Forex Technical Analysis 2011/05/08 (EUR/USD, GBP/USD, USD/CHF, NZD/USD, USD/CAD) Forecast FX

Forecast for August 5^th, 2011

EUR/USD

The EUR/USD currency pair is moving inside the descending channel, the target of the fall is the area of 1.4068. When the price reaches this level we should expect the pair to grow to the level of 1.4630. One is recommended to buy the pair only after the price leaves the descending channel. But if the price falls lower than 1.4020, this case scenario will be cancelled.

GBP/USD

Pound keeps moving according to the forecast, the target of the fall is the area of 1.6160. One can consider selling the pair with the tight stop above 1.6410. If the price breaks the descending channel’s upper border, this case scenario will be cancelled.

USD/CHF

The USD/CHF currency pair is moving inside the descending channel, the target of the fall is the area of 0.7373. The price testing the trend’s descending line at the RSI is a signal to sell the pair. The area for sales is the level of 0.7809. But if the price leaves the channel, this case scenario will be cancelled.

NZD/USD

At the daily chart of the NZD/USD currency pair the RSI indicator was supported by the trend’s rising line. We should expect the price to rebound from it and start moving upwards. The target of the growth is the area of 0.8975.



At the H4 chart we can see the formation of the rising pattern with the target in the area of 0.8939. One can consider buying the pair only after the price starts forming reversal patterns at shorter periods of time or breaks the level of 0.8590. But if the price falls lower than 0.8460, this case scenario will be cancelled.

USD/CAD

Canadian Dollar has left the descending channel, thus cancelling the scenario according to which the price was to fall down. One can consider opening short positions only after the price breaks the rising channel’s lower border. The target of the fall is the area of 0.9390. One should also pay attention that the market has broken the trend’s rising line at the RSI.