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

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MONTHLY OUTLOOK :

If we look at monthly charts, the pair is making a "Bullish Penant" formation. As we know, this is a Continuation Pattern and if the spot currency hit the triangle trendlines for 3 times we should be prepared for some breakout of this triangle pattern; the RSI also gives us a clue for the "Double Bottom" pattern (red: the Reversal Pattern). So we expected a breakout of the Upper trendlines of the triangle pattern, if this level can be broken out the EUR/USD will test the next Resistance at 1.4353. On the other hand if the pair can break out below 1.4150, it is expected to go down and test the next Support at 1.4025; in monthly charts the pair will make a new label (4) after it hits the triangle pattern trendlines forthe fourth time.