Forex Technical Analysis 2011/01/12 (EUR/USD, DOLLAR INDEX, GBP/USD, USD/CAD) Forecast FX

Forecast for December 1^st, 2011

EUR/USD

At the moment the EUR/USD currency pair is testing the descending channel’s upper border, one can consider selling it with the tight stop placed above 1.3545. The final target of the descending pattern is the area of 1.2824. We recommend to increase the amount of short positions only after the price breaks the level of 1.3190. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.

Dollar Index

Dollar Index has fallen to the rising channel’s lower border. The target of the growth is the area of 81.50. We should expect the price to rebound from the border and start moving upwards. If the price leaves the rising channel, this case scenario will be cancelled.

GBP/USD

Pound also continues moving inside the descending pattern. Currently the price is testing the area for sales, one can consider opening short positions with the tight stop. The closest target of the fall is the level of 1.5358. If the pair grows higher than 1.5805, this case scenario will be cancelled.

USD/CAD

At the RSI Canadian Dollar was supported by the trend’s rising line. We should expect it to rebound from the line and start moving upwards. The target of the growth is the descending resistance line at the price chart in the area of 1.0410. If the USD/CAD currency pair falls lower than 1.0065, this case scenario will be cancelled.