Forecast for October 5th, 2011
The EUR/USD currency pair keeps falling down. As we expected, the price has broken the support line and returned inside the reversal pattern. One can consider buying Euro with the tight stop. The target of the growth is the area of 1.3840. But if the price reaches a new minimum at the level of 1.3150, this case scenario will be cancelled.
At the daily chart of the GBP/USD currency pair we have “failure swing” reversal pattern forming at the RSI. The closest target of the growth is the level of 1.5637. If the price breaks this level, “double bottom” reversal patter will be formed, with the targets which are higher. But if the price breaks the level of 1.5295, this case scenario will be cancelled.
At the daily chart of the USD/CHF currency we have “head & shoulders” reversal pattern forming at the RSI, we should still expect the descending movement to start. The closest target of the fall is the level of 0.8710. If the price breaks this level, we should expect the pair to fall even lower.
We may assume that New Zealand Dollar has reached the 4th
point of reference, which is expected to be a starting point of the correction to the descending channel’s upper border in the area of 0.8055. One can consider selling the NZD/USD currency pair from this area. The target of the descending pattern is the area of 0.7170. Right now we only recommend you to try to buy the pair aggressively with the tight stop.