Forex Technical Analysis 2012/21/02 (EUR/USD, GBP/USD, USD/CHF, GBP/JPY) Forecast FX

Forecast for February 21^st, 2012

EUR/USD

The EUR/USD currency pair continues growing up. At the moment the RSI indicator is facing the resistance from the trend’s descending line, we should expect it to rebound from the line and start moving downwards. The closest target of the fall is the area of 1.3050, the next one - 1.2830. One can consider selling the pair with the tight stop and increase the amount of sales only after the price breaks the level of 1.2975. If the price breaks the level of 1.3300, this case scenario will be cancelled.

GBP/USD

At the daily chart of the GBP/USD currency pair we have “failure swing” reversal pattern forming at the RSI. The target of the fall is the area of 1.5693. After the price breaks the support level at the RSI, we should expect the pair to start moving downwards. One can consider selling the pair with the tight stop. After the pair breaks the trend’s rising line at the RSI, we should expect the pair to fall down towards the level of 1.5330.

USD/CHF

Franc fell down a bit lower than we predicted. At the moment the price is forming the 2^nd pivot point, which is expected to be a starting point of the growth. The target of the rising movement is the area of 0.9422, one can consider buying the USD/CHF currency pair with the tight stop. If the price breaks the level of 0.9090, this case scenario will be cancelled.

GBP/JPY

The GBP/JPY currency pair continues moving inside the rising pattern, at the moment we should expect it to rebound and start growing up towards the level of 127.89. The test of the trend’s rising line at the RSI is an additional signal to buy the pair. If the price breaks the lower border and leaves the rising channel, this case scenario will be cancelled.