Currencies are believed to move in cycles, which means that one may try to estimate and predict their future fluctuations. Technical analysis helps to look into behavior of currency pairs on the basis of traded value, movement direction, investors’ common interests, and fluctuations history.
Technical analysis offers a trader a range of patterns that can predict price movement. Some of them predict a price reversal in one direction or another, others - a repetition of changes. To make it easier to use technical analysis, there is a number of indicators that include several parameters from the price chart. So, both experienced and novice traders can resort to technical analysis - it is believed that both of them should be familiar with the basics of technical analysis. It should be noted that forecasts made based on technical analysis cannot be considered 100% accurate, but they can still make trading more efficient. This page presents conclusions and forecasts made by RoboForex experts based on tech analysis.
26.08.2010
Let’s get back to Australian Dollar that we sold following the reversal pattern; the price hasn’t dropped much and we had a small correction. Further on, we can expect a fall into the area of 0.8700 which will be a spot where the 4th point of reference is formed. Then the price will return to the level of 0.8885 and that’s where we start selling Australian Dollar with the general target in the area of 0.8580. If the price is out of the descending channel, it will lead to the situation when this case scenario will be cancelled.
25.08.2010
Euro seems to be sold; here we can see a descending pattern with the target in the area of 1.2550. One can begin selling the pair starting from the level of 1.2700-1.2750, or wait for the testing of the channel’s upper border and only then sell with the tight stop.
24.08.2010
The EUR/USD currency pair has almost reached the targets specified earlier. In fact, we could close positions, but according to the daily chart we can expect more significant fall, that’s why I would recommend to capture only a part of short positions.
23.08.2010
We should analyze the USD index to get a complete idea of a range of currencies. As we can see, the price, after it had formed a descending pattern, broke the channel; then we had a classic return to the level where the channel was broken, and currently the price has reached new maximum, which is higher than the previous one.
19.08.2010
The EUR/USD currency pair hasn’t formed the reversal pattern as we saw the fall in the rate. But one shouldn’t expect a significant fall, the most that can happen is that the pair will hit the new local minimum and then go up again. At Н4 chart we can see MACD “divergence” forming, it’s rather strong so it would be quite difficult to break it.
18.08.2010
We still have “head & shoulders” reversal pattern forming and keep holding long positions with the target of 1.3040. It is desirable that the stops should be moved into the black.
16.08.2010
There is a strong desire to buy this currency pair. Last week, in one of our analyses we talked about “head & shoulders” reversal pattern forming, but at that time we lacked the “right shoulder” to complete it. But after today’s fall, we have the “right shoulder”. We can try to buy now, the stop is about 80-100 point
13.08.2010
New Zealand Dollar continues to fall; one can try to sell with the target in 0.7041 area. As we can see, the price is testing the channel’s upper border, RSI indicator is showing that the price has encountered resistance and the indicator will probably continue to fall. In general
