Forex Technical Analysis 2011/02/12 (EUR/USD, GBP/USD, USD/CHF, NZD/USD) Forecast FX

Forecast for December 2^nd, 2011

EUR/USD

The EUR/USD currency pair continues testing the descending channel’s upper border. One can consider selling (but not buying) the pair while the price is inside the channel. The stop must be placed behind the local maximum. The closest target is the channel’s lower border. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.



Judging by the price structure of the H1 chart, we can expect the pair to fall down to the level of 1.3115. One can consider selling the pair with the tight stop and increase the amount of sales only after the price leaves the descending channel. It he pair grows higher than 1.3545, this case scenario will be cancelled.

GBP/USD

Pound also continues moving inside the descending pattern, at the moment the price is testing the descending channel’s upper border. The target of the fall is the area of 1.5345. One can consider selling the pair with the tight stop and increase the amount of short positions only after the price leaves the descending channel.

USD/CHF

At the daily chart the USD/CHF currency pair continues moving inside the rising pattern. We should expect the price to test the trend’s rising line at the RSI and then to start moving upwards with the target of 0.9957. If the trend’s line is broken and the indicator continues falling down, this case scenario will be cancelled.

NZD/USD

Despite the strong correction, New Zealand Dollar is still moving inside the descending channel. The final target of the fall is the area of 0.7197. The price testing the trend’s descending line at the RSI is an additional signal to sell the pair. We should expect it to rebound from the line and start moving downwards.