Forex Technical Analysis 2011/17/10 (EUR/USD, GBP/USD, USD/JPY, DAX) Forecast FX

Forecast for October 17^th, 2011

EUR/USD

The EUR/USD currency pair is still inside the rising channel. At the RSI we have “head & shoulders” reversal pattern forming, one can try to sell the pair with the tight stop. The target of the fall is the area of 1.3530, the stop must be placed above 1.3875.

GBP/USD

At the daily chart of the GBP/USD currency pair we can see the formation of the descending symmetrical pattern with the target in the area of 1.5095. At the moment we should expect the price to fall to the level of 1.5425, and then to grow to the descending channel’s upper border in the area of 1.6055. The price testing the trend’s rising line at the RSI is an additional signal to sell the pair. If the price grows up to the channel’s upper border, this case scenario will be cancelled.

USD/JPY

The USD/JPY currency pair is moving inside the descending channel, at the moment the price is testing the channel’s upper border. One can consider selling the pair with the tight stop. The price testing the resistance line at the RSI is an additional signal to sell the pair. The target of the fall is the area of 73.05.

DAX

DAX is moving inside the descending pattern with the target in the area of 4747, one can consider selling the instrument with the tight stop. If the price leaves the descending channel, this case scenario will be cancelled. The price testing the descending channel’s upper border at the RSI is an additional signal to sell the instrument.