Temporary consolidation
Dollar pairs slowed down their movement after starting to grow rapidly, but the trade goes on and it’s necessary to determine the trading range which is now offered by dollar. To determine also if the movement towards dollar’s growth will continue or the correction will start, and the depth of correction.
Dollar index
On the day’s graph the index has broken a descending green trend and the upper range of “double top” shape, what gives dollar a potential for further growth if the index remains above trends. Targets for further growth are high, and the correction may elongate up to level of 75.69.
Correction range determination using index let us trade in favour of dollar’s price reduction in following pairs:
GBPUSD
On a 4-hours graph the side trend continues. On an hour graph the side trend has also formed.
No rading recommendations:
EURUSD
The pair is set against an ascending green trend from the daily graph (see daily graphs in previous forecasts). When bounced of it, the pair formed a potential of growth to 1.4750, from where I expect further reducing as low as to 1.4200.
Of course, breaking of green trend from current levels is also possible.
Trading recommendations:
buy by market situation, but not higher than 1.4770 with a stop 1.4615 and a target 1.4750
USDJPY
I expect forming a “head & shoulders” shape on a daily graph with right shoulder’s end at price about 109.35. Forming of this shape is contributed by inability of rapid breaking of descending daily trend, and the divergence on a daily graph.
On a 4-hours graph the pair formed a “double top” shape with a target 109.35.
http://img225.imageshack.us/img225/7959/jpyh4ax2.gif - H4
Trading recommendations:
Sell at 110.15, target 109.35, stop 110.60
Buy 110.60, target 113.48, stop 110.15
GOLD
At Í4 Gold is in the side trend, having broken this trend it has a chance of growth to 807.00. I keep myself from trading for the time being.
Linear Mode
