RSI is an additional signal to buy the pair. If the price breaks the level of 0.9075, this case scenario will be cancelled.
At the H4 chart of the NZD/USD currency pair the price is forming “broadening formation” pattern, we should expect the pair to fall down. The target of the fall is the area of 0.8065, one can consider selling the pair with the tight stop. If the pair grows higher than 0.8450, this case scenario will be cancelled.