Forecast for February 27th, 2012
The EUR/USD currency pair continues growing up. Currently the RSI indicator is testing the trend’s descending line. In general, the pair is moving inside the descending channel. Like we said earlier, one can consider selling Euro with the tight stop when reversal patterns appear at shorter time frames.
At the M30 chart of the pair we have “head & shoulders” reversal pattern forming at the MACD. We should expect the pair to fall towards the support level in the area of 1.3285. One can try to sell Euro with the tight stop. If the price grows higher than 1.3435, this case scenario will be cancelled.
In case of Pound the correction started. Currently the pair is forming “triangle” pattern at the H4 chart of the pair, we should expect the price to fall down towards the pattern’s lower border. One can consider selling the pair with the tight stop. If the price breaks the level of 1.5875, this case scenario will be cancelled.
At the daily chart of the NZD/USD currency pair we have “head & shoulders” reversal pattern forming with the target in the area of 0.8088. Right now the price is forming the second “shoulder”, one can consider aggressive sales with the tight stop and increase the amount of short positions only after the pair breaks the level of 0.8250. If the price reaches new local maximums, this case scenario will be cancelled.
Gold continues becoming more expensive. Currently the price is still forming “failure swing” reversal pattern at the RSI indicator, we should expect the pair to break the level of 1719. One can consider aggressive sales of the financial instrument with the tight stop. If Gold grows higher than 1800, this case scenario will be cancelled.
At the H1 chart we can see that the trend’s rising line at the RSI has been broken, we should expect the price to start falling down. The closest target of the fall is the area of 1755. Once can consider increasing the amount of short positions only after the price breaks the level of 1771.