FX.co ★ EUR/USD Monthly Forecast for March 2011

MONTHLY OUTLOOK :

On monthly charts the pair has formed the Descending Triangle pattern, which indicates that the market looks confused about the situation now and this means the EUR/USD is a little bit drained out of volatility and the RSI (14) is betwen the 60 and the 40 levels too (it means sideways situation for this pair), however please pay attention to the breakout of this pattern, ussually it can cause a significant movement. For this month, if this pair can break out above the previous high at 1.3856, the spot rate will advance to at least the 1.3965 level as the first target and 1.4281 as the second target. On the other hand, if this pair can break out below the 1.3641 level, this will cause the pair to go down again to the 1.3589 level as the first target and the 1.3427 level as the second target.